DILI, 27 july 2021 (TATOLI) – National Authority of Oil and Minerals (ANMP) and Santos Company has begun Production Well Testing of Oil and Gas of the Bayu-Undan field.
The President of the National Authority of Oil and Minerals, Florentino Soares Ferreira informed that the drilling of the first of the three new production wells in the Bayu-Undan field by Santos Company was successfully executed.
“According to plan, three wells are on the plan to be drilled and we have completed the drilling of the first well successfully. With the Trial Production of the first well and the result is 84 MMSCFD. It is such a great achievement. This oil is also a highly sought-after product, and the premium to Brent that we get allows further value to be realized beyond the current oil price,” Soares told TATOLI at the Ministry of Finance, in Dili, on tuesday.
Santos began the first drilling of the Bayu-Undan Oil and Gas Field, after the signing of the Timor-Leste-Australia Maritime Boundary Treaty, which defines the Bayu-Undan field under the exclusive jurisdiction of Timor-Leste.
“We have produced the first oil of the project from the first well, while the drilling of the second horizontal, dual-lateral production well is now underway,” said Soares.
“We have achieved a Final Investment Decision this year with the drilling of three wells. We will also have additional natural gas and liquid development and offshore installation,” he affirmed.
According to ANMP’s president, the drilling of the three wells had gone through rigorous evaluation, including technical economic analysis, strategy, acquisition, and so on.
It is important to have a very careful evaluation on the first production of the first well, said Soares.
He said mobilizing the workforce during the Covid-19 time was a big challenge for ANMP and Santos.
“The success of the production of the first well proved that the decision was rightly made by the authorities. The production of oil from the Bayu-Undan field is literally a new hope for Timor-Leste. Let’s look forward to the development of the two other wells in the future,” he said.
Journalist: Florencio Miranda Ximenes
Editor: Julia Catarina
Translator: Filomeno Martins
