Oil Minister says Timor has put “the cart before the horse”



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We must first listen to the technicians, see the result of the economic feasibility analysis. We will await that opinion. The Timorese state has committed itself to the people with the idea that the pipeline must reach Timor-Leste. If not in Tasi Mane [costa sul] may be in Tasi Fetus [costa norte]”said Victor Soares, Minister of Petroleum and Mineral Affairs in an interview with Lusa.

“But if it is not feasible, we will not lose money. That is the principle of the business. This is what we are going to defend. What has happened so far has been to put the cart before the horse: the politicians have decided and the technicians they have gone after politicians. ” We have to reverse that, “he said.

In office for just two months and to print this new seal, Soares has already carried out an extensive restructuring in the leadership of the different institutions that Act Not sector of oil, with changes in the command of the oil company, Timor Gap, of the National Petroleum and Minerals Authority (ANPM) and the Institute of Petroleum and Geology (IPG).

The outgoing teams participated in what were, to date, the most comprehensive measures taken by Timor-Leste in this sector, including the delimitation of the permanent borders with Australia, the draft development from the south coast to the sector oil field and major wells Dawn, where Timor Gap bought a stake most for $ 650 million.

All worked closely with the Timorese leader Xanana Gusmao, the main architect from politics to sector – including the draft Tasi Development mane of the south coast and the pipeline from the Greater Sunrise well to Timor-Leste.

“I saw the development of this sector over time and deemed it essential to make changes. We have to make structural changes to meet the expectations of the population, ”he said.

“This system was installed more than 10 years ago, but I do not see that things are working according to the decided policies and I feel that it is necessary to make changes with a view to a new strategy,” he said.

Soares is clear about the investment in the Greater Sunrise consortium: “I think it was a big mistake the government made,” he said.

“It should not have been done. You paid for something that is nothing. That was a mistake. It was not based on the technical analysis of the company or the technicians. It was a purely political decision. Right in the first meetings I had with direction yes Timor Gap, yes ANMP we do IPG, we confirm that or draft it was not based on a feasibility study, ”he explained.

Victor Soares highlights the importance ofncia do sector for the country: “It is fundamental and vital for the progress of the development of Timor-Leste”.

Asked about the technical and even economic scenarios presented by Xanana Gusmao over time, the minister believes that they have always been based “on political rather than technical issues”, not giving certain information on feasibility analyzes.

Víctor Soares also said that the Government is debating requesting an external audit of “all draft“to see what was done, how it was done, what is good and what is not.

Víctor Soares is one of the elements of the Government of the Revolutionary Front of Timor-Leste Independiente (Fretilin), the largest party in the country, which joined the Current executive to make it feasible for the remainder of the term, which ends in 2023.

The party voted against the maritime boundary treaty and the draft Greater Sunrise and challenged the purchase of the stake most by Timor Gap.

Publicly, the party does not discuss the decision to bring a Greater Sunrise pipeline to Timor-Leste, perhaps the most complex and controversial issue in the entire draft, which has divided Timorese Australians and has been contested by international oil companies.

Privately, however, party leaders question not only the viability of the gas pipeline, but even the location of the liquefied natural gas unit that will be created, admitting its transfer from the south coast, as foreseen in Current draft, towards the north coast.

With the question of the political linkage of the gas pipeline with the issue of national sovereignty, a position Xanana Gusmao and defended in the politics of Current Government – the party admits that presenting a contrary version could have a political or electoral cost.

Questioned by Lusa about the fact that Fretilin Without publicly admitting his reservations on the subject, Víctor Soares refers to the “euphoria” of the population.

“This policy has been developed and the Timorese they listened and expressed that the maritime border should be defined and that the gas pipeline or gas pipeline should reach Timor-Leste. That was public consumption and we are all excited to have this sovereignty and our wealth, even at any price, ”he said.

“The most educated people who know the zone and those who have access to specific information know that it is not entirely feasible. But since the policy is already decided, you have to be careful with the party. Our constituents are not all politicians, they do not have high-level knowledge. Let’s be careful, “he admitted.

Regardless, he insists, the important thing is that the technicians of Timor Gap and ANMP conclude “an economic viability analysis of the entire draft“, taking into account various scenarios for the price of crude oil and the new” parameters “in the context of the COVID-19-19.

“We have to make a decision based on the economic feasibility study,” he said.

“But now we are thinking of making an adjustment, defining a new strategy. Let the technicians of Timor Gap, the consortium partners and other parties involved in the draft, to see if it is viable or not, if it is profitable or not. And then we will support the election, ”he said.

The Government, he explained, started from this basis that the gas pipeline has to reach the southern coast of the country, however, Soares emphasizes, this option will necessarily impact what is one of the main agricultural areas of the country. sector the vast majority of the population lives.

Therefore, he said, the policy must also take into account an adequate territorial plan that analyzes the best possible locations.

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