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REPÚBLICA DEMOCRÁTICA DE TIMOR-LESTE
Office of the Prime Minister

MEDIA RELEASE
22 May 2006

Timor-Leste first offshore bid round;
Prime Minister ratifies Evaluation Report from Evaluation Commission

Today the Prime Minister and Minister for Natural Resources, Minerals and Energy Policy, Mari Alkatiri ratified the Final Report from the Evaluation Commission evaluating bids for Timor-Leste offshore Contract Areas.

The evaluation process was set up to identify the bid that offers the best conditions and advantages for Timor-Leste for each Contract Area. Bids have been evaluated according to fair, objective and transparent criteria in accordance with the Evaluation Matrix in the Final Tender Protocol and the Bidding Round Regulations, Decree Law 7/2005.

Pursuant to the Final Report of the Evaluation Commission, the Evaluation Commission has identified the following companies’ bids as the bids that offer the best conditions and advantages for the Democratic Republic of Timor-Leste:

Company

Area

Eni S.p.A

A

Eni S.p.A

B

Eni S.p.A

C

Eni S.p.A

E

Eni S.p.A

H

Reliance Industries Ltd.

K

The above companies are thus awarded the right and are obligated to enter into a Production Sharing Contract with the Ministry of Natural Resources, Minerals and Energy Policy scheduled to be completed in accordance with the Final Tender Protocol and applicable regulations on 20 June 2006.

There is however a condition placed on the award of Contract Area E to Eni S.p.A.  In addition to the work programme proposed in the bid, Eni S.p.A will be requested to include a well to be drilled in Year 3 of the Production Sharing Contract to a depth of 4000m.

The bidders offered the following work programmes:

BidderENIReliancePetronas Consortium
AreaABCEHEKCE
Undertaking   
2D seismic
kms
115010000010000000
3D seismic
km2
076037643080800900120020001000
Expl. Wells
1st 2000m
002001100
Addn. mtrs002050+1550002000180000
Studies
$1000
1500200050002000200030003000300300
T-L Content
$1000
100010004500200010002000200010001000

The deadline for international companies to bid for Timor-Leste offshore acreage was 19 April 2006. From the eleven contract areas available in this first bidding round, six received offers from the international companies through a total of nine bids.

The ratification decision, a summary of the proposed evaluation results and a significant summary of the Evaluation Report will be published in the Jornal da Républica and on the web site of Ministry of Natural Resources, Minerals and Energy Policy; http://www.timor-leste.gov.tl/EMRD/. The Petroleum Act, Bidding Round Regulations and the Final Tender Protocol can be also found on the website.

Timor-Leste became the world’s newest nation in May 2002, and less than two years later made its debut as a significant petroleum producer with first production from the Bayu-Undan Field, a joint development with Australia pursuant to which Timor-Leste receives 90% of the state take from production.

To build on this success, the Government of Timor-Leste opened a significant portion of the nation’s offshore area to petroleum exploration and development by qualified companies.

Dili, 22 May 2006

For further information please contact the Media Advisor: Rui Flores (tel. +670 723 01 40 or rui.flores@gmail.com)

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua D. Alberto Ricardo, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: 
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