The Government of Timor-Leste has entered into an agreement with ConocoPhillips to acquire 30% stake in the Greater Sunrise Fields.
Image: Timor-Leste to acquire ConocoPhillips stake in Greater Sunrise Fields. Photo courtesy of rawpixel on Unsplash.
Located nearly 150km south east of Timor-Leste, the Sunrise and Troubadour gas and condensate fields are collectively known as the Greater Sunrise fields,
ConocoPhillips’ Australia-West President, Chris Wilson said that a decision to sell the company’s stake in the fields has been taken following an approach from the Timor-Leste Government.
The other Sunrise joint venture partners include Woodside with a 33.4% stake, Shell with 26.6% and Osaka Gas with 10%.
Wilson said: “We respect the Timor-Leste Government’s preference to develop the Sunrise fields through a new greenfield, Timor-Leste based LNG facility.
“While we differ on the proposed economic development option, we recognise the importance of Sunrise to the Nation of Timor-Leste and hope the sale of our interest to the Government allows them to progress their vision for the development of Sunrise.”
The total sale price of the transaction is $350m, which is subject to the government receiving funding approval from the Timor-Leste Council of Ministers and National Parliament, as well as regulatory approvals and partner pre-emption rights.
The transaction is expected to be completed in the first quarter of 2019.
ConocoPhillips intends to utilize the proceeds from the transaction for general corporate purposes.
Wilson said: “We are proud of our important contribution to Timor-Leste’s development and our relationship with the Government, which will continue through our interest in, and operatorship of, the Bayu-Undan Field.
“The negotiated sale price of approximately $US350 million essentially recovers the costs incurred by ConocoPhillips in connection with the Greater Sunrise Fields.”
In August, Lime Rock Resources agreed to acquire ConocoPhillips’ Barnett shale play assets comprising oil and natural gas properties located mainly in Montague, Wise, Denton, and Cooke Counties, Texas for nearly $230m, subject to customary purchase price adjustments.
The transaction is expected to close by year-end 2018, subject to customary closing conditions.
As of June 30, 2018, ConocoPhillips had operations and activities in 17 countries, $69 billion of total assets, and nearly 11,200 employees .