Oil development is true independence for Timorese people

O prime Minister Timor, Xanana Gusmão, said today that the sovereign right to oil development is not only an economic option, but is also the basis for a future of dignity and true independence of the people.

“ Our sovereign right to oil development is not just an economic option. It is a just and strategic way of transforming what in the past has been a source of greed into a solid basis for a future of dignity and true independence for the Timorese people,” said Xanana Gusmão.

The Timorese leader spoke in parliament in the presentation of the bill of the General Budget of the State (OGE) for 2027, with a consolidated global amount of USD 2.57 million (EUR 2.26 billion).

Under the motto “Strengthen Resilience through Transformation: Diversifying the Economy to a Sustainable Future”, the 2027 OGE continues essential public services with investments and reforms aimed at strengthening productive capacity, creating jobs, improving the living conditions of the population and reducing the vulnerability of the economy to external shocks.

In the intervention, Xanana Gusmão explained that strengthening the position of state oil company Timor GAP in the process of developing the Greater Sunrise field, with the acquisition of the shares of Japanese Osaca Gas and Australian Woodside, will develop new industries, create jobs and strengthen the skills of the population.

“ Natural gas from the Greater Sunrise will be processed in East Timor,” the Timorese Prime Minister insisted.

Following the completion of the transactions with Osaka Gas and Woodside, Timor GAP came to hold 100% of the Greater Sunrise operating consortium.

The Timorese public oil company is now looking for a new international partner operator for the development of the gas field, the start of which is planned for 2034.

The project also includes the construction of a pipeline for Natarbora, on the south coast of the country, and the construction of a liquefaction plant capable of producing five million tons of natural gas Liquefied per year.

Despite holding 100% of the consortium, East Timor cannot decide alone on the development of Greater Sunrise.

According to the 2018 Maritime Borders Treaty signed with Australia, decisions on the development of the field are subject to joint approval by the two countries through the Governing Council.

Located in the Timor Sea, 150 kilometres from East Timor and 450 kilometres from Darwin, Greater Sunrise, composed of the Sunrise and Troubadour fields, is one of the largest reserves of natural resources still to be explored in the region and represents a great economic potential for Timorese people.

The Greater Sunrise fields have contingent resources estimated at 5.13 billion cubic feet of gas and 25.9 million barrels of condensate.