Petroleum Production Sharing Contracts
|Petroleum activities both in the Joint Development Area (JPDA) and Exclusive Area (TLEA) are conducted according to Production Sharing Contracts (PSCs) signed between the oil companies and the National Petroleum Authority (ANP), or its predecessor the Timor Sea Designated Authority (TSDA). Under Article 30.1(a)(i) of Timor-Leste's 2005 Petroleum Act and Article 20.1(a) the Interim Petroleum Mining Code for the JPDA, all PSCs signed after that date are public documents. The 2005 legislation also included model PSCs for the TLEA and JPDA, which serve as templates for the PSCs for each specific area.|
In 2016, Timor-Leste enacted Decree-Law 32/2016 (also Portuguese) to regulate offshore Petroleum Operations in the TLEA. When the 2018 Maritime Boundary Treaty comes into force, the JPDA will cease to exist, although Greater Sunrise will continue to be under a bi-national special regime.
The PSCs signed in 2006 were posted to several government websites at the time, but those sites were been allowed to die. Therefore, La'o Hamutuk is including them in our website is order to help implement transparency provisions in the law.
In addition to the summaries below, the ANP website includes some information, as well as the following ANP annual and quarterly reports:
In each of the contracts described below, the first-listed company (in bold) is the operator. If the contract number is a hyperlink, it links to the text of the contract itself.
|Atividade petróleu iha Area Konjunta ba Dezenvolvimentu Petróleu (JPDA) no Area Eskluzivu (TLEA) la’o ona tuir Kontratu Fahe Produsaun (PSC) ne’ebé asina entre kompañia mina-rai sira no Autoridade Nasionál Petróleu (ANP), ka órgaun ida ne’ebé troka Autoridade Designada ba Tasi Timor (TSDA). Tuir Artigu 30.1(a)(i) Lei Petróleu Timor-Leste iha 2005 (Ingles ka Portuges) no Artigu 20.1(a) Interim Petroleum Mining Code/Kódigu provizóriu ba Mineira Petróleu ba JPDA (Ingles), PSC tomak ne’ebé asina ona hafoin loron asina sai tiha dokumentu públiku. Lejizlasaun 2005 mós inklui modelu PSC (Ingles) ba Area Eskluzivu no JPDA, ne’e serbí nudár modelu ba PSC ba kada area espesífiku.|
PSC ne’ebé asina iha 2006 publika iha website balu Governu nian iha tempu ne’ebá, maibé website sira ne’e husik ona labele funsiona. Nune’e, La’o Hamutuk inklui sira iha ami nia website ho hanoin atu ajuda implementa transparénsia hanesan hateten iha lei.
Aleinde ba sumáriu iha okos, website ANP nian inklui informasaun balu, no mós Relatóriu anuál no relatóriu trimestral ANP nian:
Iha kada kontratu ne’ebé hakerek iha okos, kompañia sira ne’ebé iha lista primeiru (ho letra mahar) mak operador. Karik númeru kontratu nian iha hyperlink, ne’e bele liga ba nia testu kontratu rasik.
|Onshore PSCs awarded without tender in 2017|
On 7 April 2017, the ANPM awarded two contracts for onshore oil and gas exploration to a joint venture equally owned by TimorGAP and Timor Resources, which is part of the Australian Nepean Group of companies. Timor Resources will be the operator for PSC TL-OT-17-08 (Covalima and Bobonaro municipalities, area A on map at right) and PSC TL-OT-17-09 (Manufahi and Ainaro municipalities, Area C), totalling 2,000 square kilometers.
In mid-2017, Timor-Leste held public consultations on draft regulations for onshore petroleum operations, and La'o Hamutuk made a submission.
Timor Resources began seismic exploration began in October 2018.
