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  1. 1. Process and Timeline Timor-Leste Carlos Soares Oil, Gas & Energy Directorate
  2. 2. Inaugural Exploration Bidding Round • A Two Stage Process – Technical, Legal and Financial Pre- Qualification (for Operators only) – Bidding process
  3. 3. Schedule • Industry Presentations – Singapore September 2, 2005 – London September 6 – Calgary September 9 – Houston September 13 • Procedures – Initial Tender Protocol September 30 – Operator pre-qualification from October 1 – Bidders Workshop November 17-18, 2005 – Final Tender Protocol ~end January, 2006 – Pre-qualification deadline 15 days after FTP • Bidding and Award – Bidding mid-March, 2006 – Contract Signature by mid-June, 2006
  4. 4. Pre-qualification • Operators (only) must be pre-qualified on legal, financial and technical bases • Pre-qualification is of parent or controlling company – At discretion of OGED, very large companies may pre-qualify with significant operating subsidiary • Company must be capable of discharging all obligations under the PSC • Pre-qualified company will provide financial guarantee and guarantee general performance under PSC
  5. 5. Criteria for Technical Qualification (operator only) • Oil equivalent production levels • Exploration and Production operations offshore and in deep/ultra-deep water • Exploration and Production operations in hostile or environmentally sensitive areas • Experience in international operations
  6. 6. Financial Qualification (operator only) • Minimum of US$ 20 million of Shareholder Equity • OGED is sole arbiter of what constitutes Shareholder Equity
  7. 7. Documentation Required for Financial Qualification • Last three years audited accounts • Credit rating (Moody’s, S&P or equivalent) • Credit lines or other bank references • Other materials supporting the financial capacity of the company
  8. 8. Documentation Required for Legal Qualification • Constituent documents (By-Laws, Articles of Incorporation, etc) • Names of Shareholders who own more than 20% of shares or voting rights or in any other way exercise control • Designation of properly empowered Legal Representative • Affidavit attesting to non-existence of any material legal judgment
  9. 9. Submission of Pre-Qualification Documentation • Submissions accepted from October 1, 2005 • Documentation must be submitted no later than 15 days after the publication of the Final Tender Protocol (published at least 45 days prior to Bidding) • Notification of pre-qualification as soon as possible
  10. 10. Bid Processing Fee • Bid processing fee in the amount of US$25,000 payable for each bid submitted – Payable in aggregate by each bidding entity
  11. 11. Acquisition of Seismic Survey • Purchase of BGP-GGS survey (by company or bidding group) is requirement for participation
  12. 12. Consortia • Companies free to form consortia up to point of bidding • Only considerations that apply are: – Must have pre-qualified Operator as designated Operator – Operator must hold at least 30% – No partner less than 5% – Companies may only bid in one consortium on any one Contract Area
  13. 13. Final Tender Protocol (Edital) • Definitive process document for offering - quot;Editalquot; • Publication expected late January, 2006 • Substantially the same as ITP with additional detail on – Time, place, date and final instructions for bidding – Bid evaluation criteria weighting – Definitive PSC and Form of Guarantees • Bidding will be a minimum of 45 days after the publication of the Final Tender Protocol
  14. 14. Bidding Process • Bids must comprise – A completed Bid Summary form (in official language) – Bid support documents, (free-form, in English) – Bid Bond – Bid Processing Fee – Receipt from purchase of BGP-GGS data- set
  15. 15. Bid Evaluation • Bids will be ranked on the scope and scale of the proposed guaranteed work program to be completed in the initial exploration period • Objective weighting of work program components – e.g. 2D/3D seismic surveys, exploration wells, other geotechnical surveys and analysis, training and capacity- building support • Evaluation Commission reserves right to reject any bid that is considered inconsistent with overall objective of well- considered and cost-effective exploration
  16. 16. Contract Signature • May be signed up to 90 days after bidding – Before mid-June, 2006 • Requires company to be incorporated and domiciled in Timor-Leste – Pre-qualified company still provides general performance guarantee
  17. 17. Explanation of Information • Telephone – Simple queries only • Fax, e-mail – Simple queries - dealt with directly – More complex queries - may be posted on website (unattributed) • Legal, Commercial and Technical workshop – November 17-18, 2005 in Dili
  18. 18. Website • All information pertinent to offering • Regularly updated, containing: – Initial and Final Tender Protocols – Contract Area Maps – Basic Offering Information / Schedule – Relevant legislation – FAQs – Links to General Information on doing business in Timor-Leste
  19. 19. Website
  20. 20. In Summary... • A virtually untouched exploration opportunity in a proven petroleum system with established giant fields • Contract areas with sufficient time and acreage to explore • Competitive contract and fiscal conditions • Commitment to transparency and free-market principles