Summary

1 EXECUTIVE SUMMARY

Timor Resources Pty Ltd acquired onshore PSC No.: TL-OT-17-08 in Suai Municipality on 7 April 2017. The licence covers 1445.2 km2, comprising 1,057.8 km2 onshore and 387.4 km2 in the near offshore to an average distance of 7km from the coastline, which is 64km long, and up to 34.5 km inland.

1.1 PURPOSE

The project is to conduct exploration drilling of up to five identified well locations, namely Kumbili, Karau, Lafaek, Laisapi and Raiketan. These wells are located in sub districts of Suai, Maukatar and Zumalai in Covalima municipality. The exploration drilling is planned to commence in early 2021, subject to easing of restrictions imposed due to Covid-19 pandemic.

These five wells were identified as a result of prospect evaluation carried out by Timor Resources exploration team which ultimately defined the targeted plays to be drilled.

The drilling activity has the potential to have environmental impact, thus the drilling activity was defined as Category 'A' according to Article 4, 1a and Annex I of the Decree Law No. 5/2011 of Environmental Licensing. Therefore, Timor Resources is required to submit a Terms of Reference (ToR), Environmental Impact Statement (EIS) and Environmental Management Plan (EMP) seeking Environmental Authority approval in order to gain an Environmental Licence to allow for drilling to commence.

The methods used for the identification and assessment of potential impacts associated with the project meet Timor Leste legislative requirements, as defined under Environmental Licensing Decree Law 5/2011 and supporting Ministerial Diploma 46, which describes the approach required by Timor Resources to identify the project impacts, in particular for each project phase: construction, operation and decommissioning. Further it is noted that under Decree Law No 27/2020 dated 19 June Organic Law of VIII Constitutional, Article 33 (c) the Minister of Petroleum and Minerals is responsible to conduct the respective environmental licensing procedures and approve the corresponding environmental licenses in that sector.

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Environmental Management Plan (EMP) - Drilling Activity for Production Sharing Contract (PSC) TL-OT-17-08 Block A - Public Consultation February 2021

This document includes the following appendices:

A. Waste Management Plan
B. Rehabilitation Plan
C. Redress and Grievance
D. Oil Spill Response Plan
E. Traffic Management Plan
F. Inspection Schedule
G. Noise and Vibration Plan
H. Incident Reporting Plan
I. Community Consultation Minutes-PC EIS and EMP
J. Air Quality Plan