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The Petroleum Regime for Timor-Leste

July 2005

Timor-Leste's Petroleum regime defines how the government will regulate and tax new petroleum projects within Timor-Leste territory. It does not apply to the Joint Development area, which has its own rules.

Nearly a year of public consultation on this regime was conducted prior to its enactment, with submissions from La'o Hamutuk and many others. In July 2005, the Timor-Leste Parliament passed two Petroleum laws, for land and sea falling within Timor-Leste's exclusive jurisdiction:

More information about the Timor-Leste legislation and its implementation is on the website of the Oil, Gas and Energy Directorate of the RDTL Government, on the Petroleum Transparency part of the RDTL Government website, and on the website of the Prime Minister's Timor Sea Office.

In April 2007, the Government proposed three decree-laws to modify the regulatory structure of this regime and create a national oil company, and an extensive debate followed.  The Government also proposed a Local Content policy.

JPDA Regime

The Petroleum Regime for the maritime Joint Petroleum Development Area is under control of the Timor Sea Designated Authority, which released two analogous documents in August 2005:

These JPDA documents are included in a JPDA 2005 acreage release which describes the areas in the JPDA available for bidding. Guidelines and Criteria for Applicants were published in September 2005. This and other information is on the TSDA website.

After extensive delays, the JPDA regime was approved by the appropriate officials in Timor-Leste and Australia in February 2006. Australia had help up approval pending Timor-Leste signing the CMATS Treaty.

A JPDA bidding round was held in early 2006. Follow this link for more information.

Old regimes

According to Annex F of the Timor Sea Treaty, fields which were under contract prior to 2002 (Elang-Kakatua, Bayu-Undan and Greater Sunrise) are governed by earlier regimes which existed at that time.  Taxation of Bayu-Undan Contractors Act (July 2003). Production Sharing Contract information for these fields.

The Timor-Leste Institute for Development Monitoring and Analysis (Lao 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
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