Woodside, partners to study feasibility of Greater Sunrise project
The Sunrise joint venture, comprising state-owned Timor Gap, Australia's Woodside Energy, and Japan's Osaka Gas will undertake a concept select programme for the development of the Greater Sunrise fields, it said on February 6 in a joint statement.
The study will look into all of the key issues for delivering the gas, for processing and LNG sales, to Timor-Leste compared to delivering the gas to Australia.
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The joint venture said that the study will incorporate and update previous works while also considering the socio-economic, capacity building, safety, environmental, strategic and security benefits of the various options. It will include evaluating which option provides the most meaningful benefit for the people of Timor-Leste.
“This path forward is a significant commitment to our stakeholders, to the aspirations of those who made sacrifices to achieve independence for the Democratic Republic of Timor-Leste, and to the future of our people and Timor-Leste. It offers a clearer path to prosperity, equality, peace, stability, and sustainability for current and future generations,” Timor Gas CEO Antonio de Sousa said.
Woodside, which operates the project, had previously argued that it would be cheaper to develop the resource by sending the gas to Darwin in Australia as it has port and LNG infrastructure. The Timor-Leste government, however, wants an LNG plant to be built on its shores as the project will boost job creation and industrial development.
Woodside CEO Meg O’Neill said the development of new technologies and growing demand for safe and reliable LNG meant it was the right time to bring forward the concept select programme.
“It is important we continue to look at ways to develop the Greater Sunrise fields using the latest technologies by evaluating, for example, modular LNG, that did not exist in the past. Against a backdrop of global geopolitical instability and constrained energy supply chains, there is an opportunity for the Sunrise joint venture to significantly advance this regionally important project,” she said.
Osaka Gas Australia managing director Yo Otsuka said it was important to assess and compare the development concept from both technical and commercial points of view to select the best option for the success of the Sunrise project.
Meanwhile, in parallel to the concept select programme, the joint venture is progressing the negotiation of the new production sharing contract, petroleum mining code and associated agreements with the Timor-Leste and Australian governments, which upon finalisation will provide the fiscal and regulatory certainty required for a development to proceed.
The Sunrise development, located approximately 450 km north-west of Darwin and 150 km south of Timor Leste, comprises the Sunrise and Troubadour gas and condensate fields. The fields contain an estimated contingent resource of 5.3 trillion ft3 of dry gas and 226mn barrels of condensate.
Timor Gas owns 56.56% of the project, Woodside Energy has 33.44% stake, and Osaka Gas Australia owns the remaining 10%.