COMPREHENSIVE PACKAGE AGREEMENT 30 AUGUST 2017

Transcription

1 Annex 21: Cmprehensive Package Agreement f 30 August 2017

2 COMPREHENSIVE PACKAGE AGREEMENT 30 AUGUST 2017 Western Bundary: The western bundary (Segment A1) is a bundary fr the cntinental shelf regime nly. Segment A1 runs in a sutherly directin frm pint A17 until it reaches the line f the 1997 Treaty between Australia and Indnesia at pint TA-1. Segment A1 is a prvisinal bundary until Timr-Leste (a) cncludes a seabed bundary with Indnesia and (b) the existing Cralina and Laminaria fields are decmmissined. Thereafter, the bundary will be adjusted t run as a gedetic line frm pint TA-1: Suthern Bundary: t any pint between pints A17 and A18 at which the cntinental shelf bundary between Timr-Leste and Indnesia meets the 1972 Treaty between Indnesia and Australia; r t pint A18, if the bundary between Timr-Leste and Indnesia meets the 1972 Treaty t the west f pint A18. Segment A2 f the suthern bundary is a bundary fr the cntinental shelf regime nly. Segment A2 fllws the line f the 1997 Treaty between Australia and Indnesia until pint TA-2. Segments B and C f the suthern bundary are a cmprehensive maritime bundary fr bth the cntinental shelf and exclusive ecnmic zne. Segment B runs as a gedetic line frm pint TA-2 until it reaches the median line at pint TA-3. Segment C fllws the median line frm pint TA-3 t pint TA-4. Eastern Bundary: The eastern bundary (Segments D and E) is a bundary fr the cntinental shelf regime nly. Bundary runs t the east f Greater Sunrise befre turning t cnnect back t pint A16: Segment D runs as a gedetic line frm pint TA-4 t pint TA-5. Segment E runs as a gedetic line frm pint TA-5 t pint A16 n the line f the 1972 Treaty between Australia and Indnesia. Segment E f the bundary crsses the Greater Sunrise field in a prprtin that is rughly cngruent with the divisin f revenue frm the resurce. T the nrth f pint X, Segments D and E are a prvisinal bundary until (a) Timr-Leste cncludes a seabed bundary with Indnesia and (b) the existing Sunrise and Trubadr fields are decmmissined. Thereafter, the bundary will run as a gedetic line frm pint X t the pint at which the cntinental shelf bundary between Timr-Leste and Indnesia meets the 1972 Treaty between Indnesia and Australia. 1

3 Special Regime Elements Special Regime area equals the Greater Sunrise unitisatin area. The treaty wuld prvide that: (a) Within the Special Regime area, Timr-Leste and Australia jintly exercise their rights as castal States pursuant t Article 77 f the United Natins Cnventin n the Law f the Sea. (b) Gvernance and the exercise f jurisdictin within the Special Regime area are as set ut in Annex ## t this Treaty. The Parties will agree t a revenue split. The revenue split will depend n the chice f develpment cncept in rder t reflect the impact f the dwnstream elements f the prject and the brader ecnmic benefits f the prject. Timr LNG: sharing f upstream revenue in the prprtin f 70:30 in Timr-Leste s favur, reflecting dwnstream peratins and brader ecnmic benefits. Darwin LNG: sharing f upstream revenue in the prprtin f 80:20 in Timr-Leste s favur, reflecting dwnstream peratins and brader ecnmic benefits. Jint gvernance f Special Regime area (details t be elabrated and included in Annex ## t treaty). Mechanism fr Develpment Cncept Treaty t include a mechanism fr engaging with the Sunrise Jint Venture and ensuring that a decisin is taken with respect t the develpment cncept. Details f mechanism are set ut in Annex B t this dcument. Other Resurces Timr-Leste wuld btain all future upstream revenue frm Bayu-Undan, Buffal, and Kitan fields. Gvernance and regulatry arrangements fr currently perating Bayu-Undan and Kitan fields wuld be grandfathered (i.e. maintained as is). Transitin f Buffal field int Timr-Leste s jurisdictin wuld be cvered by transitinal arrangements which guarantee equivalent terms and cnditins. N cmpensatin fr past explitatin. 2

