The 2002 Timor Sea Treaty, along with the code and model contract, governs the exploration, development and exploitation of petroleum within the JPDA.

“In practical terms, agreement to the code and model contract ensures companies have certainty of conditions under which to take up acreage for exploration and development within the JPDA,” said Australian Resources and Industry Minister Ian Macfarlane.

“This announcement opens the door to business in an area which is estimated to hold recoverable gas reserves of more than 5 trillion cubic feet and 500 million barrels of oil, condensate and liquefied petroleum gas.”

The new PMC and PSC will apply to new contract areas currently advertised in the Timor Sea Designated Authority’s Acreage Release 2006. The interim PMC and PSC will continue to regulate the exploration, development and exploitation of petroleum within existing releases.

“Implementation of these two instruments will benefit both countries as companies begin to develop the remainder of the JPDA,” Macfarlane said.

“In particular, the documents will assist the development and economic prosperity of one of our closest neighbours. This is the certainty investors have been seeking and I look forward to hearing of companies exploring the opportunity this development provides.”

Natural gas is the fastest growing fossil fuel in the world, accounting for one quarter of the world’s primary energy consumption.

Global demand is projected to grow to 4.9 trillion cubic metres per annum by 2030.

The PMC and model PSC can be accessed through the Timor Sea Designated Authority at www.timorseada.org