Australia stands by Timor gap treaty

Australia stands by Timor gap treaty

CANBERRA (Dow Jones): The Australian government has dismissed
calls for a review of a Timor Gap treaty with Indonesia, which
allows the two nations to jointly exploit petroleum resources in
the area, in the wake of Australia's decision to advocate self-
determination for East Timor.

Australia's opposition Labor Party Wednesday urged the ruling
Liberal-National coalition to ensure East Timor receives
Indonesian revenue from the Timor Gap fields.

But Trade Minister Tim Fischer said it's premature to talk
about changes to the Timor Gap treaty.

The existing treaty would remain in force and there is no
question of a change of Australia's view that Indonesia maintains
sovereignty over East Timor, he said.

"This is absolutely premature," Fischer said, according to a
report by Australian Associated Press, a domestic news agency.

Australia and Indonesia signed the treaty in December 1989,
clearing the way for exploration and development of the rich oil
and gas fields in the Timor Sea, between Australia's north coast
and East Timor. Under the agreement, tax revenue from production
in the so-called zone of cooperation is shared equally between
Indonesia and Australia.

Broken Hill Proprietary Co. (BHP) is the largest acreage
holder in the zone of cooperation. The area is to host both BHP's
planned 32,500-barrel-a-day Elang-Kakatua oil field, and its
Bayu-Undan gas condensate discovery.

Earlier this week, Foreign Affairs Minister Alexander Downer
unveiled a fundamental shift in policy toward East Timor, with
Australia now backing autonomy for the disputed province,
followed by an act of self-determination.