Chinese offshore drilling contractor China Oilfield Service Ltd (COSL) has emerged as a front-runner for a major drilling contract to be offered by France's Total for further developing the Yadana gas field in the Andaman Sea off Myanmar, writes Xu Yihe.

Industry officials said COSL stands a high chance of beating rivals including PV Drilling and Seadrill to win the award covering four wells at the field, with drilling to start at the end of October.

The four wells, comprising two production wells and one wildcat plus a one-well option, are expected to be completed at the end of May next year.

One source suggested that Total has already sent a letter of award to COSL, although the commercial contract is yet to be signed.

COSL has offered its jack-up drilling rig COSL Boss, built by Singapore’s Keppel yard in 2008 and which is now ready stacked off Indonesia after having completed its employment with Austrian operator OMV for a workover programme at the Pohokura field in New Zealand.

The rig is designed to operate in water depths of 400 feet and can drill to a sub-surface depth of 30,000 feet.

Production at Yadana started in 1998 and the field now has plateau output of 8 billion cubic metres per year of gas.

Total and its partners are trying to drill more infill wells and sidetracks as well as develop new nearby prospects to maintain plateau production beyond 2020.

As part of the Yadana expansion, Total two years ago brought on stream the Badamyar satellite field, which has enabled an extension of the Yadana field’s 8 Bcm annual plateau production beyond 2020.

The Badamyar project involves the installation of a new wellhead platform connected to the Yadana production facilities, and the drilling of four horizontal wells to develop the satellite field.

The project also includes a new compression platform.

The Yadana project meets about half of Myanmar’s gas demand and also supplies significant volumes of pipeline gas to neighbouring Thailand.

The Yadana facilities include two wellhead platforms, one bridge-linked wellhead platform, production platform, living quarters platform and a medium compression platform.

Produced gas is exported through two pipelines.

The field holds more than 150 Bcm of natural gas reserves in water depths of 40 metres.

Total holds a majority working interest of 31.2% as the operator, while Chevron of the US holds 28.3%, PTTEP of Thailand has 25.5% and Myanma Oil & Gas Enterprise holds a 15% stake.

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