Member Country Report of Timor Leste/East Timor

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CCOP-47AS/3-13 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 47 th CCOP Annual Session 17-21

1 CCOP-47AS/3-13 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 47 th CCOP Annual Session October 2010 Manado, Indonesia Member Country Report of Timor Leste/East Timor Submitted by Timor Leste Delegation (For Agenda Item 3)

COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) CCOP Building, 75/10 Rama VI Road, Phayathai, Ratchathewi, Bangkok 10400, Thailand Tel: +66 (0) 2644 5468, Fax: +66

3 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) CCOP Building, 75/10 Rama VI Road, Phayathai, Ratchathewi, Bangkok 10400, Thailand Tel: +66 (0) , Fax: +66 (0) , Website: ANNUAL MEMBER COUNTRY REPORT Country: TIMOR-LESTE Period: 1 July June 2010 GEO-RESOURCES SECTOR 1. MINERAL PROGRAMME 1.1 Summary The government of Timor-Leste through the State Secretariat for Natural Resources (SSNR), National Directorate for Geology and Mineral (NDGM) has been implementing a number of activities including field work to produce a Geological Map. The Geological Mapping Project is one of SERN s six programs that will be conducted in the next few years. The mineral sector remained one of the important sectors in the development of Timor-Leste. A Draft Mining Law is still in progress and it is expected to undergo the process for approval by the National Parliament of Timor-Leste. This is expected to be done after the approval of the Land Ownership Law which is currently under public consultation. 1.2 Annual Review of Individual Technical Activities The Geological Mapping Program was established in June 2008 and it has been progressing steadily with the assistance of 12 geological experts from Indonesian Universities providing field work training and guidance to 8 technical NDGM staff and 15 field assistants. The Geological Mapping Project has completed almost 37 Km square area in the District of Covalima in the south west part of Timor-Leste. Figure.1.1. Covalima District CCOP Member Country Report: TIMOR-LESTE 1

4 1.3 Proposed Future Activities Finalize the draft and complete the approval process of the Timor-Leste Mining Law including public consultation and debate with the relevant institutions. Engagement of a qualified local consultant to carry out a study and produce a report identifying potential Minerals ready for exploration. Provide assistance to the Department of Ground Water Management to carry out a study on ground water in Timor-Leste. Continuing development and training of Timorese for future geological survey activities. 1.4 Assistance Required from CCOP/Other Member Countries in Support of Future Activities Propose a visit to Timor-Leste by a CCOP delegation constituted by representatives of countries that can share their similar experience with Timor-Leste. One of the objectives of the visit would be to raise awareness of Timor-Leste s executives about CCOP as an organization and to highlight the importance and benefits of Timor-Leste as a member. 1.5 Others Comments The National Directorate for Geology and Minerals has a relatively young team of geologists mostly recently graduated from Indonesian University. We realize the lack of practical experience due to limited activities in the sector in Timor-Leste. Great efforts have been put on getting as many people as possible qualified and experienced by sending them abroad and into local Universities. Programme Contact Person: Ms. Norberta da Costa Soares Director of Geology and Mineral Department Secretary of State for Natural Resources Timor Leste 2. ENERGY PROGRAMME 2.1 Summary It is recognized that Timor-Leste has considerable hydrocarbon resources, both offshore and onshore. As exploration continues, there are optimistic signs for some significant hydrocarbon finds in the TLEA, one of the three exploration areas in Timor-Leste. The three exploration areas in Timor-Leste consist of the Joint Petroleum Development Area (JPDA), the Timor-Leste Exclusive Area (TLEA) and the TL Onshore area. The JPDA is a joint Off-shore area administered by the Autoridade Nacional Petroleum (ANP) for Timor Leste and Australia, with revenue split of 90/10. ANP is also responsible to administer all other petroleum activities in the Off-Shore Timor-Leste Exclusive Area and the TL On-shore area. There are over 20 oil and gas seep occurrences on-shore in the south coast area of Timor-Leste. The current government has no immediate plans by to start exploration onshore. In 2006, six contract areas out of eleven in the TLEA were awarded to two different companies, Reliance and Eni Timor Leste. Due to various technical difficulties, scheduled 2 CCOP Member Country Report: TIMOR-LESTE

drilling for late 2009 in the TLEA was postponed until the 3 rd quarter of 2010. In the JPDA numerous petroleum prospects and leads have been identified since exploration started in the 1970s.

