Timor gas deal goes before parliament

AAP/TVNZ - November 09, 2006

A deal that carves up billions of dollars in Timor Sea oil and gas will go before East Timor parliament for debate and ratification soon, East Timor's prime minister Jose Ramos Horta said today.

Ramos Horta foreshadowed the move in a wide-ranging address to East Timor's parliament to mark his first 100 days in office.

The Nobel Peace prize laureate was appointed to prime minister in June after the resignation of Mari Alkatiri amid a political crisis in the fledgling nation.

East Timor has been plagued by instability since rival security forces clashed in Dili in April and May killing dozens of people and driving more than 150,000 from their homes.

"The government is going to send to parliament for debate and ratification, the treaty on Certain Maritime Arrangements in the Timor Sea and the International Unitisation Agreement," Ramos Horta told parliament.

"Honoured elected representatives of the nation will understand that this treaty serves the best interests of our country and once ratified will allow the development of Greater Sunrise, the resources of which will guarantee economic independence and national prosperity."

It was not immediately clear when the deal would be presented to parliament for ratification.

The government could face some opposition in ratifying it.

Independent MP Leandro Isaac said the government was yet to explain the Timor Sea issue to the parliament.

"Many of people in Timor Leste is against the whole idea of this, but we will see when they will propose it," he said.

"My hope is Australia, a country that is big and rich, to realise that the oil belongs to us, so give it to us.

I don't know when they are going to introduce it to the parliament, we haven't been told by the government."

It is estimated the Greater Sunrise field could deliver a potential $US10 billion to the impoverished nation over 20 years.

Under the accord, signed in January, Australia and East Timor will split the royalties from the field 50:50, and delay negotiations on a permanent maritime boundary for 50 years.

Greater Sunrise operator Woodside Petroleum froze the $A6.6 billion project in 2004 as negotiations between the two nations dragged on.

The other issue still to be ironed out is the location of a proposed liquefied natural gas processing plant for the field, either in East Timor or northern Australia.

Speaking about his first 100 days, Ramos Horta said that while the "worse moments have passed" in East Timor, the internal security situation in Dili remained tense.

"While some disturbances have occurred, they have been provoked, especially by youth, organised in groups with motives more criminal than political," he said.

"The government believes that these criminal organisations are being supported by other people with clear objectives, determined to undermine the authority of the state."

Ramos Horta said President Xanana Gusmao had been "tireless" in its search for a solution to the crisis, through negotiation with youth, and the leadership of the Timorese police and armed forces.

He also reiterated it was important to keep the current arrangement of the Australian-led military force, working alongside the United Nations police, despite criticism from the head of the Timorese armed forces.

There are currently about 1000 Australian troops in East Timor, and about 900 United Nations police officers.

.