E. Timor, Australia to share oil revenue

By Amit Baruah

SINGAPORE, JULY 5. East Timor and Australia have signed a landmark treaty to share revenue from oil and natural gas resources in the Timor Sea - an area of 38,000 square miles between the Australian city of Darwin and East Timor, also known as the Timor Gap.

The treaty, signed in the East Timor capital Dili on Thursday, will give 90 per cent of royalties to East Timor - up to $ 5 billions over the next 20 years. The remaining 10 per cent will go to Australia.

Last-minute tensions before the signing of the treaty were averted after Dili's Cabinet Minister for Economic Affairs, Dr. Mari Alkatri, decided to attend the ceremony.

He had threatened to stay away if the Australian Northern Territory Chief Minister, Mr. Denis Burke, was present. In the end, both individuals turned up.

The Australian Foreign Minister, Mr. Alexander Downer, one of the signatories to the treaty, said Canberra had been generous to the fledgling State of East Timor.

However, Mr. Peter Galbraith, the U.N. negotiator in the treaty, said while East Timor would get between $ 7 billions and $ 9 billions (Australian) over the next 20 years, the Northern Territory would get up to $ 50 billions (Australian) in increased economic activity.

Mr. Galbraith was quoted as saying: ``I think this is a fair deal for East Timor. Under international law, East Timor would be entitled to a maritime boundary at mid-point between the two countries which would place all of the oil and gas resources under East Timorese jurisdiction, and under this arrangement, East Timor will have 90 per cent of that.

``I think it's also a very good deal for Australia. Not only is it getting some of the oil and gas production north of the mid- point, which it wouldn't normally get, but it will also receive the benefits of the downstream activities that will take place in the Northern Territory of Australia...''

Asked about the tough negotiations that preceded the signing of the treaty, Mr. Galbraith responded: ``I think the Australians did what we did, which is they bargained very hard on behalf of their own national interest. These were, in my view, surprisingly difficult negotiations, but I guess that's what happens when people start arguing over money.''

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Section  : International
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