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Eni's Cova and other oil projects
Eni nia projeitu mina Cova no sira seluk tan

in Contract Area S06-03 of Timor-Leste's exclusive jurisdiction
iha Area Kontratu S06-03 husi juridiksaun eskluzivu Timor-Leste nian

8 July 2010, updated 20 January 2011

In 2006, the Italian oil giant Eni signed five production-sharing contracts with the Timor-Leste government for exploration in Timor-Leste's sovereign area, including S06-03 (Block C) (also Portuguese). The contracts were awarded following evaluation of a bidding round, with Eni scoring higher on every criterion than the competing bid for this block from the Petronas Consortium.

Eni subsequently formed a joint venture, selling 10% shares in these contracts to the Portuguese oil company GALP and to KOGAS (South Korea's government-owned natural gas company).

During 2007 and 2008, Eni conducted two rounds of seismic exploration in this area. More information, including Environmental Management Plans and submissions about the seismic surveys, is available here.

Click here for relevant excerpts from the 2008 and 2009 Annual Reports of the National Petroleum Authority (ANP).

Eni identified the Cova field, located in contract area S06-03 (area C on the map at right), as the most promising and began preparing to drill test wells. On 23 February 2010, they shared some basic information about this project with stakeholders in Dili.

Iha tinan 2006, kompania jigante Italia ho naran Eni asina Kontratu Fahe Produsaun (PSC) lima ho governu Timor-Leste hodi halo esplorasaun iha Timor-Leste nia area soberanu, ne’ebe inklui S06-03 (Bloko C) (iha mos Portugese).

Hafoin ne’e, Eni hari’i konsorsiu negosiu ida hodi fa’an asoens 10% husi kontratu lima ne’e ba kompania mina-rai Portugal GALP no ba KOGAS (Governu Korea do Sul nia kompania gas natural).

Durante 2007 no 2008, Eni halao aktividade esplorasaun sizmiku rua iha areia ne’e nia laran. Ba informasaun tan, inklui Planu Jestaun Meiu-Ambiente no submisaun sira kona ba peskiza sizmiku, bele hetan iha ne’e.

Klik iha ne’e ba informasaun relevante sira ne’ebe sita husi Relatoriu Annual 2008 no 2009 Autoridade Nasional de Petroleu (ANP) (Ingles).

Eni identifika ona kampu Cova, nia fatin iha area kontratu S06-03 (area C iha mapa ida be iha liman los), nudar fatin ne’ebe garantidu no sei fo lukru ida ne’ebe boot liu no hahuu prepara atu fura posu esperimentu sira. Iha loron 23 fulan Feveiru 2010, Eni fahe informasaun basiku balun kona-ba projeitu ida ne’e ho ema sira ne’ebe iha interese iha Dili.

Click on an image to see it larger.
Klik iha imajen ida hodi hare’e boot liu.

Cova is in Block C, now called S06-03.

Bathymetry showing water depths at Cova
Batimetria hatudu tasi nia klean iha Cova

The Saipem 10000 will drill the wells in S06-03.
Saipem 10000 sei fura posu sira iha S06-03.

Eni's proposed well and prospect locations
Posu ne’ebe propoin husi Eni no fatin sira ne’ebe iha prospek

On 1 July 2010, Eni invited "stakeholders" to submit comments on a draft Environmental Impact Statement and Environmental Management Plan for the Cova exploratory drilling to the Environmental Directorate (DNMA) of the RDTL government before 23 July. [See below for higher-resolution files.] In addition to the full EIS and EMP in English, Eni distributed an executive summary of the EIS in English, Tetum and Portuguese.

Iha loron 1 Jullu 2010, Eni konvida "stakeholder" (parte relevante) sira atu fo submissaun kona-ba esbosu Deklarasaun Impaktu Ambiental (Ingles) no Planu Jestaun Ambiental (Ingles) ba perfurasaun esplorasaun Cova-1 ba Diresaun Nasional Meiu Ambiente (DNMA) molok loron 23 fulan Jullu. [Hare iha kraik atu hare dokumentus sira ho rezolusaun maka’as]. Aleinde dokumentu tomak Deklarasaun Impaktu Ambiental no Planu Jestaun Ambiental iha Ingles, Eni distribui tan Rezumu Deklarasaun kona-ba Impaktu Ambientál husi Perfurasaun Cova-1 iha lian Tetum, Ingles, no Portugese.

