Australian LNG player Santos said production has started from its Phase 3C infill drilling program at the Bayu-Undan field offshore Timor-Leste, with the first well producing better than expected.
Santos launched a $235 million infill drilling campaign at the Bayu-Undan field in May after it took a final investment decision on the project in January this year.
“The first well has been brought online at 178 million standard cubic feet per day of gas and 11,350 barrels per day of liquids,” Santos said on Wednesday.
As a result, this would significantly increase liquids production to over 25,000 bbl/d from the field and boost offshore well capacity for supply of gas to the Santos-operated Darwin LNG plant, the firm said.
In addition, the Noble Tom Prosser jack-up rig has now commenced drilling the second of the three wells.
Santos expects to complete the program early next year as it looks to maximise value from the Bayu-Undan field.
“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,” chief executive Kevin Gallagher, said.
“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,” he said.
Santos has a 43.4% operated interest in Bayu-Undan. Other partners include SK E&S (25%), Inpex (11.4%), Eni (11%), JERA (6.1%), and Tokyo Gas (3.1%).