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Timor-Leste Gov. to Join Greater Sunrise Fields Development
= With this agreement, Gov plans to accelerate southern-Timor Beaco LNG PJ =
The Timor-Leste government joins the development project of the Greater Sunrise Fields, straddling between the country and Australia. The government had proposed to acquire Conoco Phillips' 30% stake, and Conoco Phillips has accepted the proposal. The acquisition process is planned to end by the first quarter of 2019. The government will talk with other project partners such as Woodside Petroleum to determine the development method.

In this March, governments of Timor-Leste and Australia reached an agreement on their maritime border, a longstanding dispute, and determined their profit allocation from the Greater Sunrise Fields. Woodside and project members were preparing the development, but the border issue has had the LNG project on hold.

With the agreements on border and participation of the Greater Sunrise project, the Timorese government is expected to further accelerate the LNG project in Beaco, south side of the country. Woodside and other participants had planned to use an FLNG vessel for the project, but the profit allocation from the Greater Sunrise fields was determined on the assumption of delivering natural gas to Timor-Leste or Australia — so the offshore-based LNG production was taken off from the plan list.

"We respect the Timor-Leste government's preference," commented Conoco Phillips, showed its endorsement to the government's plan, while added "We differ on the proposed economic development option," indicating the possibility the development would be different from its existing plan.

The Timor-Leste government benefits from the Bayu Undan field in Timor-Australia joint development area, which is forecast to dry up in the early 2020s. The gas from the field is transferred to the Darwin LNG terminal in Australia. Conoco Phillips etc. are preparing to use the Barossa gas field for the Darwin project as the successor of the Bayun Undan field.

If so, the Timor-Leste government loses its key income source — it is expected that the government is, to void this, in a hurry to commercialize the Greater Sunrise Fieds.

However, the government has to obtain authority's approval and agreements of other project participants on the acquisition. If the project members refuse, because of their different development preferences, the Timorese gov's participation by executing their preemption rights, the negotiation will not go smoothly.

The Greater Sunrise project is invested by Woodside (33.44%), Conoco Phillips (30%), Royal Dutch Shell (26.56%), and Osaka Gas (10%).
last modified : Fri 12 Oct, 2018 [10:02]
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