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Major Timor Gap petroleum project to proceed.



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MEDIA RELEASE

SENATOR NICK MINCHIN

Minister for Industry Science and Resources

 

26 October 1999 99/352

 

 

MAJOR TIMOR GAP PETROLEUM PROJECT TO PROCEED

 

 

The Minister for Industry, Science and Resources, Senator Nick Minchin, today welcomed the announceme nt that the commercial development of the Bayu-Undan project in the Timor Gap Zone of Co-operation will proceed.

 

The Bayu-Undan field is located in the south-west part of Area A of the Zone of Co-operation, and is considered to be a world-class resource.

 

The Bayu-Undan consortium intends to initially extract up to 400 million barrels of condensate and Liquefied Petroleum Gas (LPG) from the field. A later stage could involve the production and export of over three trillion cubic feet of gas to supply domestic and export markets.

 

The first stage of the project, the construction and operation of three offshore platforms and a floating production, storage and offloading vessel, is expected to cost about A$2 billion.

 

“This is an important demonstration of industry confidence in the Timor Gap Treaty and its continuing effectiveness in the transition to an independent East Timor.

 

“The announcement marks the beginning of an important new stage in the development of petroleum resources in the Zone, and could help facilitate future exploration and development of adjacent areas”, Senator Minchin said.

 

As a consequence of the establishment of the United Nations Transitional Administration for East Timor, through the United Nations Security Council Resolution adopted yesterday, it is expected that the United Nations will assume the rights and obligations previously exercised by Indonesia under the Timor Gap Treaty, during the period of transition to East Timor’s independence.

 

Production from the Bayu-Undan field is expected to come on stream by 2004 and continue for almost 20 years.

 

Contacts:  Kate Harvey, Senator Minchin’s Office, 08 8237 7190

Steve Payne, Dept of Industry, Science and Resources, 02 6213 7928.

 

CMR464

 

Attachment:  Map of Timor Sea Field Locations

(available electronically at www.isr.gov.au)

 

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lk  1999-10-28  10:55