Theme selection process

The Sunrise joint venture participants have determined the preferred development theme for the Greater Sunrise reservoir by applying the principles of good oilfield practice.

The Sunrise joint venture has undertaken an extensive and rigorous technical and commercial evaluation to identify the best commercial and technical development option. In doing so we have paid due regard to the International Unitisation Agreement (IUA), signed by both the Government of Timor-Leste and Australia, which requires that the Greater Sunrise reservoir be developed to best commercial advantage consistent with good oilfield practice.

In mid-2008, the Sunrise joint venture completed a lengthy, A$33 million concept screening process which fully explored and assessed five development concepts for the Greater Sunrise gas fields.

This screening process included Darwin LNG, Floating LNG and an onshore LNG facility in Timor-Leste.

The study found that an onshore LNG facility in Timor-Leste was the least likely of these options to develop the Greater Sunrise reservoir to best commercial advantage consistent with good oilfield practice.

The installation of a subsea pipeline across the Timor Trench to supply a greenfield onshore LNG facility in Timor-Leste was also extensively evaluated by the Sunrise joint venture. While technically feasible, the Timor-Leste LNG option was not the best commercial and or technical option.

Since completing its concept screening work, the Sunrise joint venture has undertaken a comprehensive and extensive technical and commercial evaluation of both the Floating and Darwin LNG development options. It has also updated its assessment of the costs of both a pipeline to Timor-Leste and an onshore LNG facility in Timor-Leste.

As a result of the concept screening study and subsequent technical and commercial evaluation, the Sunrise joint venture has agreed that Floating LNG is the option most likely to develop the Greater Sunrise reservoir to best commercial advantage consistent with good oilfield practice.

The decision to develop Greater Sunrise using Floating LNG technology will, in addition to generating significant long-term petroleum revenue for Timor-Leste and Australia, also offer economic opportunities for local content, employment and procurement.

Woodside, as upstream operator and operator of the Sunrise joint venture; along with Shell, as downstream plant operator, will engage with Regulators in an integrated way to secure timely project approvals.