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Hydrocarbon reserves

Beneath the Timor Sea lie considerable reserves of oil and gas. Confirmation of the prospectivity of the Timor Sea came when Woodside-Burmah's Big John rig drilled Troubadour No. 1 well in June 1974 on the Troubadour Shoals about 200 kilometres (120 mi) southeast of Timor, and intersected 83 metres (272 ft) of hydrocarbons. A number of offshore petroleum projects are in operation and there is considerable exploration activity either underway and numerous proposed projects. A gas pipeline crosses the Timor Sea from the Joint Petroleum Development Area to Wickham Point near Darwin.

The Timor Sea was the location for Australia's largest oil spill when the Montara oil field leaked oil, natural gas and condensate from 21 August to 3 November 2009. During the spill 400 barrels (64 m) of oil leaked each day. The Montara Commission of Inquiry placed blame on the Thai company PTTEP, owner of the wells. In response to the disaster, Indonesian seaweed farmers engaged in a class action lawsuit to claim for damages.