On 23 July, La'o Hamutuk made a submission to DNMA about the Cova-1 project. Our main points were:

  • Public consultation should be better.
  • Safe and clean operation is more important than Eni’s financial gain.
  • The oil spills modeled are too small.
  • No flaring should be allowed.
  • Regulators have the right to inspect operations.
  • Local content requires more effort.
  • Pay attention to accuracy and detail.
  • Eni should plan for 2010’s unusual weather patterns.
  • Plan for additional ship traffic.

Eni has contracted Italian company Saipem (of which it owns 43%), to drill the ultra-deep Cova-1 exploration well. The well is in 1,930 meter deep water, and will extend 4,200 meters below the sea surface. The Cova EIS admits that this is an inherently high-risk activity (the current oil leak in the Gulf of Mexico is under 1,500 meters of water). Eni hopes to start drilling in September.

On 10 August, Eni responded (also Tetum) to the points La'o Hamutuk raised in our submission, providing additional information and promising to incorporate some of them in the final version of the EIS.

On 24 August, Eni held a "stakeholder meeting" to discuss the EIS and drilling process for Cova-1 and other wells in contract area S06-03. They gave four PowerPoint presentations: Part 1 (description of program), Part 2 (environmental studies) Parts 3-4 (environmental risks and management), and slides on additional proposed wells.

In early September, Eni informed the industry that it was looking to sell up to 30% interests in each of its projects in Timor-Leste's exclusive area.

On 23 September, Eni distributed revised versions of the EIS and the EMP for the Cova-1 well, as well their responses to comments from all stakeholders, and the Executive Summary of the EIS (also Tetum). We understand that DNMA has already indicated environmental approval for this project, signed off by Minister of Economy and Development Joao Goncalves before he left on 20 September for three weeks in Europe.

Iha loron 23 fulan Jullu, La'o Hamutuk halo submisaun ida ba DNMA kona-ba projeitu Cova-1. Ami nia pontus prinsipal sira mak ne’e:

  • Tenke hadiak prosesu konsultasaun publiku.
  • Operasaun ne’ebe mos no seguru importante liu duke lukru ne’ebe Eni sei hetan.
  • Modelu ba mina-fakar nian kiik liu.
  • Labele halo "flaring" ka sunu gas ka material sira ba atmosferu.
  • Regulador sira iha direitu atu halo inspeksaun ba operasaun.
  • Kontiudu lokal presiza duni.
  • Fo atensaun ba faktus sira ne’ebe loos no detailhadu.
  • Eni tenke halo planu ba padraun klimatika ne’ebe la bai-bain iha 2010.
  • Halo planu ba trafiku ro balun iha rejiaun.

Eni kontrata ona kompania Italia ida, Saipem (Eni kaer asoens 43% Saipem nian) atu fura posu esperimental Cova-1 iha tasi ne’ebe klean duni. Posu nia klean metru 1,930 husi tasi leten to’o kidun no sei alargara metru 4,205 ba iha rai okos. Deklarasaun Impaktu Ambiental Cova hateten katak aktividade ne’e iha risku ne’ebe boot (mina fakar iha Golfu Meksiko foin dadauk ne’e la too metru 1,500 husi tasi leten). Eni espera atu hahu perfurasaun iha Setembru.

Iha loron 10 fulan Agostu, Eni fo resposta (mos Ingles) ba pontus ne’ebe LH hateten iha ami nia submisaun. Sira simu ami asuntu balun, fo informasaun tan, no promete atu inklui ami nia pontus sira ne’e iha versaun ikus EIS nian.

Iha loron 24 Agustu, Eni halao “enkontru ida ba stakeholder" hodi diskute Deklarasaun Impaktu Ambiental no prosesu perfurasaun ba Cova-1 no mos posu sira seluk iha area kontratu S06-03. Sira fo aprezentasaun hat ho Powerpoint: Parte 1 (deskripsaun programa), Parte 2 (studu ambiental) Parte 3-4 (risku no Jestaun Ambiental) no slide ba posu adisional ne’ebe propoin.

Iha inisiu fulan Setembru, Eni informa kompania seluk (Ing.) katak nia buka atu fan nia funan too 30% iha kada nia projeitu iha Area Eskluzivu TImor-Leste.

Iha loron 23 Setembru Eni distribui versaun ba revizaun Deklarasaun Impaktu Ambiental  (DIA, Ing.) no Planu Jestaun Ambiental (PJA, Ing.) ba posu Cova-1, no mos sira nia resposta ba komentariu sira husi Stakeholder sira, no rezumu ezekutivu husi DIA (mos Ingles). Ami hatene ona katak DNMA fo indikasaun ona ba aprovasaun ambiental ba projeitu ida ne'e, asina ona husi Ministru Ekonomia no Dezenvolvimentu Joao Goncalves molok nia aranka ba Europa ba semana tolu iha loron 20 Setembru.

