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.