Santos says output better than expected at Bayu-Undan
Santos on July 28 said that production from the phase 3C infill drilling programme at the Bayu-Undan field, offshore Timor-Leste, had begun with the first well producing a better than anticipated outcome.
“The first well has been brought online at 178mn ft3/day of gas and 11,350 barrels/day of liquids, significantly increasing liquids production to over 25,000 b/d from the field and increasing offshore well capacity for supply of gas to the Darwin LNG plant,” Santos said.
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The Noble Tom Prosser jack-up rig has now started drilling the second of the three wells, with the programme expected to be completed early next year.
"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,” Santos CEO Kevin Gallagher said.
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, Santos said.
Timor-Liste petroleum and mining regulator Autoridade Nacional do Petroleo e Minerais president Florentino Soares Ferreira said the phase 3C programme 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,” Ferreira said.
"The successful result of the first 3C well has proven to us that our decision for approval was correct. We can now give additional hope to Timor-Leste with the increase of production and extension of the Bayu-Undan field life, and we look forward to the success of the two remaining 3C wells,” he added.
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%).