Timor Sea gas project closer to reality

By the OGJ Online Staff

LONDON, Dec. 21 -- The long-delayed project to build a $1.5 billion pipeline to bring gas from the Bayu-Undan field in the Timor Sea to Darwin in northern Australia has been approved by Phillips Petroleum Co. following the settlement of a dispute over the tax regime involved with the East Timor Government.

In a statement issued Friday, Phillips said it welcomes the tax and fiscal package offered by East Timor's Council of Ministers.

However, the deal must first be ratified by Australia, which will share the revenue from the gas project with East Timor before contracts for the development can be placed.

Negotiations on behalf of the East Timor government have been conducted by the United Nations, which became involved in the issue 6 months ago when the participants in the project said that its viability was threatened. The delay has also threatened the development of other long-term projects in the area, although during the past 6 months negotiations with potential customers for the field's gas have continued.

The Bayu-Undan field contains estimated reserves of 400 million bbl of condensate and LPG and 3.4 tcf of gas. The field is located in 80 m of water about 500 km north west of Darwin and 250 km south of Suai, East Timor.

The Bayu-Undan project co-venturers are Phillips as operator with 50.3%, Santos Ltd.11.8%, Inpex Ltd.11.7%, Kerr-McGee Corp.11.2%, Petroz Ltd.8.3% and Agip SPA 6.7%.

Santos managing director John Ellice-Flint also expressed pleasure with the settlement.

"The next step is to formalize the arrangements with the East Timor and Australian governments, clearing the way for efforts to negotiate gas sales agreements that will secure development of the project," he said.

"Development of Bayu-Undan gas reserves along with other Timor Sea gas resources remains a high priority for Santos. Commercialization of Bayu-Undan gas is the next step for the participants, East Timor and Australia in realizing value from the world-class Timor Sea gas resource."

Meanwhile, Phillips and Conoco Inc. formed CorvettePorsche Corp. to serve as a parent company in their pending merger. CorvettePorsche has two divisions, Corvette into which Conoco is to be merged; and Porsche, into which Phillips will merge. Once those mergers are completed, the parent CorvettePorsche will then be renamed ConocoPhillips, officials told OGJ Online.

Related Articles

Linn Energy, Quantum complete AcqCo deal

07/06/2015 Linn Energy LLC, affiliate LinnCo LLC, and Quantum Energy Partners have signed definitive agreements to fund the acquisition and development of oil...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Forum extends study of subsea integrity

06/30/2015

Work by an industry forum called SURF IM Network, which studies oil and gas subsea integrity management, has been extended by 3 years.

Survey begins of collaboration on the UKCS

06/30/2015

Deloitte has begun a survey about collaboration in the oil and gas producing industry of the UK Continental Shelf.

Court rejects BP, Anadarko Macondo appeals

06/30/2015 BP PLC and Anadarko Petroleum Corp. have lost separate appeals to the US Supreme Court to overturn a lower-court decision expanding their financial...

Firms form Powder River basin logistics JV

06/29/2015 NGL Energy Partners LP, Tulsa, and Meritage Midstream Services II LLC, Denver, have formed a joint venture to develop crude oil gathering and water...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected