Baron Oil, through its fully owned subsidiary SundaGas Banda Unipessoal, has awarded contracts for the site survey at the planned drilling location for the Chuditch-2 appraisal well, offshore Timor-Leste.
Site survey operations at the gas field are expected to be conducted during February and early March 2024.
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.
The site survey work consists of geophysical studies and physical investigation of the seabed and shallow geological section.
SundaGas maintains dialogues with other companies active in the region to identify operational synergies for the drilling of the Chuditch-2 appraisal well.
These discussions have resulted in the opportunity to acquire the site survey in partnership with a nearby operator, according to Baron Oil.
The estimated cost savings that derive from sharing services and vessel mobilisation compared to standalone acquisition are significant, the company said.
In addition, 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.
Worth noting, Baron Oil completed the farm-up agreement with Timor Gap in relation to the TL-SO-19-16 Chuditch production sharing contract.
As part of the farm-up arrangements, Timor Gap will make a cash payment to SundaGas of $1 million to cover back costs within 30 days.
SundaGas retains operatorship of the Chuditch PSC and holds a 60% working interest. Timor Gap has a 40% interest, made up of a working interest of 15%, plus its original 25% interest which is carried to first gas.
From now on, Timor Gap will be responsible for paying 20% of all costs in relation to the PSC, including the drilling of the planned Chuditch-2 appraisal well.