Page 17 - GLNG Week 01 2021

GLNG NEWS IN BRIEF GLNG

AUSTRAL ASIA

Bayu-Undan infill

development FID

Santos, as operator of the Bayu-Undan Joint
Venture, today announced a Final Investment
Decision for the $235mn Phase 3C infill
drilling programme at the Bayu-Undan field
in the Timor Sea, offshore Timor-Leste.
The programme comprises three
production wells (two platform and one
subsea) and will develop additional natural
gas and liquids reserves, extending field life as
well as production from the offshore facilities
Petronas Carigali takes pipeline, that will supply re-gasified liquefied and the Darwin LNG plant.
Sanction of the project comes less
natural gas (RLNG) for the upcoming
over operatorship of E11 gas RLNG-based 900 MW BQPS-III power plant than seven months after Santos became
and supplementing fuel requirement of the
operator of the Bayu-Undan Joint Venture
hub, offshore Sarawak power plants located at its Bin Qasim power following completion of the acquisition of
ConocoPhillips’ northern Australia and
complex.
Petronas through its subsidiary, Petronas This is a very positive development for KE Timor-Leste assets.
Carigali Sdn Bhd (PCSB), today announced as the grant of the license by OGRA is a first The wells will be drilled using the Noble
that it has taken over the operatorship of the ever license obtained by KE in the oil & gas Tom Prosser jack-up rig, with the first well
E11 gas hub, located 130km offshore Bintulu, sector and is a key step in ensuring that the scheduled to spud in 2Q 2021, and production
Sarawak, effective January 1, 2021. upcoming BQPS III power plant receives the from the first well expected in 3Q 2021.
The E11 hub which has been producing right amount of gas, at the right pressure. This Santos managing director and chief
since 1982 under the MLNG production- milestone will go a long way in helping bridge executive officer Kevin Gallagher said: “We are
sharing contract had been operated by the supply-demand gap in Karachi in the delighted to be able to pursue an opportunity
Sarawak Shell Berhad (SSB) for the past 38 years to come. that wasn’t on the table 12 months ago,
years. In the notification issued on January 6, which will optimise field recovery, extend
Petronas vice president of Malaysia assets, 2021, OGRA grants a licence to K-Electric production and deliver significant value to
Bacho Pilong said: “On behalf of Petronas, I Limited to undertake regulated activity related both the Bayu-Undan Joint Venture and the
would like to thank SSB for operating the E11 to construction and operation of 14 inch people of Timor-Leste.
gas hub in an efficient and responsible manner diameter x 2.4-km natural gas pipeline along “Only through a close and constructive
for more than three decades. I am pleased to with ancillary/connected facilities for purpose working relationship with the Timor-Leste
note that SSB and Petronas had implemented of transmission of natural gas/RLNG from Government and our joint venture partners
all the necessary activities since July 2019 to tie-in point, SSGC custody transfer station have we been able to move so quickly towards
ensure a smooth handover of the E11 hub.” located at Bin Qasim to KE Bin Qasim power our shared goal of maximising value from the
“Today marks a significant milestone for complex.” Bayu-Undan field.
PCSB as the operator of the E11 hub which is K-Electric had submitted an application “This infill drilling programme adds over
pivotal in ensuring reliable, stable and cleaner for the same on May 18, 2020, so as to ensure 20mn barrels of oil equivalent gross reserves
energy supply to the market, while continuing the pipeline would be built in time for the and production at a low of cost of supply and
to develop Sarawak as a regional gas hub,” he commissioning of the first unit of BQPS- extends the life of Bayu-Undan, reducing the
added. III. It is pertinent to note that in the interest period that Darwin LNG is offline before the
PETRONAS, January 07, 2021 of expediting the process, the power utility Barossa project comes on stream.”
has agreed to undertake the construction of Santos currently has a 68.4% interest and
OGRA approves K-Electric the pipeline from the nearest SSGC custody operatorship in Bayu-Undan and Darwin
LNG which will reduce to 43.4% upon
transfer station, on a self-finance basis. The
licence for construction EPC contractor and the owner engineer for completion of a 25% sell down to SK E&S.
“Completion of the SK E&S sell-down is
this pipeline project are already on-board,
and operation of pipeline the detail design of is already completed now well advanced with consent from Bayu-
and the pipeline material has already been
Undan/DLNG Joint Venture and Timor-Leste
for transmission of natural procured. Now, with the issuance of License regulator received before Christmas last year
and we are well progressed with Australian
by OGRA, K-Electric has immediately
gas/RLNG started construction of pipeline for its timely regulatory approvals. The sell-down will
complete once the final investment decision
availability for commissioning of 900 MW
In welcome news for the citizens of Karachi, power plant. on Barossa is taken in 1H 2021,” Mr Gallagher
the Oil and Gas Regulatory Authority K-ELECTRIC, January 07, 2021 said.
(OGRA) has approved K-Electric’s application SANTOS, January 05, 2021
for a license to construct and operate a gas

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