ConocoPhillips entered into new production sharing contracts for the Bayu-Undan field with the Timor-Leste government after the signing of the Maritime Boundary treaty between the country and Australia.
The new contracts provide regulatory, fiscal and legal stability under terms equivalent for the Bayu-Undan field, according to a Sept. 1 news release from the company.
The treaty was signed in March 2018 and was ratified by both countries Aug. 30.
Based on the treaty, the Bayu-Undan upstream facilities and contract area now fall under Timor-Leste's jurisdiction, while the Bayu-Undan to Darwin pipeline will be within Australia's jurisdiction.
Project operator ConocoPhillips expects to decommission the Bayu-Undan field between 2021 and 2023.
ConocoPhillips' partner Santos Ltd. also agreed to the natural gas project operating in Timor-Leste's jurisdiction.
ConocoPhillips serves as project operator with a 56.9% stake, while Santos has an 11.5% interest. Inpex Corp. holds an 11.4% stake and Eni SpA owns an 11.0% interest. Tokyo Timor Sea Resources, a consortium of Tokyo Gas Co. Ltd. and JERA Co. Inc., has a 9.2% stake.
