Page 11 - AsianOil Week 21 2021

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Santos starts Timor-Leste drilling programme

PROJECTS & AUSTRALIAN independent Santos has started wells, with first production expected in the third
COMPANIES the Phase 3C infill drilling programme at the quarter.
Bayu-Undan field offshore in Timor-Leste. Gallagher added: “The infill drilling pro-
The company, which operates the Bayu-Un- gramme will add over 20mn barrels of oil equiv-
dan joint venture, said on May 25 that the devel- alent [boe] gross reserves and production at a
opment would include three production wells. low cost of supply and importantly extends the
Santos hopes to bolster the field’s gas and liquids life of Bayu-Undan and the jobs and investment
reserves, thereby extending both its life as well that rely on it.”
as production from the Darwin liquefied natural The head of Timor-Leste’s upstream regula-
gas (LNG) plant. tor Autoridade Nacional do Petroleo e Minerais
Santos signed off on the $235mn infill drill- (ANPM), Florentino Soares Ferreira, said: “The
ing programme in January as a means of min- Phase 3C drilling campaign … will mark the
imising Darwin LNG’s downtime between first drilling campaign in the Bayu-Undan field
when Bayu-Undan had been forecast to run dry as Timor-Leste offshore waters, following ratifi-
and the anticipated start-up of the Barossa gas cation of the Maritime Boundary Treaty (MBT)
project. between Timor-Leste and Australia.”
The Santos-led consortium developing the He added: “The decision for the Phase 3C
Barossa natural gas and condensate field reached infill well investment has gone through a thor-
a final investment decision (FID) on the $3.6bn ough assessment, taking into consideration
project in March. That field lies offshore Austral- relevant critical workstreams, which include
ia’s Northern Territory. the Phase 3C economic and technical review,
Santos managing director and CEO Kevin procurement and local content strategy and reg-
Gallagher said the Noble Tom Prosser jack-up ulatory approval to preserve the value and eco-
rig is responsible for drilling the Bayu-Undan nomics of the project.”™

OCEANIA

NZOG, Cue farm in to three fields in NT

FINANCE & NEW Zealand Oil & Gas (NZOG) and its South- Development is anticipated to include
INVESTMENT east Asia-focused subsidiary Cue Energy have four well recompletions and up to 10 wells.
reached a deal to farm into Central Petroleum’s Central Petroleum said these included one
three producing assets in Australia’s Northern committed exploration well in both Palm
Territory. Valley Deep and Dingo Deep – with options
NZOG said on May 25 that the two compa- to complete as producers – as well as two
nies had agreed to pay AUD29mn ($22.4mn) for development wells currently progressing at
a 25% stake in the Mereenie oil and gas field, 50% Mereenie.
of the Palm Valley gas field and 50% of the Dingo Central Petroleum, meanwhile, said the
gas field – all of which lie in the Amadeus Basin. sale would also deliver AUD23mn of con-
Central Petroleum will continue to operate the sidered value through NZOG and Cue’s
fields as well as handle gas sales under a joint assumption of obligations relating to the
marketing agreement. supply of up to 4.9 PJ (127.64mn cubic
NZOG said the fields would boost its metres) of gas that had previously been
proven and probable (2P) reserves by 14.5mn paid for but not delivered under pre-sale or
barrels of oil equivalent (boe), with the com- “take-or-pay” arrangements.
pany noting that there was further exploration The deal is expected to close in the third quar-
upside potential. ter, with Central Petroleum noting that it would use
NZOG will pay AUD20.3mn ($15.7mn) for the proceeds from the sale to repay a AUD30mn
a 70% stake in the assets, while Cue will stump ($23.2mn) Macquarie Bank loan facility.
up AUD8.7mn ($6.7mn) for the remaining 30% NZOG CEO Andrew Jefferies, meanwhile,
interest. NZOG owns a 50.04% stake in Cue. said the deal was in line with his company’s
The New Zealand-headquartered developer strategy of growth through the acquisition of
added that in addition to the cash payment, producing assets.
which will be adjusted for revenues and costs He added: “The assets have multiple devel-
from July 1, 2020, the two companies would also opment and exploration pathways to growth,
fund Central Petroleum’s share of exploration, which this deal will unlock. It also helps achieve
appraisal and development costs up to a capped value for Cue shareholders, including [NZOG],
total of AUD40mn ($31mn). and puts our business on a growth trajectory.”™

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