Despite the ongoing negotiations with the Australian Government about maritime borders the tiny nation is preparing to implement a regime that will promote a seamless and corruption free transition into hydrocarbon wealth. An transition that many African countries have found difficult.
Prime Minister Alkatiri was speaking after a three day public consultation meeting last week in Dili on laws and model contracts that will make up the regime. This will be followed by consultation meetings in district centres over a two-week period, and complemented by any written submissions received on the regime.
“The comments provided at the consultation meeting will be carefully considered and will help the Government to refine the draft set of laws. The feedback we received was very positive and I believe we will be able to meet our deadline of having the regime in place by Christmas.”
“The proposed regime is a competitive, transparent and stable model for the development of oil and gas resources.”
What is before the public is a revised regime for the offshore area jointly managed with the Australian Government, as well as a new regime for other Timor-Leste areas, both onshore and offshore.
“Once the new regime is in place, Timor-Leste hopes to begin exploration and development as soon as possible.”
“In this regard, I warmly welcome Australian Foreign Minister Downer’s willingness to resolve our maritime boundary dispute expeditiously by looking at creative solutions. I have called for this over many months.”
Under current interim arrangements, Timor-Leste is forecast to earn approximately US$4 billion from known reserves. Under a permanent maritime boundary set according to international law, Timor-Leste would be entitled to three times this amount.
“Mr Downer’s comments at the August 11 press conference marked an important recognition of Timor-Leste’s just claim to these revenues.”
“I am confident that a solution can be reached that reflects Timor-Leste’s rights in the Timor Sea under international law. I hope that the September 20 talks in Canberra will be a constructive, productive and intensive session that will work towards a fair and equitable sharing of the Timor Sea resources.”
“In addition to the world-class legal and fiscal regime that Timor-Leste has articulated, Timor-Leste is committed to establishing international stability and continuity for the exploitation of Timor Sea oil and gas resources. This is in the interest of all parties – the petroleum industry and Timor-Leste, and also our friend and neighbour Australia.”
