First
condensate cargo from Bayu-Undan
Posted: 31 March 2004
Santos Limited announced today another significant achievement
in the
development of the US$1.8 billion liquids phase of the Bayu-Undan
project in the Timor Sea.
The project operator, ConocoPhillips, has advised that the first
shipment of 340,000 barrels (gross) of condensate destined for the
Asian market from the Bayu-Undan development project was completed
on 30 March 2004.
The commencement of condensate cargo shipments will be followed
next month (April) by the start of gas re-injection, in line with
the project schedule.
The first LPG cargo is scheduled for shipment in late May.
“Bayu-Undan is of great significance to Santos and, as our
first entry into the international LNG market, will, at its peak,
add over 6 million barrels to our annual production,” said
Santos Managing Director, Mr John Ellice-Flint.
“It is therefore exciting and most pleasing that the various
stages of this complex, world-scale development continue to come
in on schedule,” he said.
The US$1.8 billion gas recycle (liquids) stage of the US$3.3 billion
Bayu-Undan project involves the stripping of natural gas liquids
(condensate and LPG) from the field’s gas stream and re-injecting
the residual gas.
The residual gas from the liquids project is reinjected into the
gas reservoir via dedicated wells for future use in the second stage
LNG development.
The LNG project is expected to commence production in the first
quarter of 2006 and involves the transportation of residual dry
gas via a sub-sea pipeline to Wickham Point, Darwin in the Northern
Territory for processing into LNG for export to Japan. The LNG project
is estimated to cost around US$1.5 billion.
Santos, with a 10.6 per cent interest, is the only Australian-owned
company involved in this world-class project which is located about
250 kilometers off the southern coast of Timor-Leste and 500 kilometers
offshore from Darwin in Australia.
The field contains estimated recoverable hydrocarbons of 400 million
barrels of petroleum (liquefied petroleum gas and condensate) and
3.4 trillion cubic feet of natural gas.
Interests in the total Bayu-Undan project are:
ConocoPhillips (Operator) 56.72 per cent
ENI 12.04 per cent
Santos Group 10.64 per cent
INPEX 10.52 per cent
Tokyo Electric Power Company, Incorporated/
Tokyo Gas Co., Ltd. 10.08 per cent
For more information see www.santos.com
Posted by Richard Price,
Editor Pipeline Magazine
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