As Reuters reports, Australia issued a legislation that clears maritime boundaries with East Timor, enabling both countries to divide revenue from the offshore Greater Sunrise natural gas field.
Specifically, the Australian Parliament highlights that the bill amends 25 Acts to
- permanently delimit the continental shelf boundary and the exclusive economic zone boundary between Australia and Timor-Leste;
- allow for a future adjustment of the lateral continental shelf boundaries subject to specific conditions being met;
- establish the Greater Sunrise Special Regime in the Special Regime Area.
Back on February 2018, the two countries reached an agreement on a maritime border to solve the 10-year dispute. The Greater Sunrise was firstly found in 1974 and accommodates about 5.1 trillion cubic feet of gas.
After reaching an agreement, Australian Prime Minister Scott Morrison commented
With the passage of the treaty’s implementing legislation today, Australia is now ready to partner with Timor-Leste to jointly develop the Greater Sunrise gas fields for the benefit of both countries.
According to the deal, East Timor holds the 70% of the revenue if the gas is piped to the island or 80% if the gas is piped to Australia for processing.
On the first place, Australia asked for a boundary aligned with its continental shelf to have control, yet East Timor argued that the border should lie half way between it and Australia, setting the bigger part of the Greater Sunrise field under its control.
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The Sydney Morning Herald further informed that Australia’s decision to fund East Timor’s first undersea fibre optic cable connection and a maritime security package, which will see Australia hand two Guardian class patrol boats to the country, as well as upgrade its naval base.
