Australia and Indonesia sued over Timor Gap

Australia and Indonesia sued over Timor Gap

SYDNEY (AFX): PetroTimor has launched legal action against the
Australian and Indonesian governments and Phillips Petroleum over
a disputed exploration concession covering part of the Timor Gap
treaty zone, The Sydney Morning Herald reported without
identifying its source.

The report said PetroTimor, a Colorado-based group owned by
Oceanic Exploration and the East Timor government, is seeking up
to A$2.85 billion (about US$1.58 billion) in damages in an action
launched in the Australian Federal Court.

The company claims the Australian and Indonesian governments
formed an illegal agreement when they signed the Timor Gap
Treaty, under which they reached a revenue sharing agreement for
the middle portion of the Timor Sea, in 1989, the report said.

The company is seeking official recognition of a concession it
was granted over the same area by Portugal before Indonesia
invaded East Timor in 1975, the report said.

The report said an Australian government spokesperson said the
government would "vigorously" defend any claim bought against it,
while a Phillips Petroleum spokesperson said the company was
confident its exploration and production contracts for the area
were legally valid.