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Source: AAP


Timor Sea oil talks to resume

October 20, 2004

TALKS on carving up the oil-rich Timor Sea energy reserves will continue in Dili next week.

The talks follow discussions in Canberra and Darwin last month on how best to divide the estimated $41 billion of oil and gas deposits lying beneath the sea between Australia and East Timor.

"Talks are progressing well," a Department of Foreign Affairs and Trade spokeswoman said.

"We are continuing to pursue a creative solution to maritime boundary issues in the Timor Sea, with a view to reaching agreement by the end of this year."

The maritime boundary has been a sticking point between the two countries.


But Foreign Minister Alexander Downer and his Timorese counterpart Jose Ramos Horta agreed in August to look at imaginative solutions to the issue.

Under present revenue sharing arrangements,
Australia takes almost 72 per cent of the petroleum revenues in the Timor Sea despite 68 per cent of the resources lying closer to East Timor than Australia.

If the boundaries were redrawn using principles of international law,
East Timor could expect to receive $16.5 billion in revenue rather than the $5.5 billion it would get under present arrangements, the Timor Sea Justice Campaign says.

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Timor Sea gas on East Timorese PM's agenda

East Timor's Prime Minister will visit Australia this week, where he is expected to discuss new demands for Timor Sea gas to be processed in East Timor.

The proposal is up for discussion at talks in Dili to resolve the dispute over oil and gas revenues.

East Timor is now demanding that gas from the Greater Sunrise field be piped onshore to a proposed multi-billion dollar LNG plant in East Timor, rather than be processed offshore or in Australia.

Mari Alkatiri will travel to Perth on Friday where he is expected to discuss the proposal with commercial partners, Woodside and ConocoPhilips.

He could threaten to delay any deal until there is a commitment to build the LNG plant in East Timor.

The Northern Territory Government has campaigned equally to have the gas processed in Darwin.

The joint venturers have warned that without agreement by Christmas the Greater Sunrise project could stall for years.

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