Timor Sea partners looking to exit production-sharing contract

Oilex Ltd. has requested that Autoridade Nacional do Petróleo terminate a production-sharing contract (PSC) in the Timor Sea.

Offshore staff

NORTH SYDNEY, Australia – Oilex Ltd. has requested that Autoridade Nacional do Petróleo terminate a production-sharing contract (PSC) in the Timor Sea.

The decision over the Joint Petroleum Development Area (JPDA) 06-103 PSC rests with the Timor Sea Designated Authority.

Oilex and its partners have concerns over the uncertainty of the PSC tenure, following recent developments within the JPDA, which are outside their influence. These include:

  • The existence of separate unilateral rights to terminate the Certain Maritime Arrangements in the Timor Sea Treaty (CMATS) arising in favor of both the government of Timor Leste and the government of Australia
  • The issue of formal arbitration proceedings by the Timor Leste government against the government of Australia to have the CMATS declared void ab initio.

Other participants inJPDA 06-103 are Pan Pacific Petroleum, Global Energy, Bharat PetroResources, and Japan Energy.

7/15/2013

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