Govt approves draft decree-law on decommissioning activities in Bayu-Undan field

Govt approves draft decree-law on decommissioning activities in Bayu-Undan field

Petroleum activity at Bayu Undang (image/Conocophilips)

DILI, 22 march 2023 (TATOLI) – The Government of Timor-Leste, through the Council of Ministers, has today approved a draft Decree-Law, presented by the Minister of Petroleum and Minerals, Víctor da Conceição Soares, on the Conduct of Decommissioning Activities in the Bayu-Undan field.

“With the end of the production life of the two production sharing contracts signed between the members of the Bayu-Undan joint venture and the National Petroleum and Minerals Authority (ANPM), it is necessary that all platforms, structures, gas or oil pipelines, as well as their associated structures and equipment, be decommissioned, as provided for in the Production Sharing Contracts,” Minister of the Presidency of the Council of Ministers, Fidelis Magalhães said in a press conference, at the Governmental Palace. 

The objective of the Decree-Law is to establish a legal regime for the exercise of Decommissioning Activities in the Contract Area and Timor-Leste’s land territory while ensuring the protection of health, safety, and the environment of Timor-Leste and its people.

Bayu-Undan began producing gas liquids (condensate and liquid petroleum gas (LPG) in February 2004.

Oil and gas revenues from the Bayu Undan field contribute immensely in billions of dollars to state revenues for almost two decades.

Timor-Leste will utilize the Bayu-Undan field for the Carbon Capture Storage project as a solution for the gas runout in the field, in the very near future.

In september 2021, Santos, as operator of the Bayu-Undan Joint Venture, signed a Memorandum of Understanding (MOU) with the Timor-Leste regulator Autoridade Nacional do Petróleo e Minerais (ANPM) to progress Carbon Capture and Storage (CCS) at Bayu-Undan in the Timor Sea. 

The CCS project could store up to 10 million tonnes of CO2 per year. 




Journalist: Filomeno Martins

Editor: Nelia Borges


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