La’o Hamutuk

Bulletin  |  Surat Popular  |  Topic index  |  Reports & Announcements  |  Updates
Reference  |   Presentations  |  Mission Statement  |  LH Blog  |  Search  |  Home

How much oil money has Australia stolen from East Timor already?
A look at Laminaria-Corallina  Updated June 2014

Osan hira mak Australia nauk ona husi Timor-Leste?
Hare ba Laminaria-Corallina

The Laminaria-Corallina oil field in the Timor Sea is just outside the Joint Petroleum Development Area, twice as close to East Timor as it is to Australia. It belongs to East Timor under current international legal principles (UNCLOS). Laminaria-Corallina has produced 203 million barrels of oil since starting production in late 1999. Australia has made billions of dollars from this field, but East Timor has not received one cent.

The field is now about 95% depleted, but production will continue for years. Woodside's reserve estimates for the end of 2011 said that Laminaria-Corallina still contained about 14 million recoverable barrels, and 3.8 million barrels were extracted during 2012 and 2013.

How much money has Australia taken from Timor-Leste? Our very conservative calculations show that Australia received more than two billion U.S. dollars in government revenues from Laminaria-Corallina through the end of 2012, and the actual figure is significantly higher.

Until 2005, Woodside’s ownership share of the joint ventures was 44.9% of Laminaria and 50% of Corallina. This 47.9% proportion was constant until March 11, 2005, when Woodside purchased an additional share in Laminaria from Shell. Since that date, Woodside's share is 59.9% of Laminaria and 66.67% of Corallina, amounting to about 66% of total production.

The other shares in these fields are owned by the Canadian company Talisman Resources, which bought Paladin in 2005. In April 2014, Talisman said it wanted to sell them, and two months later, Bloomberg reported on the ongoing process.

The following table gives Woodside’s sales revenues from Laminaria-Corallina for each year from 1999 through 2013. From this, we can calculate the total income to all joint venture partners from these fields, and approximate the tax they would have paid to the Australian government.

Kampu mina-rai Laminaria-Corallina iha Tasi Timor ne’e laos iha Area Dezenvolvimentu Petroleu Konjunta (JPDA) nia laran, besik liu dala rua ba Timor-Leste duke ba Australia. Kampu ida ne’e Timor-Leste nian tuir prinsipiu legal internasional (UNCLOS) nian. Kampu mina-rai Laminaria-Corallina produs mina-rai baril tokon 203 hafoin hahuu produsaun iha tinan 1999 nia klaran. Australia hetan osan biliaun rua dolares husi kampu mina-rai ida ne’e, maibe Timor-Leste rasik lahetan centavos ida husi kampu ne’e.

Kampu mina ne'e agora 95% atu hotu, maibe produsaun bele kontinua ba tinan balun tan. Woodside estimatiza reserva bainhira tinan 2011 remata hanesan tokon 14 barril, no produs ona 3.8 barril durante tinan 2012-2013.

Hira mak Australia hetan? Kalkulasuan tuir mai ne’e konservativu liu hodi hatudu katak Australia hetan liu US$ biliaun rua ba iha rendimentu governu nian husi Laminaria-Corallina too iha tinan 2012 nia rohan, no figura atual nian boot liu.

Molok 2005, Woodside iha 44.9% saham iha konsorsiu konjunta nian ba Laminaria no 50% iha Corallina. Proporsaun 47.9% ida ne’e nafatin too iha 11 Marsu 2005, wainhira Woodside aumenta saham adisional ida iha Laminaria husi Shell. Hahuu husi loron ne’eba, Woodside nia saham 59.9% ba Laminaria no 66.67% ba Corallina, hodi soma to 66% ba total produsaun nian.

Tabela tuir mai ne’e atu hatudu rendimentu Woodside nian, ne’ebe nia hetan husi Laminaria-Corallina ba kada tinan ida husi 1999 to 2013. Husi ida ne’e, ami bele kalkula rendimentu total ba parseiru konsorsiu konjunta tomak husi kampu minarai ida ne’e, no estimatiza taxa ne’ebe sira selu ba iha Governu Australia.

Year / tinan

1999

2000

2001

2002

 2003

 2004

 2005

 2006

 2007

2008

2009

2010

2011

2012

2013

Total

Laminaria-Corallina production (entire field, millions of barrels)
Laminaria-Corallina nia produsaun (kampu tomak, tokon barril)

5.6

53.5

43.1

31.7

17.6

10.8

8.4

7.8

5.9

3.2

5.6

3.6

2.7

2.2

1.6

203.1 mmbbl

Laminaria-Corallina sales revenues (Woodside share, million USD)[1]
Laminaria-Corallina nia rendimentu husi fan mina-rai (Woodside nia saham, iha tokon US$)