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5 ANNEX B: APPROACH ON THE GREATER SUNRISE DEVELOPMENT CONCEPT Fllwing agreement in principle n the elements f a bundary agreement and Greater Sunrise Special Regime ( GSSR ), Timr-Leste and Australia t begin jint engagement with Jint Venture, with a view t a timely and infrmed decisin n the develpment cncept fr Greater Sunrise (the Develpment Cncept ) in accrdance with the Criteria and Actin Plan set frth belw. The Develpment Cncept will include: Descriptin f develpment strategy, cnsistent with gd ilfield practice; Cmmercial viability assessment; Technical viability assessment; Lcal cntent pprtunities; Timr-Leste develpment; and Timr-Leste equity. The criteria fr the assessment f prpsals fr the Develpment Cncept (the Criteria ) shall be: the Develpment Cncept is cmmercially viable, including best cmmercial advantage; the Develpment Cncept is technically feasible; the Develpment Cncept supprts the develpment bjectives and needs f each f Timr- Leste and Australia, while at the same time prviding a fair return t the Jint Venture; the Develpment Cncept demnstrates a significant cntributin t the sustainable ecnmic develpment f Timr-Leste, including thrugh clear and measurable lcal cntent cmmitments; the Develpment Cncept is cnsistent with gd ilfield practice; the Jint Venture has, r has access t, the financial and technical cmpetence t carry ut the develpment f the Greater Sunrise field; and the Jint Venture culd reasnably be expected t carry ut the Develpment Cncept during the specified perid. The Parties agree t nt unreasnably refuse the develpment plan fr the agreed Develpment Cncept. The Cmmissin may intervene, at any stage f the Actin Plan, t engage n behalf f the Parties with the Jint Venture, r at the request f either Party, t engage with the Parties. Fllwing the entry int frce f the bundary agreement and GSSR, gvernance f the GSSR shall transfer t the Designated Authrity and Gvernance Bard in accrdance with the terms f the GSSR. The relatinship between the GSSR agreement, the agreement n the Develpment Cncept, and the trilateral agreement with the Jint Venture t be addressed by the Cmmissin in due curse. 3

6 1. Parties engage with the Jint Venture ACTION PLAN The fllwing activities will be cmmenced immediately fllwing the cnclusin f the current meetings with the Cmmissin: Parties prvide all relevant infrmatin t the JV, and t each ther, fr further and mre cmprehensive analysis f the TLNG cncept, in particular, any Timr-Leste financial cntributins/subsidies twards the capital csts f TLNG Parties agree t timeline and prcedures fr delivery f such infrmatin and analysis frm the JV. Timeline must ensure sufficient time fr jint r separate analysis by the Parties Detailed request fr further and mre cmprehensive infrmatin frm the JV (via a letter frm the Cmmissin) including engaging in respect f: Suth Cast develpment ptins Lcal Cntent bligatins Equity participatin fr Timr-Leste Fiscal arrangements/mdel fr the prject Regular engagement with the JV t ensure that at the cmpletin f the prcess the Parties have access t all necessary infrmatin and analysis in rder t reach an infrmed decisin 2. Jint Venture Respnds t the Parties By 1 Nvember 2017, the fllwing tasks shall have been cmpleted: Fllwing JV respnse t Parties requests fr infrmatin and analysis, Parties t meet t cnsider infrmatin and analysis prvided by the JV and determine whether any additinal infrmatin r analysis remains utstanding fr DLNG and/r TLNG Parties t review (including as necessary with their wn independent experts) infrmatin and analysis prvided by the JV fr DLNG and/r TLNG Parties reprt back t the Cmmissin at the Octber Cmmissin meeting t prvide an update n the prcess and identify any cncerns regarding prgress and/r infrmatin and analysis frm the JV, with a view t Cmmissin engagement if any blckage was identified 3. Parties Assess Optins and Decide Develpment Cncept By 15 December 2017, the fllwing tasks shall have been cmpleted: Parties undertake assessment f Develpment Cncept n the basis f the Criteria Parties agree t the Develpment Cncept 4. Further Prcedure Fllwing agreement by the Parties n the Develpment Cncept, Parties sign a trilateral agreement with the JV fr the Develpment Cncept including, amng ther things, terms n fiscal regime, the apprval f peratr, and the security f title If the Parties are unable t agree t the Develpment Cncept in accrdance with the Criteria ahead f 15 December 2017, the Cmmissin shall engage with the Parties with a view t facilitating agreement n the Develpment Cncept by n later than 1 February