Northern Australia energy arc - Timor Sea

Early this year new Timor Gap Treaty arrangements were concluded between Australia and East Timor -with the blessing of Indonesia -and it was once again 'business as usual' in the Timor Sea. This was quickly confirmed in February when the US$1.4 billion (A$2.4 billion at current exchange rates) Stage 1 of the Bayu Undan Project was approved by the Timor Gap Zone of Co-operation Joint Authority. This meant the green light for the project, which involves the extraction and export of condensate (a light oil) and liquid petroleum gas (LPG) from the Bayu Undan fields, 500 km north west of Darwin. The proposed development would involve a total investment of $5 billion in offshore and onshore gas production and processing facilities, pipelines, petrochemical facilities and other customer developments. Royalties from Bayu Undan will be shared equally between Australia and east Timor, thus providing significant revenue to underpin the economic development of East Timor