East Timor plans $ 3.8 billion gas hub

AUSTRALIA: East Timor said Tuesday it plans to present a proposal for a 3.8 billion US dollar oil and gas hub on its coast, despite objections from the project’s joint venture partners.

In a statement, Dili said it was still in negotiations with Australia on the development of the Greater Sunrise project, which crosses the two nations’ maritime borders.

It said there were further meetings set for August and later in the year, when it would put the 3.8 billion dollar proposal to the joint venture parties.

The announcement comes as East Timor President Jose Ramos-Horta takes part in an official visit to Australia.

The plan which would be the hub of oil, gas and subsidiary industries on-shore where pipeline facilities are slated for production is at odds with the project’s joint venture which wants an offshore facility.

Earlier this month Woodside Petroleum, which heads the joint venture group, hit back at East Timor’s strong objections their plan, saying a floating gas plant could save some 4.2 billion US dollars.

East Timor, which agreed to split projected multi-billion dollar revenues 50-50 with Australia after a maritime border dispute, has said a floating platform is untested and carries an unacceptably high level of uncertainty.

The Sunrise Joint Venture comprises Woodside (33.4 percent), ConocoPhillips (30 percent), Shell (26.6 percent) and Osaka Gas (10 percent). SYDNEY, Wednesday, AFP