Speaking to the media at a regional oil and gas conference in Singapore, Timor Leste’s secretary of state for environment and investment Jose Fernandez Teixeira said the cabinet would approve the legislation today and parliament will endorse it next week.

The tiny nation is aiming to make the energy sector its major source of income, with potentially billions of dollars of revenue available and it’s clear that it hasn’t put all its eggs in the Greater Sunrise basket.

While investors are nervous about putting money into potential projects in the disputed Timor Gap area, interest in unambiguously Timorese waters is high.

China's largest state oil group, CNPC, and its Norwegian partner, GGS, are expected to complete a 20,000-square km seismic survey for oil and gas exploration in East Timor in March next year, Teixeira said.

The government is also talking to PetroChina, CNPC's New York and Hong Kong-listed unit, about future investment in the poor but potentially energy-rich nation, Teixeira said.

"China is hungry for energy and they have been very aggressive marketing themselves. China's presence gives us confidence," he said.

Timor Leste is also planning its first roadshow, kicking off in Singapore, in the second quarter of 2005 to attract oil and gas investment, Teixeira said.