Bayu-Undan production ended in June 2025: Minister
DÍLI, 31 July 2026 (TATOLI) – The Government of Timor-Leste on Friday announced that the production at the Bayu-Undan gas field officially ceased on June 4, 2025, saying recent images and updates circulating on social media show only post-production technical activities and do not indicate any resumption of operations.
Minister of Petroleum and Mineral Resources Francisco Monteiro said Santos, the operator of the Bayu-Undan field, and its joint venture partners had formally notified the government that commercial production had ceased.
“Production at Bayu-Undan ended on June 4, 2025. We received official notification from Santos, as the operator, and its partners. Since then, all production activities have stopped, meaning the Timor-Leste no longer receives revenue from this field,” Monteiro told reporters during a press conference in Farol, Dili.
The minister said recent images and updates circulating online showing activities at the offshore facility were related only to mandatory technical procedures carried out after production ended and ahead of the eventual decommissioning process.
Under existing agreements, Santos and its partners are required to complete a series of technical procedures before the dismantling of the facilities can begin. The decommissioning process will be carried out in phases and will require approval from Timor-Leste’s National Petroleum Authority.
However, Monteiro said the government does not intend to immediately dismantle all Bayu-Undan infrastructure, as it continues discussions with Santos and its partners on potential future uses for the facilities.
“We are holding intensive discussions on the possibility of utilising the remaining gas reserves from Bayu-Undan, along with resources from the Chuditch field and other nearby fields,” he said.
“The objective is to transport the gas through a pipeline to Natarbora to support the development of processing industries in Timor-Leste,” he added.
Monteiro said the proposed approach would represent a major shift from the previous Bayu-Undan development model, under which gas was transported through a pipeline to Australia’s Darwin LNG facility for processing until production ended in 2025.
The minister also addressed a video circulating online that appeared to show a power shutdown at one of the Bayu-Undan facilities, saying the incident was part of routine procedures associated with the closure of operations.
He said the images circulating on social media most likely showed the control room and were part of normal procedures carried out during the suspension of operations.
Monteiro said the government aims to resume gas production from the area within the next three to four years through a new development model that combines Bayu-Undan’s remaining reserves with resources from the Chuditch field.
At the same time, Santos has expressed interest in developing a Carbon Capture and Storage (CCS) project at Bayu-Undan. Monteiro said the government was preparing an integrated strategy to serve as the basis for future negotiations with the company.
The minister added that the Floating Storage and Offloading (FSO) unit at the field had already entered the removal process, while other infrastructure would remain in place until the government finalises its long-term development strategy.
“The decommissioning process will be carried out in phases and is expected to take around five years. The removal of equipment will be conducted in accordance with the requirements set out in the existing contracts,” Monteiro said.
Located in the Timor Sea, Bayu-Undan has been one of Timor-Leste’s key sources of petroleum revenue since production began in 2004. The field supplied gas and condensate to the Darwin LNG facility in northern Australia before reaching the end of its commercial production phase in 2025.
TATOLI
