Australia’s energy giant Woodside has signed on the dotted line with the Ministry of Petroleum and Mineral Resources (MPRM) of Timor-Leste to carry out studies and activities to mature a Timor-based LNG concept (TLNG) for gas fields in Southeast Asia.
While revealing the cooperation agreement with Timor-Leste’s Ministry of Petroleum and Mineral Resources for a Timor-based LNG concept, Woodside explains that this step marks “a significant milestone” in the longstanding efforts to unlock the value of the Greater Sunrise fields , reflecting what is seen as “a renewed spirit of good-faith collaboration and commitment among the parties.”
As a result, the duo will undertake commercial and technical maturation activities for a greenfield Timor-based approximately 5 million tonne per annum LNG concept with a domestic gas facility and a helium extraction plant.
These activities are expected to run in parallel to the ongoing negotiation of the fiscal, regulatory, and legal frameworks to support the upstream development of the gas fields between the Sunrise Joint Venture, Timor-Leste, and the Australian governments.
According to Woodside, the agreement entails a high-level plan outlining key activities required to mature and progress this opportunity, under which first LNG may be produced as early as 2032-2035, subject to concept selection and investment decisions.
Francisco da Costa Monteiro , Timor-Leste’s Minister of Petroleum and Mineral Resources, emphasizes that the deal sent a clear message that the government of Timor-Leste and Woodside are united in their ambition to bring Greater Sunrise into production in a way that benefits all stakeholders.
Meg O’Neill , Woodside’s CEO, commented: “The TLNG project presents the best economic, social, and strategic benefits for the people of Timor-Leste, and we are committed to working constructively with Woodside, the Greater Sunrise joint venture and other parties to take the project forward and to make our vision for Greater Sunrise a reality.
“This work is an extension of last year’s concept study and will address the remaining considerations required to reach concept selection, such as agreeing the most appropriate downstream commercial structure to attract financing and understanding the preferred route of the gas export pipeline.”
The Sunrise Joint Venture (SJV) participants consist of Woodside Energy (operator, 33.44%), Timor Gap (56.56%), and Osaka Gas Australia (10.00%). The Sunrise development covers the Sunrise and Troubadour gas and condensate fields, collectively known as Greater Sunrise.
Wood was hired last year to lead a study with a multi-disciplinary subcontracting team, encompassing specialist consulting partners, to consider the key issues for developing , processing, and marketing gas with a strong focus on the delivery of gas to Timor-Leste for processing and LNG sales, or alternative delivery of gas to Australia.