Royal Dutch Shell decide to quit the multi-billion dollar Sunrise gas project in the Timor Sea.
The explanation given to this decision was that the Anglo-Dutch petroleum group couldn’t reach commercial terms with its Sunrise partners to justify further work on the project.
The Sunrise project is owned 33.44 per cent by Woodside, which is the operator, 30 per cent by Phillips Petroleum, 26.56 per cent by Shell and 10 per cent Osaka Gas.
A decision to walk away from the project will cost East Timor billions of dollars. Northern Territory will also miss out of huge amounts of capital investment.
Also the cost of an FLNG plant at Sunrise has blown out to more than $6.6 billion and now it is at least 10 per cent more expensive than the projected capital cost of bringing Sunrise gas on shore.
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969