E Timor, Australia ratify oil, gas deal

AAP - Tuesday, 20 February 2007


East Timor's parliament has ratified a deal with Australia that carves up Timor Sea oil and gas deposits worth billions of dollars.

An exchange of letters between the East Timor and Australian governments is now needed before the treaty will come into force, a spokeswoman for Prime Minister Jose Ramos Horta said.

East Timor's parliament on Tuesday passed two resolutions over the Greater Sunrise gas field and the related seabed boundary agreement with Australia, with 48 votes in favour and five against. There were three abstentions, the spokeswoman said.

It is estimated the Greater Sunrise field could deliver a potential $US10 billion ($A13 billion) to impoverished East Timor over 20 years.

In November, Ramos Horta said that once ratified, the treaty would "allow the development of Greater Sunrise, the resources of which will guarantee economic independence and national prosperity".

Under the accord - signed a year ago - Australia and East Timor will split the royalties from the field 50:50, and delay negotiations on a permanent maritime boundary for 50 years.
Earlier Timorese MP Leandro Isaac said there was strong debate over the treaty in parliament. Earlier this month, the Australian government moved to fast-track ratification, tabling an analysis of the treaty in the Senate.

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