Timor-Leste is a country located in South East Asia, bordering with Australia and Indonesia. The country has been drawing attention thanks to an interesting active licensing round, proven geology, and a very approachable and really hard-working National Authority. Florentino Soares Ferreira, President of ANPM Timor-Leste discussed the country’s hydrocarbon sector through 2020-2021, Timor-Leste´s fiscal regime incentives, and his thoughts on attracting the new profile of investors that have been arising at The Energy Hall of Fame podcast.
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18 available blocks: What is ANPM looking for in a partner?
A lot of IOCs from all over the world, Asia, Europe, the US, and even Africa have the opportunity to prospect the 18 available blocks, and partner with ANPM.
The Global Pandemic (COVID-19) and global economic downturn that contributed immensely to plunging oil price make it difficult for national authorities to find large-scale investors and IOCs, with many of them starting to turn to small and medium-sized IOCs. However, ANPM had already partnered with small and medium-sized IOCs, establishing legislation and incentives to attract them and begin exploration over the past 5 years.
The biggest criteria for ANPM selecting IOCs are proven technical and robust financial capabilities to invest in activating the available blocks.
Furthermore, another important element for ANPM is a commitment to local content, which is expected from their partners as well.
IOC size: small / medium / big ✅
Technical, and Robust Financial capabilities ✅
Commitment to local content ✅
If you meet the requirements you have the potential to partner with ANPM to explore Timor-Leste's available blocks, and benefit from their experience in dealing with international oil companies from different backgrounds and regions as well.
Timor-Leste´s ongoing licensing round
Timor-Leste has six active exploration campaigns offshore and two blocks onshore, with one producing field, and one decommissioned field in 2015. A plan is being developed for a newly discovered onshore field, opening new opportunities for service providers and IOCs alike.
Timor-Leste's fiscal regime incentives
Timor-Leste's fiscal regime greatly contributes to the country becoming more attractive for new investors in the APAC region.
Government take ranges from 65% to 75%, is below the global average, ranging from 65% to 75%, based on the project's profitability. Furthermore if the rate of return of investment is under 16.5%, the company is subject only to an income tax. When a company's ROI is greater than 16.5%, then, and only then is a company subject to supplemental petroleum taxes.
The Timor-Leste government is committed to DCR - the Decommissioning Costs Reserve -, which allows it to work better with investors and ensures that it will have a smooth decommissioning stage for all parts and give the opportunity to the companies to have higher profits from the project.
2021 E&P plans
The current global pandemic has affected and delayed some upstream processes. Faced with this, Timor-Leste sought to implement measures to help potential E&P investors. These measures include online applications for pre-qualification, setting a virtual data room with Zebra Data, online summits and roadshows, facilitating companies without travelling to Timor-Leste.
Furthermore, they took the initiative to extend the licensing round time for another 12 months, and reduce the bid bond from $500,000 to $150,000.
Are you interested in knowing more about Timor-Leste opportunities? Listen to the full podcast episode or contact us at marketing@in-vr.co.
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