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Northern Territory Chief Minister, Clare Martin, said the $5 billion project had now completed its first stage and remained on track for the second stage.
“Today marks the official start of liquid production at the Bayu-Undan field in the Timor Sea Joint Petroleum Development Area (JPDA), however, the first liquids were brought up in February and the first shipment of liquids took place in March,” she said.
The second phase of production, gas to the Wickham Point LNG plant, begins 2006. Construction of the $2.5 billion, 500km pipe line to Darwin and LNG plant continues, with the first LNG cargo from the 3.24 million-tonne-per-year facility scheduled for delivery during the first quarter of 2006.
“In this first phase of liquids production the Bayu-Undan gas recycle facility will produce, separate and store condensate, propane and butane and re-inject dry gas back into the reservoir.
“This project is the first outcome of Government’s focused campaign to bring gas onshore, which included investing almost $20 million dollars into Wickham Point roads and infrastructure,” said Martin.
The Bayu-Undan gas condensate field contains estimated recoverable hydrocarbons of 400 million barrels of condensate and liquefied petroleum gas and 3.4 trillion cubic feet of natural gas. It is 250 kilometres south of Timor-Leste, and 500 kilometres northwest of Darwin.
Santos, with a 10.6%, is the only Australian-owned company involved in the world-class project.
Operator ConocoPhillips has also issued its first tender to sell condensate from Bayu-Undan with 650,000 barrels of condensate on offer for loading between July 7 - 17.
ConocoPhillips had not yet previously issued an export tender, despite the fact that the project produced first liquids more than three months ago, and its first condensate cargo over a month ago as previous cargoes were sold on the spot market.
Interests in the total Bayu-Undan project are: ConocoPhillips (Operator) 56.72%, ENI 12.04%, Santos Group 10.64%, INPEX 10.52%, Tokyo Electric Power Company, Incorporated Tokyo Gas Co., Ltd. 10.08%.
