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BRIEFING REPORT ON OIL AND GAS AND STATE GENERAL BUDGET FOR STUDENTS OF UNTL DILI CUNTD-TL 31 July 2012

Saturday, 15th March 2008  

Place: CUNTD-TL office, Pantai Kelapa, Dili, Timor Leste

Time: 10.00 am – 14.30 pm


INTRODUCTION 

Luta Hamutuk is a non-government organization which has been focusing its monitoring activity on Oil and Gas as well as State General Budget. According to this programme one mechanism of advocacy process method is Briefing. Briefing is objected to disseminate basic information on oil and gas as well as State general budget to the population regardless of race, group, class, ideology or religion. Luta Hamutuk considers that the issues are important and everybody has their rights to access basic information regarding these topics. 

On 15th March 2008 Luta Hamutuk departed to Pantai Kelapa Dili, in order to share information on both issues which had been spelled out into five basic materials on oil and gas as well as state general budget, to be introducing to the community on the first meeting. This activity was carried out based on an agreement between CUNTD-TL and Luta Hamutuk. José Alves da Costa had designated as person in charge for Luta Hamutuk presentation team within the briefing. 

 MATERIALS PRESENTED BY LUTA HAMUTUK

  1. Maritime Boundary(Teodosio and Francisco – Luta Hamutuk) 
  2. Oil and Gas reservation ( AZE - Luta Hamutuk)
  3. Production Sharing Contract (Elio – Luta Hamutuk)
  4. Petroleum Fund (ATINO – Luta Hamutuk)
  5. State General Budget (Elio – Luta Hamutuk) 

 

PARTICIPANTS 

Around 25 people had participated within this event and among them were 6 member of CUNTD-TL (4 men, 2 women), 10 people from University student (4 men, 6 women), and 9 peoples from civil society (4 men, 5 women) as well as 7 people from Luta Hamutuk team.

 

BRIEFING PROCESS 

Just before the briefing, welcoming speech was conducted by CUNTD-TL coordinator. Within the speech explained also CUNTD-TL’s vision and mission as well as its objective. In this opening session Luta Hamutuk team also got an opportunity to explain on its profile of organization. 

 


QUESTIONS ROSE WITHIN DISCUSSION PROCESS 

Suggestions were stated and questions were raised, after presentation on five material prepared by Luta Hamutuk, during discussion session for each topic and they were as explain below; 


Maritime Boundary; It has been stated within CMATS that maritime boundary between Timor Leste and Australia will be re-determined after 50 years of period. What obstacles faced by the government thus take such decision? 


Oil and Gas Reservation; What would happen if Timor Leste and international oil companies conduct exploration on 11 blocks of oil and gas reservations, which had identified by geologist? Are the results will be shared the same way as PSC did for Bayu Undan? 


Production sharing Contract; The best thing within Production Sharing Contract is that Timor Leste directly receives 5% for every first barrel of oil. Meanwhile why do the companies which conduct production within Bayu Undan received cost recovery and profit shared all at once? For how long they will turn over the cost and is there any possibility to change the contract after cost recovery were paid? The same as time period given for Bayu Undan, if at any time oil get dry will the plantation platform within Bayu Undan left for us? 


Petroleum Fund; Spirit and policy on Petroleum Fund consider as excellent for the nation’s future. We herewith as students, ask Luta Hamutuk to put forward our ideas from CUNTD-TL to relevant ministry in order to increase Timorese capacity within oil sector. Also, if possible we ask the relevant ministry to improve geologic classroom in Hera, thus we can run our teaching learning process comfortably.


Stat e General Budget; Almost 90% state general budget is depending on and come from petroleum fund. Based on Luta Hamutuk’s presentation mentioned that half of the total budget for fiscal year 2008 was allocated into good and services item. If we look at the spirit of petroleum fund law, this allocation was contra productive with the law which mentioned that it must be around 70% of the budget should allocate into the capital development. For this case how Luta Hamutuk as a Civil Society Organization that defending petroleum fund law and spirit so far can do advocacy on it? If the government doesn’t care much about Luta Hamutuk’s advocacy and recommendation what will be the next action which Luta Hamutuk can take on? 

 


FEEDBACK 

Based on detail presentation on five materials, students said that they were satisfied with the topics since it was really systematic thus need to arrange the sequence of such event in the future. Suggestion was also stated by CUNTD-TL coordinator to including also technical subject within oil and gas materials thus increase the capacity of the organization as well as its member. 

 

CONCLUSION 

The dynamic of the discussion emerged among participants especially when talking about CMATS agreement stated that need 50 years of time to re-determine maritime boundary between Timor Leste and Australia. In the same time CUNTD-TL coordinator said that they are prepare to conduct collaboration with Luta Hamutuk anytime they asked according to their capacity. They were very grateful for Luta Hamutuk attendance, and have intention to take participate on briefing activities organized in Atauro or other places within the country.