Kitan Oilfield, Australia

The Kitan oilfield lies in permit 06-105 of the Joint Petroleum Development Area (JPDA), 170km offshore the Timor-Leste coast and 500km from the Australian coast.

JPDA is jointly administered by Timor-Leste and Australia, and is regulated by Petroleum Safety Authorities (PSA).

The Kitan field was discovered in 2008. Eni is the operator with a 40% interest, while its joint venture partners Inpex has 35% and Talisman Resources has 25%.

The field's reserves are estimated to be in the range of 30-40 million barrels of oil.

The field can produce up to 20,000bopd and lies at water depth of around 1,000ft. First production from the field is expected in the second half of 2011.

The final investment decision on the field development is expected to be made in 2010, with first production expected in 2011.

Kitan oilfield development

"Kitan's reserves are estimated at 30 million to 40 million barrels of oil."

The field development started in April 2010. It is being developed as three subsea wells connected to FPSO Bluewater.

Eni acquired its share and operatorship in the permit in September 2007 while Intex acquired the same in 1992. Initial exploration resulted in the oil discovery in the Jahal Structure (1996) and Kuda Tasi Structure (2001). The field's first oil discovery over the field was made by Eni in March 2008.

The discovery was made by exploration well Kitan-1, which was drilled by Songa Venus semisubmersible rig to a total depth of 3,568m. The initial test result reported the flow rate at 6,100bopd. The data was further interpreted for evaluating the potential dimension of the discovery.

The discovery is expected to strengthen the regional presence and growth opportunities for Eni and its joint venture partners in the field development.

The drilling of appraisal well Kitan-2 was completed in March 2008 and proved the presence of a potential commercial oil accumulation. In June 2008, the development of the area was approved by Timor Sea Designated Authority (TSDA) as the discovery was confirmed as commercial. The operator proceeded with the preparation of the field development plan.

The development plan for the field was submitted to National Petroleum Authority of Timor-Leste in May 2009.

Glas Dowr FPSO

Eni gave the Letter of Award for Chartering, Operation and Maintenance of the Glas Dowr upgraded FPSO for the project in January 2010 to Bluewater, which will operate and maintain the FPSO. Mooring system facilities along with logistics and ancillary services associated with the FPSO will also be provided by Bluewater. The FPSO will be retained for five years and can be extended up to ten years.

"The drilling of appraisal well Kitan-2 was completed in March 2008."

Glas Dowr is designed, built and operated by Bluewater. The fifth among the FPSOs designed by the company, Glas Dowr became operational in August 1997.

The vessel is 242.3m long, 42m wide, and has a deadweight tonnage of 105,000dwt. The deck area covers 7,985m² and it can provide accommodation for up to 96 people.

Songa Venus rig

The semisubmersible drilling unit Songa Venus is owned by Songa Offshore AS. The rig was built in 1975 by Bethlehem Steel Corporation. It was designed based on the F&G L-900.

The rig is 260ft wide and 217ft long and can operate at water depth up to 1,500ft. Its maximum drilling capacity is 25,000ft and it can accommodate 110 people.

Kitan contracts

"In May 2010 Technip won the Kitan subsea contract."

The contract for the manufacture and supply of subsea equipment for the field was awarded to FMC Technologies in June 2009.

The contract work included the supply of three subsea production trees and all related control systems and umbilicals. The value of the contract amounted to $60m.

In May 2010 Technip won a subsea contract for the field. The scope of work includes the supply and installation of 23km of flowlines and risers, and three umbilicals. Technip is expected to commence offshore installation of the subsea equipment in the first half of 2011. The company's construction vessel Venturer will be used for carrying out the installation works.