Tussle over Timor Sea oil and gas resumes

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CANBERRA - Canberra and Dili entered a new round of negotiations - the third so far in a year - as Australian and East Timorese officials on Monday again deliberated on how to divide up oil and gas deposits under the Timor Sea.

After nearly a year of negotiations, both sides may finally be willing to compromise on carving up the oil-rich Timor Sea energy reserves, worth an estimated US$32.07 billion. East Timorese Foreign Minister Jose Ramos Horta said he is confident an agreement can be reached, possibly as early as the middle of the year.

This week's discussions will focus on a compromise that would involve setting aside permanent maritime boundary talks for up to a century. East Timor is also keen to look at ways it could benefit from downstream processing projects, as well as the potential for jobs based in Darwin to go to East Timorese workers.

Negotiations reached a stalemate at the end of last year, with East Timor accusing Australia of issuing ultimatums and adopting a "take it or leave it" attitude toward its smal neighbor. This time around, however, the Australian government is under increasing domestic and international pressure to expedite the resolution of a fair sea boundary with East Timor, one of the world's poorest countries.

Asia Times