MEO Australia Ltd., Melbourne, and Eni SPA—MEO’s joint-venture partner in the NT/P68 permit in the Timor Sea—have decided to split the permit between them.
MEO will withdraw from the Blackwood gas discovery in the permit with no cost penalty by transferring its interest to Eni. MEO now believes the find is not large enough to support development at its proposed Tassie Shoal LNG-methanol plant in shallow water offshore Northern Territory.
Eni will transfer its 50% interest in the remainder of NT/P68 to MEO. The Italian major has agreed to take responsibility for managing the future division of the permit to enable separate ownership of Blackwood and the nearby Heron gas discovery in the same permit. It will also bear the costs of the process.
MEO will now take 100% of Heron and focus its efforts in that field. The company is also seeking interest from various parties for a farm-in to the Tassie Shoal project.
