Tue, 19 Sep 2000

UNTAET, Australia will review Timor Gap treaty

CANBERRA (Antara): The Australian government and the United Nations Transitional Administration in East Timor (UNTAET), along with representatives of the former Portuguese colony, are slated to renegotiate the Timor Gap Treaty in Dili on Oct. 9-11.

Foreign Affairs Minister Alexander Downer, Industry and Resources Minister Nick Minchin and Attorney General Daryl Williams will represent the Australian government in the negotiation, the three said here on Monday.

The Timor Gap Treaty between Indonesia and Australia will expire once the UN grants independence to East Timor.

Australia welcomed the first phase of the negotiation on the future of the oil exploration and exploitation of the gap.

The negotiation aims to reach an agreement on the change of the treaty prior to East Timor's independence.

"Hopefully, there would be other negotiations," Downer said.

Australia and UNTAET have agreed that Australia could continue its exploration of the gap once the former Indonesian province becomes independent.

Two Australian companies, Phillips Petroleum Co and Multiplex Construction Pty Ltd last week announced they have begun constructing a 500-km-long gas pipe from the oil refinery field in Bayu Undan in Timor Sea to Darwin, Australia.

Bayu Undan is located at the southwest part of Zone A of the present Timor Gap Treaty.

Indonesia and Australia signed the treaty in December 1989 to explore and exploit oil and gas at the border between the two countries.

Based on the treaty, the Timor gap was divided into three zones -- Zone A in which both Indonesia and Australia get 50 percent of the royalty; the Australia-controlled Zone B in which Indonesia gets 10 percent of the royalty; and the Indonesia- controlled Zone C in which Australia gets 10 percent of the royalty.