Australian Tax Treaties

Timor-Leste (Timor Sea Maritime Boundaries Treaty)  

TREATY BETWEEN AUSTRALIA AND THE DEMOCRATIC REPUBLIC OF TIMOR-LESTE ESTABLISHING THEIR MARITIME BOUNDARIES IN THE TIMOR SEA  

Annex B Greater Sunrise Special Regime  

ARTICLE 9   Development Plan for the Greater Sunrise Fields  

1    
Production of Petroleum from the Greater Sunrise Fields shall not commence until a Development Plan, which has been submitted by the Greater Sunrise Contractor in accordance with the Greater Sunrise Production Sharing Contract and the process provided for in this Article, has been approved in accordance with this Article.

2    
The process of assessing and approving a Development Plan for the Greater Sunrise Fields is as follows:

(a)    the Development Plan shall be assessed against the criteria listed at paragraph 3 of this Article ( Development Plan Criteria );

(b)    the Greater Sunrise Contractor shall submit the Development Plan to both the Governance Board and the Designated Authority;

(c)    the Designated Authority shall consider the Development Plan and shall provide its recommendations to the Governance Board as to whether it should be approved or rejected within 180 days of receipt, if practicable. During this period, the Designated Authority may exchange views and information with the Greater Sunrise Contractor regarding the Development Plan. Any amendments agreed between the Designated Authority and the Greater Sunrise Contractor may be included in the Development Plan prior to the Designated Authority ' s recommendation to the Governance Board;

(d)    the Governance Board shall consider the Development Plan, the Designated Authority ' s recommendation and any other information submitted by the Designated Authority;

(e)    if the Governance Board considers that the Development Plan is both in accordance with the approved Development Concept and meets the Development Plan Criteria, the Governance Board shall approve the Development Plan within 180 days of receipt, if practicable;

(f)    if the Governance Board does not approve the Development Plan under paragraph 2(e) of this Article, the Development Plan is rejected and the Governance Board shall specify its reasons for not approving it to the Greater Sunrise Contractor and Designated Authority. Any of these parties may, at their discretion, refer the matter to the Dispute Resolution Committee within 15 days of the Governance Board ' s decision;

(g)    the Dispute Resolution Committee shall review the Development Plan, the Designated Authority ' s recommendation and any other information submitted pursuant to this Article. The Dispute Resolution Committee shall determine whether the Development Plan meets the Development Plan Criteria within 90 days of referral of the matter, or such other period as may be agreed with the Greater Sunrise Contractor;

(h)    if the Dispute Resolution Committee determines that the Development Plan is in accordance with the approved Development Concept and meets the Development Plan Criteria, the Dispute Resolution Committee shall approve the Development Plan;

(i)    if the Dispute Resolution Committee determines that the Development Plan either is not in accordance with the approved Development Concept, or does not meet the Development Plan Criteria, the Dispute Resolution Committee shall reject the Development Plan, specifying its reasons for doing so; and

(j)    the Parties shall be bound by, and give effect to, the decision of the Governance Board or, if applicable, the Dispute Resolution Committee pursuant to this Article.

3    
The criteria that shall apply to the assessment of any Development Plan under paragraph 2 of this Article are as follows:

(a)    the Development Plan supports the development policy, objectives and needs of each of the Parties, while at the same time providing a fair return to the Greater Sunrise Contractor;

(b)    the project is commercially viable;

(c)    the Greater Sunrise Contractor is seeking to exploit the Greater Sunrise Fields to the best commercial advantage;

(d)    the project is technically feasible;

(e)    the Greater Sunrise Contractor has, or has access to, the financial and technical competence to carry out the development of the Greater Sunrise Fields;

(f)    the Development Plan is consistent with Good Oilfield Practice and, in particular, documents the Greater Sunrise Contractor ' s quality, health, safety and environmental strategies;

(g)    the Development Plan demonstrates clear, measurable and enforceable commitments to local content through a local content plan, in accordance with Article 14 of this Annex;

(h)    the Greater Sunrise Contractor could reasonably be expected to carry out the Development Plan during the specified period;

(i)    the Greater Sunrise Contractor has, as applicable, entered into binding, arms-length arrangements for the sale and/or processing of gas, including liquefied natural gas, from the Greater Sunrise Fields or has provided sufficient details of any such processing and/or sale agreements to be entered into by affiliates of the Greater Sunrise Contractor or other companies; and

(j)    the Greater Sunrise Contractor has provided summaries of, or where applicable, the project execution plan and the petroleum production plan, including relevant engineering and cost specifications, in accordance with the applicable regulatory framework and Good Oilfield Practice.

4    
The Greater Sunrise Contractor may at any time submit, and if at any time the Designated Authority so decides may be required to submit, proposals to bring up to date or otherwise amend a Development Plan. All amendments of, or additions to, any Development Plan require prior approval of the Designated Authority, which in turn requires the approval of the Governance Board.

5    
The Designated Authority shall require the Greater Sunrise Contractor not to change the status or function of any Special Regime Installation in any way except in accordance with an amendment to a Development Plan in accordance with paragraph 4 of this Article.