Our Commitment to Governance
ConocoPhillips is committed to responsible oil and gas production. Put simply, we aim for excellence in everything we do. Our overriding goal is that all of our activities should achieve the highest ethical standards, believing this is critical for both our continued success in the global market, and our social and regulatory license to operate.
Our SPIRIT Values set the tone for everything we do. These Values include the principles of Safety, People, Integrity, Responsibility, Innovation and Teamwork. By conducting our business in accordance with these Values, we will continue to deliver energy sustainably and responsibly.
We serve the best interests of our shareholders and other key stakeholders by maintaining governance systems that ensure the highest levels of responsibility, integrity, legal and tax compliance across every aspect our business.
The ConocoPhillips board of directors oversees the company’s policies, practices and performance.
Since 2004, approximately US$1.8 billion in taxes and other payments have been made to Australia from the Bayu-Undan project and Darwin LNG combined.
The Bayu-Undan field is located in the Joint Petroleum Development Area (JPDA), between Australia and Timor-Leste in the Timor Sea. Gas from that field is transported via pipeline to the Darwin LNG plant.
The JPDA is governed by the 2003 Timor Sea Treaty which allocates 90% of the taxes paid on business profits derived in the JPDA to Timor-Leste and 10% to Australia.
In addition to our production activities, ConocoPhillips has invested US$1.4 billion in exploration expenditure in Australia since 2009. This investment deduction is offset against the Bayu-Undan business profits allocated to Australia under the Treaty. This business deduction contributes to ConocoPhillips’ tax losses from its Australian operations.
Since 2004, the Bayu-Undan project has paid over US$18 billion to the Timor-Leste Petroleum Fund in taxes and other payments based on this allocation. Further information about our economic and social investment in Timor-Leste can be found by clicking the links below.
Further information about our operations and exploration activities in Australia and Timor-Leste can be found at Our Business Activities and Our Projects
Darwin LNG earns income by converting gas received from Bayu-Undan to LNG. Australian income taxes owed on that income are paid directly to the Australian Tax Office by Darwin LNG Pty Ltd. More information about Darwin LNG can be found here.
Australia Pacific LNG
ConocoPhillips share of Australia Pacific’s LNG’s (APLNG’s) taxable income is excluded from ConocoPhillips Australia’s taxable income as the tax on APLNG’s profit has been assessed and paid for by APLNG.