Earlier this year in October 2021, Timor-Leste spudded the Feto Kmaus exploration well, its first onshore exploration well in decades.
The Feto Kmaus exploration well is located in the region of Suai, Covalima, and was spudded by Timor-Resources.
A new onshore discovery and investment
During late December, Timor Resources completed the first of three exploration wells, the Karau well, in onshore Timor-Leste, with the company announcing the discovery of oil and gas in its contract area.
"It's great to see that the onshore oil and gas industry here in Timor-Leste start to move with a confident pace. Both Timor Resources and Timor Gap is currently drilling the onshore block in the Suai area, this is the first exploration well drilled after 50 years of no exploration activities taken place in onshore Timor-Leste." said Florentino Soares Ferreira, the president of the National Authority of Petroleum and Minerals (ANPM).
Currently, Timor GAP, the country’s NOC, and Timor Resources possess two blocks onshore, Block TL-OT-17-08 and Block TL-OT-17-09, in a 50:50 joint venture.
Updated Licensing Round Timeline and diversification opportunities
For companies looking to get involved in the country's promising onshore and offshore energy opportunities, the national regulator ANPM is creating new and exciting opportunities.
ANPM will be extending the Licensing Round prequalification period until 14th January 2021, to accommodate energy companies that are raising capital, and have the opportunity to meet many of the prequalified companies in person now that physical events are back.
At the same time, ANPM signed an MOU with Santos, to proceed with a carbon capture and storage (CCS) project, estimated to cost $1.6 billion, at the ageing Bayu Undan field in the Timor Sea.
The country plans to use the aging field as the main hub for carbon storage for the entire region of South-East Asia, and help the region reach carbon neutrality
Currently, ANPM is exploring the potential to stockpile carbon-credits, and offer them to companies investing in offshore and onshore projects in the country, helping EPs reach their goals by making their projects carbon neutral, and financing them more easily.
The Ministry of Petroleum and Mines, and ANPM are currently exploring how to develop this scheme and implement it under their commercial and fiscal package.