Baron Oil Gets Six-Month Extension for Chuditch PSC Offshore Timor-Leste

Friday, June 2, 2023

Baron Oil's subsidiary SundaGas, which operates the Chuditch PSC, offshore Democratic Republic of Timor-Leste, has been granted a further six-month extension to Contract Year Two of the PSC by the relevant Timor-Leste national authority, Autoridade Nacional do Petróleo e Minerais ("ANPM").

Contract Year Two of the PSC will now expire on December 18, 2023, with a subsequent commitment, on entry into Contract Year Three, for the drilling of one well to appraise the Chuditch-1 discovery. 

The practical effect of this is that a decision on whether to enter the drilling phase is now required to be taken at or before that date.

The extension to PSC Contract Year Two was requested to allow additional time for the necessary preparations prior to entering the drilling phase of the PSC. These activities include the detailed evaluation of candidate drilling locations and well trajectories for input into the final well design.

Baron Oil said the arrangements were being made to extend the existing US$1 million Bank Guarantee from its current expiry date of 1 August 2023 to cover the extension period.

Farmout Talks

"As the company indicated in its Final Results for 2022 on 23 May 2023, there are a number of ongoing discussions with third parties regarding participation in the Chuditch appraisal well and future activities. Whilst there is the usual uncertainty over whether and when such discussions may come to fruition, the granting of a further six-month extension and its associated work program maximizes the chances of success. We look forward to updating shareholders on progress as and when appropriate," Baron Oil said.

To remind, Baron Oil said in October 2022 that its Chuditch Production Sharing Contract could hold much more gas than previously estimated. Read more here.

Categories: Industry News Activity Asia Regulations Energy

Related Stories

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Sapura Energy Rebrands to Vantris Energy

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

China Rolls Out 17MW Floating Wind Turbine Prototype

KBR-SOCAR Joint Venture Secures Work for BP in Azerbaijan

EnQuest Acquires Harbour Energy’s Vietnamese Assets

Fugro Lands Deepwater Gas Field Job in Southeast Asia

Current News

Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

Sapura Energy Rebrands to Vantris Energy

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com