ADELAIDE, Australia — Santos and its partners have signed a memorandum of understanding (MoU) with Timor-Leste’s national oil company TIMOR GAP to explore joint opportunities for the proposed Bayu-Undan carbon capture and storage (CCS) project in the Timor Sea.
The MoU follows four non-binding MoUs for the supply of emitted CO2 to the project, with potential demand for CO2 storage of more than 10 MM metric tons annually.
Santos’ arrangement with TIMOR GAP includes sharing information about Bayu-Undan CCS and investigating equity participation for the state oil company in the project.
According to Santos, the proposed development can provide a cost-competitive carbon solution because of its scale and the access it provides to existing subsea pipelines and other offshore infrastructure.
Also, the storage reservoirs are understood, having previously held gas and condensate in place for tens of millions of years prior to the development of the Bayu-Ubdan Field and should therefore provide safe and permanent CO2 storage.
In addition, the project can potentially reduce the absolute emissions and emissions intensity of nearby Australian and Timor-Leste gas and LNG projects, along with those from other industries in the region.
08.07.2023
