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On March 6, 2003,
the Timor Sea Office in Dili celebrated the ratification of the
Timor Sea Treaty by Australia’ parliament. Nearly 10 months
after the prime ministers of Timor-Leste and Australia signed the
treaty, both parliaments have now formally ratified it. The treaty
allows development of the Joint Petroleum Development Area. Projected
annual revenues to Timor-Leste from Bayu Undan, just one of the
gas fields in the treaty area, start at $1.3 billion over the
17-year life of the field.
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The Treaty represents
significant compromises and has its critics on both sides of the
Timor Sea, but it will terminate once a permanent maritime boundary
is agreed. At the signing ceremony, Timor-Leste Prime Minister
Mari Alkatiri said, “On behalf of the elected Government
of Timor-Leste, I signed the treaty because it represents the best
deal for my people. It delivers important revenues in the near
term without inhibiting our maritime boundary claims.”
The Timor Sea Office is the Government of Timor-Leste’s negotiating team, responsible for negotiations on
all areas of the Timor Sea, including matters of sovereignty,
such as this treaty and maritime boundaries, and critical financial
and investment matters, such as unitization, corporate taxation,
and production-sharing contracts. USAID has been a key supporter
of the office since early 2002, providing operational assistance
for staff salaries, travel, computers, and other resources, and
more importantly, technical expertise for the government on key
areas of negotiation. Ratification of the treaty is a milestone
for the economic independence of Timor-Leste.
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