Bayu Undan facilities transfered to Timor-Leste juristiction

Australian LNG player Santos has signed agreements supporting the transition to permanent maritime boundaries between Australia and Timor-Leste and a continued stable framework for petroleum activities in the Timor Sea.

Santos joined with its Bayu Undan joint venture partners and the Australian and Timor-Leste governments, in agreeing to the Bayu Undan natural gas project operating in Timor-Leste’s exclusive maritime jurisdiction under terms equivalent to previous arrangements.

The agreements give effect to the historic maritime treaty struck between Australia and Timor-Leste in March last year.

Santos managing director and CEO Kevin Gallagher said: “We are delighted to have been part of this historic achievement which marks the next chapter in Timor-Leste’s economic independence and development.

“We congratulate Timor-Leste Prime Minister Taur Matan Ruak and his government, including independence leader and statesman Xanana Gusmão, on this momentous occasion.

“The transition agreements bring the certainty and stability needed for ongoing operations at Bayu Undan and a clear pathway for future resource development in the waters of Timor-Leste.”

The Bayu Undan upstream facilities now fall entirely within Timor-Leste’s jurisdiction, while the Bayu Undan to Darwin Pipeline, including the small portion within Timor-Leste’s sovereign waters, will be subject to Australia’s exclusive jurisdiction.

Bayu Undan is a gas-condensate field located offshore in the Timor Sea some 250 kilometres southwest of Suai in Timor-Leste.

ConocoPhillips operates the field on behalf of co-venturers Santos, Inpex, Eni, Tokyo Timor Sea Resources, and a consortium of Tokyo Gas and JERA.

First phase of the field’s development began in 2004 with the construction of offshore facilities to produce and process condensate, propane, and butane (LPGs). Phase two, completed in 2006, saw the installation of a subsea pipeline and the LNG production facility.

The 500-kilometre 26″ pipeline supplies gas from Bayu Undan for processing into Darwin LNG facility. LNG is loaded onto specialised tankers for transport to international markets.