DILI, 18 september 2023 (TATOLI) – Minister of Petroleum pledged to settle the dispute between Timor Resource and Timor Gap in the near future in order to accelerate onshore oil and gas exploration in Covalima.
“We will find a solution to end the dispute between Timor Resource and Timor Gap in the very near future so that the company can continue its oil and gas exploration activities in Covalima,” the Minister of Petroleum, Francisco da Costa Monteiro, told reporters, on friday.
Minister Monteiro said he would collaborate with the relevant partners, including Timor Resource and Timor Gap, to settle the dispute.
Timor Resources is a private Australian oil and gas company that has been drilling three onshore wells in Covalima municipality, namely Fetokmaus, Liurai, and Lafaek.
Prior to exploration, Timor-Resource and Timor Gap agreed on a 50-50 joint venture in the onshore exploration oil and in the Southern Municipalities.
However, Timor Resource has recently announced that its 50% Joint Venture partner, Timor Gap, hasn’t so far contributed to the drilling of the three wells.
In May, Timor Resource called on Timor Gap, to contribute funds to participate in the appraisal drilling of the three wells in the municipality.
Timor Resources Country Manager, Filomeno Andrade said that his company has invested so far US$68 million into the exploration of oil and gas of the three wells in Covalima.
“We call on our 50% Joint Venture partners Timor Gap who have not contributed funds to date, to now contribute funds to participate in the Joint Ventures to progress the appraisal drilling,” Andrade said.
Timor Resources had earlier announced that it would sue Timor GAP for failing to pay its financial contribution, which Timor Gap considered to be a false claim.
In March, Timor Gap released a statement that said that it always meets its contractual obligation and completely rejects any false claims by Timor Resource.
“Timor Gap operates with the highest standards of integrity and transparency and remains committed to the rule of law and fulfilling all of its contractual obligations,” the statement said.
The disagreement between the two companies led the National Parliament to carry out a visit to the exploration site last month, which produced several recommendations, urging the government to find a solution to the dispute in order to accelerate the oil and gas exploration in Covalima.
In response to Parliament’s appeal, Minister Monteiro said that the disagreement would be resolved in the near future in order to resume exploration activities.
After completing the drilling of the third well (Lafaek), Timor Resource announced that hydrocarbon pressure was above 8000 psi, revealing the potential for a significant recoverable reserve.
In July, Timor Resources’ Board Director, Charles Brown said the company would announce the result of onshore exploration of oil and gas in the country’s southern by the end of 2023.
Related News:https://en.tatoli.tl/2023/07/26/timor-resources-will-announce-results-of-onshore-exploration-this-year/16/
Journalist: Filomeno Martins
Editor: Nelia Borges
