E. Timor gets oil royalties from Australia<\/p>\n
SINGAPORE (Dow Jones): Newly independent East Timor received
\nits first oil royalty payment from Australia last week, according
\nto an Australian official at the department of Industry, Science
\nand Resources.<\/p>\n
The payment of A$6 million (about US$3.2 million) covered
\nroyalties on production from the Elang oil fields, located in
\nArea A 91-12 of the jointly administered Zone of Cooperation.<\/p>\n
The Zone of cooperation - which is split into three sectors -
\ncovers an area of disputed offshore territory rich in
\nhydrocarbons stretching between Australia's northern coast and
\nEast Timor.<\/p>\n
East Timor wants to renegotiate the terms of the existing Zone
\nof Cooperation treaty, agreed between Australia and Indonesia in
\n1989. However, it signed a memorandum of understanding with
\nAustralia in February, temporarily maintaining the 50-50 Zone A
\nroyalty split in force between Australia and Indonesia prior to
\nEast Timorese independence.<\/p>\n
The first round of treaty renegotiation took place between the
\nAustralian government the provisional East Timorese government
\nOct. 9-11 in East Timor's capital, Dili. East Timor wants a
\nredrawing of the treaty's boundaries, and a larger share of
\nroyalties.<\/p>\n
A date for the second round of talks has yet to be fixed.<\/p>\n
The Australian official pointed out that A$150 million in aid
\nhas been earmarked for East Timor over the next four years. This
\nfigure could fall if East Timor's revenue from oil royalties
\nrises.<\/p>\n
Currently, only the Broken Hill Proprietary Co.-operated Elang
\nfields, comprising Elang, Elang West and Kakatua, are producing
\noil in the treaty area. But there are a number of producing
\nfields in offshore territory very close by, including the
\nWoodside Petroleum Ltd.-operated 150,000-barrel-a-day Laminaria-
\nCorallina field. It is unclear whether these fields lie in
\nterritory disputed by East Timor.<\/p>\n
Royalties will rise once liquids production begins at the
\ngiant Phillips Petroleum Co.-operated Bayu Undan gas and
\ncondensate field, which, like Elang, is located in Zone A 91-12
\nof the treaty area. Philips issued initial engineering contracts
\nfor Phase One of the field development - comprising condensate
\nand liquid petroleum gas production - in October.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/e-timor-gets-oil-royalties-from-australia-1447893297",
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