A joint venture headed by Oilex Ltd. has decided to relinquish a production-sharing contract in the Joint Petroleum Development Area sector of the Timor Sea because of ongoing uncertainty surrounding the maritime arrangements in the Timor Sea Treaty with Australia.
Oilex is worried about the outcome of the continuing stand-off between Australia and East Timor about the treaty, which was originally signed in 2006. It governs the split of revenue from the Greater Sunrise gas field, which straddles the offshore border between the two countries.
In May East Timor accused Australia of engaging in espionage during negotiations covering the treaty. The treaty lapsed in February, which means that either side can now cancel the arrangement.
Oilex is concerned about this and has asked the East Timorese to terminate JPDA 06-103 PSC.
The company says it is best to let the dispute run its course even though seismic work has delineated a prospect called Bazartete in the permit.
JV partners are operator Oilex (JPDA 06-103) Ltd. 10%, Japan Energy E&P JPDA Pty. Ltd. 15%, GSPC (JPDA) Ltd. 20%, Videocon JPDA 06-103 Ltd. 20%, Bharat PetroResources JPDA Ltd. 20%, and Pan Pacific Petroleum (JPDA 06-103) Pty. Ltd. 15%.