The government has developed a regime for onshore and offshore petroleum investment, including in areas subject to the Timor Sea Treaty with Australia, which it is hoped will help them avoid the pitfalls that a number of newly oil rich African nations have fallen into.

“A government working group has considered petroleum regimes in other countries with a view to creating a petroleum regime for Timor-Leste that is internationally competitive, stable, transparent and fair. Now we are providing an opportunity for investors, civil society and other interested parties to review and comment on what we have developed,” said Alkatiri.

Timor-Leste celebrated the start of production from the Bayu-Undan field in the JPDA with the ConocoPhillips joint venture earlier this year. Production is expected to increase over the coming year and will be supplemented with the addition of gas exports to the Darwin LNG facility. The commercial arrangements underpinning this development were negotiated as a matter of priority by the new nation.

The Government plans to have a domestic regime in place in order to launch Timor-Leste’s first exploration round in early 2005.

“Nothing is more important to the future of Timor-Leste than the proper management of the petroleum sector and the revenues derived from it. These resources will give our people a real chance to break free from poverty and fully develop their potential. But successful development will only come about if we properly manage these resources.”

The Government of Timor-Leste has committed to establishing a Petroleum Fund for the management of petroleum revenues, and aims to introduce legislation for this purpose in the next year.