CNRT Supports AMP Government’s Pipeline Policy

Press Release: CNRT Supports AMP Government’s Pipeline Policy

The CNRT (Conselho Nacional da Reconstrução de Timor) supports the efforts of the IV Constitutional Government of Timor-Leste to get the pipeline from the Greater Sunrise gas field to Timor-Leste. CNRT also endorses the efforts to conduct viability studies (technical, commercial and socio-economic) on pipeline and LNG-Plant to, and be built in, Timor-Leste.
Since took up the government in 2007, the AMP (Aliança Maioria Parlamentar) Government has been working tirelessly against the challenges and barriers of bringing the pipeline from the Greater Sunrise field to Timor-Leste which was not a priority of the previous Government led by the FRETILIN Secretary General, Mari Alkatiri.

The CNRT has followed closely the development of the negotiations on the field since 2007 and believe the government under the leadership of Prime Minister Xanana Gusmão is moving on the right direction. CNRT also supports the initiatives of both Prime Minister’s Xanana Gusmão and his Secretary of State of Mineral Resources Mr Alfredo Pires’ in establishing and commissioning the two important studies on pipeline and LNG-Plant, in cooperation with world renowned companies in the industry such as Petronas, Kogas and other Korean companies form the Korean Consortium. CNRT believes that this combined effort will further strengthen the position and the endeavour of the government to bring the pipeline from Greater Sunrise gas field to Timor-Leste.

CNRT is aware of the fact that the studies carried out by the companies above have come to completion and show that Timor-Leste’s option for pipeline and LNG-plant is much more viable than what the country has been led to believe. In CNRT’s view, the old myth of impossibility of a pipeline crossing the Timor Trough presented by the industry since 2002, which Mr Alkatiri and his Government did believe, is no longer a valid case. The bathymetric survey done jointly with the Korean Consortium shows clearly that Timor-Leste can now be confident about bringing the pipeline across the trough. The survey gives the best way to avoid the deepest and rough part of the trough. This has neither been done by the Alkatiri’s government nor by the companies operating the Greater Sunrise field.

Unlike in the past where only empty statements where disseminated for political consumption, CNRT believes that this IV Constitutional Government is genuine in its efforts and is focusing on establishing the facts and getting the technical and financial supports to ensure the pipeline and LNG-plant be channelled to and be built in Timor-Leste. Alkatiri has always claimed that only him can negotiate and bring the pipeline to Timor-Leste, but he forgot that it was in his administration in 2002 that Timor-Leste lost the pipeline from the Bayu Undan project to Australia.

Alkatiri also forgot that it was under his government that he unsuccessfully negotiated the failed deal, that is, the surrender of the Bayu Undan pipeline to Darwin, Australia in exchange of an annual payment of A$ 8 million. This act of irresponsibility has in effect increased the attractiveness of Darwin being the destination of second pipeline from the Greater Sunrise. This is because much of the infrastructure has been established in association with Bayu Undan pipeline project in Darwin. All this happened because of the incompetent and ill advised government of Mr Alkatiri.

CNRT also believes that the AMP government under the leadership of Mr Xanana Gusmão has its own way of ensuring the pipeline and LNG plant to come to Timor-Leste, which in turn will benefit all people of Timor-Leste. CNRT encourages the AMP government to not give in to pressure of some unrepresented segments in the society that has no relevance politically and socially. CNRT also encourages that AMP stands firm to its position to defend the sovereignty of Timor-Leste by bringing the pipeline and LNG-plant in anyway.

CNRT supports the AMP government to reaffirm its position that pipeline and LNG-plant to Timor-Leste is a must, otherwise Timor-Leste is prepared to leave the resources in the ground for the generations to come. This is the stance the Government have and should take to defend the pride of the Timorese people. This is CNRT’s position and a position that was defended since the party was established, which is very different from Alkatiri and his cronies who believe that the best way is to let the Woodside and the Joint Ventures decide where the pipeline goes.
In his recent statement, Alkatiri’s says that “CMATS (Certain Maritime Arrangements on the Timor Sea) which was ignored by his Government has got all the mechanisms to secure pipeline”. This statement only shows that Alkatiri does not even know the content of the Treaty that he once negotiated. The CMATS does not say anything about the pipeline nor does it mention the destination of where the pipeline will be channelled to, something that he failed to do during his governance. To the contrary, the CMATS which Mr Alkatiri describes as very favourable Treaty for Timor-Leste has given away Timor-Leste claims over the laterals of the JPDA. Effectively, Alkatiri’s government handed over 100% of the Laminaria Corralina field, and 100% Buffalo field to Australia, as well as 100% of other areas outside the JPDA where the Australian legislations applied before the 19th May 2002. These are what Alkatiri produced in his governance. These are the legacies of Alkatiri and his Cronies: Pipeline to Darwin, Laminaria-Corrallina oilfield to Australia 100%, Buffalo oilfield 100% to Australia. Can these same old blokes be relied again for a fight of a pipeline to Timor-Leste?

Perhaps Alkitiri has mistakenly refers the mechanisms in the IUA to the ones in CMATS. Yet, even in the IUA, Mr Alkatiri forgot that it was him who negotiated the IUA, which gives only 20.1% of the Greater Sunrise to JPDA, the other 79.9% of the Greater Sunrise was kindly donated by Alkatiri to Australia ([Attributed to Australia as the IUA said]). Mr Alkatiri also negotiated this IUA which establishes a mechanism of Sunrise Commission where Timor-Leste only have the right to have ONLY one (1) Commissioner and Australia has two (2) Commissioners. Is this what Mr Alkatiri thinks will secure the pipeline to Timor-Leste. He should be rational enough.

CNRT recommends that the IV Constitutional Government of AMP should continue to follow its strategy in pursuing the policy of bringing a pipeline and LNG-plant from the Greater Sunrise to Timor-Leste. According to Mr Babo-Soares, “the Government knows very well its rights and obligations under the treaties and contracts that it has, therefore it should commit itself to bring over pipeline from the Greater Sunrise to Timor-Leste because it will not only bring tremendous benefits in the form of revenues (both upstream and downstream) but also will create multiples economic and social impact for Timor-Leste”.

According to Mr Babo-Soares, “the fight for a pipeline to be drawn to Timor-Leste represents both our national interest and the pride of our people. Anyone who doubts about it, must be questioned of its position as far as loyalty to the nation is concern. We strongly recommend that the IV Constitutional Government can not place this noble objective of the nation in the hands of those who already proved to lose the pipeline. The country will fall into disaster if this Government allows such thing to happen”.

For further information contact, Duarte Nunes, Mobile Phone: 7238065