Australia to start Timor Gap project<\/p>\n
Agence France-Presse, Darwin, Australia<\/p>\n
Work will begin immediately on a huge gas project in
\nAustralia's tropical north after the A$2.3 billion (US$1.53
\nbillion) Bayu-Undan development cleared its final hurdle, the
\nproject developers said on Sunday.<\/p>\n
International oil giant ConocoPhillips announced that it is
\nready to begin work on the three million-ton per year Liquefied
\nNatural Gas (LNG) plant in Darwin, after receiving final approval
\nfrom the project's major players.<\/p>\n
ConocoPhillips is to build a pipeline from its Bayu-Undan gas
\nfield, about 500 kilometers (310 miles) northwest of Darwin in
\nthe Timor Sea, to the Darwin facility, which will supply Japanese
\ncustomers with LNG for 17 years from 2006.<\/p>\n
The Bayu-Undan gas field is estimated to contain a massive 400
\nmillion barrels of condensate and liquefied petroleum gas and 3.4
\ntrillion cubic feet of natural gas.<\/p>\n
East Timor's 90 percent share of revenues from the operation
\nis expected to help lift the embryonic nation from poverty,
\nreaping an estimated $3 billion in revenue from the project over
\nthe next 20 years.<\/p>\n
\"This landmark approval by the Timor Sea Designated Authority
\nmarks a significant event for the further development of reserves
\nin the Timor Sea area,\" ConocoPhillips president Stephen Brand
\nsaid.<\/p>\n
Although Australia will receive only 10 percent of revenues
\nfrom the field, it will benefit through increased economic
\nactivity and new jobs.<\/p>\n
The Northern Territory government has estimated 1,000 jobs
\nwill be created during the three-year plant construction phase,
\nwith 100 workers needed for the plant's operation.<\/p>\n
Darwin will also become the major service and supply hub for
\nthe plant and pipeline.<\/p>\n
The Bayu-Undan field is in the Joint Petroleum Development
\nArea, with production revenue going 90 percent to East Timor and
\n10 percent to Australia.<\/p>\n
John Ellice-Flint, chief executive officer of Santos which
\nholds an 11.8 percent stake in the project, said the final
\napprovals cleared the way for Santos to make its first entry into
\nthe global LNG market.<\/p>\n
\"This is a significant milestone for Santos and establishes
\nLNG as a new cornerstone contributor to group revenue and
\nearnings,\" he said.<\/p>\n
\"The approval also signals the start of an additional gas
\nbusiness for Santos in the Northern Territory and South East
\nAsia.\"<\/p>\n
Santos said the combined liquids and LNG project would add
\nover six million barrels of oil equivalent at peak production --
\nequal to about 10 percent of Santos' 2002 production.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/australia-to-start-timor-gap-project-1447893297",
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"sponsor": "Okusi Associates",
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