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Santos Taps McDermott for Bayu Undan EPCI

July 7, 2021

Bayu Undan - Credit: ConocoPhillips Australia (File Photo)
Bayu Undan - Credit: ConocoPhillips Australia (File Photo)

Oilfield services company McDermott has won a contract to deliver subsea systems for Santos' Bayu Undan field in the Timor Sea.

The contract is for a Subsea, Engineering, Procurement, Construction and Installation (EPCI) of equipment at the Bayu-Undan Infill Well Phase 3C Project, in the Timor Sea, located approximately 310 miles (500 kilometers) off the northwest coast of Darwin, Australia, and 124 miles (200 kilometers) off the southeast coast of Timor-Leste.

The Bayu-Undan field is one of Timor-Leste's largest gas fields. Work on the Phase 3C Project began in May and, the scope will be managed by McDermott's office in Perth. 

The McDermott scope involves a tieback of a single in-field well to existing facilities re-using existing flexible flowline with a new umbilical and certain infrastructure.

Santos in May started Phase 3C infill drilling program at the field.  As partn of 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 are being 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 said at the time.

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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