ABC News Online - Wednesday, November 9, 2005.
http://www.abc.net.au/news/newsitems/200511/s1501559.htm

Hopes for Timor Sea deal by year's end

East Timor says a boundary deal with Australia over the oil and gas reserves of the Timor Sea should be completed by the end of the year.

East Timor's Foreign Minister Jose Ramos Horta set the target after talks in Canberra this afternoon with the Foreign Minister Alexander Downer.

The proposed agreement will mean joint exploitation of the reserves of the Greater Sunrise field in the Timor Sea.

East Timor says the deal with Australia is more than 90 per cent agreed.

The remaining difference is over any future mediation or arbitration if disputes arise over security, fisheries, new oil and gas discoveries or environmental problems.

The two governments have agreed that a final maritime boundary will be deferred for 40 years - the life of the Greater Sunrise Field - and revenue will be be shared equally.

Mr Ramos Horta predicts full agreement within weeks.

"I remain very optimistic that by the end of the year we should be able to clinch the deal," he said.

The 50-50 revenue split means Australia has moved from its original offer of 18 per cent for East Timor.

In turn, Dili has dropped its demand that the oil-gas pipeline must run to East Timor, not northern Australia.

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