‘It is another opportunity to maximise hydrocarbon production recovery and extension of production life’: $235 million Phase 3C infill drilling program starting

Santos’ $4.7 billion NT gas investment to create 600 jobs and unlock new business and export opportunities, has taken another giant leap forward.

SANTOS’ $4.7 billion NT gas investment to create 600 jobs and unlock new business and export opportunities, has taken another giant leap forward with the $235 million Phase 3C infill drilling program starting at the Bayu-Undan field north west of Darwin.

The program, given a Final Investment Decision in January this year, comprises three production wells and will develop additional natural gas and liquids reserves, extending field life as well as production from the offshore facilities and the Darwin LNG plant.

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Santos managing director and chief executive officer Kevin Gallagher said the infill drilling program would add more than 20 million barrels of oil equivalent gross reserves and production at a low cost of supply, importantly extending the life of Bayu-Undan and the jobs and investment that relief on it.

He said with more than 400 Timorese currently working on Bayu-Undan activities, it would also make an important economic contribution to East Timor and keep the Santos workforce both in East Timor and Darwin in jobs for longer.

Timor Leste President of the National Authority of Petroleum and Minerals Florentino Soares Ferreira described the Phase 3C drilling campaign as another milestone in the history of East Timor. It will mark the first drilling campaign in the Bayu-Undan field in East Timor offshore waters, following ratification of the Maritime Boundary Treaty (MBT) between East Timor and Australia.

“The decision for the Phase 3C infill well investment has gone through a thorough assessment taking into consideration relevant critical workstreams,” Mr Ferreira said.

“This includes the Phase 3C economic and technical review, procurement and local content strategy and regulatory approval to preserve the value and economics of the project.

“The ANPM acknowledges commitments shared by Santos and its Joint Venture in relation to the Phase 3C infill wells investment. It is another opportunity to maximise hydrocarbon production recovery and extension of production life.”