Santos makes FID on Bayu-Undan development drilling

Santos Ltd, Adelaide, operator of Bayu-Undan gas field in the East Timor jurisdiction of the Timor Sea, has made a final investment decision for the US$235-million Phase 3C infill development programme.

 

The programme will involve drilling of three production wells, two from the fixed platform and one subsea, with the aim of developing additional gas and liquids reserves from the reservoirs.

 

Sanction comes six months after Santos took over operatorship of the Bayu-Undan joint venture following the company’s acquisition of ConocoPhillips’ northern Australia and east Timor assets.

 

The wells will be drilled with the Noble Tom Prosser jack-up rig, with the first well to be spudded in this year’s second quarter. Production from this first well is expected during the year’s third quarter.

 

The infill programme will add more than 20 MMboe of reserves and production at a low cost of supply. Hence it will extend the life of the field and reduce the period that Bayu-Undan is offline before the new Barossa gas project in the Australian sector of the Timor Sea is brought on stream and hooked into Darwin LNG facilities, the company said.

 

Santos has a 68.4% interest and operatorship of Bayu-Undan and Darwin LNG which will reduce to 43.4% upon completion of a 25% sell-down to Korean company SK E&S.

 

Completion of the deal is advancing. Consent from the Bayu-Undan-Darwin LNG joint venture and the East Timor regulator was received in December 2020. Australian regulatory approvals are progressing.

 

The sell-down will complete upon the Barossa project final investment decision, which is expected in this year’s first half.

 

Source: Oil & Gas Journal