5 drilling for late 2009 in the TLEA was postponed until the 3 rd quarter of In the JPDA numerous petroleum prospects and leads have been identified since exploration started in the 1970s. Fifty exploration wells have been drilled and four commercially viable fields have been identified and developed. Bayu Undan (JPDA & 03-13) continues to produce oil and gas at a steady rate since its first production in The Greater Sunrise field, (JPDA & 03-20) which is mainly natural gas is at the phase of development option selection. However, intense negotiations between the operator, Australian and Timor-Leste are still underway to agree on the best option. Kitan oil field (JPDA ), which was declared commercial in 2009, had its development plan approved in April Annual Review of Individual Technical Activities Joint Petroleum Development Area (JPDA) 1. Bayu Undan (JPDA & JPDA 03-13) Bayu Undan is the only current producing field providing the majority of income to Timor Leste. Bayu Undan was discovered in 1995 and commenced production in February The field lies in 80 meters of water, 50 kilometers south of Suai, Timor-Leste, and 500 kilometers northwest of Darwin, Australia. The reservoir gas is stripped of its liquid (LPG and condensate) which is then stored in the FPSO Liberdade. The lean gas is piped 500km southeast to Darwin where it is processed into LNG. The Operator is Conoco Phillips with the partners is INPEX, Santos, Tokyo Electric Power, Tokyo Gas. The Bayu-Undan Field is a gas condensate field with a raw gas-initially-in-place (GIIP) of approximately 8 Tcf including propane plus (C3+) in-place of 683 MMstb. Production from the field is supported by a very strong aquifer and partial recycling of lean gas. Total raw gas production is approximately 1.1MMscf/day. This yields about 102, 000 bpd of condensate and LPG. Approximately 500 MMscf/day is exported to the LNG plant in Darwin and the remaining gas is reinjected. CCOP Member Country Report: TIMOR-LESTE 3

In 2009, the field was developed with nine producers (more than 7,000 acre/well spacing). Total Production of BU Field Bayu Undan Gas Production 2009 Msm3 2.

The operator has put forward three development plan options for consideration by Australia and Timor-Leste; the options are Pipeline to Darwin Australia, Pipeline to Timor-Leste or a floating LNG

6 In 2009, the field was developed with nine producers (more than 7,000 acre/well spacing). Total Production of BU Field Bayu Undan Gas Production 2009 Msm3 2. JPDA & JPDA Woodside Petroleum is the Operator and Shell Development, ConocoPhillips and Osaka Gas are joint venture partners in these two PSCs covering the Greater Sunrise field. The operator has put forward three development plan options for consideration by Australia and Timor-Leste; the options are Pipeline to Darwin Australia, Pipeline to Timor-Leste or a floating LNG processing plant. The operator has expressed their preferred option to be a floating LNG plant. The field is estimated to contain recoverable reserve of 5.7 tcf dry gas and 299 Mmbbls of condensate. During 2009 the PSC has been working on the interpretation of the reprocessed 3D data over the field, as well as incorporated well results from the last well drilled, Sunrise 3. These studies were performed to mature the subsurface understanding, as well as to prepare for development of the Greater Sunrise Field. Engineering work as well as commercial evaluation has also been performed throughout CCOP Member Country Report: TIMOR-LESTE

