The Timor Sea area jointly administered by Australia and Indonesia has emerged as a world-class gas province, now complete with its own liquefied natural gas export scheme.
Phillips Petroleum Co. has proposed a $1.9 billion (Australian) LNG development based in Darwin for the Bayu/Undan discovery in the Timor Gap Zone of Cooperation Area (ZOCA) between Australia and Indonesia. Details weren't available at presstime, but Phillips is preparing an environmental impact study for the proposal.
However, approval by BHP Petroleum Pty. Ltd. through a unitization process will be needed before any final plans take effect, because Bayu/Undan straddles the permit boundary between the BHP-operated and Phillips-operated parts of the field.
There are hopes the two will reach agreement on development options by mid-1997.
New PSCs
Meantime, BHP and partners have been awarded four new production sharing contracts in the Timor Gap.
In two of the blocks-ZOCA 95-15 and 95-17-BHP has 100% interest. In ZOCA 95-19 and 16-20, BHP has an equal one-third interest with Woodside Petroleum Pty. Ltd. and Shell Development (Australia) Ltd., with Shell as operator in both. BHP now is involved in six Timor Gap permits, including those with Kakatua and Elang oil discoveries and Bayu/ Undan field.
The work programs for the four new areas include four wells during the next 3 years on ZOCA 95-19, one slated for 1997.
This permit lies in the northeast corner of the Timor Gap opposite the recent discoveries but adjacent to Woodside's Troubadour and Sunrise gas/condensate finds made in the 1970s.
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