DILI, 01 june 2021 (TATOLI)-The Minister of Petroleum and Minerals, Victor da Conçeicão Soares informed that the Government of Australia and Timor-Leste had finalized the petroleum fiscal regime of the Greater Sunrise development project, saying, the discussion on the Greater Sunrise joint venture of the project was ongoing.
“We had made significant progress on the discussion of the joint venture of the Greater Sunrise oil project. Such as, now we are on the stage of the discussion of the Petroleum Mining Code. We had realized a number of the discussions on the relevant document of the project and we had also exchanged this information with Australia and the consortium companies. I think, it is important for us to go through all the process and hoping that we can conclude it on time,” Soares told Tatoli at the Ministry of Finance, in Dili, yesterday.
The Government of Timor-Leste, in 2019 spent US$650 million on purchasing the Royal Dutch Shell and ConocoPhillips stakes in the Greater Sunrise natural gas fields of the South of the country, which gave Timor Gap, the National Oil Company of Timor-Leste, a 56.56 percent interest in the Greater Sunrise fields alongside continuing partners, Woodside (operator) with 33.44 percent interest and Osaka Gas with 10 percent.
Soares said according to the Government’s decision, it would prioritize the development of the upstream sector of the Greater Sunrise first to assess the feasibility of the project, and then it would focus on the midstream and downstream sectors.
“To develop the downstream sector, Timor-Leste and the Australian Government, including the oil and gas consortium companies needed to discuss the petroleum fiscal regime under the Maritime Boundary Treaty between Timor-Leste and Australia,” he said.
Soares said when The National Authority of Petroleum and Mineral (ANPM), Australia, and the Oil and Gas Consortium Companies negotiated the Greater Sunrise project; Timor-Leste maintained its position to bring the pipeline to the country.
“I think we need to defend our nationalism. So, we won’t rely on Australia, but we decide to bring the pipeline to Timor-Leste following the Treaty. Because we are the ones who will regulate and control the project, as it will benefit our young people,” Soares said.
He added that, during the discussion, both parties showed their willingness, as Australia trusted Timor-Leste with the acceleration of the petroleum fiscal regime process for the development of the Greater Sunrise Project.
Following the new treaty that has been shifting the Greater Sunrise project into Timor-Leste jurisdiction. Timor-Leste took 70 percent of the revenue from the joint-venture and Australia 30 percent under the new agreement.
The negotiation process before, 70 percent in favor of Greater Sunrise for Timor-Leste and 30 percent for Australia; or 80 percent to TL and 20 percent to Australia, if a future pipeline to Timor’s south coast is built.
Journalist: Florencio Miranda Ximenes
Editor: Julia Chatarina
