UK-based Baron Oil is set to kick off a site survey at a planned drilling location for an appraisal well on a gas field offshore Timor-Leste.
SundaGas Banda Unipessoal, a wholly-owned subsidiary of Baron Oil, has entered into contracts to conduct a survey at the planned drilling location for the Chuditch-2 appraisal well on the TL-SO-19-16 production sharing contract (PSC).
The objective of the site survey, which is a requirement, is principally to identify any potential hazards at the proposed well site, ensuring that a drilling rig can be safely located there with minimal environmental impact.
Expected to be carried out at the location during February and early March, the survey work consists of geophysical studies and physical investigation of the seabed and shallow geological section.
Baron Oil also said that SundaGas maintains dialogues with other companies active in the region to identify operational synergies for the drilling of the Chuditch-2 appraisal well which have resulted in the opportunity to acquire the site survey in partnership with a nearby operator.
According to the company, the estimated cost savings that derive from sharing services and vessel mobilization compared to standalone acquisition are significant and the shared operation enables SundaGas to acquire the site survey earlier than originally planned, enabling aspects of well design to be accelerated and the environmental approval submissions to be expedited.
Located approximately 185 kilometers south of Timor-Leste, 100 kilometers east of the producing Bayu-Undan field, and 50 kilometers south of the Greater Sunrise potential development, the Chuditch PSC covers an area of about 3,571 km2, in water depths of 50-100 meters, and contains the Chuditch-1 gas discovery drilled by Shell in 1998.
SundaGas last week wrapped up the sale of a partial interest in the gas field to Timor Gap Chuditch Unipessoal, its existing joint venture partner and a wholly owned subsidiary of Timor Gap, the Timor-Leste national oil and gas player.
The duo entered into a memorandum of understanding (MoU) at the end of January concerning the transfer of an additional 15% working interest to Timor Gap in the Chuditch PSC. A few days later, the companies signed an agreement to make the sale of the 15% non-operated interest possible.