Australia and East Timor to tear up treaty over oil and gas

Australia and East Timor to tear up treaty over oil and gas:

THE split of $50 billion worth of oil and gas revenue between East Timor and Australia will need to be reviewed as both governments have indicated they will tear up a 2006 treaty on the Greater Sunrise reserve in the Timor Sea.

For years Dili had sought to renegotiate the agreement following claims Australian spies had bugged East Timor’s leaders during 2004 negotiations. The reserve contains gas and oil worth an estimated $50 billion, but how the share of the spoils will be divided up must now be revisited. The two governments have announced in a joint statement East Timor will soon formally inform Australia it wants to terminate the treaty, which will cease three months from the date of notification.

The treaty split future revenue of Greater Sunrise reserve 50/50 between East Timor and Australia and put a 50-year moratorium on a permanent maritime boundary.

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