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Petroleum industry

Indonesian Unity Under Threat as East Timor Crisis Spreads Violence

Strategic Insights

— 2 min read

The crisis in East Timor has set off a chain reaction of violence across Indonesia, with the country's unity hanging in the balance. Indonesian President B.J. Habibie has declared martial law in East Timor, but the troops dispatched have joined in the killings of civilians, sparking widespread concern. The situation is particularly dire in Aceh, where a long-standing conflict with Jakarta has flared up again, and Mobil Corp. is accused of providing financial and logistical support to the military. Meanwhile, the independence of East Timor has cast a shadow of uncertainty over the Timor Gap, a region jointly administered by Australia and Indonesia, and the future of oil and gas developments in the area is highly uncertain.

Key Takeaways:

  • The crisis in East Timor has sparked a wave of violence across Indonesia, with reports of killings and human rights abuses.
  • Indonesian President B.J. Habibie has declared martial law in East Timor, but the troops dispatched have been implicated in the killings.
  • The situation in Aceh is particularly dire, with a long-standing conflict with Jakarta flaring up again, and Mobil Corp. accused of providing financial and logistical support to the military.
  • The independence of East Timor has cast a shadow of uncertainty over the Timor Gap, a region jointly administered by Australia and Indonesia.
  • The Timor Gap currently produces about 33,000 b/d from the Elang and Kakatua fields operated by Phillips Petroleum Co.
  • Oil production from the Elang and Kakatua fields is expected to continue for another 16 years, with output decreasing to between 16,000 and 17,000 b/d.
  • The British Gas International and Atlantic Richfield Co. have agreed to exploit their combined cumulative proven reserves of 14 Tcf to supply the Tangguh LNG project.

Statistics:

  • The Timor Gap currently produces about 33,000 b/d.
  • Oil production from the Elang and Kakatua fields is expected to continue for another 16 years.
  • Output from the Elang and Kakatua fields is expected to decrease to between 16,000 and 17,000 b/d.
  • The Tangguh LNG project has a planned capacity of 6 million metric tons per year.
  • The combined cumulative proven reserves of British Gas International and Atlantic Richfield Co. are 14 Tcf.
  • The Arun liquefied natural gas (LNG) project operated by Mobil has a total annual capacity of 12.3 million metric tons per year.

Sources:

  • Reuters, "East Timor Leader Seeks U.N. Help to Maintain Stability" (no date)
  • Energy Business Review, "British Gas and Arco Sign Tangguh LNG Deal" (no date)
  • Oil & Gas Journal, "Indonesia Mulls Canceling Timor Gap Treaty" (no date)
  • Petroleum Economist, "Timor Gap: A Region of Uncertainty" (no date)
  • Wall Street Journal, "Mobil Accused of Aiding Indonesian Military in Aceh" (no date)

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