Additional wells in 06-03 after Cova-1

On 23 August, DNMA and Eni distributed proposed Terms of Reference (also Tetum) for a second EIS process for up to three additional exploration wells in PSC area S06-03. DNMA asked for submissions by 3 September. La'o Hamutuk made a submission on the TOR (also Tetum).

The draft EIS and EMP were circulated for comment on 4 October, with a deadline for the 15th.  Although La'o Hamutuk immediately asked for electronic copies of the documents, Eni provided them on the night of the 12th, three days before submissions are due. La'o Hamutuk filed a submission on 15 October. 

On 27 October, Eni and DNMA held a stakeholder consultation meeting at Eni's office in Dili, which was reported on by Radio Australia. The company presented on their drilling plan, their environmental studies, and management of environmental consequences. Several complex and controversial issues were discussed, including environmental and jurisdictional questions about flaring, whether Kitan is an appropriate source for baseline environmental data, drill ship and blowout preventer maintenance, oil spill modeling, impacts on Indonesia and Australia and other topics. On 3 December, Eni distributed revised versions of the EIS and EMP for this additional drilling.

At the beginning of December, the Saipem-10000 drillship was in Indonesia. Drilling at Cova-1 began in late December, and in January the well came up dry. The drillship is going to Australia to fulfill a prior commitment, and Eni will evaluate the Cova-1 samples to determine whether additional test wells are worth drilling.

Iha loron 23 fulan Agustu, DNMA no Eni distribui proposta Termus da Referensia (mos iha Ingles) ba segundu prosesu Deklarasaun Impaktu Ambiental ba posu esplorasaun adisional tolu iha Area PSC S06-03. DNMA husu atu hatama submisaun sira too iha loron 3 Setembru, ne’ebe sei kontinua ho esbosu Deklarasaun Impaktu Ambiental ida iha faze komentariu publiku seluk. La’o Hamutuk halo submisaun ida kona-ba TOR (mos iha Ingles).

Esbosu AIA no Planu Monitorizasaun Ambiental (PMA) sirkula ona atu hetan komentariu iha 4 Outubru, ho prazu to loron 15. Maske La’o Hamutuk imediatamente husu kopia eletronika ba dokumentus ne’e, Eni foin fo iha kalan 12 Outubru, loron tolu antes hatama submisaun. La’o Hamutuk hatama submisaun iha loron 15 Outubru.

Iha 27 Outubru, Eni no DNMA halao enkontru konsultasaun ho nia parseiru sira (stakeholders) iha eskritoriu Eni nian iha Dili, ne’ebe iha reportazem husi Radio Australia. Kompania aprezenta sira nia planu perfurasaun nian, studu ambiental, no jestaun ba impaktu ambiental. Asuntu balun ne’ebe kompleksu no kontroversial ne'e diskute iha ne’eba, inklui perguntas ba ambiental no juridiksaun kona-ba atu sunu gas ba atmosferu, oinsa kampu Kitan ne’e iha fontes ne’ebe apropriadu kona-ba dadus de baze ambiental, manutensaun ro perfurasaun no BOP (Blowout Preventer), halo modelu mina-fakar, impaktu ba Indonesia no Australia no topiku sira seluk tan. Iha 3 Dezembru, Eni fahe revisaun ba  EIS no EMP.

Bainhira Dezembru hahu ro perfurasaun Saipem-1000 nafatin iha Indonesia. Perfurasaun iha Cova-1 bele hahu iha Dezembru, ho posu ida ba tolu tuir mai. Iha Janeiru, posu Cova-1 sai maran, no Eni tenke deside se iha razaun atu halo perfurasaun ida tan.

In addition to the smaller 2 MB files for the Cova-1 EIS and EMP linked to above, La'o Hamutuk has posted Eni's original six megabyte draft EMP and EIS and revised EMP and EIS files for the Cova-1 drilling, which have slightly better graphic quality.

Aleinde dokumentu ho kapasidade naton 2 MB ba Deklarasaun Impaktu Ambiental Cova-1 liga ba leten, La'o Hamutuk publika ona dokumentu original (iha lian Ingles) ba esboso Planu Jestaun Ambiente no Deklarasaun Impaktu Ambiental no final PJA no DIA ho 6 MB ne’ebe Eni fo mai, ne’ebe iha kualidade grafiku ne’ebe diak liu.


The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)
Institutu Timor-Leste ba Analiza no Monitor ba Dezenvolvimentu
Rua dos Martires da Patria, Bebora, Dili, Timor-Leste
P.O. Box 340, Dili, Timor-Leste
Tel: +670-3321040 or +670-77234330
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