The Timor Basin is a fore-deep basin, included in the transitional crust tectonic region. This basin is located on the Outer Banda Arc and the northwestern part of Australia

The Timor Basin still has great potential to produce natural gas and oil resources for Indonesia. From the research and exploration that has been done, the potential for gas discovery is greater than petroleum. In terms of the petroleum system, the Timor Basin has two types of play, Mesozoic and Quaternary play. The source rock which is rich in hydrocarbon-producing material is the Triassic Aitutu Formation shale exposed in the Toeheum River, Soe City. The Aitutu Formation has a Total Organic Carbon of up to 9.16 percent, the largest Hydrogen Index (HI) is 459 and Oxygen Index (OI) reaches 69. In the Mesozoic play, the sandstones and grainstones of the Oebaat Formation (Late Jurassic) have very good solubility absorption, has a sufficient to good porosity value so that it can act as a reservoir rock. Porosity analysis of Oebaat Formation (Late Jurassic) rock outcrops has a moderate to good value (11 to 18 percent) and only one sample shows a small value (2.5 percent). Shale from the Middle Jurassic-aged Wailuli Formation is a good insulating rock. An imbricate thrust structure with asymmetrical pleats makes a good trap. The Limestone of the Cretaceous Nakfunu Formation in the Oetuke River can act as a secondary reservoir rock. In Quaternary play, conglomeratic sandstones at Kolbano Beach can act as a reservoir with Quaternary claystone as a caprock. Most of the exposed rock has multiphase deformation. Reservoir rocks exposed are very limited and fragmentary. The complexity of the deformation that occurs in this basin creates its own difficulties for exploration, so that a special exploration technique is needed. To obtain oil and gas reserves in large quantities, it is more possible if more detailed exploration is developed in offshore areas with the main target of Mesozoic rocks.