Australia, Timor-Leste End Maritime Dispute

Timor-Leste and Australia have reached an agreement on the central elements of a maritime boundary delimitation between the two countries in the Timor Sea, paving the way for development of oil and gas fields in the region.

“The Parties’ agreement constitutes a package and, in addition to boundaries, addresses the legal status of the Greater Sunrise gas field, the establishment of a Special Regime for Greater Sunrise, a pathway to the development of the resource, and the sharing of the resulting revenue,” the Hague-based Permanent Court of Arbitration (PCA) which has been leading talks between the two nations said in a statement September 1.

Conciliation proceedings chairman Peter Taksoe-Jensen of Denmark said: "I commend the Parties for being able to reach an equitable and balanced solution that benefits both Timor-Leste and Australia" adding: "The key moment in these negotiations transpired on the evening of August 30."

The two parties will continue to meet with Taksoe-Jensen's commission in order to finalise their agreement, which is scheduled for October. Proceedings before the PCA were initiated by Timor-Leste on April 11 2016.

"This is an historic agreement and marks the beginning of a new era in Timor-Leste’s friendship with Australia," said Timor-Leste chief negotiator and its former President Xanana Gusmao, while Australian foreign minister Julie Bishop agreed the deal "supports the national interest of both our nations."

At the same time, they will begin to engage with other stakeholders in the Timor Sea regarding the implications of their agreement, in particular with respect to the Greater Sunrise resource. The Greater Sunrise field is made up of Sunrise and Troubadour gas and condensate fields, located approximately 150km south east of Timor-Leste and 450km north west of Darwin in Australia's Northern Territory. 

Shardul Sharma