Pre-exploration data acquisition rights:

Recent petroleum geology expert surveys, as well as previously existing seismic survey data, have been acquired by our government and analyzed by technical advisers working within our Ministry of Development and Environment.

Their assessment is that there is potential for the existence of highly prospective hydrocarbon deposits in some areas both onshore and offshore Timor-Leste. We have therefore decided to grant rights to conduct seismic data acquisition surveys in both onshore, and in offshore areas. Although the planned survey areas are large, they will not cover all of the area in which Timor-Leste has exclusive rights to resources under international law.

The proposed seismic data acquisition surveys will be on a commercial basis at the risk and cost of the contractor. The contractor or contractors will be selected on a competitive tender basis. The terms and conditions for the areas proposed to be advertised are now practically finalized. In preparing the survey Terms of Reference, we have sought and obtained the advice of a number of leading international consultants and contractors in the industry. Within weeks the terms of reference for this bidding round, together with an information package, will be available to the seismic contracting industry.

The offshore areas will be the first to be advertised for bids, whilst the onshore area will be advertised later due to the need for additional technical advice with respect to the terms and conditions. We still hope, however, to launch the bidding rounds for both onshore and offshore at the same time and are aiming towards that.

Naturally, my Government takes into account the fact that Australia has made jurisdictional claims in some areas of the Timor Sea. We will fully observe international law in relation to all petroleum activities, including the obligation to exercise restraint in any areas where Australia’s claims may conflict with Timor-Leste’s. However, we are determined to begin acquiring further knowledge of the prospects of our resources.

I look forward to hearing the perspective of the petroleum industry on this pre-exploration bidding round. Already, interest is mounting from within the industry. As I have already said, this is just the start of acquiring greater knowledge of our resources in the Timor Sea, as well as on our onshore territory. The Designated Authority also has plans to undertake further and more thorough seismic work in the vacant areas of the JPDA, with a view to ultimately attracting more exploration and development in the area.

I have said many times that the petroleum resources in the Timor Sea are critical to our future as a nation. We regard it as extremely important to approach the exploitation of these resources in a responsible and sustainable way. Before we can do that we have the responsibility to put in place the legal and commercial framework to acquire further information relating to the existence and quantity of such resources. That way we can develop a petroleum industry in the model I outlined earlier to create a sustainable and economically independent future for our young nation.

We strive to do this because we have an obligation to this generation and future generations of Timorese to utilize the resources that belong to our nation and our people wisely. In doing so, our aim is to eradicate poverty, develop our people’s potential and create a sustainable future for them.

I hope that many of you attending this conference will take the opportunity to meet with our representatives here at SEAAOC to find out more about these opportunities in Timor-Leste. We look forward to working with industry in our efforts to achieve a prosperous Timor-Leste.