TIMOR GAP E.P. announced, on September 16th, 2024, a significant milestone in its growth strategy. After approximately two months of negotiations with the Bayu-Undan Joint Venture, TIMOR GAP has successfully negotiated and signed an agreement to acquire a participating interest in the Bayu-Undan Joint Venture.

The formal signing of the Sale and Purchase Deed (SPD) between TIMOR GAP and the Bayu-Undan Joint Venture took place today in Dili, Timor-Leste. Under the terms of the agreement, TIMOR GAP will acquire a 16% participating interest in the Bayu-Undan project, with an effective economic date of July 1, 2024. The other joint venture partners are Santos (the operator) with 36.5%, SK E&S with 21%, INPEX with 9.6%, ENI 9.2% and Tokyo Timor Sea Resources with 7.7%. 

This landmark agreement underscores TIMOR GAP’s role as the national oil and gas company of Timor-Leste. By integrating this producing asset into its portfolio, TIMOR GAP strengthens its position in the energy sector and expands its operational footprint.

The Bayu-Undan field, which commenced production in 2004, continues to produce natural gas and liquids at an economically viable rate, with the Joint Venture having recently secured a seventh extension of the term of the Production Sharing Contract (PSC), allowing for continued production through mid-2026. This extension ensures the sustained viability of the project and reaffirms the future potential of the Bayu-Undan asset.

TIMOR GAP’s entry into the Bayu-Undan Joint Venture enhances its ability to contribute to the national energy sector and economy. The company looks forward to a productive collaboration with Santos and its other joint venture partners in this exciting phase of growth.