Production Sharing Contract for TL-SO-19-16 area granted by Timor-Leste’s Autoridade Nacional do Petróleo e Minerais
Image: Officials from SundaGas and ANPM among others during PSC signing ceremony. Photo: courtesy of ANPM Timor-Leste.
SundaGas Banda Unipessoal (SundaGas) and Timor-Leste national oil company Timor Gap Chuditch Unipessoal (Timor Gap) have signed production sharing contract (PSC) for the TL-SO- 19-16 area.
The Production Sharing Contract TL-SO-19-16 (PSC TL-SO-19-16) has been granted by Timor-Leste’s Autoridade Nacional do Petróleo e Minerais (ANPM), on behalf of the Ministry of Petroleum and Minerals.
With total contract area of approximately 3571.49km², the PSC TL-SO-19-16 is situated in the south of the former Joint Petroleum Development Area (JPDA).
Over a seven-year period, SundaGas and TIMOR GAP plans undertake exploration work program at the PSC TL-SO-19-16 concession, which contains the Chuditch gas discovery.
ANPM, in a statement, said: “This PSC is granted pursuant to Article 13(2) (ii), (b) and (c) of the Petroleum Activities Law No. 1/2019 of 18 January, first amendment to the Law No.13/2005, of 2 September 2005.”
SundaGas owns majority stake in PSC TL-SO-19-16
SundaGas will serve as the operator for the PSC TL-SO-19-16 with 75% stake while Timor Gap will own the remaining 25% interest.
SundaGas CEO Dr Andy Butler said: “Our first priorities are to refine our understanding of the significant Chuditch gas resource and identify the optimal location for the first appraisal well.
“We will do this in parallel with the maturation of additional prospects to put together a drill-ready exploration portfolio. This is a very important milestone for SundaGas, and we look forward to progressing technically and commercially to ensure the timely development of the discovered and undiscovered resources for the benefit of Timor-Leste.”
During initial period (Years 1-3), the partners will carry out seismic reprocessing (Pre-Stack Depth Migration) of 800km² of 3D seismic data and 2000 line kilometres of 2D seismic data, and review of hydrocarbon potential of the entire contract area.
The firms will also drill one appraisal well, subject to positive the seismic reprocessing result that supports the presence of a significant structure associated with the Chuditch discovery.
During the second period (Years 4 and 5), the firm will be undertake post-well evaluation study and drill one exploration well, as well as develop scenario planning for Chuditch discovery.
The partners will undertake geological and geophysical studies, develop scenario planning, and drill two exploration or appraisal wells during the third period (Years 6 and 7).
Timor Gap president and CEO Francisco Monteiro said: “As National Oil Company of Timor-Leste, TIMOR GAP is pleased to sign this PSC with our Joint Venture partner and ANPM, on an area which was part of the JPDA, and now exclusively part of Timor-Leste jurisdiction.
“We look forward to working closely with our SundaGas partner, ANPM and the Government of Timor-Leste to explore the area, which has important gas discoveries already, such as the Chuditch gas discovery.”