Earlier this week, Santos and its partners in the Bayu-Undan upstream project in the Timor Sea agreed to transfer a 16% interest to TIMOR GAP.
They expect to implement a sales and purchase deed for the transaction in mid-September, and they have also confirmed a seventh extension of the production sharing contract to June 30, 2026.
The project comprises the offshore Bayu-Undan gas-condensate field, now in the tail-end phase of production, and offshore production and processing facilities located in Timor-Leste.
Other participants in the Bayu-Undan joint venture (BUJV) are SK E&S, INPEX, Eni and Tokyo Timor Sea Resources. Following completion of the transaction, the working interests in the BUJV will change as follows:
Bayu-Undan, 500 km northwest of Darwin and 250 km south-ast of Timor-Leste, came onstream under ConocoPhillips’ stewardship in 2004. Over its lifespan it has generated more than $25 billion in revenue for Timor-Leste, with Timorese personnel representing more than half the offshore workforce and others employed onshore.
It continues to produce gas for sale to the Australian domestic market. Santos is working with the partners and Timor-Leste to repurpose the facilities for a new large-scale, commercial carbon capture and storage project when gas/liquids production finally closes.
This would provide further jobs and business opportunities for Timor-Leste in the form of carbon management services to the Asian region.
