New Partner Joins Timor-Leste Offshore Gas Development

Thursday, September 5, 2024

Santos has concluded negotiations for the divestment of partial stake in an offshore gas project to TIMOR GAP, which will join the Bayu-Undan project as partner.

Santos said the Bayu-Undan Joint Venture (BUJV) and TIMOR GAP have agreed terms of a Sale and Purchase Deed (SPD) to transfer a 16% interest in the Bayu-Undan upstream project to TIMOR GAP, with an economic date of 1 July 2024.

Execution of the SPD to effect this transaction is planned to occur in mid-September.

A seventh extension of the Production Sharing Contract to June 30, 2026 has also been confirmed.

The Bayu-Undan upstream project comprises the offshore petroleum field, and offshore production and processing facilities located in Timor-Leste.

Following completion of the transaction the working interests in the BUJV are held by Santos (36.5%), SK E&S (21%), INPEX (9.6%), Eni (9.2%), Tokyo Timor Sea Resources (7.6%) and TIMOR GAP (16%).

The Bayu-Undan field is located approximately 500 kilometres northwest of Darwin in Timor-Leste offshore waters. In operation since 2004, it continues to make a significant contribution to Timor-Leste’s financial well-being and continues to produce, surpassing original expectations.

The project has provided more than $25 billion in revenue for Timor-Leste over its life so far. More than half the offshore workforce at Bayu-Undan is Timorese with the project currently supporting about 350 onshore and offshore jobs in Timor-Leste. One hundred per cent of Santos’ workforce in Timor-Leste are locals.

Bayu-Undan continues to produce gas into the Australian domestic market via a Gas Sales Agreement with the Power and Water Corporation of the Northern Territory, as well as producing valuable liquids.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said the transaction demonstrates the company’s commitment to a long-term partnership with Timor-Leste in the development of the country’s petroleum resources.

“I have long wanted to see TIMOR GAP as a partner of Santos and I welcome them as a participant in the Bayu-Undan joint venture,” said Gallagher.

Santos remains committed to working with Timor-Leste and the joint venture to repurpose Bayu-Undan into a new large-scale, commercial carbon capture and storage project when petroleum production ends.

This would create an ongoing source of revenue, local jobs and business opportunities for Timor-Leste by providing carbon management services to the Asian region, Santo said.

Categories: Industry News Activity Asia Oil and Gas

Related Stories

Valeura Wraps Up Infill Drilling Campaign in Gulf of Thailand

McDermott Concludes Work at PTTEP’s Kikeh Gas Field Off Malaysia

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Transocean’s Drillship to Stay in India Under New $111M Deal

Petronas Awards PSCs for Nine Fields and One Exploration Block off Malaysia

Sembcorp Signs 10-Year LNG Supply Contract with Chevron

QatarEnergy Signs Deal with Shell for Long-Term LNG Supply to China

Seatrium and Cochin Shipyard Form Alliance to Deliver India’s Jack-Up Rigs

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Current News

Argentina YPF to Shed Offshore Exploration Projects

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Shell Hires Noble’s Drillship for Work in Southeast Asia

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

CNOOC Discovers ‘Vast Exploration Prospects’ in China’s Beibu Gulf Basin

China Unveils Plans for New Offshore Wind Farms to Tackle Carbon Emissions

Japan and South Korea Look to Partner Up with US for Alaska Pipeline

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com