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11:01
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Originally posted by Justlocal
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TS needs gas supply to get off the ground. Right now thats a problem. The Greater Sunrise field, which lies in the joint development zone between Timor Leste and Aust., is now part of the boundary dispute being adjudicated by the UN. From what I have read it would seem that a decision in favour of Timor Leste would place the bulk of the field within their new boundary. Their Govt wants the gas piped to Timor Leste and an LNG facility built on their territory. Two other fields, Caldita and Barossa appear to be headed for Darwin LNG plant via pipeline, or at least under consideration of that plan. That really only leaves ENI's Evans Shoals (and Blackwood which MEO considered uncommercial for TS purposes and gave their interest to ENI.) ENI also have an interest in the Darwin LNG facility although they have previously stated that the Evens Shoal Gas would not necessarily go to Darwin. Back to the Dispute: It seems Timor Leste want the whole boundary realigned between the two countries ( the norm apparently is 50/50 basis) whereas at the mo, it heavily favours Australia. So Government wise its all to play for and any realignment may well effect other prospects and discoveries that exist in the Timor Sea between the two countries. (look at a map of the area and you'll see what I mean) As for MEO's Tassie Shoals venture, I suspect its fortunes will rise or fall on the UN determination. IMHO and DYOR
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Ironically, the Cuba plays, which many would assess as carrying a lot of sovereign risk, may end up being the lowest sovereign risk plays in MEO's portfolio!
