First oil from Timor Leste was achieved in 1998, from
Elang/Kakatua shared with Australia. In 2004 the Bayu-Indan
gas/condensate field also came onstream also in the joint development
area. Gas was recycled but came onstream in 2007, piped to Darwin for
eventual conversion into LNG.
Subsequently growth in both oil and gas production from Timor Leste will
be rapid as Bayu-Indan ramps up and as other fields come onstream,
including Timorís share of Kitan and the Greater Sunrise gas complex in
the Joint Petroleum Development Area.
Timor Leste became an independent state in 2002. It
consumes very little oil and no gas but oil demand is increasing very
rapidly as the country develops and as new indigenous oil comes
onstream. Exports of oil and later gas will provide considerable sums to
the government probably leading to rapid growth in oil demand for
However the country, despite disagreements, is expected to continue to
use no gas as its output, distant from the country, is arguably more
appropriate for conversion to LNG in Australia.