Joint Media Release
Minister for Foreign Affairs, Alexander Downer, the Minister for Industry and Resoures, Ian Macfarlane, the Treasurer, Peter Costello and the Attorney General, Daryl Williams.
5 March 2003
$50 Billion Timor Sea Projects To Go Ahead
We are pleased to announce that the Government has today concluded negotiations that open the way for $50 billion in petroleum developments in the Timor Sea, north of Australia.
Legislation has been introduced into Parliament today to ratify the Timor Sea Treaty which will enable the development of substantial petroleum resources to the benefit of both Australia and East Timor.
This will be a crucial element in promoting the long-term stability and prosperity of East Timor, to which Australia is committed.
Under this Treaty, East Timor will receive 90 percent of government revenues, worth around $A6 billion, for the Bayu-Undan field alone. This field lies fully within the Joint Petroleum Development Area (JPDA) created under the Treaty.
Australia and East Timor have also this week concluded negotiations on the International Unitisation Agreement (IUA). This Agreement provides legal certainty for the commercial development of the Greater Sunrise field in the Timor Sea.
The Prime Minister of East Timor has advised us that he will submit the IUA to the Council of Ministers of East Timor tomorrow for approval.
The Minister for Foreign Affairs, the Hon Alexander Downer MP, will go to East Timor tomorrow to sign the International Unitisation Agreement after its approval by the Council of Ministers.
The Greater Sunrise field has a gross value of about $A20 billion and straddles the eastern side of the JPDA established under the Timor Sea Treaty. Revenues will be shared on the basis that 20.1 percent of the field lies within the JPDA.
These projects will be of great benefit to Australia, in particular through downstream investment and employment in the Northern Territory.
We welcome the spirit of cooperation in which the TST and IUA have been concluded.
Mr Downer, Industry and Resources Minister Mr Ian Macfarlane, Treasurer Mr Peter Costello and Attorney-General Mr Daryl Williams have all played a crucial role in the Government’s negotiations.
These agreements open the way for development projects that will create substantial export revenue and jobs for both Australia and East Timor.
Mr Downer's Office: Chris Kenny (02) 6277 7500 / Mr Macfarlane's Office: Kirsty Boazman (02) 6277 7580 / Mr Costello's Office: Niki Savva (02) 6277 7340 / Mr William's Office: Carina Tan-Van Baren (02) 6277 7300