Australian energy company Santos has inked a deal to advance carbon capture and storage (CCS) at the Bayu-Undan gas field in the Timor Sea.

A Memorandum of Understanding (MoU) signed between Santos and Timor-Leste regulator Autoridade Nacional do Petroleo e Minerais (ANPM) will see the companies collaborating on all aspects of the potential for repurposing the existing Bayu-Undan facilities for CCS, including the reservoir.

Kevin Gallagher, Managing Director, CEO, Santos, commented on the project, saying, “We believe that Bayu-Undan reservoir and facilities have the potential to be a world-leading CCS project.”

Having previous experience working with the Moomba CCS project in South Australia, Gallagher stated that the project could safely and permanently store around ten million tonnes of CO2 per year, in addition to the creation of jobs for Timor-Leste.

Despite Timor-Leste being one of the lowest emission countries in the world, Florentino Soares Ferreira, President ANPM, said that the company understands how integral the carbon credits market will be for its economy.

“We don’t want to miss this opportunity, and I believe this will become one of the largest CCS projects in the Southern Hemisphere,” he added.