E. Timor, Australia sign oil, gas treaty
E. Timor, Australia sign oil, gas treaty
Agence France-Presse, Dili
Newly independent East Timor signed a treaty with Australia
Monday on the division of Timor Sea oil and gas revenues, sealing
an agreement that gives the impoverished nation a lifeline to
economic self-sufficiency.
The Timor Sea Treaty awards East Timor 90 percent of the
profits from oil and gas developments in a designated joint
production area, guaranteeing Asia's poorest nation up to US$5
billion in earnings over the next 17 years.
Oil and gas revenues are the only way the new nation will be
able to end its dependence on foreign aid.
Prime Minister Mari Alkatiri and his Australian counterpart
John Howard signed the landmark treaty in the headquarters of the
newly-inaugurated government, just hours after Alkatiri and the
new cabinet were sworn in.
The treaty determines the petroleum carve-up until maritime
boundaries between Australia, East Timor and Indonesia are
determined.
Negotiations on international borders can only begin now that
East Timor is officially a sovereign state.
The half-island's independence was proclaimed in a massive
ceremony outside Dili overnight after United Nations Secretary
General Kofi Annan handed over authority to East Timor -- a
former Indonesian province and Portuguese colony.
"The treaty is not a maritime boundary delimitation and does
not prejudice our maritime claims," Alkatiri said in a statement.
"It simply creates an interim framework for oil and gas
investment in one part of the Timor Sea while negotiations on our
maritime boundary claims proceed with neighboring countries."
Taxes from oil and gas projects are already trickling in, and
are expected to cover most government expenditure by 2005-2006,
according to budget projections -- giving the new country its
first glimmer of self-sufficiency.
Months of negotiations over the treaty only ended on Thursday.
A provisional treaty was first agreed and signed by Australian
and Timorese leaders last July.
The agreement "assures East Timor of vital revenue flows,"
Alkatiri said.
East Timor's new parliament, also inaugurated Monday, was due
to adopt a maritime bill to state its claims as a basis for
starting negotiations on all overlapping maritime boundary
claims.
"These are major steps for East Timor, building blocks of our
sovereignty and economic future," Alkatiri said.
"They create the framework for good relations with our
neighbors and, in particular, with Australia."