Australia and East Timor have reached an agreement on a maritime border, ending a dispute between the two countries that has stalled the Woodside-operated multi-billion Greater Sunrise LNG project.
The two countries have reached agreement on the “central elements of a maritime boundary delimitation between them in the Timor Sea,” the Permanent Court of Arbitration in The Hague said in a statement.
“The parties’ agreement constitutes a package and, in addition to boundaries, addresses the legal status of the Greater Sunrise gas field, the establishment of a special regime for Greater Sunrise, a pathway to the development of the resource, and the sharing of the resulting revenue,” the statement said.
The details of the “breakthrough” deal remain confidential until a final agreement has been signed.
The two countries will continue to meet with the Commission in order to finalize their agreement in October 2017.
At the same time, the parties “will begin to engage with other stakeholders in the Timor Sea regarding the implications of their agreement, in particular with respect to the Greater Sunrise resource,” the statement said.
Arbitration began last year and the talks, hosted by Denmark, resulted in a deal on August 30.
The deal follows years of dispute between the two nations over maritime arrangements in the Timor Sea.
The Sunrise LNG project stalled due to disputes between the two governments as East Timor (Timor-Leste) argued that a larger portion of the Greater Sunrise assets should be under its jurisdiction.
The Greater Sunrise fields were discovered in 1974 and hold gross contingent resources of 5.13 Tcf of gas and 225.9 million barrels of condensate, according to Woodside.
The Australian LNG player, together with its partners plans on developing the resources through the Sunrise LNG project in which it holds a 33.44 percent stake.
Other partners in the project are ConocoPhillips (30 percent) Shell (26.56 percent) and Osaka Gas with a 10 percent stake.
LNG World News Staff