Timor-Leste, Australia's Woodside agree to carry out study on Timor-based 5 mil mt/year LNG concept

Timor-Leste's Ministry of Petroleum and Mineral Resources and Australia's Woodside Energy have signed a cooperation agreement to carry out commercial and technical maturation activities for a greenfield 5 million metric tons/year Timor-based LNG concept, Woodside said in a statement Nov. 25.

The agreement includes a "high-level plan" outlining key activities required to mature and progress this opportunity, under which first LNG may be produced as early as 2032-35, subject to concept selection and investment decisions, Woodside said.

These activities will run in parallel to the ongoing negotiation of the fiscal, regulatory and legal frameworks to support the upstream development of the Greater Sunrise fields between the Sunrise Joint Venture, Timor-Leste and the Australian governments.

Woodside said that the agreement marks "a significant milestone" in the longstanding efforts by Timor-Leste and Woodside to unlock the value of the Greater Sunrise gas fields.

"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 on the most appropriate downstream commercial structure to attract financing and understanding the preferred route of the gas export pipeline," Woodside CEO Meg O'Neill said in the statement.

Timor-Leste Minister of Petroleum and Mineral Resources Francisco da Costa Monteiro, also said in a statement that the agreement 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.

"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."

Advancing steps

The latest development came as Timor-Leste's Petroleum Minister Francisco da Costa Monteiro said on June 20 that the country is "advancing" steps to develop its gas resources both onshore and offshore, with a number of new projects under development.

Speaking in Tokyo at the LNG Producer-Consumer Conference, Monteiro also said that Timor-Leste welcomed a recent concept study for Greater Sunrise, which he said confirmed that an onshore LNG base development in Timor-Leste represented a "commercially viable option."

"Timor-Leste will work with all stakeholders involved to ensure a swift development of this field, with a target of first gas by 2032," he said.

Greater Sunrise is operated by Australia's Woodside Energy with a 33.44% stake. Timor Gap holds a 56.56% stake, and Osaka Gas holds the remaining 10% share.

The Greater Sunrise fields are located some 450 km north-west of Darwin in northern Australia and 150 km south of Timor-Leste.

The project comprises the Sunrise and Troubadour gas and condensate fields, which contain an estimated contingent resource of 5.3 Tcf of dry gas and 226 million barrels of condensate.