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27 November 2008

East Timor continues development plans for Greater Sunrise

Source: Government of East Timor MediaNet Press Release Wire 25/11/2008 Tuesday 6:00 PM AEST

East Timor continues development plans for Greater Sunrise

Dili, November 25, Norwegian Petroleum experts have descended on Dili to attend a four day workshop hosted by the newly formed National Petroleum Authority.

The Secretary of State for Natural Resources, Alfredo Pires, opened the forum made up of international petroleum experts with backgrounds in geology, chemical engineering, process engineering, and petroleum engineering. Pires welcomed them by thanking their input into 'the overall nation building of Timor-Leste through the strengthening of the petroleum industry.' The focus of the forum was to discuss development concepts for Greater Sunrise and ENI Kitan oil fields.

Timor-Leste is confident that ENI Kitan oil field development will begin production in 2010, leaving the nation much less dependent on prospects such as Greater Sunrise.

"The successful development of ENI Kitan gives us the time and the financial security we need to make a prudent and comprehensive decision about our future with Greater Sunrise. In 2009, we will have 14 drilling campaigns in very prospective areas. We still have over 50% of offshore acreage and 100% onshore acreage to release for exploration. So in terms of priority, Greater Sunrise is moving down the list of priorities for Timor-Leste."
Woodside Oil, on the other hand, has listed Greater Sunrise as one of three priorities for 2009: however, Woodside needs any development plans for Greater Sunrise approved by Timor-Leste.

This month in Sydney, Woodside presented investors with their own, unapproved development plans: the first for a floating LNG facility for which Shell currently is taking tenders and the second for bringing the pipeline to Brownfield at Wickham Point in Darwin. This was presented as an 'opportunity to leverage existing LNG plant facilities and infrastructure.'

Conoco Phillips has approval for a 10 MTPA/ LNG at the facility.

Woodside did not present the Timor-Leste pipeline option to investors or the fact that Timor-Leste has made it clear the fourth option would be to leave the oil in the ground for future generations.

Furthermore, Woodside continues to stand by its claims that bringing the pipeline to Timor-Leste is not commercially viable. The position is based on their own study, the "Timor-Leste Gas Export Pipeline Study".

Current independent studies emerging are set to refute Woodside's assertions on commercial viability. A pre-feasibility study with Petronas and a bathymetric survey supported by a Korean consortium, led by an American expert, are producing very positive results to prove the commercial viability for the Timor-Leste option.

A recent MoU signing between the Government of Timor- Leste and South Korea has assured the Timor-Leste option with both the markets and the finance necessary for any LNG project in Timor- Leste.

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