Timor-Leste government enters Greater Sunrise project
ConocoPhillips has entered an agreement to sell its 30% stake in the Greater Sunrise fields in the Timor Sea to the government of Timor-Leste for US$350 million.
Matt Fox, the company’s executive vice president Strategy, Exploration and Technology, said the deal was mutually beneficial. “ConocoPhillips has a long history in Timor-Leste through our operated interest in the Bayu-Undan field.
“Although we differ with the government on its proposed development plan for Sunrise, we recognise the importance of the field to the nation of Timor-Leste, and the sale of our interest to the government gives them a working interest in this important development.”
The transaction is expected to close during the first quarter of 2019.
Wood Mackenzie analyst David Low commented: “We believe the likely forward plan to monetize Sunrise is now through an onshore LNG development in Timor-Leste. This would require:
- Construction of a new liquefaction plant and associated infrastructure
- An FPSO to process and handle the condensate
- Construction of a pipeline connecting the FPSO to shore.
“Timor-Leste authorities are determined to harness the economics benefits of an onshore development. The Timor-Leste government are also pursuing the development of Sunrise to replace declining revenues from the mature (offshore) Bayu Undan field.
“We believe the key onshore project risk is the construction of a greenfield LNG project in a country which has historically lacked large-scale infrastructure projects. The next step is for the project to put forward a viable development plan that all the project participants would be willing and happy to commit to.”
Source: Offshore Magazine