Santos has announced that it has signed a Memorandum of Understanding (MOU) with the Timor-Leste regulator Autoridade Nacional do Petróleo e Minerais (ANPM) to advance Carbon Capture and Storage (CCS) in Bayu-Undan in the Timor Sea. .
The MOU is said to detail the areas where the Bayu-Undan joint venture and ANPM, with the support of the government of Timor-Leste, will work collaboratively to test the feasibility of reusing existing facilities and using the Bayu-Undan reservoir. for CCS. This includes sharing technical, operational and commercial information, evaluating the regulatory framework, evaluating local capacity opportunities and establishing a decision schedule, according to Santos.
“We believe that the Bayu-Undan reservoir and facilities have the potential to be a world-leading CCS project and we are delighted to work together with ANPM and the government of Timor-Leste to advance this opportunity,” said Santos , Managing Director and Executive Director. Kevin Gallagher said in a company statement.
“The CCS is recognized by the International Energy Agency and the Intergovernmental Panel on Climate Change as a critical technology for achieving global climate goals. Santos’ experience with the globally competitive Moomba CCS project in the South Australian outback will bring invaluable experience to the project, ”he added.
“CCS at Bayu-Undan has the potential capacity to safely and permanently store approximately 10 million tons per year of CO2 and could build a new income-generating and job-generating industry for Timor-Leste,” Gallagher continued.
Commenting on the development, ANPM President Florentino Soares Ferreira said, “This is a milestone for Timor-Leste.”
“With the signing of the CCS Memorandum of Understanding between Santos, on behalf of their joint venture partners, and ANPM demonstrates that Timor-Leste is proactively taking the lead in integrating its oil and gas sector towards Timor’s commitment -Better to accelerate decarbonization and meet the UN net zero target for 2050, ”added Ferreira.
“Despite the fact that Timor-Leste is one of the lowest emissions countries in the world, and that the Paris Agreement provides exemptions or concessions to developing and less developed nations like Timor-Leste; We understand that carbon trading or the carbon credit market is an integral part of our future economy. We do not want to miss this opportunity; and I believe this will become one of the largest CCS projects in the southern hemisphere, ”he continued.
The Bayu-Undan facility, which is located approximately 310 miles northwest of Darwin in Timor-Leste offshore waters, supplies gas to the Darwin LNG plant through a 26-inch subsea pipeline. . The facility includes a central production and processing complex with a floating production storage and discharge vessel for condensate and LPG products and an unmanned wellhead platform. The Barossa gas field will be the source of gas to refill Darwin LNG when Bayu-Undan ceases production, Santos revealed.
In January this year, Santos announced a Final Investment Decision for the $ 235 million Phase 3C infill drilling program in the Bayu-Undan field, which comprises three production wells and will develop additional reserves of natural gas and liquids, extending the life of the field and the production of the offshore facilities and the Darwin LNG plant. At the end of July, Santos noted that production from the Phase 3C infill drilling program had started with the first well producing a better than expected result.
Santos has a 43.4 percent vested interest in Bayu-Undan, with the remaining interests held by SK E&S (25 percent), INPEX (11.4 percent), Eni (11 percent) and Tokyo Timor Sea. Resources (9.2 percent).
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