Chuditch Could Hold More Gas Than Previously Thought, Baron Says

Chuditch Could Hold More Gas Than Previously Thought, Baron Says
Baron Oil has stated that its Chuditch PSC offshore Timor-Leste could hold much more gas than previously estimated.

Oil and gas exploration company Baron Oil has stated that its Chuditch PSC offshore Timor-Leste could hold much more gas than previously estimated.

Following the Chuditch 3D seismic data reprocessing, Baron Oil said that the best-case aggregate gross gas-in-place estimate is now around 5,500 bcf. Before 3D seismic reprocessing, the estimate stood at 3,889 bcf.

The current best-case recoverable resource estimate is now 3,625 bcf, using preliminary gas recovery factors of between 50 and 75 percent, versus an equivalent estimate of 2,924 bcf before 3D seismic data reprocessing.

Baron Oil added that the Chuditch-1 gas discovery best-case recoverable resource estimate of 1,350 bcf is materially larger and may independently represent an LNG scale resource.

The Chuditch SW prospect gas-in-place estimate has also increased, but its greater structural complexity may imply a lower recovery factor. On the other hand, an extension of the sizable Chuditch NE lead onto 3D seismic data area was confirmed. The previously unevaluated Quokka lead also extends onto the 3D seismic data area.

“Preliminary interpretation of the Chuditch PSC reprocessed 3D seismic data is leading to significant increases in management's aggregate gas-in-place and recoverable gas resource estimates compared to the previous independent prospective resource estimates by THREE60 Energy [from 2021].”

The preliminary interpretation has led to a significant uplift in seismic imaging quality and has significantly reduced subsurface risk. Mapping indicates a greater concentration of resources into the Chuditch-1 discovery in a simplified and robust structure with relatively high gas recovery expected. The adjacent prospectivity has evolved; its understanding is now more robust, including confirmation of leads extending onto the 3D seismic data area.

It is worth noting that SundaGas Banda Unipessoal (SundaGas), a wholly-owned subsidiary of Baron, is the operator of the Chuditch PSC and holds a 75 percent effective interest.

First Production Planned For 2028

Baron Oil said that the preliminary subsurface interpretation indicated an uncomplicated structural configuration for Chuditch, and a simpler field development concept is likely. The apparent increase in gas resources in the Chuditch-1 discovery suggests that a single appraisal well will suffice to determine the commerciality of the project without the need for immediate follow-on exploration wells.

The fastest development and export option is expected to be a hybrid floating and platform LNG system, which does not require export pipelines or border crossings.

A revision of the Chuditch engineering concept study has already started and Baron believes that this work will illustrate and quantify a fast-track development pathway that targets first production in 2028.

The company will also look to use carbon capture and storage at Bayu-Undan for the carbon dioxide created by the project. SundaGas aspires to achieve net zero LNG through long-term supply arrangements with buyers that have an effective Scope 3 strategy.

The company continues to evaluate options to secure further investment for the Chuditch project, including an ongoing farmout process. Baron claimed that it was in talks with multiple potentially interested parties.

To contact the author, email bojan.lepic@rigzone.com



WHAT DO YOU THINK?


Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.


Most Popular Articles