PERTH (miningweekly.com) – Oil and gas major Santos on Wednesday reported that production from the Phase 3C infill drilling programme at the Bayu-Undan field had begun with the first well producing better than expected.

The first well has been brought online at 178-million standard cubic feet per day of gas and 11 350 bbl/d of liquids, significantly increasing liquids production to over 25 000 bbl/d from the field and increasing offshore well capacity for supply of gas to the Darwin liquified natural gas plant.

Drilling the second of the three wells has now started, with the programme expected to be completed early next year.

“We are delighted to see first production from the 3C programme, which is immediately delivering value to both the Bayu-Undan joint venture (JV) and the people of Timor-Leste and importantly helps extend the life of Bayu-Undan and the jobs and investment that rely on it,” Santos MD and CEO Kevin Gallagher said.

“Following the successful result from the first of the Van Gogh Phase 2 infill wells, today’s results are another example of Santos creating incremental value from acquired assets.

“We’ve seen a better than expected reservoir outcome with this first well of the campaign, with successful results across both the primary and secondary targets in the well and a much higher initial gas production rate than expected.”

“It has not come without its challenges, managing crew movements with Covid-19 outbreaks either side of the Timor Sea, so I want to acknowledge the efforts of our team, our JV partners and specifically the Timor-Leste regulator, Autoridade Nacional do Petróleo e Minerais, in keeping this exciting programme on track.”

The successful drilling and tie-in of the first of three new wells comes six months after a final investment decision and has lifted natural gas and liquids production for the field in Timor-Leste offshore waters.

Santos has a 43.4% operated interest in Bayu-Undan, with SK E&S holding a 25% interest, INPEX holding 11.4%, Eni holding 11%, JERA holding 6.1%, and Tokyo Gas holding 3.1%.