Santos has confirmed that a final investment decision (FID) has been made for the $US235 million ($306 million) Phase 3C infill drilling program at the Bayu-Undan field in the Timor Sea offshore Timor-Leste.
The program includes three production wells (two platform and one subsea) and will develop additional natural gas and liquid reserves, extending field life as well as production from the offshore facilities and the Darwin LNG plant.
Santo (68.4 per cent) became operator of the Bayu-Undan joint venture seven months ago after acquiring ConocoPhillips’ northern Australia and Timor-Leste assets.
The wells will be drilled using the Noble Tim Prosser jack-up rig, with the first well scheduled to spud in the second quarter of the year. Santos expects production to start from the first well in the third quarter of this year.
Santos managing director and chief executive Kevin Gallagher said this opportunity would optimise field recovery, extend production and deliver significant value to the JV and people of Timor-Leste.
“The infill drilling program adds over 20 million barrels of oil equivalent gross reserves and production at a low cost of supply and extends the life of Bayu-Undan, reducing the period that Darwin LNG is offline before the Barossa project comes on stream,” Gallagher said.
Santos’ interest in the JV will reduce to 43.4 per cent once it completes a 25 per cent sell down to SK E&S.