Page 46 - Oil&Gas-AustralAsia-2015-Issue-1
P. 46
T IMOR-LESTE
Sunrise stalled on production options
By Marie RYAN
“When you have a half a kilometre ves- Shell is a 26.6 per cent equity holder in
Australia’s Sunrise LNG joint venture sel in the middle of the sea, especially Sunrise and its Prelude FLNG facility, to
project between Woodside and Shell the world is turning the FLNG instal- be used in Western Australia’s Browse
is under a cloud of uncertainty with lations are just basically sitting ducks - Basin currently under construction, will
joint venture partners and Timor-Leste they are so big you can’t miss them,” Mr be the largest floating offshore facility
and Western Australian governments Pires said. ever built at 488 metres long and 74
unable to agree on production of the The Timor-Leste Energy Minister said metres wide and, when fully ballasted,
Greater Sunrise and Troubadour fields security factors had to be taken into will weigh 600,000 tonnes.
in the Timor Sea. consideration along with the overall The Timor-Leste Resources Manager,
cost of the project. Woodside chief executive Peter Cole-
Timor-Leste Resource Minister Alfredo Pires at an The question of FLNG being an man and Western Australian Premier
oil and gas conference in Perth. Image courtesy of “un-proven technology” was another Colin Barnett held talks before the
Lucas Dawson Photography issue for the Timor-Leste official who conference with Premier Barnett, who
said the government had spent over in the past voiced similar reservations
US$15.2 million on studies that prove about the “un-tested” nature of floating
the Greater Sunrise field could be piped LNG options when lobbying in favour
to Timor-Leste for processing and be of onshore processing at James Price
easily accessible to the Asian market. Point, for Woodside’s Browse gas devel-
opment.
Speaking at an oil and gas conference in “Front End Engineering and Design “Discussions with Woodside and
Perth this month, Timor-Leste Re- (FEED) studies on the construction of Premier Barnett covered very broad
sources Minister Alfredo Pires said he a pipeline and the related marine facil- topics on WA Government assistance
had a number of reservations about the ities, including a 5 million tonne per to Timor-Leste regarding engineering
option to use floating LNG (FLNG) for annum plant had been completed with placements in Perth and local content
the Sunrise project. studies showing the Timor-Leste option for resource projects,” Mr Pires said.
The Timor-Leste government’s concerns is economically viable,” he said. Woodside has announced it will con-
span the use of FLNG technology in an The government has also a flagged a sider an onshore option however; last
increasing volatile geopolitical region potential conflict of interest with joint month said it will not be investing any
between Australia, Indonesia and Ti- venture partner Shell having a vest- more funds toward the project due to
mor-Leste in the Timor Sea. ed interest in discussions on how the the current regulatory and fiscal frame-
Minister Pires said the Timor-Leste field should be produced, as the super work uncertainty.
government preferred the option of major’s patented FLNG technology The Timor-Leste economy relies heavily
developing the field through an onshore is contracted to be used - should the on royalties from offshore oil produc-
processing plant, possibly in Dilli, stat- option be an offshore one. tion with taxes in the first half of 2014
ing the field could be developed more totaling $1.1 billion, or 75% of the
economically with an onshore process- Timor-Leste is still largely a nation in poverty, a government’s forecast for the whole
ing facility that would also boost the worker in rice fields near Dilli. year. With a similar system to Norway,
local economy. Image courtesy of the UN Timor-Leste’s Petroleum Fund has
The government official also said if the grown to over $16.6 billion. The gov-
Sunrise project was developed with ernment invests 40% of its fund assets
floating liquefied natural gas technology in equities, with the remainder invested
it could be vulnerable to attacks from in high-quality bonds.
increasingly active terrorist organisa-
tions.
A A44 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
Sunrise stalled on production options
By Marie RYAN
“When you have a half a kilometre ves- Shell is a 26.6 per cent equity holder in
Australia’s Sunrise LNG joint venture sel in the middle of the sea, especially Sunrise and its Prelude FLNG facility, to
project between Woodside and Shell the world is turning the FLNG instal- be used in Western Australia’s Browse
is under a cloud of uncertainty with lations are just basically sitting ducks - Basin currently under construction, will
joint venture partners and Timor-Leste they are so big you can’t miss them,” Mr be the largest floating offshore facility
and Western Australian governments Pires said. ever built at 488 metres long and 74
unable to agree on production of the The Timor-Leste Energy Minister said metres wide and, when fully ballasted,
Greater Sunrise and Troubadour fields security factors had to be taken into will weigh 600,000 tonnes.
in the Timor Sea. consideration along with the overall The Timor-Leste Resources Manager,
cost of the project. Woodside chief executive Peter Cole-
Timor-Leste Resource Minister Alfredo Pires at an The question of FLNG being an man and Western Australian Premier
oil and gas conference in Perth. Image courtesy of “un-proven technology” was another Colin Barnett held talks before the
Lucas Dawson Photography issue for the Timor-Leste official who conference with Premier Barnett, who
said the government had spent over in the past voiced similar reservations
US$15.2 million on studies that prove about the “un-tested” nature of floating
the Greater Sunrise field could be piped LNG options when lobbying in favour
to Timor-Leste for processing and be of onshore processing at James Price
easily accessible to the Asian market. Point, for Woodside’s Browse gas devel-
opment.
Speaking at an oil and gas conference in “Front End Engineering and Design “Discussions with Woodside and
Perth this month, Timor-Leste Re- (FEED) studies on the construction of Premier Barnett covered very broad
sources Minister Alfredo Pires said he a pipeline and the related marine facil- topics on WA Government assistance
had a number of reservations about the ities, including a 5 million tonne per to Timor-Leste regarding engineering
option to use floating LNG (FLNG) for annum plant had been completed with placements in Perth and local content
the Sunrise project. studies showing the Timor-Leste option for resource projects,” Mr Pires said.
The Timor-Leste government’s concerns is economically viable,” he said. Woodside has announced it will con-
span the use of FLNG technology in an The government has also a flagged a sider an onshore option however; last
increasing volatile geopolitical region potential conflict of interest with joint month said it will not be investing any
between Australia, Indonesia and Ti- venture partner Shell having a vest- more funds toward the project due to
mor-Leste in the Timor Sea. ed interest in discussions on how the the current regulatory and fiscal frame-
Minister Pires said the Timor-Leste field should be produced, as the super work uncertainty.
government preferred the option of major’s patented FLNG technology The Timor-Leste economy relies heavily
developing the field through an onshore is contracted to be used - should the on royalties from offshore oil produc-
processing plant, possibly in Dilli, stat- option be an offshore one. tion with taxes in the first half of 2014
ing the field could be developed more totaling $1.1 billion, or 75% of the
economically with an onshore process- Timor-Leste is still largely a nation in poverty, a government’s forecast for the whole
ing facility that would also boost the worker in rice fields near Dilli. year. With a similar system to Norway,
local economy. Image courtesy of the UN Timor-Leste’s Petroleum Fund has
The government official also said if the grown to over $16.6 billion. The gov-
Sunrise project was developed with ernment invests 40% of its fund assets
floating liquefied natural gas technology in equities, with the remainder invested
it could be vulnerable to attacks from in high-quality bonds.
increasingly active terrorist organisa-
tions.
A A44 OIL & GAS ustral SIA MARCH/APRIL 2015 www.oilandgasaustralasia.com
