ConocoPhillips Begins First Liquids Production at Bayu-Undan



ConocoPhillips reports that first liquids production began February 10 from the Bayu-Undan field in the Timor Sea Joint Petroleum Development Area (JPDA).

Liquids production is the first phase in this two-phase project. In this first phase, the Bayu-Undan gas recycle facility will produce and process wet gas; separate and store condensate, propane and butane; and re-inject dry gas back into the reservoir. Full daily design rates of 1.1 billion cubic feet of gas; 115,000 barrels of combined condensate, propane and butane; and 950 million cubic feet of dry gas recycled into the reservoir are anticipated to be reached by the third quarter of 2004.

Bayu-Undan is a gas condensate field that contains estimated recoverable hydrocarbons of 400 million barrels of condensate and liquefied petroleum gas and 3.4 trillion cubic feet of natural gas. The field straddles production sharing contract areas 03-12 and 03-13 in the JPDA between Timor-Leste and Australia. It is located in 80 meters of water about 250 kilometers south of Suai, Timor-Leste, and 500 kilometers northwest of Darwin, Australia.

The second phase is a liquefied natural gas (LNG) project. It is expected to be complete in early 2006, at which time the first LNG cargo from the 3.52 million-ton-per-year facility is scheduled for delivery. It will involve a gas pipeline from the Bayu-Undan field to a LNG facility at Wickham Point, near Darwin. Approvals for this phase have been received and construction of the project has already begun. A binding Heads of Agreement was signed in 2002 with The Tokyo Electric Power Company, Incorporated and Tokyo Gas Co., Ltd. detailing the terms of sale of 3 million tons per year of LNG. The agreement covers a 17-year period and commits nearly 100 percent of the proven natural gas reserves of the field.

ConocoPhillips is the operator of the Bayu-Undan project, with a current participating interest of 56.72 percent (this includes 8.25 percent interest held by Petroz). Co-venturers and their current participating interests are: Eni Australia, 12.04 percent; Santos, 10.64 percent; INPEX, 10.53 percent; Tokyo Electric Power Company, Incorporated and Tokyo Gas Co., Ltd, an aggregate of 10.08 percent.
RELATED COMPANIES
Company: Santos Ltd. more info
 - Santos Seen Luring More Bids After Rejecting $7.2 Billion Offer (Nov 16)
 - Australia's Santos Steps Up Effort To Avert LNG Export Curb (Aug 30)
 - Australia Plans LNG Export Limits to Help Ease Local Price Pain (Apr 27)
Company: ConocoPhillips more info
Operates 12 Offshore Rigs
 - Exxon, BP Targeted in NYC Suit That Relies on 'Nuisance' Theory (Jan 10)
 - ConocoPhillips Vows Financial Discipline As Aims To Boost Output (Nov 08)
 - ConocoPhillips' Profit Beats Estimates, But Budget Cut 10% (Oct 26)
Company: ENI more info
Operates 11 Offshore Rigs
 - BSEE: Italy's Eni Begins Drilling Oil Well In Alaska's Beaufort Sea (Dec 27)
 - Eni 'Mission Impossible' Points to Seismic Shift for Big Oil (Dec 22)
 - Sanction-Proof Oil Rig Beats US Policy From Cuba to Russia (Dec 19)
Company: Inpex more info
Operates 1 Offshore Rigs
 - Inpex Halts Construction At Australian LNG Site After Worker Dies (Nov 30)
 - Japan's Inpex Says Ichthys LNG Project On Track For March Start (Nov 08)
 - Statement: Indonesia To Extend Inpex's Masela LNG Contract By 27 Years (Oct 19)
Company: Tokyo Electric Power more info
 - Chevron Signs Up Australia's Alinta To Buy Gas From Wheatstone (Apr 19)
 - Tokyo Electric Signs on for ExxonMobil's PNG LNG Supply (Dec 09)
 - Tokyo Electric Signs on for Chevron's Wheatstone LNG (Dec 07)
Company: Tokyo Gas more info
 - Tokyo Gas Gets Bangladesh LNG Terminal Feasibility Study Contract (Jul 27)
 - PetroVietnam Gas, Tokyo Gas May Establish LNG JV in Vietnam (Jul 11)
 - Tokyo Gas Buys Eagle Ford Shale Stake, Despite Loss from Prior US Purchase (Jun 21)