Map of planned and past seismic exploration in the contract areas.
|In November 2016, the Jornal da Republica published a Portuguese-language template for offshore PSCs in the Timor-Leste Exclusive Area.|
S0-15-01: On 22 December 2015, Resolution 44/2015 (Portuguese original) came into force, awarding one block in the Timor-Leste Exclusive offshore area and one onshore block to TimorGAP to conduct 3D seismic studies and sign Production Sharing Contracts by direct award, without a public tender. ANPM announced the offshore award in January 2016 and later published a summary and eventually the text of PSC S0-15-01 on its website.
|Iha fulan Novembru 2016, Jornal da Republika publika modelu ba PSC offshore iha Area Exclusivu TL nian.|
Kontratu ba TimorGAP lahó prosesu tenderizasaun iha 2015
S0-15-01: Iha loron 22 Dezembru 2015, Rezolusaun 44/2015 mai en vigor, fo bloko ida iha TLEA no bloko ida iha rai laran ba TimorGAP ne’ebé bele halo estudu sizmiku no asina Kontratu Fahe Produsaun ho ajudikasaun direta, lahó prosesu tenderizasaun ida ne’ebé nakloke, no ANPM halo anunsiu publiku iha fulan Janeiru, no Jornal da Republika publika sumariu iha Novembru 2016.
|Contract signed in 2013 in the Joint Petroleum Development Area||Kontratu ne’ebé asina iha 2013 iha Area Konjunta ba Dezenvolvimentu Petróleu|
|Contracts signed in 2006 in Timor-Leste's Exclusive Area|
Click here for more information about the 2006 bidding round in the TLEA.
|Kontratu sira ne’ebé asina iha 2006 iha Area Eskluzivu Timor-Leste |
The above map is from 2010. By 2014, all PSCs in the TLEA had been relinquished as unproductive, except for the southern part of S06-04, as shown below:
|Contracts signed in 2006 in the Joint Petroleum Development Area|
Contracts were signed in 2006 for the green areas on the map; older areas are in yellow. The operator of each area is listed in bold.
JPDA 06-101A with Minza Oil and Gas. (summary). Minza drilled an exploration well in 2011 and conducted seismic exploration in 2012. Most of this area has been relinquished. At the end of 2014, Minza announced that the company was in liquidation. ANPM announced the termination of the contract in January 2016.
|Kontratu sira ne’ebé asina iha 2006 iha Area Konjunta ba Dezenvolvimentu Petróleu|
Kontratu sira ne’ebé asina iha 2006 ba area sira ho kór azúl iha mapa; area sira tuan ho kór kinur. Operador ba kada area lista ho letra mahar:
The map above is from 2010. By the start of 2015, many of these contract areas had been completely or partially relinquished as unproductive, except for the areas shown below:
By 2017, the Oilex and Minza contracts were terminated, and TimorGAP had received a new TLEA area and, with Timor Resources, two new onshore areas. Green lines show where offshore seismic exploration has been conducted:
|JPDA 06-103 with Oilex (10%), Videocon (20%), Bharat PetroResources (20%) and Gujarat State Petroleum Company (20%). (summary).|
Pan Pacific Petroleum (15%) and Japan Energy (15%) joined the joint venture in 2009. In January 2011, the ANP agreed to extend the work plan until January 2012. Oilex has drilled two dry wells, and conducted seismic exploration during 2011. At the beginning of 2012 the ANP gave Oilex another year until 15 January 2013, although they will relinquish 25% of the PSC. At the beginning of 2013, ANP extended their contract for another year, with plans to drill a long-delayed third test well in 2013.
On 12 July 2013, Oilex asked the ANP to terminate this contract because they were uncertain about the impacts of the ongoing maritime boundary dispute, as explained by Energy News Bulletin. A month later, Timor-Leste responded by press release. In October, the Prime Minister told local reporters that they would not be allowed to quit their contract, and Oilex summarized the situation on their website.
On 13 May 2015, ANP rejected Oilex's 2013 request to "terminate [the PSC] by mutual agreement and without penalty," telling Oilex that the contract will be terminated but that they owed $17 million in penalties. The companies responded that ANP owes them $56 million in over-expenditure, and informed Australian regulators. The news was reported by Alliance News on 13 and 14 May, Rigzone and Upstream, and the PSC was suspended for two months.
In July 2015, ANP formally notified Oilex that the contract is terminated. Oilex informed regulators, saying that "the parties continue to discuss the financial liability of the contractor." Alliance News reported the developments. Negotiations continued through 2017.
