ConocoPhillips is currently operator of the block, with a 54% participating interest. Repsol and Indonesian national upstream company Pertamina own 36% and 10%, respectively.
South America has 30 planned FPSOs in the pipeline. Brazil’s Petrobras awarded its latest contract to MODEC Inc. for Búzios 5.
Selling midstream interest, water infrastructure and long-dated inventory are among the options for the Permian pure-play.
Pipeline costs, improving the FLNG technology and management of early and late-stage output at a field would all be factors in determining whether FLNG might be viable for other gas developments, Shell Australia Chair Zoe Yujnovich said.
The promising gas project is seen as crucial to the impoverished nation’s economy but had been long held up by a maritime border dispute between East Timor and Australia, which was resolved last year.
Production is expected to last some 18 years and bring in total revenue to Navitas and its partners of about $11.3 billion, the company said in a statement.
West Qurna 1 oil field, developed by Exxon Mobil, was previously producing about 440,000 bbl/d.
As IOCs exit the area, regional operators look to stem the tide of declining production.
The project is estimated to cost 2.2 billion Norwegian crowns (US$254 million) and is profitable at an oil price above $27 per barrel, the company added in a statement.
The transaction is still subject to internal approvals, the company said, adding the bids were received on June 5.
