SAN DONATO MILANESE, Italy, April 23 (UPI) -- Italian energy company Eni announced the start of development of the Kitan oil field in a joint development area between Timor-Leste and Australia.
Eni, the operator of the field, said it would develop Kitan through sub-sea wells connected to a floating production storage and offload vessel operating off the Australian coast.
First production from the Kitan oil field is expected during the second half of 2011. Eni said in July it expected the Kitan field to hold more than 30 million barrels of oil reserves.
"The development of Kitan further strengthens Eni's presence and growth potential in the Timor Sea," the company said.
Eni said it was committed to utilizing Timorese goods, services and labor for work at the Kitan project.
Eni holds a 40 percent stake in the project, Japan's INPEX Corp. owns 35 percent stake and multinational Talisman Resources holds the remaining 25 percent.
Production at Kitan in 2011 occurs just three years from the declaration of commerciality, Eni added.
