Italy’s ENI granted five of six oil concessions in East Timor

23 May 2006

Dili, East Timor, 23 May – Italian oil company ENI won five of the six oil exploration concessions in the Timor Sea, a statement issued Monday by the prime minister’s office in Dili said Monday.

According to the statement, Indian oil company Reliance won the sixth concession.

The decision was made by Timor’s Prime Minister, Mari Alkatiri, who also serves as the country’s minister for Natural Resources, Minerals and Energy Policy.

The concessions for a further five oil blocs have yet to be attributed as these have yet to attract any proposals, and it is believed the Timorese government may encourage unsuccessful bidders to re-apply for the remaining concessions.

From now on, ENI and Reliance are “obliged to sign an exploration sharing contract with the Ministry of Natural Resources, Minerals and Energy Policy by June 20.”

The deadline for companies to hand in proposals for the Timorese offshore tenders ended on April 19 and the East Timor government received nine proposals for the six blocs that were granted.

At that time Prime Minister Alkatiri showed he was certain that East Timor would be able to launch an international tender for onshore oil exploration by the end of the year.

The Bayu-Undan oil field is already in production jointly with Australia, and of which East Timor receives 90 percent of production rights. (macauhub)