Timor Gap oil treaty discussion in Dili

Timor Gap oil treaty discussion in Dili

DILI, East Timor (AFP): East Timorese and international
officials met Sunday to discuss a Timor Gap oil treaty that could
be signed by the end of February.

The conference at a Dili hotel leased by the United Nations
has attracted about 50 geologists, lawyers, engineers, economists
and other experts from Australia, the United Nations, Portugal,
Mozambique and East Timor.

"I think this is really the first serious discussion that
Australia's had with the United Nations," John Kjar, a manager
with the Australian Industry Science Resources department, told
AFP Sunday.

In December 1989 Indonesia and Australia concluded a treaty
over the Timor Gap, oil-rich waters between northern Australia
and East Timor.

The treaty divides the Timor gap into three zones -- with
Indonesia and Australia managing one zone each, with the third
zone under joint administration.

The UN Transitional Administration in East Timor (UNTAET) has
been in place since Oct. 25 and could sign a Timor Gap treaty
with Australia within the next few weeks.

Kjar said the conference was a chance to discuss exploration
in the area, its geology, and issues surrounding the treaty
itself.

"It's really just an exchange of information between the
parties," he said.

Future revenue and employment opportunities from the Gap are
on the agenda.

"There will sort of be small amounts of money coming in over
the next two years," Kjar said. "The bigger flows could commence
about 2004 but that really depends on the treaty arrangements."

The exact revenue potential is hard to determine, he said.

International oil companies would address the gathering Monday
and Tuesday.

Indonesia has said it will accept a review or a cancellation
of the Timor Gap treaty it signed with Australia, but experts
have said such a treaty will remain in force for a while, until a
free state of East Timor is in operation.