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2014 is indeed a year full of challenges for ANP. We have come close to finalizing new sets of framework for petroleum operations and continue with active involvement in regulating the sector.

The year in review
2014 is indeed a year full of challenges for ANP. We have come close to finalizing new sets of framework for upstream petroleum operations and continue with active involvement in regulating the sector. Our first ever local content audit to operators in the JPDA provides opportunity to understand better ways to work with contract operators to continue improve participations of Timor-Leste in petroleum operations. Additionally, throughout the year we have also worked closely with contract operators to address some of significant operational challenges and brought across reasonable solutions to continue work side by side. Besides, the downstream businesses in Timor-Leste have advanced positively with the issuance of a number of downstream activity licenses.

Overall, opportunities and challenges in 2014 have exposed our young and dedicated team to a new level of experience to work together and develop their capability to serve the interest of the resource owners.

Exploring for potentials
Geological and geophysical work in our areas continues to take place in preparation for drilling in the coming years. Despite that, we have granted permission to defer the delivery of some of the exploration commitments in the JPDA as well as in the TLEA giving more time to the contract operators to plan and deliver their commitment.

Producing from declining fields
The decline in oil production from both the Bayu Undan and Kitan field pooled with the drop in oil price towards the end of 2014 have impacted our ability to generate greater revenue. Nevertheless, it is often in this environment that the contract operators are forced to act more prudent to optimize recovery of petroleum and lower the cost of operation.

To maintain and improve oil production, five development wells were drilled throughout the year; whilst some wells were immediately brought on-stream, some wells unfortunately failed and have to be suspended until economic environment becomes favorable.

Eyes on Health Safety and Environment
Another safe year for petroleum operations in the JPDA and TLEA in 2014. There was no record of fatality or any major accidents/incidents in our areas of jurisdictions.
The regulatory audit and inspections targeting predefined scopes continue to be carried out by our increasingly
experienced inspectors and auditors which resulted in corrective actions for continuous improvement.

Licensing Downstream Activities
Apart from working on ancillary downstream regulations, our effort in coordination with local business entities in
downstream sector have been paid off with the issuance, for the first time, of a number of downstream activity licenses to qualified downstream service providers for different service categories. This is a major milestone for regulating the downstream sector to meet the downstream requirements, industry standard and to provide assurance to the end users of downstream products in the country.

Revisiting regulations and model contracts
Continuing the effort from previous year, we have come close to finalizing the regulations and model contract for
Timor-Leste and continue to work on a revised regulations and model PSC for the JPDA. The work on Timor-Leste regulations and model contracts will be completed in 2015 to facilitate the plan for acreage release.

Journey in 2015
We look forward to conclude the revised regulatory framework for petroleum operations in 2015 and open a new round for exploration in our area of jurisdictions. We have strong commitment to continue the progress we’ve made so far in close cooperation with relevant key stakeholders. Nonetheless, as many who are involved in this industry, the uncertainties in oil price continue to remind us of the need to think harder and adjust the way we do business in this sector.

Gualdino da Silva
President
Autoridade Nacional do Petróleo Timor-Leste

ANP 2014 Annual Report. To download it, please click here.