In October 2018, Timor-Leste requested arbitration by the International Chamber of Commerce, as reported by Alliance News and LUSA.
|JPDA 06-103 ho Oilex (10%), Videocon (20%), Bharat PetroResources (20%) no Gujarat State Petroleum Company (20%). (sumáriu).|
Pan Pacific Petroleum (15%) no Japan Energy (15%) hamutuk iha konsorsiu iha 2009. Iha Janeiru, ANP konkorda atu hanaruk planu servisu nian to’o Janeiru 2012. Oilex fura ona kampu rua ne’ebé mamuk, no hala’o seismiku esplorasaun nian durante 2011. Iha inísiu 2012 ANP fó tempu seluk tan to’o 15 Janeiru 2013 ba Oilex, maske sira sei husik 25% hosi PSC. Iha inísiu 2013, ANP hanaruk sira nia kontratu ba tinan ida tan, ho planu atu fura posu teste datoluk nian iha 2013 ne’ebé adia kleur ona.
Iha loron 12 Jullu 2013, Oilex husu ba ANP atu termina PSC ida ne'e tanba seiduak iha serteza kona-ba disputa fronteira maritima, hanesan esplika iha Energy News Bulletin. Fulan ida tuir mai, governu RDTL fo resposta ho Komunikade Imprensa (Port.).
Ihs loron 15 Julhu 2015, ANP termina Oilex nia PSC.
JPDA 06-104 was awarded to Zetex, which withdrew its bid before signing a contract.
JPDA 06-104 ajudika ba Zetex, ne’ebé rezigna an molok asina kontratu.
JPDA 06-105 (replaced part of JPDA 03-01) with Woodside (40%), INPEX (35%), Talisman Resources (25%).
JPDA 06-105 (troka parte JPDA 03-01) ho Woodside (40%), INPEX (35%), Talisman Resources (25%).
|Contracts signed before 2006 in the JPDA|
Contracts signed before the 2005 laws went into effect are not legally obligated to be published. La'o Hamutuk and others have repeatedly asked the oil companies and relevant authorities to give permission for them to be made available. These contracts will be replaced by new ones after the 2018 Maritime Boundary Treaty comes into force.
The partners in the Bayu-Undan joint venture have agreed to publish parts of the contracts, although many paragraphs have been censored. Bayu-Undan is the only currently producing field providing revenue to Timor-Leste. These contracts also include the Elang-Kakatua field which ceased production in 2007. Current partners in Bayu-Undan are ConocoPhillips (57.2%), Santos (11.4%), Inpex (11.3%), Eni (11.0%), Tokyo Electric/Tokyo Gas (9.2%).
The partners in the Greater Sunrise joint venture (Woodside (33.4%), Shell (26.6%), ConocoPhillips (30%) and Osaka Gas (10%)) refuse to make any parts of their PSCs public, and we have not been able to obtain them. This includes two PSCs inside the JPDA (JPDA 03-19 Public Information Notice and JPDA 03-20 Public Information Notice) and two other contracts in the area occupied by Australia. In September 2018, ConocoPhillips agreed to sell their 30% share to the Government of Timor-Leste for $350 million.
Other contracts signed in 2003 are no longer in effect.
|Kontratu sira ne’ebé asina molok 2006 iha JPDA|
Kontratu sira ne’ebé asina molok lei 2005 nian vigora, legalmente laiha obrigasaun atu publika sai. La’o Hamutuk no instituisaun balu dala barak husu ba kompañia mina-rai sira no autoridade sira ne’ebé relevante atu fó lisensa hodi nune’e kontratu sira ne’e ema bele asesu.
Parseiru sira iha Konsorsiu Bayu-Undan konkorda atu publika parte hosi kontratu, maske iha parágrafu barak mak hetan sensura. Bayu-Undan mak daudauk ne’e kampu ida de’it ne’ebé fornese reseita ba Timor-Leste. Kontratu sira ne’e mós inklui kampu Elang-Kakatua ne’ebé produsaun remata ona iha 2007. Parseiru daudauk iha Bayu-Undan mak ConocoPhillips (57.2%), Santos (11.4%), Inpex (11.3%), Eni (11.0%), Tokyo Electric/Tokyo Gas (9.2%).
Parseiru sira iha konsorsiu Greater Sunrise (Woodside (33.4%), Shell (26.6%), ConocoPhillips (30%) no Osaka Gas (10%)) rekuza atu halo sira nia parte iha sira nia PSC hodi sai públiku, no ami labele hetan PSC sira ne’e. Ne’e inklui PSC rua ne’ebé iha JPDA nia laran (JPDA 03-19 no JPDA 03-20) no kontratu rua seluk ne’ebé okupa hela hosi Australia. Iha fulan Setembru 2018, iha konkordansia katak Governu Timor-Leste sei sosa ConocoPhillips nia partisipasaun 30% iha Konsórsiu atu dezenvolve Greater Sunrise ho osan hamutuk tokon $350.
