E. Timor backs project, demands treaty review<\/p>\n
DARWIN (Reuters): East Timorese leaders have backed the A$1.4
\nbillion (US$896 million) Bayu-Undan gas project, an important
\npart of the broken territory's economic reconstruction, but
\nwarned on Wednesday key treaty areas must be renegotiated.<\/p>\n
Project partner Petroz NL said operator Phillips Petroleum Co
\nhad received a letter signed by East Timorese leaders Xanana
\nGusmao, Jose Ramos-Horta and Mari Alkatiri saying they would
\nhonor Timor Gap petroleum zone arrangements.<\/p>\n
\"Yes, it was sent...but that doesn't mean we have already
\naccepted the treaty as it is,\" Alkatiri told Reuters.<\/p>\n
The Timor Gap treaty was signed by Australia and Indonesia in
\n1989. Indonesia invaded the territory in 1975 and East Timorese
\nleaders regard Jakarta as an illegal signatory.<\/p>\n
Alkatiri is a member of the seven-man East Timorese
\nTransitional Council working with the United Nations, which is
\nsoon to take over full civil administration and peacekeeping in
\nthe battered territory after Indonesia withdrew last month.<\/p>\n
He is also responsible for negotiations on the Timor Gap,
\nwhich is divided into five administrative areas with varying
\ndegrees of responsibility between Australia and Indonesia and a
\n\"Zone of Cooperation\".<\/p>\n
While the Bayu-Undan gas and condensate project could proceed
\nin the early stages, Alkatiri warned that maritime borders
\nbetween East Timor and Australia would have to be renegotiated.<\/p>\n
\"It's not a problem of oil and gas, it's a problem of maritime
\nborders, it's a problem between East Timor and Australia,\" he
\nsaid. \"I think we have to redefine, renegotiate the border later
\non when East Timor becomes independent.\"<\/p>\n
The United Nations Transitional Administration in East Timor
\n(UNTAET) expects to be in place for between two and three years.<\/p>\n
Australia's Northern Territory Resource Development Minister
\nDaryl Manzie said East Timor would succeed Indonesia as a treaty
\nsignatory and that UNTAET would be responsible for the treaty's
\nadministration until East Timor became fully independent.<\/p>\n
\"We've received a clear message from East Timor officials that
\nthe treaty will be honored,\" Manzie told reporters.<\/p>\n
Large parts of East Timor were destroyed in a wave of violence
\nby vengeful pro-Indonesia militias in September after an August
\nvote for independence.<\/p>\n
The World Bank is leading an assessment mission to determine
\nwhat East Timor needs for its massive task of rebuilding after
\nthe violence. East Timorese leaders have eyed natural resources
\nlike gas as potential export earners.<\/p>\n
Alkatiri would not say how important the Bayu-Undan project
\nwould be to the fledgling East Timor economy because of
\ndisagreements over the level of gas reserves.<\/p>\n
Petroz estimates there are probable reserves of 325 million
\nbarrels of condensate and LPG and gas reserves amounting to 3.4
\ntrillion cubic feet.<\/p>\n
\"I would prefer not to talk about the importance of the
\nproject to East Timor itself because we have some contradictory
\ninformation...there is still a big discrepancy,\" he said.<\/p>\n
Production is expected to begin in late 2003 or early 2004.<\/p>\n
Phillips' partners are Santos Ltd with 11.8 percent,
\nIndonesian Inpex Sahul Ltd with 11.7 percent, Kerr-McGee Corp
\nwith 11.2 percent, Petroz with 8.3 percent, and British-Borneo
\nOil & Gas Plc with 6.7 percent.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/e-timor-backs-project-demands-treaty-review-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}