Subject: RT: Australian opposition calls for Timor
Gap review
Date: Wed, 13 Jan 1999 09:38:41 -0500
From: "John M. Miller" <fbp@igc.apc.org> Australian opposition calls
for Timor Gap review 03:01 a.m. Jan 13, 1999 Eastern
By James Regan
SYDNEY, Jan 13 (Reuters) - Australia's Labor opposition urged Prime Minister John
Howard's government on Wednesday to review its Timor Gap oil sharing treaty with Indonesia
as East Timor pushes for independence.
But Deputy Prime Minister Tim Fischer said talk of a review of the special arrangements
in the Timor Gap -- located in a specially designated Zone of Cooperation -- was
premature. ``This is absolutely premature ... there's no question of change of sovereignty
at this time,'' Fischer said. ``It (the treaty) stands.''
Australia said on Tuesday it was changing its policy on East Timor and would support a
drive for self determination for the Indonesian-run province, located about 400 kms (250
miles) north of Australia's northwest coast.
But political analysts stressed any such arrangement would take a decade or so to
negotiate, if ever.
``Clearly any meaningful arrangements for autonomy should allow control by the East
Timorese people over their natural resources,'' Labor's foreign affairs spokesman Laurie
Brereton said.
Indonesia invaded East Timor in December 1975 after Portugal, the former colonial
power, pulled out. Jakarta formally annexed the territory a year later, a move never
recognised by the international community.
Australia is the only Western country to recognise Indonesian sovereignty over East
Timor.
The Timor Gap treaty was signed by Indonesia and Australia in 1989 and splits the sea
between East Timor and Australia into three zones, one Australian, one Indonesian and the
Zone of Cooperation (ZOCA) shared by Australia and Indonesia.
Under its terms, revenue from production from the ZOCA is shared equally between
Australia and Indonesia.
Oil production from the region's Elang, Kakatua and Kakatua North fields, run by
Australia's Broken Hill Pty Co Ltd, started in July 1998.
More substantial production is expected to come on stream in 2002 after development of
the A$1.5 billion Bayu-Undan natural gas and condensate field.
BHP and Phillips Petroleum Co, another big stakeholder in the gap, also have proposed
building a plant in the region to process gas reserves.
Revenues from the Timor Gap are estimated to eventually reach some US$11 billion based
on reserves of 30 million barrels of oil and 175 million barrels of liquefied petroleum
gas as well as plentiful supplies of condensate and natural gas.
``This revenue stream could contribute very significantly to development of East Timor
and the well being of the East Timorese people,'' Brereton said.
Brereton also called for the Howard government to begin preliminary discussions with
exiled East Timorese resistance leader Jose Ramos Horta and jailed guerrilla leader Xanana
Gusmao on possible future arrangements for the Zone of Cooperation.
The East Timor resistance has said it would be prepared to negotiate with the
Australian government and individual companies on oil exploitation rights for the Timor
Gap.
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