Timor Sea deal

Timor Sea deal

CANBERRA (Reuters): Political changes occurring in Indonesia would probably delay an agreement between Australia and Indonesia on sharing of future revenues from natural gas discoveries in the Timor Sea, the Australian government said yesterday.

"We were aiming to reach a conclusion on this by the end of March," Australian Resources and Energy Minister Warwick Parer said.

"In view of the changeover that's happening in politics in Indonesia, I would expect that time would stretch out," Parer said.

Sudjana said recently that Indonesia wants a floating facility for the gas-rich Bayu-Undan gas field in the Timor Gap within ZOCA.

Phillips Petroleum Co [P.N] and another Bayu-Undan participant, The Broken Hill Pty Co Ltd, are evaluating separate proposals to build facilities to process raw gas into LNG from the Bayu-Undan field.