Australia estimates it will receive between $1.8 billion and $7.1 billion in revenue from the Greater Sunrise fields in the Timor Sea, according to the Australian Government’s explanatory memorandum accompanying legislative amendments submitted to parliament.
Revenue Projections
The Australian Government’s memorandum states that “the development of the Greater Sunrise fields is expected to yield Australia an estimated revenue of $2 to $8 billion over the life of the project.”
The final figure depends on several factors:
- The development concept agreed between Australia, Timor-Leste, and the Greater Sunrise Consortium
- Project economics at the time of development
- Current market prices for oil and gas
The Timor Sea Maritime Boundary Treaty
The treaty, signed on 6 March 2019, permanently delimits the maritime boundary between Australia and Timor-Leste. Specifically, it establishes:
- The boundary of the continental shelf between both nations
- The exclusive economic zone (EEZ) border
- Provisions for future lateral adjustments of the continental shelf under specific conditions
The Australian Government notes that “the internal implementation of the Treaty benefits Australia and provides investors with security and stability in establishing an international legal basis for the continued development of major oil and gas deposits in the Timor Sea.”
Legislative Amendments
For the treaty to be ratified — expected on 30 August 2019, coinciding with the 20th anniversary of Timor-Leste’s independence referendum — Australia must pass several legislative packages through parliament:
| Diploma | Presented | Subject |
|---|---|---|
| First amendment | 28 November 2018 | Relevant changes resulting from the Timor Sea Maritime Boundary Treaty |
| Second amendment | 4 July 2019 | Passenger movements |
| Third tax bill | Pending | Tax arrangements with affected companies |
Greater Sunrise Special Regime
One key outcome of the treaty is the establishment of the Greater Sunrise Special Regime within the Special Regime Area. This framework provides for the joint development, exploration, and management of oil in the Greater Sunrise fields for the benefit of both Australia and Timor-Leste.
Benefits for Timor-Leste
From the date the treaty enters into force, Timor-Leste will receive all future upstream revenue from oil activities at:
- The Kitan oilfield
- The Bayu-Undan gas fields