RE: price5 Feb 2023 19:34
Pcc7- The figure ranges from $14-18BN to more;
"On 11 March, Timorese jurist Manuel Tilman explained to GMN that developing the Sunrise project could cost $18 billion, and that the $0.65 billion to be paid for ConocoPhillips' and Shell's shares of the joint venture was not sufficient to bring the pipeline to Timor-Leste."
"Even after Timor-Leste owns a 30% share of Greater Sunrise, it will need to persuade Shell and Woodside to approve a pipeline to Timor-Leste, which may reduce the profitability of the project. Most Joint Ventures require unanimous approval for a major decision like this one.
[The remaining JV partners have accepted Timor-Leste's view, although they are unwilling to invest their own money in it. See below.]
Without ConocoPhillips, the Sunrise JV will have less financial resources and technical and administrative expertise, and other partners may ask for compensation to accept the increased cost and technical and security risks of a deep-water pipeline to a new LNG plant in Beaçu, as well as the additional infrastructure and regulatory support that it will require.
[On 18 October, the Australian Financial Review quoted Woodside executives that they prefer to invest in the upstream development at the field itself, rather than in the pipeline and LNG plant, as elaborated by Interfax. A few days later, Xanana responded that Woodside's reluctance to invest will be better for the project. In 2020, TimorGAP was still seeking investors to finance the project.]
Potential buyers for the LNG will also have to approve the development option and will want assurances that the price, continuity of supply, and security of operation meet their needs.
Timor-Leste will need to pay at least 57% of the capital costs to develop the Sunrise field and 100% of the costs of Beaçu infrastructure, which will total at least $14 billion. This investment is not only for the pipeline and LNG plant, but for drilling exploratory and production wells, building the infrastructure to process oil and gas at the field (probably including a Floating Production, Storage and Offloading [FPSO] vessel to store and sell oil from Sunrise), operational infrastructure, and other costs. If this money is borrowed, Timor-Leste will have to pay it back with interest."
http://www.laohamutuk.org/Oil/Sunrise/18SunriseBuyout.htm
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