DILI, 05 June 2025 (TATOLI) – Santos has formally notified the Timor-Leste government about its intention to shut down the Bayu Undan Gas Project in the Timor Sea.
“With gas production at the Bayu Undan field coming to an end, Santos and its partners have informed the Ministry of Petroleum and Mineral Resources (MPRM) and the National Petroleum Authority (ANP) of their plan to cease gas production from the field,” Minister of Petroleum and Mineral Resources Francisco da Costa Monteiro told reporters on Wednesday.
Monteiro said Santos has also reiterated its plan to repurpose the Bayu Undan field for carbon storage beneath the seabed — a move that could generate billions of dollars for Timor-Leste.
The Bayu-Undan Carbon Capture and Storage (CCS) project is estimated to cost US$1.6 billion and is expected to generate up to US$7 billion.
He said that in addition to Santos’ proposed carbon capture and storage (CCS) project, the Government and Timor Gap plan to explore the remaining gas reserves in the Bayu Undan field. “The reserves could be developed alongside other fields, such as Chuditch and nearby fields, with the aim of piping the gas to Timor-Leste.
Monteiro said Santos and the National Petroleum Authority (ANP) have conducted a study on the decommissioning of oil and gas facilities of the Bayu Undan field, aiming to minimize the environmental impact associated with dismantling the field’s platforms.
Bayu-Undan has been a major source of revenue for Timor-Leste’s economy for more than two decades.
Santos has a 43.4% operated interest in Bayu-Undan. The remaining interest is held by SK E&S (25%), INPEX (11.4%), Eni (11%) and Tokyo Timor Sea Resources (9.2%).
TATOLI
The percentages in the last paragraph are wrong. Yesterday Tatoli got them right in Tetum:
Empreza australiana Santos mak halo operasaun ba Bayu Undan, ne’ebé kaer partisipasaun 36,5%
no mós halo parte iha joint venture SK E&S (21%), INPEX (9,6%), ENI (9,2%), Tokyo Timor Sea
Resources (7,7%) no Timor GAP (16%).