Indonesian Political, Business & Finance News

Portugal case 'misdirected'

Portugal case 'misdirected'

CANBERRA (Agencies): Portugal's case in the International
Court of Justice (ICJ) against an Australian oil treaty with
Indonesia is "cynically misdirected", an Australian Foreign
Affairs department spokesman said yesterday.

Public hearings into Portugal's case against the treaty, which
covers the area known as the Timor Gap between Australia and East
Timor, are due to begin on Jan. 30.

"If it's about self-determination (in East Timor), then
Portugal is fairly cynically misdirected," the spokesman told
Reuters. "Portugal's real dispute over East Timor is with
Indonesia."

East Timor, a former Portuguese colony, integrated into
Indonesia in 1976. Portugal is challenging Australia's right to
conclude an agreement over East Timor with Indonesia, because
East Timor still remains an issue at the United Nations.

"It's ironic that Portugal is trying to present itself as the
champion of the East Timor people given its appalling colonial
record in East Timor," the spokesman said.

Foreign Minister Gareth Evans said last year that Portugal's
attitude was regrettable and misconceived. He said then that
Australia was confident of winning the case.

The treaty, designed to share in the exploitation of possible
oil reserves in the 61,000 square kilometer Timor Gap, was
implemented in 1991 and allows Australia and Indonesia to
prospect the area for over 40 years.

The Gap is divided into three zones -- one Australian, one
Indonesian and one shared zone -- for the purposes of oil and gas
exploration and development.

Estimates of potential oil reserves of at least one billion
barrels were freely bandied about in the media before the first
well went down in the Gap. Initial drilling results were patchy
but recent oil finds suggest the Gap may turn out to be as rich
as it was hyped to be.

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