E. Timor to control Timor Sea oil?
E. Timor to control Timor Sea oil?
CANBERRA (AP): The Australian government was under pressure
Wednesday to take a hard line against what some lawmakers
describe as efforts by East Timor to take full control of
lucrative oil fields under the sea separating the two countries.
Northern Territory Chief Minister Denis Burke and Resources
Minister Daryl Manzie were in Canberra for meetings with federal
Foreign Affairs Minister Alexander Downer to air fears that the
United Nations Transitional Authority in East Timor, or UNTAET,
is pushing to gain control of all Australian assets in the Timor
Sea.
The Timor Sea petroleum and gas reserves were originally
carved up under a treaty Canberra negotiated with Indonesia in
the 1980s and early 1990s. Indonesia gave up its place in the
treaty after East Timor voted for independence in 1999.
UNTAET is negotiating a new treaty with Australia on behalf of
East Timor, and Australian media reports Wednesday suggested that
Canberra was prepared to give Dili 80 percent of the reserves.
The Northern Territory government's fears are based on recent
comments by UNTAET's Cabinet Member for Political Affairs and
Timor Sea, Peter Galbraith, who maintains that if international
law were upheld, East Timor would gain full control of the
resources in a cooperation zone that currently splits them
equally.
Manzie and Burke say the Northern Territory economy is a
significant beneficiary of the Timor Sea oil fields. They fear
Dili may be handed control of a planned A$5 billion pipeline from
the Bayu Undan gas fields to Darwin.
Oil and natural gas are expected to develop into an important
source of income for cash-strapped East Timor along with coffee
exports and, in the future, tourism.
Australian Industry Minister Nick Minchin said last week that
the Australian government was willing to make significant
concessions to reach an agreement with East Timor.
"We've indicated that we are prepared to move well away from
the current 50-50 split in favor of East Timor," Minchin said.