Oceanic Exploration
Feasibility Study for the East Timor Pipeline


2. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

2.1 SUMMARY

For a pipeline landing at Suai in East Timor the closest field is Bayu Undan rather than Greater Sunrise. The maximum water depth from Bayu Undan to Suai is 2,500m. The following pipelines are required for the two different cases considered:

Option 1
LNG plant requires a pipeline of an Outside Diameter of 28-inch. The cost from Bayu Undan is approximately USD343million.

Option 2
For domestic use only a pipeline of Outside Diameter of 10-inch is required. The cost from Bayu Undan is approximately USD143million.

Installation of both pipelines is considered technically feasible with current installation equipment.

The primary fields considered for the pipeline are:

  • Bayu Undan
  • Greater Sunrise

The proposed landfall is Suai in East Timor.

2.2 CONCLUSION

The following is concluded:

  • There are sufficient reserves close to East Timor for a viable LNG plant.
  • The shortest distance is from Bayu Undan to Suai rather than Greater Sunrise to Suai.
  • Laying a pipeline in water depths greater than 2,500m is practical with currently available equipment.
  • Large diameter pipelines are being designed at present for installation at depths greater than 3,000m.
  • A pipeline of an outside diameter of 28-inch is sufficient for an LNG plant.
  • A pipeline from Bayu Undan to Suai is potentially significantly cheaper than a pipeline to Darwin.

W:\Oil&Gas\Joint Ventures\Intec\Projects\Pw Perth projects\0063.01 Oceanic East Timor\P0063.01Rev 1-with changes.doc
Page 2        13 June 2002

NEXT SLIDE