Regional LNG: Legislators approve Sunrise LNG treaty
Wednesday, March 10 2004 - 05:45 PM WIB
The so-called "unitisation" agreement for Sunrise still needs to be approved by the Senate and ratified by East Timor before it can take effect, said Niegel Grazia, Woodside's external affairs manager. The project also needs to sign up liquefied natural gas customers.
The Sunrise partners, which include Royal Dutch Shell, ConocoPhillips and Osaka Gas, in 2002 rejected a $US3.3 billion ($4.4 billion) proposal by ConocoPhillips to pipe the gas ashore for sale in Australia, as well as Shell's plan to supply only North America. They are also seeking customers in Asia.
"Sunrise cannot be developed without the unitisation agreement," Mr Grazia said. "It's one of the three key remaining milestones for the development of the project, along with finding customers and selecting the development concept."
Under the agreement, about 20 per cent of the $20 billion Greater Sunrise field lies in Australian waters and the rest in an area administered by both Australia and East Timor. Under the Timor Sea Treaty, which came into effect last year, East Timor receives 90 per cent of government revenue from projects in the jointly controlled area, and Australia the rest.
The legislation may not pass straight through the Senate, said Kirsty Boazman, a spokeswoman for Industry Minister Ian Macfarlane. It has been sent to a senate committee, she said.(*)