DILI, 07 march 2024 (TATOLI) – Ministry of Petroleum and Mineral Resources (MPRM), through the National Petroleum Authority (ANP), on thursday (07/03) signed Product Sharing Contract (PSC) with HTS Exploration Ltd (HTS) to undertake oil and gas exploration activities in contract area block F, located in Viqueque municipality.
“MPRM through ANP entered into Petroleum Contract with HTS Exploration Ltd (HTS) to undertake exploration activities in contract area block F,” said in a statement.
HTS Exploration is one of the five oil firms that were announced by the VIII Government as the ‘Bids Winners’ of the second licensing round for Timor-Leste petroleum exploration in april 2022.
HTS is an oil and gas exploration and production company based in Kazakhstan which owned numerous oil and gas fields in Kazakhstan, including having vast experience in providing exploration and production services in the region.
The PSC foresees the participation of Timor-Leste in the Petroleum Operations through the national oil company TIMOR GAP E.P , either through the exploration phase or development phases, in accordance with the terms of the PSC and Article 22 of the Petroleum Activities Law.
HTS is committed to executing its obligations under the PSC for both exploration and local content commitment in accordance with the terms of the PSC and the Decree-Law No. 18/2020 of 13th May on Onshore Petroleum Operations. The minimum exploration work program (so called First Exploration Period) is provided as follows:
- Year 1: Re-entering the existing wells in the Contract Area, performing the cased hole logging, and well integrity, and Geological and Geophysical data analysis and evaluation.
- Year 2: Acquiring 3D seismic or 3,325 meters 3D Vertical Seismic Profiling (VSP), 100-line kilometers of 2D seismic acquisition and processing, well testing, acidizing, and fluid chemistry analysis.
- Year 3: Drilling two (2) exploration wells commitment which shall be delivered either through 1 sidetrack and 1 new well, or 2 sidetracks, or 2 new wells if sidetracking is technically unviable; with a minimum total depth of 2000m true vertical depth (TVD) or 2000m measured depth (MD) for sidetrack wells.
Through Timor-Leste Second Licensing Round 2019/2022, HTS showed an express of interest by submitting their bid for Block F. After the competitive bid and the assessment of the bid, HTS was announced as the Bid winner for Block F, which paved the way for negotiating the terms and conditions of the signed PSC.
This remarkable achievement demonstrates a mature relationship between the Ministry/ANP and HTS to develop the petroleum industry in Timor-Leste. We wish HTS successful in their first period of exploration activities.
Vice-Prime Minister and Minister Coordinator for Rural Development and Community Housing, Mariano Assanami Sabino, said that the signing of the PSC demonstrates the government’s commitment and plan to expand oil and gas exploration in the country since revenues from the sector have been the main contributor to the country’s national development.
HTS CEO Aizhan Ismailova said that HTS will carry out its work accordingly to accelerate oil and gas exploration in the Block F.
“We are looking forward to seeing the results of this bloc. We are noticing positive economic growth in the country, for which we want to be involved in this part,” said Ismailova.
Journalist: Jose Belarmino de Sa
Editor: Filomeno Martins
