Offshore staff
HASTINGS, UK — Baron Oil has provisionally entered an arrangement to assign a 15% interest in the TL-SO-19-16 (Chuditch) production sharing contract (PSC) offshore Timor-Leste to TIMOR GAP Chuditch Unipessoal, according to a Dec. 18 update from Baron.
The latter, already a partner to operator Baron subsidiary SundaGas Banda Unipessoal, is a subsidiary of state oil and gas company TIMOR GAP E.P.
Barons stands to receive about $8.5 million in reimbursement for prior costs and an offset of future spending. And the company believes the government's validation will help advance preparations for the planned Chuditch-2 appraisal well and associated financing, with discussions continuing with other potential partners.
Upon completion of the proposed transfer, SundaGas will retain operatorship with a 60% interest in the PSC, and TIMOR GAP 40% interest, some of which is carried to first gas.
Thereafter, TIMOR GAP will be responsible for paying 20% of all costs, including the Chuditch-2 well.
01.07.2024
