SANTOS – BAYU-UNDAN PHASE 3C INFILL PRODUCTION BETTER THAN EXPECTED

Santos, as operator of the Bayu-Undan Joint Venture, announced that production from the Phase 3C infill drilling program at the Bayu-Undan field had begun with the first well producing a better than anticipated outcome.
The first well has been brought online at 178 million standard cubic feet per day (mmscfd) of gas and 11,350 barrels per day (bbl/d) of liquids, significantly increasing liquids production to over 25,000 bbl/d from the field and increasing offshore well capacity for supply of gas to the Darwin LNG plant.
The Noble Tom Prosser jack-up rig has now commenced drilling the second of the three wells, with the program expected to be completed early next year and will maximise value from the Bayu-Undan field.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “We are delighted to see first production from the 3C program, which is immediately delivering value to both the Bayu-Undan Joint Venture and the people of Timor-Leste and importantly helps extend the life of Bayu-Undan and the jobs and investment that rely on it.
“Following the successful result from the first of the Van Gogh Phase 2 infill wells, today’s results are another example of Santos creating incremental value from acquired assets.
“We’ve seen a better than expected reservoir outcome with this first well of the campaign, with successful results across both the primary and secondary targets in the well and a much higher initial gas production rate than expected.”
“It has not come without its challenges, managing crew movements with COVID-19 outbreaks either side of the Timor Sea, so I want to acknowledge the efforts of our team, our Joint Venture partners and specifically the Timor-Leste regulator, Autoridade Nacional do Petróleo e Minerais (ANPM), in keeping this exciting program on track.”
The successful drilling and tie-in of the first of three new wells comes six months after a Final Investment Decision and has lifted natural gas and liquids production for the field in Timor-Leste offshore waters.
ANPM President Florentino Soares Ferreira said: “From the outset, the Phase 3C program has been seen as an opportunity to maximise the ultimate recovery in the Bayu-Undan field. This was of course a calculated decision from the regulatory side considering we are working under the Production Sharing Agreement regime in which the cost recovery scheme is a fundamental element in our assessment.
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%).
(Source: Santos – Bayu-Undan offshore facility)