Plans for a deep sea pipeline and petrochemicals plant in East Timor could cut the country's unemployment rate.

Alfredo Pires, secretary of state for natural resources, says tapping into the underwater oil and gas in the 11,000-feet-deep Timor Trough "means a lot for this little country".

"We are just coming out of independence. We are looking for the creation of possible industries and we really see this as part of an engine of economic growth," he tells the Associated Press.

Mr Pires adds that a new national oil company is being created to invest the money needed to build the pipeline and the country is conducting a joint feasibility study with Malaysia's national oil company Petronas.

The news provider states that the thousands of jobs that would be created following oil and gas training and education could cut the country's unemployment rate, which currently stands at 50 per cent.

Furthermore, a new 100-megawatt power plant could eliminate electricity shortages.

Earlier this month Reliance Industries announced that it is now aggressively scouting for discovered oil and gas properties in the Far East, Middle East and Latin America.

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