Kontratu seluk ne’ebé asina iha 2003 la vigora ona.
Timor-Leste's oil stolen by Australia
The Laminaria-Corallina oil field, just outside the JPDA, is closer to Timor-Leste than to any other country and should belong to Timor-Leste under international legal principles. Since operator Woodside began production in 1999, Laminaria-Corallina has paid more than $2 billion in taxes to the Australian government and not one penny to Dili.
The project spreads over two contract areas:
In April 2014, Talisman said it wanted to sell its share of the Laminaria-Corallina project. In May 2015, the entire Talisman company was acquired by Repsol.
In June 2015, the West Australian reported that Woodside was looking to sell its portion. The sale was finalized to an unnamed buyer on 29 September, and transfer of ownership is expected in the second quarter of 2016. The West Australian "understood" in mid-October that the price (including the FPSO) will be AUD $100-$300 million, and the buyer is the "low-profile Brisbane company Westside."
The deal to sell the field was announced (also Tetum) in May 2016, with both Woodside and Talisman selling their holdings to Northern Oil & Gas Australia, a new company owned by former WestSide founder Angus Karoll.
During its 15-year production history, Laminaria-Corallina generated about $6.8 billion in sales for Woodside and its partners, of which about $2.2 billion was paid to Australia. Timor-Leste got nothing. Under the 2018 Maritime Boundary Treaty, Timor-Leste's government relinquished its claim to this money, but La'o Hamutuk and others continue to remind Australia that it has a moral obligation to repay it.
Australia nauk mina-rai Timor-Leste
Kampu mina-rai Laminaria-Corallina, sai hosi JPDA, besik liu ba Timor-Leste duke ba nasaun seluk ida no Timor-Leste mak tenke sia na’in tuir prinsipiu legal internasionál. Dezde operador Woodside hahú produsaun iha 1999, Laminaria-Corallina selu liu biliaun $2 iha taxa ba Governu Australia no laiha buat ida ba Timor-Leste.
Although results to date have not been very promising, the Government remains optimistic. They hope to do another bidding round on vacant JPDA acreage and onshore area in the next year or two, and one in Timor-Leste's exclusive maritime area (TLEA) sometime after that.
In April 2015, La'o Hamutuk analyzed how much of Timor-Leste's oil and gas wealth is remaining to be exploited, and published Timor-Leste's oil and gas are going fast (also blog and Tetum). In June, we responded (also Tetum) to allegations that our information was unfounded.
This debate continues. On 10 March 2016, La'o Hamutuk explained Santos' report that Bayu-Undan is 93% depleted in Indicators have Consequences.
In June 2017, La'o Hamutuk presented As Bayu-Undan dries up: challenges and opportunities (also PowerPoint and paper). Our October 2018 paper After the oil runs dry: Timor-Leste economics and government finances includes additional information about the implications of petroleum dependency.
Maske rezultadu ohin loron la dun fó promesa ida ne’ebé di’ak, Governu nafatin optimistiku. Sira espera atu halo rounde seluk ba tenderizasaun nian ba area sira ne’ebé mamuk no abandonadu iha JPDA iha tinan ida ka rua oin mai, rounde sida iha area eskluzivu Timor-Leste dala ruma hafoin JPDA nian.
Iha Abril 2015, La'o Hamutuk analiza montante rikusoin mina no gas Timor-Leste nian nafatin iha tasi okos atu esplora iha futuru, no publiku ona Mina-rai no gas Timor-Leste nian besik hotu ho lalais.
Debate ida ne'e kontinua nafatin. Iha fulan Marsu 2016, La'o Hamutuk esplika relatoriu husi Santos neébe hatete katak Bayu-Undan 93% mamuk tiha ona iha Sinál perigu sei iha konsekuénsia.
Iha Junu 2017, La'o Hamutuk aprezenta Bainhira Bayu-Undan sei maran: dezafiu no oportunidade sira (mos PowerPoint no artigu).
The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)