A petroleum engineer by profession, an adventurer by heart, a dreamer by nature.... It's all about a dream world and everything that I'm dreaming of.

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This field was discovered in 1995 and considered having a world class reserve of 3 Tcf of gas and 400 million barrels oil equivalent of its condensate. Located in the previous Indonesian territory, the field itself is in 80 metres deep, approximately 500 km north west of Darwin and 250 km south of Suai, East Timor (See picture below).



The development project of Bayu Undan, which operated by US Company, ConocoPhillips (64,14%), AGIP Italia (12,32%), Santos Australia (11,83%) and Inpex Japan (11,71%), consists of 2 phases :



How do they produce the gas and its condensate from offshore field ? First, they construct three fixed platforms where they put their offshore production facilities, such as the gas separator to separate the lean gas from its condensate (heavier particle of gas with the characteristic's near to oil). Beside that, to take the gas and liquid from their reservoir down there, they use 16 wells (currently being drilled).

So what's next after the gas and condensate separation ? The lean gas will be transferred to Darwin (500 km of pipeline) and will be processed to LNG (Liquified Natural Gas), the liquid will be stored in FSO (Floating,Storaage and Offloading) that will be installed together with the platforms construction. From the FSO, liquids will be loaded into the shuttle tanker for export. The last element, the gas which isn't transferred to darwin LNG plant, will be re-injected back into the underground reservoir.

First production is expected in April 2004


The gas contract is different from the oil contract. In gas, we have to find the buyers first before starting the development and production. Normaly it's a long engagement like 10 to 30 years. In this project, by March 2002, ConocoPhillips signed the agreement with Tokyo Electric Power Company Incorporated (TEPCO) and Tokyo Gas Co Ltd. (TG) detailing terms for the sale of three million tons per year of LNG. The duration of this agreement is 17 years with the first cargo scheduled for early 2006.
This phase consists of 500 km pipeline construction and a gas liquefaction plant at Wickham Point, near to Darwin


The invistation for the first phase (Liquids Stripping Project) is about US$1,8 billion and for the second one is about US$ 1,4 billion. It's a big business, so the expectation is also high, it's predicted about US$ 15 billion of the revenue.

The latest news is the ratification of Timor Sea Treaty by the Australian Parliament, 6 March 2003. This field is located in the Joint Petroleum Development Area (JPDA, see picture above) and Australia are agree to share the production revenue by 90 % for East Timor government and 10 % for the Australian government. Business is business, but hope this project can help the ancient Indonesian territory, which is one of the poorest country in the world, to develop their people.


posted at 6:25 AM