FAQS


Why does Timor-Leste need a National Oil Company?

Like many countries bestowed with oil and gas resources that have either a National Oil Company (NOC) or Regulatory Body, or both in some cases, Timor-Leste also needs an NOC in addition to its already well-established Regulatory Body vested in the National Petroleum Authority (ANP – Autoridade Nacional do Petroleo). TIMOR GAP, E.P., as the state-owned oil & gas company, is a business arm of the Government representing the State to participate in various oil and gas business activities. This will not only ensure increased national participation and help Timor-Leste people develop capabilities in the sector but also maximize value added by capturing as much economic, social and other benefits as possible from the exploitation of these non-renewable resources.

Where does TIMOR GAP get its funding from?

As the National Oil Company of Timor-Leste, TIMOR GAP received initial capital from the Timor-Leste Government State Budget. Since TIMOR GAP’s businesses in both upstream and downstream are only starting, while some are yet to start, it has no revenues from petroleum sales. To date, the company funds its operations with capital injections from the Timor-Leste State Budget, dividends from its stake in the GAP-MHS helicopter business, and revenues from services starting operations over time.

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

As a young country, Timor-Leste has not yet developed a 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 Exclusive Area as well as the Joint Petroleum Development Area 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 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. Tasi Mane means “male sea” in Tetum (name due to the fact that the sea on the south coast of the island, unlike the much gentler and calmer sea on the north, is characterised by big rough waves and swells).

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

As outlined in the Timor-Leste Strategic Development Plan 2011-2030, the Tasi Mane projects aim at bringing petroleum development to Timor-Leste shores and at providing a direct economic dividend from petroleum industry activities to the country. Without the Tasi Mane projects, there would be very scarce 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 in 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 assist the Government to tackle unemployment issues as well as to provide incentivized justifications for key policy makers to make other medium-sized investment decisions necessary to support sustainable industries – e.g., agriculture and tourism – which otherwise would have not been feasible.

Why is TIMOR GAP responsible for the Tasi Mane projects?

TIMOR GAP, as the National Oil 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. This is in line with one of its roles defined in Decree Law No. 31/2011 on the establishment of TIMOR GAP, i.e. to own, manage and operate all State’s assets of, and related to, petroleum industries.

When will there be TIMOR GAP petrol stations in Timor-Leste?

As defined by law No.31/2011, another key role of TIMOR GAP is to be involved in downstream petroleum businesses, which include not only LNG, refinery and petrochemical but also fuel distribution and retail. TIMOR GAP plans to build a network of reliable and high-quality petrol stations of its own to serve all parts of Timor-Leste. This project is currently in the process of finalizing necessary feasibility studies. In the near future, TIMOR GAP will start construction and operation of several petrol stations in Suai and a few other districts, before it covers the whole Timor-Leste territory.

Who are TIMOR GAP’s shareholders?

TIMOR GAP is fully owned by the Timor-Leste Government, its only shareholder.

What is the difference between TIMOR GAP, E.P. and the Timor Gap maritime region?

TIMOR GAP is a company, incorporated under the laws of Timor-Leste (Decree Law No. 31/2011), owned by the Timor-Leste Government. The Timor Gap maritime region is the area in the Timor Sea where maritime borders between Timor-Leste and Australia have not been defined yet.

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. Given that Timor-Leste does not yet have refineries and other facilities to process and refine its own oil and gas, all of its petroleum produced from ground thus far has been exported in raw forms (condensate, etc.). All types of fuel found and sold in the country are imported refined/processed products (e.g. diesel, gasoline, kerosene, etc.) which have gone through refineries elsewhere – e.g. Indonesia, Singapore, Malaysia, etc. Since Timor-Leste is a relatively small country and imports small fuel quantities, and transport services to the island are more expensive than to other countries, fuel sold in Timor-Leste may be more expensive than in other countries. This is particularly true when compared with Indonesia, where for some time the Government subsidized consumer fuel prices, at a cost to tax payers. This is one of the many reasons why Timor-Leste needs a refinery of its own, and, in order to effectively achieve this, a State-owned company as TIMOR GAP is extremely important.

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

TIMOR GAP, as the National Oil 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, including a specially dedicated LNG port (marine facilities). The results of these studies are very positive, further supporting the decision by the Government that 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.

WHAT'S New

World-class prospectivity identified in Offshore Timor-Leste Date: 5th July 2017 TIMOR GAP E.P., the national oil company of Timor-Leste, was awarded PSC TL-SO-15-01 with 100% interest through Timor-Leste Government Resolution No. 44/2015 in December 201    read more...

ANNOUNCEMENT – SHORT-LISTED APPLICANTS A. SUMMARY TIMOR GAP, E.P. is the Timor-Leste’s National Oil Company which was established in 2011 under the Decree Law no. 31/2011. Its main objective is to act, on behalf of the State, in conducting business wit    read more...

TIMOR GAP, E.P. is pleased to share news of the past year's successes in the Company’s Annual Report. We encourage all the communities, stakeholders and other relevant institutions to take a moment to read our annual report, sharing information about th    read more...

OUR SUBSIDIARIES

In order to develop projects in different areas, TIMOR GAP may acquire stakes in other companies or form joint ventures with business partners. TIMOR GAP PSC 11-106, Unipessoal Lda On 13 April 2013, through its wholly-owned subsidiary TIMOR GAP PSC 11-10    read more...

BULLETIN OIL AND GAS

Timor-Leste’s vision for the future, initially laid out in the 2011−30 Strategic Development Plan, is slowly taking form as the country’s infrastructure is rebuilt and new opportunities for private investment emerge. View    read more...

June 2017 Newsletter is AVAILABLE. Welcome to TIMOR GAP, E.P. newsletter. We hope you enjoy our sharing with you what we are doing in the Oil and Gas business activities. For more information please see our newsletter in PDF version. January Newsletter,    read more...


Careers and Opportunities at TIMOR GAP, E.P.