Could this be the gas supply to Tassie Shoal? The option to pipe gas back to Timor L-Este seems impractical and Darwin LNG is full thanks to Barossa.....
The Timor-Leste government has reportedly bought ConocoPhillips’ stake in the Greater Sunrise field development in the Timor Sea.
Portugese news agency Lusa reported late last week the Timor-Leste government had agreed to pay ConocoPhillips $350 million for its 30% interest in the offshore gas field.
According to the report, the deal was agreed in Bali, Indonesia, on Thursday, with negotiations led by Timor-Leste’s maritime boundary chief negotiator, former president and prime minister Xanana Gusmao, and ConocoPhillips Australia president Chris Wilson.
Upstream has contacted ConocoPhillips Australia for comment, while a spokesperson for Greater Sunrise operator Woodside Petroleum said: ““While we are aware of unofficial reports, the Sunrise joint venture has not been approached formally by Timor-Leste or ConocoPhillips on this matter.”
Timor-Leste has long argued for Greater Sunrise to be developed via a subsea pipeline running back to a newbuild facility on the country’s south coast.
However, the main challenge to the government’s wish is a large seismically active subsea trench which the pipeline would have to cross, with the Woodside-led joint venture instead preferring to pipe the gas back to shore near Darwin in Australia via a longer pipeline.
Greater Sunrise had been the lead candidate to provide backfill for the ConocoPhillips-operated Darwin LNG project, however with the project stalled ConocoPhillips’ Barossa project jumped to the front of the queue as a backfill candidate.
ConocoPhillips executive vice president production, drilling and projects, Al Hirshberg said during the company’s second quarter earnings call this year he believed it would be difficult for Greater Sunrise to move into development “in the near future”, while labelling the government's plan as "uneconomic".
Woodside chief executive Peter Coleman has also previously stated it was unlikely his company would be involved in a development that sees the gas piped back to Timor-Leste.
He said the returns on such a development would not meet Woodside’s economic hurdles, however he also refused to rule out option completely, adding certain arrangements could be put in place to still allow the company to participate.
Regardless of the development choice, Woodside has previously stated it does not anticipate making a decision over the development until the third horizon of its current growth period which starts in 2027.
Woodside holds a 33.4% stake in Greater Sunrise, ConocoPhillips holds 30%, Shell holds 26.6% and Osaka Gas holds 10%.
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