Santos transfers 16% interest in Bayu-Undan project to Timor Gap

Australian energy company Santos on September 17 announced that the Bayu-Undan joint venture has executed a sale and purchase deed with Timor-Leste's state-owned Timor Gap, transferring a 16% interest in the Bayu-Undan project. Timor Gap agreed to the deal earlier this month.

The deed, effective from July 1, is subject to customary closing conditions. Timor Gap will participate in the Bayu-Undan joint venture for the remainder of the project's economic life, with the production sharing contract (PSC) set to expire in June 2026 or upon cessation of production.

The Bayu-Undan upstream project includes the offshore petroleum field and production and processing facilities located in Timor-Leste. The project continues to supply gas to the Australian domestic market through a gas sales agreement with the Power and Water Corporation of the Northern Territory and produces valuable liquids.

Following this transaction, Santos, the project operator, will reduce its stake from 43.4% to 36.5%. The other partners will also see reductions in their stakes: SK E&S will hold 21%, Inpex 9.6%, Eni 9.2%, and Tokyo Timor Sea Resources 7.6%.

Located about 500 km northwest of Darwin in Timor-Leste's offshore waters, the Bayu-Undan field has been operational since 2004. It has generated over $25 billion in revenue for Timor-Leste and supports approximately 350 onshore and offshore jobs, with more than half of the offshore workforce being Timorese, according to Santos.