55

529

425

308

227

184

236

331

275

156

225

20515222299

US$3,627m

L-C total sales (million USD), calculated from Woodside’s share
Total husi L-C ne’ebe sira fan (tokon US$), kalkula husi Woodside nia saham

114

1,104

888

642

473

385

411

513

432

235

348

318235344344

US$6,595m

Effective Tax Rate (percent)[2]
Rata-rata Taxa Efektivu nian (persentajem)

13.8

31.3

31.2

33.3

36.4

30.3

31.4

35.4

35.8

32.7

34.0

34.034.034.034.0

 

Estimated tax paid to Australia on L/C (US$million)
Estimasaun taxa ne’ebe selu ba Australia husi Laminaria-Corallina (tokon US$)

16

346

277

214

172

117

129

181

155

77

118

1088011752

US$2,159m

In addition, Woodside spent A$796 million on Laminaria-Corallina for capital, exploration and investment between 1997 and 1999, and some before that. This represents a total investment of more than A$1,663 million (approximately US$1 billion) in the project, much of which would have been taxed.

Aside from Laminaria-Corallina, Australia collected revenues from smaller fields (Buffalo, Buller) outside the JPDA but inside East Timor’s legal EEZ rights, as well as a 50% share from Elang-Kakatua (in the JPDA) prior to May 2002, when their portion was reduced to 10%. These total about US$50 million in revenues paid to the Australian and Indonesian governments which rightfully belong to Timor-Leste.

Since 2004, Australia has been taking 10% of the tax and royalties from Bayu-Undan and Kitan in the Joint Petroleum Development Area, which would belong 100% to Timor-Leste under a fair maritime boundary settlement. The revenue Australia has taken from these fields totals about $2 billion more.

Therefore, the total amount of oil revenue which the Australian government received between 1999 and 2013 which should rightfully belong to Timor-Leste is well over four billion dollars. During the same period, Australian government disbursed about $0.4 billion in bilateral and multilateral assistance to Timor-Leste, as well as military assistance (ISF and Interfet) worth about $0.5 billion. Who came out ahead?

Woodside gasta tokon Aus$796 husi Laminaria-Corallina ba kapital, eksplorasaun no investimentu entre 1997 no 1999, no baluk tan molok ne’e. Ida ne’e reprezenta total investimentu ida ne’ebe liu tokon Aus$ 1,663 (maizumenus biliaun US$1) iha projeitu, barak husi ne’e ba taxa.

Hodi aumenta ba Laminaria-Corallina, Australia halibur rendimentu husi kampu kiik sira (Buffalo, Buller) ne’ebe laos iha JPDA nia laran maibe iha Timor-Leste nia direitu legal ba Zona Ekonomia Eskluzivu nian, no mos 50% hanesan ho Elang-Kakatua (iha JPDA) ne’ebe hetan ona aprovasaun antes Maiu 2002, bainhira fahe ba Australia reduz ba 10%. Rendimentu sira ne'e total maizumenus tokon US$50 selu ba governu Australia, osan ida ne'e mos Timor-nian tuir direitu.

Hafoin 2004, Australia foti 10% taxa no royalti husi Bayu-Undan no Kitan iha Area Konjunta nia laran, karik 100% Timor-Leste nian ho fronteira maritima justu.  Australia nia rendimentu husi kampu rua ne'e tomak maizoumenous biliaun $2 tan.

Entaun, total osan governu Australia hetan ona durante 1999-2013 husi mina no gas Timor-Leste nian liu biliaun haat. Durante periodu hanesan, Australia gastu biliaun $0.4 iha asistensia bilateral no multilateral ba Timor-Leste, no asistensia militar (ISF no Interfet) ho valor biliaun $0.5. Se mak manan?

Notes

[1] 1999-2002 from “10-Year Comparative Data Summary” in Woodside’s Annual Report for 2002, page 83.
2002  and later from Woodside ASX annual financial reports and quarterly ASX filings 

[2] Rates from 1999-2001 from Woodside 2002 Concise Annual Report (p. 63 and 83).
2002 and subsequent years from Woodside ASX annual and quarterly Announcements
Notas

[1] 1999-2002 husi “Rezumu Dadus Komparativu tinan 10” iha Relatoriu Anual Woodside ba tinan 2002, pajina 83
2002 no tinan tuir mai husi Woodside nia relatoriu finansa annual ASX no “filings ASX” trimestral

[2] Numeru husi 1999-2001 husiWoodside nia Relatoriu Annual badak 2002 (p,63 no 83)
2002 no tinan tuir mai husi Woodside nia ASX anual no Anunsiu trimestral

Link to index of articles on this website about oil and natural gas

Reference page on current maritime boundary controversies

Liga ba index husi artigu sira iha website ida ne’e kona-ba mina-rai no gas natural

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua dos Martires da Patria, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: 
info@laohamutuk.org    Web: http://www.laohamutuk.org    Blog: laohamutuk.blogspot.com