Entry into Force of Greater Sunrise Treaties with East Timor, Media Release, 23 Feb 2007, MINISTER FOR FOREIGN AFFAIRS, AUSTRALIA

I am pleased to announce that today in Dili, Australia and East Timor conducted a formal exchange of notes to bring into force the two treaties which settle arrangements in the Timor Sea between our countries.

The International Unitisation Agreement (IUA) and the Certain Maritime Arrangements in the Timor Sea (CMATS) Treaty together provide stable legal and fiscal regimes for the exploration and exploitation of petroleum resources in the Timor Sea between Australia and East Timor to the benefit of both countries. 

CMATS puts on hold the Parties' claims to jurisdiction and maritime boundaries in the Timor Sea for 50 years.  Australia has agreed to share equally with East Timor the upstream revenues from the Greater Sunrise reservoirs, a move which will help underpin the economic independence of our neighbour.

The IUA will enable the development of Greater Sunrise, a large gas field that straddles the eastern border of the Joint Petroleum Development Area (JPDA) in the Timor Sea.  Equal sharing of the upstream revenues from Greater Sunrise under CMATS could result in Australia and East Timor each receiving up to US$10 billion over the life of the project.

The new maritime arrangements agreed with East Timor under these treaties are on top of the already generous sharing arrangements within the JPDA under the existing 2002 Timor Sea Treaty, where East Timor receives 90% of revenue from production of petroleum resources, which may be worth as much as US$15 billion.  East Timor's Petroleum Fund, set up to receive and administer the revenues it receives from oil and gas sales, now has a balance of over US$1 billion from exploitation of resources in the JPDA.

Under the new agreements, Australia will continue to exercise continental shelf jurisdiction outside the JPDA and south of the 1972 Australia-Indonesia seabed boundary.  East Timor will be able to exercise fisheries jurisdiction within the JPDA.  A Maritime Commission will also be established to enable high-level dialogue on a range of important issues facing Australia and East Timor in the Timor Sea, including the management of security threats to offshore platforms and cooperation in managing fisheries resources.