Why does Timor-Leste need a National Oil & Gas Company?

Timor-Leste possesses large amounts of oil and gas resources that have the potential to fuel our nation’s future economic and social growth. Many countries with similar resources have established National Oil Companies and Regulatory Bodies to represent their nations in the oil and gas markets. TIMOR GAP will act as the business arm of the government, enabling our participation, innovation, and growth in the industry.

Where does TIMOR GAP get its funding from?

As the company’s various business areas develop, TIMOR GAP is primarily funded by the Timor-Leste Government State Budget. As revenues from petroleum sales begin to be generated, we will be funded in part by revenue from service operations.

Why are foreign companies extracting Timor-Leste’s oil and gas?

As a young country, Timor-Leste has not yet developed its local oil and gas industry. In order to be able to access its oil and gas resources, Timor-Leste benefits from the expertise and capabilities of international oil companies. These companies explore and produce oil and gas in the Timor-Leste according to the terms defined in Production Sharing Contracts, regulated by the National Petroleum Authority in order to guarantee the interests of the Timor-Leste people. Timor-Leste receives a share of the oil and gas revenues generated by these activities, as well as taxes paid by foreign oil companies.

What are the Tasi Mane projects?

The Tasi Mane projects are a multi-year development of three industrial clusters on the south coast of Timor-Leste, which will form the backbone of the Timor-Leste petroleum industry. The projects will involve development of a coastal zone from Suai to Beaço (about 156 km) and will ensure that the required infrastructure is in place to support a growing domestic petroleum industry. Tasi Mane will include the Supply Base and Industrial Estates in Suai, Refinery and Petrochemical industries in Betano, a Liquefied Natural Gas (LNG) Plant in Beaço and a highway linking the three clusters.

Why is Timor-Leste investing so much money in the Tasi Mane projects?

Without the Tasi Mane projects, there would be very little oil and gas economic activity taking place in Timor-Leste territory and the country would benefit only from revenue sharing and taxes. When fully implemented, the Tasi Mane projects will not only benefit the petroleum industries but also provide opportunities for other sectors such as agriculture, forestry, fisheries and tourism to be developed on a much bigger scale as they will easily reach international markets. The Tasi Mane projects will generate both direct and indirect jobs, which in turn will assist the Government as we tackle unemployment issues, as well as encourage investment in our other young industries.

Why is TIMOR GAP responsible for the Tasi Mane projects?

TIMOR GAP, as the National Oil & Gas Company of Timor-Leste, has been mandated by the Timor-Leste Government, through the Ministry of Petroleum and Mineral Resources, to manage the Tasi Mane projects to provide services to the oil and gas industry. However, for the construction of the Tasi Mane Project, this has been managed by a Project Management Unit consisting of several relevant government institutions.

Who are TIMOR GAP’s shareholders?

We are fully owned by the Timor-Leste Government.

If we do have oil and gas, why do we pay so much for the fuel?

Fuel prices are determined in international markets by supply and demand and other factors. Since Timor-Leste is a relatively small country and imports small fuel quantities, and transport services to the island are more expensive than in other countries, fuel sold in Timor-Leste may be more expensive than in other countries. This is one of the many reasons why Timor-Leste needs to develop its downstream oil and gas infrastructure. TIMOR GAP looks forward to providing locally produced oil and gas at competitive prices to our nation.

How can TIMOR GAP contribute to bringing the pipeline from Greater Sunrise to Timor-Leste?

TIMOR GAP, as the National Oil and Gas Company of Timor-Leste, has been given the mandate by the Government to undertake various technical and commercial studies not only on the gas pipeline from Greater Sunrise but also on the development of an LNG plant in Beaço. The results of these studies are very positive. Timor-Leste will only approve the field development of Greater Sunrise if its gas is piped to Timor-Leste onshore and an LNG plant is developed in Beaço.