East Timor, Asia’s youngest nation, is pushing for rapid development of Greater Sunrise as the main driver of its economy as the Bayu Undan oil and gas field matures and will cease production in 2023.
State-owned Timor Gap plans to finalize a legal framework and production-sharing contract (PSC) for Greater Sunrise this year and then move into a second phase of development, chief executive Antonio Loiola de Sousa said on the sidelines. of the Offshore Technology Conference.
“For Sunrise, I think we have a very good opportunity, especially in this time of crisis,” Loiola de Sousa said, referring to Russia’s invasion of Ukraine.
The Ukraine crisis – Moscow calls its actions there a “special operation” – has brought security of energy supply into the spotlight, giving a new impetus to liquefied natural gas (LNG) projects around the world.
Development of the Greater Sunrise, first discovered in 1974, was delayed by a now-resolved maritime border dispute between East Timor and Australia and a disagreement with operator Woodside Petroleum over he gas had to be transported to East Timor or Australia to produce LNG for export.
The previous director of Timor Gap said in 2019 that he was planning production around 2026, while Australian operator Woodside has put the project on the back burner, with no timetable.
The negotiation of a PSC between Australia and Timor-Leste “has been slow, but perhaps the current (energy) crisis could help pick up the pace”, said Meg O’Neill, managing director of Woodside, in a comment sent by e-mail.
Asked about the timing, a Woodside spokesman said the tax and regulatory framework must first be agreed.
Greater Sunrise participants include Woodside, with a 33.44% stake, Timor Gap 56.56% and Osaka Gas 10%.
East Timor is also seeking investors for a potential new offshore block near Greater Sunrise, Loiola de Sousa said.
The deepwater block is in the waters of East Timor, he said, adding that there is also potential to develop some onshore fields.