|There are three main oil and gas resources within this area with an estimated total of more than 3.3 billion barrels of oil equivalent (BOE): |
Bayu-Undan: 1.06 billion BOE
Greater Sunrise: 2.05 billion BOE
Laminaria/Corallina: 0.20 billion BOE
Under the Timor Sea Treaty, East Timor is only entitled to 90% of the revenue arising from the reserves located inside the JPDA, while Australia takes 10%. Contested areas outside the JPDA are not mentioned in the TST, but treated by Australia as if they were Australian. As a result, Australia acknowledges East Timor's ownership of 1.32 billion BOE or only 40% of the oil and gas resources which are closer to East Timor than they are to Australia:
Bayu-Undan: 0.95 billion BOE
Greater Sunrise: 0.37 billion BOE
If international law under the United Nations Convention of the Law of the Sea (UNCLOS) were to be applied, all of the above reserves would fall within East Timor’s Exclusive Economic Zone (EEZ).
East Timor's southern maritime boundary would extend to the southern edge of the JPDA. This is in fact the median-line between the two countries.
East Timor's lateral boundaries would also extend beyond the limits of the JPDA.
On the western boundary the border would be significantly further west then the JPDA and would encompass the whole of Laminaria/Corallina.
To the east, the eastern border would involve at least 80% of Greater Sunrise. In fact the eastern boundary might encompass 100% of Greater Sunrise.
• Gas and condensate
• Lies within the JPDA
• Will pay 90% of its revenue to East Timor under the interim Timor Sea Treaty
· Has a lifespan of approximately 20-25 years from 2004.
ConocoPhillips has recently started pumping out the estimated 229 million BOE of condensate. Planned production of liquids from Bayu-Undan in 2004 is 12 million barrels. Gas (LNG) production is expected to commence in 2006 with the pipeline going 500 km southwards to Darwin. East Timor will therefore lose out on the downstream benefits worth millions of dollars and thousands of jobs. It is technically feasible to pipe the gas to East Timor. A pipeline going north to East Timor could cost two-thirds as much as a pipeline going south to Darwin.
• Gas and condensate
• Straddles the eastern edge of the JPDA
• Has almost three times as large gas reserves as Bayu-Undan
• Will pay only 18% of its revenue to East Timor under the proposed IUA
• Has a lifespan of approximately 30-40 years from whenever production starts, no earlier than 2010.
Australia will still get 10% of the revenue within the JPDA--giving Australia an 82% share in the revenue of Greater Sunrise. Greater Sunrise is expected to commence production later than /2010 - no sooner than 6 years after the boundary dispute is settled or the IUA enters into effect.
• Oil field
• Only five-10 kilometres outside the western edge of the JPDA
• Pay no revenue to East Timor
• Has a lifespan of approximately 8-10 years
Oil production has been taking place since 1999. Currently Laminaria/Corallina is mostly depleted, but it still amounts to about 20% of Australia's entire domestic oil production. (Is this still true? L/C production rates are falling) East Timor has asked Australia to stop because Laminaria/Corallina is in a disputed area. However, Australia has refused to do so.