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ANPM: Carnarvon terminates Buffalo-10 exploration

ANPM: Carnarvon terminates Buffalo-10 exploration

The President of the National Authority of Petroleum and Minerals (ANPM), Florentino Soares Ferreira( Image Tatoli/Francisco Sony)

DILI, 08 february 2022 (TATOLI) — The President of the National Petroleum and Minerals Authority (ANPM), Florentino Soares Ferreira, has revealed that Carnarvon Energy has ended the exploration of the Buffalo-10  field as its wireline logging operations have been completed with the oil column deemed to be residual and uncommercial.

“The drilling of the Buffalo-10 filed by Australia-based oil and gas exploration company, Carnarvon Energy Limited has been terminated and the Government spent nothing on the Project Operating Expenses,” Ferreira told TATOLI, on monday.

Last month, the Carnarvon Energy Managing Director and CEO, Adrian Cook said in a statement that the results from Buffalo-10 well were disappointing for the Carnarvon team and shareholders.

The Buffalo-10 well was drilled offshore Timor-Leste in the TL-SO-T 19-14 PSC in which Carnarvon holds a 50% interest.

“This is how the Oil and Gas industry operates. There is a high risk of not finding oil and gas. Thank God for the Bayu-Undan field because, at the end of 2020, Timor-Leste made a total revenue of US$700 million from the field,” he said.

The three wells of the Bayu-Undan field had been drilled by Santos Limited with an investment of around US$235 million.

“The drilling of the three wells in the Bayu-Undan field showed good progress. We will get more than one billion USD from the field. Again, in the oil and gas industry, wildcat drilling doesn’t mean we always discover oil and gas. For instance, the exploration of the Bayu-Undan field at the earliest stage showed that we only made US$100 million,” Ferreira stressed.

On december 22, 2021, the Government of Timor-Leste, through the Minister of Petroleum and Minerals (MPM), together with Carnarvon Energy launched the offshore oil and gas drilling of the Buffalo-10 well.

The Buffalo field was originally discovered in 1996 by BHP and produced 20.5 million barrels of light oil between 1999 and 2004.

Related news:Timor Resources ends oil and gas exploration in Feto Kmaus field

Journalist: Filomeno Martins

Editor: Rafy Belo 

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