3. JPDA 06-101(A) The Anita 2D Data Acquisition Survey was completed by Minza on 7th September 2009.

7 3. JPDA (A) The Anita 2D Data Acquisition Survey was completed by Minza on 7th September Approximately 937 line kms of data were acquired, resulting in over 800 kms of full fold data, in comparison to Minza s minimum PSC commitment of 500 line kms. The aim of the survey is to enhance the understanding of the Chuditch field and adjacent prospects in preparation for drilling a well in JPDA Petronas and Joint Venture Partners Korea Gas Corporation, Samsung Corporation and LG Corporation completed processing and interpretation of 645 square kilometres of 3D seismic data over JDPA , in preparation for drilling a three-well drilling campaign that commenced in the fourth quarter of The Makikit-A well was spudded on 20 September 2009 by the Ocean Shield jack-up rig, and reached a TD (total depth) of 3,460 metres. No commercial hydrocarbons were detected and further drilling of this target is planned as part of the on-going drilling program into the first quarter of Kurita-1 well was the second well in the drilling campaign and was spudded on the 7th of December 2009, the objective of the well is to explore the hydrocarbon potential in the Elang and Plover formations. 5. JPDA Oilex (JPDA ) and Joint Venture partners Videocon, GSPC, Bharat Petro Resources and Japan Energy completed drilling two out of four commitment wells in The two wells were drilled by the semi-submersible drill rig Songa Mercur over the period November 2009 to January The first well, Lore-1 reached a TD of 3,581 metres within the target Elang-Plover Formation. The second well, Lolotoe-1, reached a TD of 3,935 metres. Although neither well detected movable hydrocarbons, trace amounts of oil and gas were found in the Lolotoe-1 well in the Flamingo Formation and in the Elang/Plover Formations in the Lore-1 well. The data and information gained from this program will be used in planning the remaining two commitment wells for CCOP Member Country Report: TIMOR-LESTE 5

8 Timor-Leste Exclusive Area (TLEA) 1. PSC S06-01(A),02(B),03(C),04(E),05(H) Eni Timor Leste SpA and Joint Venture Partners GALP (10%) and KOGAS (10%) hold five blocks within the Timor Leste Exclusive Area, covering a total area of some 12,183 square kilometres. In 2009 the results of a 3D and 2D seismic survey carried out in 2008 were complied and interpreted for delineating prospects for the drilling of two wells planned for Eni Timor-Leste relinquished 25% of the blocks PSC S06-03, 04 and 05 as required at the end of their 3rd year of their PSC. However, a one year extension was granted for the 25% relinquishment for the blocks PSC S06-01 and 02 to await the results of further geological and geophysical studies. Figure 7: Seismic acquisition covering Eni acreage in TLEA 2. PSC S06-06 (Block K) Work undertaken in 2009 within the PSC by Reliance and Joint Venture Partners Indian Oil Corporation (12.5%) and Oil India (12.5%) included compilation and interpretation of a 2D seismic survey (320 line kilometres) and a 3D seismic survey with the aim of determining a suitable prospect for drilling that is planned in mid-late 2010 by the semi-submersible drilling rig Blackford Dolphin. 6 CCOP Member Country Report: TIMOR-LESTE

2.3 Proposed Future Activities Exploration drilling in PSC S06-03(C) scheduled for October / November 2010. Exploration drilling in PSC S06-06(K) scheduled for November 2010.

9 2.3 Proposed Future Activities Exploration drilling in PSC S06-03(C) scheduled for October / November Exploration drilling in PSC S06-06(K) scheduled for November Exploration drilling in JPDA to be done before the end of Assistance Required from CCOP in Support of Future Activities Continuing participation as a member of CCOP and learn from experience of other member countries. Programme Contact Person: Mr. Jorge Freitas Autoridade Nasional do Petroleu Timor Leste CCOP Member Country Report: TIMOR-LESTE 7

Member Country Report of Timor Leste/East Timor

CCOP-46AS/3-13 COORDINATING COMMITTEE FOR GEOSCIENCE PROGRAMMES IN EAST AND SOUTHEAST ASIA (CCOP) 46 th CCOP Annual Session 18-23 October 2009 Vungtau, Vietnam Member Country Report of Timor Leste/East