The treaty sets out the guidelines for the development of vast oil and gas reserves with the joint petroleum development area lying between the two countries.
More than $10 billion of oil and gas projects are awaiting ratification of the treaty including the $3.5 billion Bayu-Undan second-stage liquefied petroleum gas project and provided maritime boundaries can be agreed upon, a second agreement covering unitisation of national ownership of the Greater Sunrise gas project is expected to follow ratification of the treaty.
Woodside Petroleum and its partners (Shell, ConocoPhillips and Osaka Gas) in the $6.5 billion-plus Greater Sunrise project are pushing for an agreement to be reached by the end of the year.
Currently a joint-venture is doing a full review of the development options in the hope of reaching a decision early next year. Woodside and Shell favour a floating offshore facility to process gas while ConocoPhillips wants to bring gas onshore to Darwin.
