Timor Leste to get extra A$8b<\/p>\n
Associated Press, Sydney<\/p>\n
A newly reached oil and gas revenue sharing agreement between
\nAustralia and Timor Leste may be worth up to A$13 billion (US$9.6
\nbillion) for the tiny nation, a newspaper reported on Thursday.<\/p>\n
Australia and its impoverished northern neighbor have been
\nhaggling for several months over how to divide up an estimated
\nUS$30 billion in revenue from oil and gas deposits under part of
\nthe Timor Sea.<\/p>\n
The negotiations have been stalled by an ongoing maritime
\nborder dispute between the two countries that has unsettled
\ninvestors and caused at least one company to suspend exploration
\nin the Timor Sea until an agreement is reached.<\/p>\n
Earlier this year, Australian officials presented a draft
\nagreement to Timor Leste offering the tiny country up to A$5
\nbillion of the oil and gas revenues in exchange for postponing
\nthe border dispute.<\/p>\n
But after a meeting with Timor Leste President Xanana Gusmao
\nin Sydney on Wednesday, Australian Prime Minister John Howard
\nsaid the two countries had reached a final agreement that would
\nbe worth several billion dollars more to Timor Leste than the
\nprevious offer.<\/p>\n
The Australian newspaper reported in its Thursday edition that
\nTimor Leste is expected to receive up to A$13 billion from the
\ndeal, almost three times more than the initial offer.<\/p>\n
In exchange, Timor Leste has reportedly agreed to defer its
\nclaim to a greater share of the Timor seabed for 50 years, which
\nwould allow energy companies to exhaust the resources before
\nborder talks resume.<\/p>\n
Foreign Minister Alexander Downer refused to comment on
\nThursday on exactly how much Timor Leste stands to gain from the
\ndeal, saying it was entirely dependent on the fluctuation of oil
\nand gas prices.<\/p>\n
\"They will do very well out of it,\" he told reporters after
\nmeeting with Gusmao in Sydney. \"They'll obviously get many
\nbillions of dollars, but over a long period time, more than 20
\nyears.\"<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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