ConocoPhillips’ major Bayu-Undan gas condensate development is located in the Timor Sea joint petroleum development area (JPDA) between Timor-Leste and Australia. ConocoPhillips also operates the associated Darwin LNG facility, located at Wickham Point, Darwin.
ConocoPhillips also has a joint venture with Origin Energy and Sinopec to produce LNG from coalbed methane (CBM) basins in Queensland, Australia. Additional operations are located offshore and onshore in Western Australia and offshore Australia’s Northern Territory.
Operator: ConocoPhillips (56.9%)
Co-venturers: Santos (11.5%), INPEX (11.4%), Eni (11.0%), Tokyolectric and Tokyo Gas (aggregate 9.2%)
The Bayu-Undan gas condensate field, located within the Timor Sea JPDA, was discovered in 1995. Production commenced in 2004. Produced natural gas is used to supply the Darwin LNG facility.
Operator: ExxonMobil (50.0%)
Co-venturer: ConocoPhillips (50.0%)
The Athena production licence (WA-17-L) is located offshore Western Australia and contains part of the Perseus Field that straddles the boundary with WA-1-L, an adjoining license area. Natural gas has been produced from these licences since 2001.
Australia Pacific LNG
Operator: Origin Energy (42.5%)
Co-venturers: ConocoPhillips (42.5%), Sinopec (15.0%)
Operator: ConocoPhillips (42.5%)
Co-venturers: Origin Energy (42.5%), Sinopec (15.0%)
Australia Pacific LNG (APLNG) is a joint venture focused on producing CBM from the Bowen and Surat basins in Queensland, Australia. Natural gas is currently sold to domestic customers, while progress continues on the development of an LNG processing and export sales business. Once established, this will enhance our LNG position and serve as an additional LNG hub supplying Asia Pacific markets.
Two initial 4.5 MTPA LNG trains (nameplate capacity) are anticipated, with approximately 16,000 gross wells ultimately envisioned to supply both the LNG development and the domestic gas market. The additional wells will be supported by expanded gas gathering systems, centralized gas processing and compression stations, and water treatment facilities, in addition to a new export pipeline from the gas fields to the LNG facilities.
In 2009, it was announced that the LNG facilities would be located near Laird Point on Curtis Island. In 2010, the APLNG development project received environmental approval from the Queensland state government.
During 2011, three significant milestones were achieved. First, environmental approval was obtained from the Australian federal government. Second, definitive agreements were signed with Sinopec for the supply of up to 4.3 MTPA of LNG for 20 years. The agreements specified terms under which Sinopec subscribed for a 15 percent equity interest in APLNG, with both ConocoPhillips’ and Origin Energy’s ownership interests diluting to 42.5 percent. Completion of this equity subscription occurred in August 2011.
Third, in November 2011, a binding Heads of Agreement was signed with Kansai Electric for the supply of approximately 1 MTPA of LNG for 20 years from mid-2016. The agreement is subject to APLNG making a final investment decision on the second LNG train.
In January 2012, marketing for the second train was completed when binding agreements were signed with Sinopec and its subsidiaries, establishing commercial terms of the supply of an additional 3.3 MTPA of LNG through 2035. In addition, the agreements specified terms under which Sinopec will subscribe for an additional 10 percent equity in APLNG, raising its interest from 15 percent to 25 percent. The agreements are subject to government approvals and making a final investment decision on the second train. On completion, ConocoPhillips’ and Origin Energy’s working interests will be diluted to 37.5 percent each.
Darwin LNG Facility
Operator: ConocoPhillips (56.9%)
Co-venturers: Santos (11.5%), INPEX (11.4%), Eni (11.0%), Tokyo Electric/Tokyo Gas (9.2%)
The Darwin LNG facility, located at Wickham Point, Darwin, was completed and began full operation in 2006, processing natural gas from the Bayu-Undan Field. The facility is meeting gross contracted sales to Tokyo Electric Power Company, Incorporated and Tokyo Gas Co., Ltd. of approximately 3 MTPA of LNG per year. As is typical with LNG sales contracts to the Japanese market, contract pricing is linked to the JCC Crude Index.
Exploration and Business Development
JPDA 03-19, 03-20; NT/RL2, NT/RL4
Operator: Woodside (33.4%)
Co-venturers: ConocoPhillips (30.0%), Shell (26.6%), Osaka Gas (10.0%)
ConocoPhillips has a 30 percent interest in the Greater Sunrise natural gas and condensate field located in the Timor Sea. Although agreement has been reached between the governments of Australia and Timor-Leste concerning sharing of upstream revenues from the anticipated development of Greater Sunrise, key challenges must be resolved before significant funding commitments can be made. This includes gaining both governments’ approvals of the final LNG development concept selected. The co-venturers prefer a floating LNG development concept.
Caldita and Barossa
NT/P61 and NT/P69
Operator: ConocoPhillips (60.0%)
Co-venturer: Santos (40.0%)
The NT/P61 and NT/P69 permits are located offshore Northern Territory in the Timor Sea approximately 160 miles north-northwest of Darwin. The Caldita-1 discovery well in NT/P61 was drilled in 2005 and the Barossa-1 discovery well in NT/P69 in 2006. A location over the area of the Barossa discovery was declared in 2010. Reprocessing of data over the Caldita structure was carried out during 2011. This will allow the remaining exploration potential of the permit to be fully evaluated.
WA-314-P, WA-315-P and WA-398-P
Operator: ConocoPhillips (60.0% WA-315-P, WA-398-P / 10% WA-314-P)
Co-venturer: Karoon Gas (40.0% WA-315-P, WA-398-P / 90% WA-314-P)
The three permits are located in the Browse Basin, offshore Western Australia, approximately 300 miles north of Broome. In 2006, ConocoPhillips farmed into permits WA-314-P and WA-315-P and jointly acquired permit WA-398-P with Karoon Gas in 2007. The Endurance 3-D seismic survey was completed in 2008. A four-well drilling program was conducted in 2009 and 2010. The first well, Poseidon-1 in WA-315-P, was a discovery, and two subsequent wells, Poseidon-2 and Kronos-1 in WA-398-P, also successfully encountered hydrocarbons. A 3-D seismic survey was conducted over the area from 2009 to 2010, and analysis of the survey data was completed in 2011. A second phase of drilling in the three permits is planned for 2012 and 2013 and is expected to comprise five to eight wells.
EP443, EP450, EP451 and EP456
Operator: New Standard Onshore (25.0%)
Co-venturer: ConocoPhillips (75.0%)
During 2011, ConocoPhillips executed an agreement to earn up to 75 percent working interest in the Goldwyer Shale Project, located in the Canning Basin onshore Western Australia. Drilling is expected to commence in 2012. Upon completion of the initial phase of the drilling program, ConocoPhillips will have the right to assume operatorship of the project.