Indonesia has no claim over Timor Gap: Minister<\/p>\n
JAKARTA (JP): Indonesia will most likely have no territorial
\nclaim over the Timor Gap if and when East Timor becomes an
\nindependent state, Minister of Mines and Energy Kuntoro
\nMangkusubroto said on Friday.<\/p>\n
Geographically, the Timor Gap is closer to East Timor than to
\nIndonesia's West Timor, Kuntoro said.<\/p>\n
Financially, however, the loss of the Timor Gap would not
\nprove to be a big blow to Indonesia, he said.<\/p>\n
The US$3.07 million in royalty payments which Indonesia has
\nearned from the Timor Gap since October of last year \"is
\ninsignificant\", he said.<\/p>\n
Indonesia and Australia signed the Timor Gap treaty in 1989,
\nallowing for the joint exploration and exploitation of the
\nseabed, which is believed to contain large hydrocarbon deposits.<\/p>\n
The two countries have overlapping territorial claims in the
\nTimor Gap. However, with East Timor now likely to become an
\nindependent state, the border dispute would have to be resolved
\nby East Timor and Australia, Kuntoro said.<\/p>\n
East Timorese rejected Indonesia's offer of autonomy within
\nIndonesia in the UN-sponsored ballot on Aug. 30, which amounted
\nto a vote for independence. However, the results of the ballot
\nare subject to the endorsement of the People's Consultative
\nAssembly, which will meet in November.<\/p>\n
The joint exploration efforts in the Timor Gap resulted in the
\ndiscovery of oil in 1998 in the Elang-Kakatua-North Kakatua
\nfield, operated by United States-based Phillips Petroleum Co. The
\nfield produces 16,000 barrels of oil per day.<\/p>\n
With a reserve of 30 million barrels, the field will likely be
\nclosed next year, Kuntoro said.<\/p>\n
The Bayu-Undan field, operated by Phillips Petroleum Co. and
\nAustralian-based Broken Hill Pty. Ltd., is not expected to begin
\nproduction until 2002. The field has an estimated reserve of 350
\nmillion barrels of oil and three trillion cubic feet of natural
\ngas.<\/p>\n
Kuntoro said other exploration activities in the joint
\noperation zone failed to discover significant oil reserves.<\/p>\n
Australian officials have said that although current oil
\nproduction in the Timor Gap is limited, the area is one of the
\nrichest sources of hydrocarbon outside of the Middle East. (02)<\/p>",
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