PERTH – ConocoPhillips announced today that it has entered into new production sharing contracts (PSC) for the Bayu-Undan Field with the government of Timor-Leste, pursuant to the ratification of the Maritime Boundary Treaty.
The Maritime Boundary Treaty was signed between Australia and Timor-Leste in March 2018 and ratified by both governments on 30 August 2019. The permanent delimited boundaries now give sole jurisdiction over, ownership and management of certain petroleum fields in the Timor Sea, including in the Bayu-Undan Field to Timor-Leste. The new PSCs provide regulatory, fiscal and legal stability under terms equivalent for the Bayu-Undan field.
ConocoPhillips Australia-West President Chris Wilson said: “The ratification of the Maritime Boundary Treaty is a significant milestone for Timor-Leste in their journey to sovereignty in the Timor Sea. We congratulate Timor-Leste Prime Minister Taur Matan Ruak and his government, particularly the Autoridade Nacional do Petróleo e Minerais, for their role in developing the complex regulatory framework that will provide continued stability for Bayu-Undan.
“The Bayu-Undan Joint Venture partners have had the privilege of developing the Bayu-Undan project together with Timor-Leste and are proud of the benefits the project has delivered to the people of Timor-Leste over the past 15 years. Our journey has been rewarding as we have worked with the government, our Timorese workforce and local community, to contribute to a brighter future for their country.”
The Bayu-Undan upstream facilities and contract area now fall entirely within Timor-Leste’s jurisdiction, whilst the Bayu-Undan to Darwin pipeline will be subject to Australia’s jurisdiction.
“We look forward to the Bayu-Undan project operating in Timor-Leste’s maritime jurisdiction and continuing to develop together with Timor-Leste during Bayu-Undan’s final years,” Wilson said.
The Bayu-Undan Joint Venture comprises ConocoPhillips (56.9 percent and operator), Santos (11.5 percent), INPEX (11.4 percent), Eni (11.0 percent), Tokyo Timor Sea Resources (9.2 percent), a consortium of Tokyo Gas and JERA (a joint venture between Tokyo Electric and Chibu Electric).
ConocoPhillips is the world’s largest independent E&P company based on production and proved reserves. Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 17 countries, $71 billion of total assets, and approximately 10,900 employees as of June 30, 2019. Production excluding Libya averaged 1,303 MBOED for the six months ended June 30, 2019, and proved reserves were 5.3 BBOE as of Dec. 31, 2018. For more information go to www.conocophillips.com.au.
ConocoPhillips’ Australia and Timor-Leste portfolio includes the Bayu-Undan field located in Timor-Leste offshore waters, Darwin LNG facility in the Northern Territory and Australia Pacific LNG facility in Queensland as well as exploration and appraisal projects in northern Australia including Caldita-Barossa and Greater Poseidon.
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