Australian oil and gas company Santos has started Phase 3C infill drilling program at the Bayu-Undan field, offshore Timor-Leste.
Under the $235 million drilling program, sanctioned in January, Santos will drill three production wells and will develop additional natural gas and liquids reserves, extending field life as well as production from the offshore facilities and the Darwin LNG plant.
The wells will be drilled using Noble Corporation's Noble Tom Prosser jack-up rig, with the first production expected in 3Q 2021.
“The infill drilling program will add over 20 million barrels of oil equivalent gross reserves and production at a low cost of supply and importantly extends the life of Bayu-Undan and the jobs and investment that rely on it," said Santos Managing Director and Chief Executive Officer Kevin Gallagher.
“With more than 400 Timorese currently working on Bayu-Undan activities, this will make an important economic contribution to Timor-Leste and keep our workforce both in Timor-Leste and Darwin in jobs for longer.”
Florentino Soares Ferreira, president of Timor-Leste Government's Autoridade Nacional do Petróleo e Minerais (ANPM) said: “The Phase 3C drilling campaign is another milestone in the history of Timor-Leste. It will mark the first drilling campaign in the Bayu-Undan field as Timor-Leste offshore waters, following ratification of the Maritime Boundary Treaty (MBT) between Timor-Leste and Australia.
Santos has a 43.4% operated interest in Bayu-Undan. The remaining interest is held by SK E&S (25%), INPEX (11.4%), Eni (11%), JERA (6.1%), and Tokyo Gas (3.1%).
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