Paul Cleary – East Timor is continuing to entertain plans to drill for oil in waters as deep as 1900m. In one instance, it is using the contractor that was operating the Deepwater Horizon rig which exploded in the Gulf of Mexico in May.

The similarities between proposals before the East Timor government and the circumstances surrounding the Gulf of Mexico explosion and oil spill are striking.

Sources in East Timor say the government's environment directorate has approved plans for a well to be drilled by Transocean and is awaiting approval from the petroleum authority.

Transocean is contracted by Indian oil company Reliance, which has a permit near Woodside's Greater Sunrise field. Even the drilling vessel's name, Deepwater Expedition, is similar to the Deepwater Horizon that blew up in 1500m of water and caused the biggest oil spill in US history.

Another well to a depth of 1900m has been proposed by Italy's ENI. The company, while awaiting approval from two government agencies, plans to hold an information session next Wednesday for interest groups in East Timor.

Environment groups in East Timor are concerned that the government has little capacity to oversee safety standards in the Timor Sea.

Asked yesterday if Australia was providing technical support to regulate these activities, Resources Minister Martin Ferguson said officials from his department met regularly through the Timor Sea Treaty Joint Commission to establish policies and regulations in the area covered by the Timor Sea Treaty.

The Reliance and ENI fields are in East Timor's exclusive area, north of the treaty area.

Last year's Montara oil spill in the Timor Sea also showed that Australia's state-based regulatory regime was clearly wanting.

The development monitoring group La'o Hamutuk confirmed the Reliance well would be drilled by Transocean's Deepwater Frontier drilling ship It said this was the first time East Timor's government had had to decide on approval of an oil well in its exclusive maritime area.

"It is a critical test which will set the precedent for future oil and gas projects," the group said. "We hope that environmental professionals... will make their decisions based on technical realities to protect Timor-Leste's interests and not on... loyalties."

The capacity of East Timor to supervise these activities appears to be negligible. The environment department said yesterday it did not have a public affairs officer to handle inquiries.