I too had the same problem when i tried to create connection in JDeveloper. Our server located in different timezone and hence it raised the below errors as:
ORA-00604: error occurred at recursive SQL level 1
ORA-01882: timezone region not found
I referred many forums which asked to include timezone in the Java Options(Run/Debug/Profile) of Project properties and Default Project properties as -Duser.timezone="+02:00"
bBut it didn't work for me. Finally the following solution worked for me.
Add the following line to the JDeveloper's configuration file (jdev.conf).
AddVMOption -Duser.timezone=UTC+02:00
The file is located in "<oracle installation root>\Middleware\jdeveloper\jdev\bin\jdev.conf".