Baron Oil plc has entered year three of the Chuditch production sharing contract as it continues to prepare financing for an appraisal well, offshore Timor-Leste.
DISCUSSIONS
Subsidiary SundaGas holds a 60% working interest in the joint venture with state-owned Timor Gap Chuditch Unipessoal Lda.
For the third year, which began on 19 June, the partners need to provide the government regulator with a bank guarantee of US$2.5 million as security, reflecting the increase in work.
The company will pay US$2 million and Timor Gap, with responsibility for 20% of the costs, will provide $500,000.
Baron said that Banco Nacional de Comércio de Timor-Leste, wholly owned by the Timor-Leste Government, had issued the guarantee.
The company also continues discussions on funding for drilling the appraisal well and is “confident” of securing a deal to begin planned operations in early 2025.