Santos and TIMOR GAP executed a sale and purchase deed (SPD) for the Bayu-Undan Upstream Project offshore Timor-Leste.
Under terms of the deal, the Bayu-Undan joint venture (BUJV) participants will transfer 16% interest in the project to TIMOR GAP, effective July 1, 2024. TIMOR GAP will participate in the BUJV for the remainder of the economic life of production.
The production sharing contract (PSC) for Bayu-Undan will end June 30, 2026, or upon cessation of production, whichever comes first.
The upstream project comprises the offshore petroleum field and offshore production and processing infrastructure in Timor-Leste.
Bayu-Undan continues to produce gas into the Australian domestic market through an agreement with Power and Water Corp. of Northern Territory, as well as producing liquid hydrocarbons. Santos expects to repurpose Bayu-Undan into a new large-scale, commercial carbon capture and storage (CCS) project when petroleum production ends (OGJ Online, Aug. 7, 2023).
The joint venture participants prior to TIMOR GAP’s entry into the joint venture are Santos, SK E&S, INPEX, Eni, and Tokyo Timor Sea Resources.
After the SPD, Santos will remain operator at Bayu-Undan (36.5%) with partners Timor GAP (16%), SK E&S (21%), INPEX Corp. (9.6%), Eni SPA (9.2%), and Tokyo Timor Sea Resources Pty Ltd. (7.7%).
