Bayu-Undan LNG

Location

Joint Petroleum Development Area, Timor Gap, approximately 500 kilometres north-west of Darwin in 80 metres of water.

Participants

ConocoPhillips (operator)  56.72%
ENI  12.04%
Santos  10.64%
INPEX  10.52%
Tokyo Electric Power Company/Tokyo Gas Company  10.08%

Discovered

The Bayu field was discovered in 1995 with the Bayu 1 exploration well and the Undan field was discovered later that year with the Undan 1 exploration well.

Current Status

The Bayu-Undan liquids project commenced production in April 2004 with well flow rates exceeding initial expectations.

During the remainder of 2004, the field was ramped up to its increased design capacity of about 1.1 billion cubic feet per day and 100,000 barrels of liquids per day, resulting in gross production of 19 million barrels which was 22% above expectations.

Drilling of the planned wells was completed in March 2005.

Site activities for the Darwin Liquefied Natural Gas (LNG) plant have continued and the plant is now more than 90% complete, with the project on track for first LNG production in early 2006. 

The Bayu-Undan to Darwin pipeline is complete and was tied in to the offshore facilities during a planned shutdown in May 2005.

First Production

Liquids Production commenced in April 2004.

2004 Year End Reserves (Gross 2P)

Condensate and LPG (mmbbls) 

557.8

Crude oil (mmbbls) 

-

Sales gas and ethane (PJ) 

3973.7

2004 Year End Production (mmboe)

Condensate

1.2

Crude oil

-

LPG

0.4

Sales gas and ethane

-

Cost to Develop

Phase 1 gas recycling  US$1.8 billion
Phase 2 LNG production  US$1.5 billion

Facility Details

The development of the Bayu-Undan fields is being implemented in a two phase process. The first phase is a unique world-scale offshore gas recycling project which utilises the world's first multi-use separate propane, butane and condensate Floating Storage and Offloading vessel. The second phase is northern Australia's first LNG production project.

Phase 1 involves the production of hydrocarbon liquids rich reservoir gas and the stripping of LPG and condensates. The lean gas is then reinjected into the reservoir. Phase 1 involved the construction of a Wellhead platform, a Drilling, Production and Processing platform and a Compression, Utilities and Quarters platform. The recovered liquids are piped to a Floating Storage and Offloading facility.

Approximately 22 wells are required over the anticipated 25-year life of the project and 13 will be drilled in the first drilling program.

The second phase involves the export of dry gas to northern Australia's first LNG production project.  Phase 2 is expected to start in early 2006 and will involve the transportation of the lean gas via a 26 inch, 500 kilometre subsea pipeline for processing in a new single train LNG plant.

A 3.24 million tonne per annum LNG plant is currently under construction at Wickham point, Darwin, using ConocoPhillips' optimised cascade LNG process technology with associated storage and marine load-out facilities.

Last updated: Wednesday 23 November 2005