ID :
24426
Tue, 10/14/2008 - 16:43
Auther :
Shortlink :
http://m.oananews.org//node/24426
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S. Korea, East Timor agree on gas development, export pact
(ATTN: UPDATES with more details throughout)
By Lee Joon-seung
SEOUL, Oct. 14 (Yonhap) -- East Timor signed a memorandum of understanding (MOU)that could permit the export of gas from a major gas field to South Korea by 2013, the government said Tuesday.
The comprehensive pact was reached in the capital city of Dili and marks the
first time that East Timor, which gained independence in May 2002, has signed an
energy-resources pact with a foreign country, the Ministry of Knowledge Economy
said.
The MOU outlines giving South Korea top priority in the import of future gas
production from the Greater Sunrise well, and places local companies in a good
position to conduct explorations of other prospective wells. It also calls for
expanded cooperation in the gas-energy sector.
Greater Sunrise is estimated to hold 7.6 trillion cubic feet of gas and may be
able to produce enough fuel for 30 years starting in 2012.
Australia's Woodside Energy Ltd. holds a 33.4 percent stake in the well and is in
charge of operations. Shell, Conoco Phillips and Osaka Gas are also partners in
the well located in the Timor Sea. South Korean companies in cooperation with the
East Timor government have been conducting surveys in the region that are
scheduled to be completed in December.
Prior to the signing of the MOU gas produced at Greater Sunrise had no specific
sales outlet.
The well may hold enough gas to meet seven years worth of South Korea's energy
needs, although more exploratory surveys have to take place to determine the
exact size of the reserve.
The latest agreement, in addition, gives local companies a chance to explore for
both land and offshore oil and gas fields that will help raise chances of finding
energy resources.
At present, state-run Korea Gas Corp. (KOGAS) is conducting surveys in five
offshore wells close to East Timor's southern shores. A consortium made up of
Samsung Corp., LG International Corp. and KOGAS is carrying out surveys on the
JPDA06-102 site that lies roughly halfway between the Southeast Asian country and
Australia.
The joint petroleum development area (JPDA) is a region between East Timor and
Australia, with Dili and Canberra having agreed to divide gains 90 to 10. The
JPDA, also known as the Timor Gap, could potentially produce 30,000 barrels of
crude per day and large quantities of gas.
The ministry also said that the latest pact gives South Korean companies a chance
to take part in building of dimethyl ether production facilities if commercial
quantities of gas are found.
"Exact details on when gas can be imported will be decided at future
meetings," a government official said, added that the MOU has set in place a
foundation for future cooperation.
South Korea is the largest importer of natural gas in the world, with most of its
supply coming from Southeast Asia. It is currently in the process of diversifying
imports to cushion itself from sudden price fluctuations.
By Lee Joon-seung
SEOUL, Oct. 14 (Yonhap) -- East Timor signed a memorandum of understanding (MOU)that could permit the export of gas from a major gas field to South Korea by 2013, the government said Tuesday.
The comprehensive pact was reached in the capital city of Dili and marks the
first time that East Timor, which gained independence in May 2002, has signed an
energy-resources pact with a foreign country, the Ministry of Knowledge Economy
said.
The MOU outlines giving South Korea top priority in the import of future gas
production from the Greater Sunrise well, and places local companies in a good
position to conduct explorations of other prospective wells. It also calls for
expanded cooperation in the gas-energy sector.
Greater Sunrise is estimated to hold 7.6 trillion cubic feet of gas and may be
able to produce enough fuel for 30 years starting in 2012.
Australia's Woodside Energy Ltd. holds a 33.4 percent stake in the well and is in
charge of operations. Shell, Conoco Phillips and Osaka Gas are also partners in
the well located in the Timor Sea. South Korean companies in cooperation with the
East Timor government have been conducting surveys in the region that are
scheduled to be completed in December.
Prior to the signing of the MOU gas produced at Greater Sunrise had no specific
sales outlet.
The well may hold enough gas to meet seven years worth of South Korea's energy
needs, although more exploratory surveys have to take place to determine the
exact size of the reserve.
The latest agreement, in addition, gives local companies a chance to explore for
both land and offshore oil and gas fields that will help raise chances of finding
energy resources.
At present, state-run Korea Gas Corp. (KOGAS) is conducting surveys in five
offshore wells close to East Timor's southern shores. A consortium made up of
Samsung Corp., LG International Corp. and KOGAS is carrying out surveys on the
JPDA06-102 site that lies roughly halfway between the Southeast Asian country and
Australia.
The joint petroleum development area (JPDA) is a region between East Timor and
Australia, with Dili and Canberra having agreed to divide gains 90 to 10. The
JPDA, also known as the Timor Gap, could potentially produce 30,000 barrels of
crude per day and large quantities of gas.
The ministry also said that the latest pact gives South Korean companies a chance
to take part in building of dimethyl ether production facilities if commercial
quantities of gas are found.
"Exact details on when gas can be imported will be decided at future
meetings," a government official said, added that the MOU has set in place a
foundation for future cooperation.
South Korea is the largest importer of natural gas in the world, with most of its
supply coming from Southeast Asia. It is currently in the process of diversifying
imports to cushion itself from sudden price fluctuations.
