By David Winning

SYDNEY--Santos Ltd. said it has made a final investment decision on a US$235 million program to tap more gas and liquids resources within its Bayu-Undan field offshore East Timor.

Santos said the Phase 3C infill drilling program comprises three production wells and aims to extend the life of the Bayu-Undan field while guaranteeing new supplies for the Darwin liquefied natural gas plant in Australia.

Santos, which became operator of Bayu-Undan less than a year ago after acquiring the asset from ConocoPhillips, said the first well is scheduled to spud in the second quarter of this year with first production expected before the end of September.

"This infill drilling program adds over 20 million barrels of oil equivalent gross reserves and production at a low of cost of supply and extends the life of Bayu-Undan, reducing the period that Darwin LNG is offline before the Barossa project comes on stream," said Chief Executive Kevin Gallagher.

Santos owns 68.4% of the Bayu-Undan project and Darwin LNG, which will reduce to 43.4% when it completes a deal with South Korea's SK E&S.

"The sell-down will complete once the final investment decision on Barossa is taken in the first half of 2021," Mr. Gallagher said.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

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