Timor-Leste awards Chuditch offshore block to SundaGas
The government of Timor Leste has signed a production sharing contract with Sunda Gas and TIMOR Gap – the national oil company of Timor-Leste – for an offshore block containing the Chuditch discovery.
The licence, formally named the PSC TL-SO-19-16, is situated in the south of the former Joint Petroleum Development Area (JPDA) with Australia.
As previously reported, in August Timor-Leste and Australia signed a maritime border treaty, under which oil and gas fields shared between Australia and Timor-Leste in the Joint Petroleum Development Area transitioned to Timor-Leste’s exclusive jurisdiction.
As part of the agreement signed with the Timor-Leste government for the block containing the Chuditch gas discovery (found in 1998), SundaGas and TIMOR GAP have committed to carrying out the exploration work programme for a seven-year exploration period in the 3571.49 square kilometre block.
The minimum work programme in the initial period (years one to three) includes the seismic reprocessing of 800 km² of 3D seismic data and 2000 line kilometres of 2D seismic data and review of hydrocarbon potential of the entire contract area.
If the result of the seismic reprocessing supports the presence of a significant structure associated with the Chuditch discovery, the term of the licence will call for the drilling of one appraisal well.
The second licence period (years four and five) will include a post-well evaluation study, drilling of one exploration well, and development scenario planning for Chuditch discovery.
The third period (years six and seven) includes geological and geophysical studies, development scenario planning, and drilling of two (2) exploration or appraisal wells.
Andy Butler, SundaGas CEO, said the first priority would be to refine the understanding of the significant Chuditch gas resource and identify the optimal location for the first appraisal well.
“We will do this in parallel with the maturation of additional prospects to put together a drill-ready exploration portfolio. This is a very important milestone for SundaGas, and we look forward to progressing technically and commercially to ensure the timely development of the discovered and undiscovered resources for the benefit of Timor-Leste,” Mr Butler said.
Source: Offshore Energy Today