From Australia (RW): The government of Timor Lesté is heading towards arbitration with the Australian government over difference views of the Timor Sea Zone of Cooperation and the Timor Sea Treaty.

The country has accused Australia of engaging in espionage during negotiations covering the 2006 Treaty on Certain Maritime Agreements in the Timor Sea (CMATS).

Legal challenge

It has notified the Australian government of its arbitration move, calling the validity of the CMATS treaty into question. The treaty governs the split of revenue from the proposed Greater Sunrise field (SEN, 30/3) which straddles both nations’ borders.

The treaty lapsed in February this year which means that either side is now able to cancel the treaty when they wish.
Timor Lesté is arguing that CMATS is invalid because it says Australia did not conduct the negotiations in 2004 in good faith, alleging Australia engaged in espionage.

Australian Foreign Minister Bob Carr says that while the accusation is not new, the arbitration is. Carr maintains that Australia has always conducted itself in a professional manner in diplomatic negotiations, including the CMATS talks. He considers the treaty is valid and remains in force and that Australia remains committed to the treaty framework. Carr would neither confirm nor deny the charge of espionage.

The development of Greater Sunrise remains in the air with neither Timor Lesté officials nor those from field operator Woodside Petroleum able to come to a formal resolution of whether gas production should go to an onshore plant in Timor or be processed at the field through an FLNG facility.