La’o Hamutuk

Bulletin | Surat Popular | Topic index | Reports & Announcements | Updates
Reference | Presentations | Mission Statement | LH Blog | Search | Home

Australian Offshore Petroleum Releases

Every March, the Australian government makes new undersea areas available for oil companies to sign contracts so that they can explore the seabed for oil and gas resources. If they find anything, the companies are then allowed to extract it, with royalties and taxes going to the government. Although Australia pretends that these are within Australian territory, each of the last three annual releases have included areas north of the median line between Australia and East Timor, which will likely be within East Timor's Exclusive Economic Zone when boundaries are settled in line with international legal principles.

Additional areas were released in 2006 and 2007, not shown on the above map but described below.

Areas released by Australia which are north of the median line (yellow line) between the two countries should belong to East Timor under a fair boundary settlement. This includes all of NT02-1 and parts of NT01-3, NT03-3, NT04-1, AC04-1 and AC04-2. These were released after Australia agreed that temporary JPDA boundaries are NOT permanent. The letters in each area's name are the Australian region (Northern Territory or Ashmore-Cartier), and the first two digits are the year the area was released.

Green numbers with slashes indicate areas for which exploration contracts have been signed. Areas which were recently released and signed have both; such as NT03-3 becoming NT/P68.

In 2005, several previously released areas were re-released, as shown with green text. Areas which were released in prior years and are now under contract are shown with numbers like NT/P68. NT04-1 and AC04-1, which are partly in East Timor's territory, were re-released for bidding.

See below for details of new areas released in 2001 2002 2003 2004 2005 2006 2007

2001

In the 2001 release, only a corner of NT01-3 intrudes into East Timor's territory.

On 20 September 2002, Australia awarded a contract for this area, now called NT/P62, to National Oil & Gas Pty Ltd (35%, operator), Australian Natural Gas Pty Ltd (35%), and Nations Natural Gas Pty Ltd (30%). These partners proposed a guaranteed program for the first three years of 500km 2D seismic survey and geoscience studies at an estimated cost of $1.15m. The companies also proposed a secondary program of 1 well and studies at an estimated cost of $15.45m. There were no other bids for the area.

2002

Australia's 2002 release also intrudes on East Timor's territory. Nearly all of NT02-1, adjacent to Greater Sunrise, would belong to East Timor with a fair, legal boundary settlement. The following map shows their Northern Territory areas. See the larger-scale map above for details.

On 22 April 2003, the Australian government awarded a permit for area NT02-1. Permit NT/P65 was given to a consortium comprising National Oil and Gas Pty Ltd, Australian Natural Gas Pty Ltd and Nations Natural Gas Pty Ltd. The consortium proposed a guaranteed program for the first three years of geological and geophysical studies, seismic reprocessing and 750km of new 2D seismic surveying at an estimated cost of $1.7m, and secondary program of geological and geophysical studies and a well at an estimated cost of $15.45m. There were no other bids for the area.

2003

Click here for the complete 2003 release from Australia's government. This release includes NT03-3, partly in East Timor's territory. NT03-3 is south of Greater Sunrise.

Area NT03-3 from the 2003 release

In May 2003, Australian government representatives visited the United States and Canada to interest oil companies in signing production sharing contracts in the newly released areas. The East Timor Action Network (ETAN/U.S.) distributed "Stop, Thief" (PDF) leaflets at some of their events.

In November 2003, East Timor's government officials wrote to Australia objecting to Australia releasing areas in disputed territory for exploration contracts.

On 23 February 2004, Australia signed an exploration permit for area NT03-3, now called NT/P68, with TSP Arafura Petroleum Pty Ltd and OZ-Exoil N.L..

2004

In March 2004, Australia's annual release again included areas within East Timor's territory, both east and west of the JPDA. East Timor's government protested immediately.

Areas AC04-1, AC04-2, and W04-1, just south of Laminaria-Corallina, should belong to East Timor under international legal principles; it is much closer to East Timor than it is to Australia. Area AC04-02 may also lie partly in East Timor's territory. PDF of this map for printing. Geological description of new Ashmore-Cartier (AC) area releases.

Area NT04-1, just east of NT/P65 which was released as NT02-1, is also within East Timor's territory. PDF of this map for printing. Geological description of new Northern Territory (NT) area releases.

In the Guidance Notes for Applicants which accompanied this release, the Australian government acknowledges that East Timor claims this territory. For areas W04-1, NT04-1 & 2 and AC04-1 & 2, Australia wrote:

"East Timor has declared an exclusive economic zone and continental shelf extending two hundred nautical miles from its baselines which includes this release area. Australia does not accept the East Timorese claim to the extent that it overlaps areas over which Australia exerts jurisdiction. Australia has exercised exclusive sovereign rights over this area for an extended period of time, and has notified East Timor that it will continue to do so."

In fact, the East Timor government's declared 200 mile claim encompasses many more of the areas released by Australia than they acknowledge above. The areas discussed on this page are only those which are closer to East Timor than they are to Australia, which is the portion of East Timor's legal claim which La'o Hamutuk expects is likely to belong to East Timor under a fair legal boundary. East Timor has not declared a continental shelf, as this is an outdated concept (which Australian continues to insist on).

Australia's justification for continuing to "exercise exclusive sovereign rights" because it has done so "for an extended period of time" is tantamount to an admission that they are continuing to benefit from their support for Indonesia's illegal invasion and occupation of East Timor.

2005 In 2005, no new areas in contested territory were released for exploration, but several previously released ones remained open for bidding. The map at right shows NT05-1 and NT05-2, which had been released in 2003 as NT03-4 and NT03-5. NT04-1 and AC04-1, which are partly in East Timor's territory, were re-released for bidding in 2005 (see map at the top of this page).

2006 In 2006, Australia released the last remaining unreleased area (W06-1, red) in the contested territory on East Timor's side of the median line, off the southwest edge of the JPDA. Under the CMATS Treaty signed in January 2006, Timor-Leste has conceded Australia's rights to develop this area. The released area includes the Buffalo field, which was extracted under a now-relinquished contract. Link to more information on the Northern Bonaparte component of Australia's 2006 release.

2007 By 2007, no more areas immediately adjacent to the JPDA were available for release, as all were either already under contract (yellow) or released for bidding in 2006 (green). Nevertheless, Australia released new areas just south of Laminaria-Corallina (W07-1) and just east of Sunrise-Troubador (NT07-1). Under some legal interpretations, parts of these areas could be closer to Timor-Leste than to any other country, but under the CMATS Treaty Timor-Leste has surrendered its possible right to develop them.

The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua D. Alberto Ricardo, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
email: info@laohamutuk.org Web: http://www.laohamutuk.org Blog: laohamutuk.blogspot.com