Timor-Leste and Santos Ltd. Discuss Future of Bayu-Undan Gas Field and Carbon Capture & Storage Development
In June 2025, Timor-Leste’s Ministry of Petroleum and Mineral Resources took a significant step toward shaping the country’s energy future by engaging in high-level discussions with Santos Ltd., a major player in the oil and gas sector. The meeting, held in Dili on June 12, brought together Minister Francisco da Costa Monteiro and Santos executives to deliberate on the future of the Bayu-Undan gas field and the promising prospects of Carbon Capture and Storage (CCS) projects.
The Bayu-Undan field, a key offshore gas asset, has been central to Timor-Leste’s energy landscape. As the field matures, the focus is shifting from traditional extraction to innovative approaches that align with global energy transition goals. The discussions centered on the feasibility of integrating remaining gas extraction with CCS technology, which involves capturing carbon dioxide emissions and securely storing them underground to mitigate environmental impact.
A notable aspect of the talks was exploring synergies between Bayu-Undan and nearby fields such as Chuditch. By leveraging these connections, the project aims to optimize resource use and enhance operational efficiency. Minister Monteiro emphasized the government’s strong support for innovative solutions that not only extend the productive life of existing fields but also contribute to reducing carbon emissions, reflecting Timor-Leste’s commitment to sustainable development.
The meeting also highlighted the importance of ensuring technical feasibility and regulatory compliance. Both parties agreed that any development must meet stringent safety and environmental standards, safeguarding the interests of the local community and the broader ecosystem. This approach underscores Timor-Leste’s dedication to responsible resource management as it navigates the complexities of offshore energy production.
Beyond the technical and environmental considerations, the discussions addressed broader strategic goals. Partnerships involving Santos, joint venture collaborators, and the national oil company TIMOR GAP are expected to play a crucial role in advancing these initiatives. The government is keen on maximizing local benefits, including job creation and skills development, particularly in areas such as remote operations and advanced technology management.
Minister Monteiro pointed out that building local capacity is essential for Timor-Leste’s long-term energy sovereignty. By fostering expertise in CCS and offshore resource management, the country can position itself as a forward-looking energy producer that balances economic growth with environmental stewardship.
The dialogue between Timor-Leste and Santos reflects a growing global trend where traditional fossil fuel producers are actively seeking ways to reduce their carbon footprint while maintaining energy security. CCS technology is increasingly recognized as a vital tool in this transition, offering a pathway to lower emissions without immediately abandoning existing infrastructure.
The June 2025 meeting marked a pivotal moment for Timor-Leste’s energy sector. It demonstrated a collaborative commitment to innovation, sustainability, and community benefit. As studies progress and proposals take shape, the Bayu-Undan field could become a model for integrating gas production with cutting-edge carbon management, supporting both national development and global climate goals.