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"If international law under the United Nations Convention of the Law of the Sea (UNCLOS) were to be applied all of the Bayu-Undan, Greater Sunrise and Laminaria/Corralina reserves would fall within Timor Leste's Exclusive Economic Zone (EEZ) - within Timor Leste's maritime boundary. " Timor Sea Justice Coalition, Australia


Area of Dispute


Timor Sea Justice Coalition - a fair go for East Timor
(2004 Australia)

Home: http://www.TimorSeaJustice.org



Source:
http://www.timorseajustice.org/area.htm


There are three main oil and gas resources within this area with an estimated total of more than 3.3 billion barrels of oil equivalent (BOE):

Bayu-Undan: 1.06 billion BOE

Greater Sunrise: 2.05 billion BOE

Laminaria/Corralina: 0.20 billion BOE



Under the Timor Sea Treaty, Timor Leste is only entitled to 90% of the revenue arising from the reserves located inside the JPDA. This is equivalent to 1.32 billion BOE or only 40% of the oil and gas resources:

Bayu-Undan: 0.95 billion BOE

Greater Sunrise: 0.37 billion BOE

Laminaria/Corralina: Nil

If international law under the United Nations Convention of the Law of the Sea (UNCLOS) were to be applied all of the above reserves would fall within Timor Leste's Exclusive Economic Zone (EEZ) - within Timor Leste's maritime boundary.

Timor Leste's southern maritime boundary would extend to the southern boundary of the JPDA. This is in fact the median-line boundary between the two countries.

Timor Leste's lateral boundaries would also extend to beyond that of the JPDA.

On the western boundary the border would be significantly further west then the JPDA and would encompass the whole of Laminaria/Corralina.

To the east, the eastern border would involve at least 80% of Greater Sunrise. In fact the eastern boundary might encompass 100% of Greater Sunrise.



Bayu-Undan

* Gas and condensate
* Lies within the JPDA
* Will pay 90% of its revenue to East Timor
* Has a lifespan of approximately 20-25 years

ConocoPhillips has recently started pumping out the estimated 229 million BOE of condensate. Planned production of liquids from Bayu-Undan in 2004 is 12 million barrels. Gas (LNG) production is expected to commence in 2006 with the pipeline going 500 km southwards to Darwin. Timor Leste will therefore loose out on the downstream benefits worth millions of dollars and thousands of jobs. It is technically feasible to pipe the gas to Timor Leste. A pipeline going north to Timor Leste will cost two-thirds the cost of a pipeline going south to Darwin.



Greater Sunrise

* Gas and condensate
* Lies across the eastern border of the JPDA
* Has almost three times as large gas reserves as Bayu-Undan
* Will pay only 18% of its revenue to East Timor
* Has a lifespan of approximately 30 years

Under the terms of the existing Timor Sea Treaty only 20% of Greater Sunrise is deemed to lie within the JPDA. However, 80% is deemed to lie outside the JPDA and will therefore pay no revenue to Timor Leste. Australia will still get 10% of the revenue within the JPDA—giving Australia a 82% share in the revenue of Greater Sunrise. Greater Sunrise is expected to commence production in 2009/2010.



Laminaria/Corralina

* Oil field
* Only a number of kilometres outside the western border of the JPDA
* Pay no revenue to East Timor
* Has a lifespan of approximately 8-10 years

Oil production has already commenced since 1999. Currently Laminaria/Corralina is producing about 25% of Australia's entire local oil production. Timor Leste has asked Australia to show restraint because Laminaria/Corralina is in a disputed area. However, Australia has refused to do so.  




About The Timor Sea Justice Campaign
http://www.timorseajustice.org/about.htm

Last updated 25 Aug 2004

The Timor Sea Justice Campaign is an independent campaign originating in Melbourne in January 2004. The campaign has now extended to Sydney, Darwin, Brisbane and Alice Springs. The campaign seeks to change Australian government policy in relation to the Timor Sea and is made up of concerned individuals of various ages and professions/occupations working on a voluntary basis.

The Timor Sea Justice campaign believes that as a sovereign nation, East Timor has the right to settle its boundaries with neighbouring countries and to benefit from its natural resources, particularly at the time that this new nation needs the revenue from resources in the Timor Sea to develop and provide its citizens with basic services such as schools and hospitals. The Timor Sea Justice Campaign aims to lobby the Australian government to be a friendly and cooperative neighbour to East Timor, building on the goodwill between the two nations, and to respect the economic, social and cultural rights of the East Timorese and East Timor's full sovereign rights under international law.

 

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