Baron Oil completes sale of 15% stake in Chuditch PSC offshore Timor Leste
London-listed Baron Oil has completed the divestment of a 15% stake in the Chuditch production sharing contract (PSC) offshore Timor-Leste to Timor Gap, the national oil company of Timor-Leste, according to an announcement on February 8.
Baron Oil's subsidiary, SundaGas Banda Unipessoal, had previously entered into a memorandum of understanding with Timor Gap outlining the proposed farm-out agreement. As part of the deal, Timor Gap will make a cash payment of $1mn to SundaGas within 30 days, covering back costs.
SundaGas will retain operatorship of the Chuditch PSC and maintain a 60% working interest. Timor Gap will hold a 40% interest, consisting of a working interest of 15%, plus its original 25% interest, which is carried to first gas. Going forward, Timor Gap will be responsible for covering 20% of all costs related to the PSC, including the expenses associated with drilling the planned Chuditch-2 appraisal well.
The Chuditch PSC is located approximately 185 km south of Timor-Leste, 100 km east of the producing Bayu-Undan field, and 50 km south of the planned Greater Sunrise development. It covers an area of approximately 3,571 km2, in water depths of 50-100 m, and contains the Chuditch-1 gas discovery drilled by Shell in 1998.