Media Release: Timor-Leste: What price for a glass of water in the desert?

The protracted dispute between Australia and East Timor over oil and gas deposits in the Timor Sea is an issue of national and international significance. Reports this week that a so-called ‘creative solution’ is imminent between the respective Governmental negotiating parties is reason for concern. Australia’s reputation and the livelihoods of the East Timorese are at stake.

Much has been made of the supposed difficulties in determining maritime boundaries between Australia and East Timor. Australia’s Foreign Minister, Alexander Downer, would have us believe that a decision on sea boundaries should be deferred indefinitely given the complexities involved. Nonsense. The obstacle to establishing a maritime boundary with Timor is not Australia’s existing boundaries with Indonesia or contractual intricacies, but rather, the Australian governments “when it suits” mentality. Let’s get a few facts straight.

First, the current maritime boundary that notionally exists between Australia and East Timor is based on a seabed boundary treaty that was signed by Australia and Indonesia in 1972. Portugal, then colonial ruler of East Timor, refused to acknowledge the boundaries and the ‘Timor Gap’ resulted. Between 1975 and 1999 Indonesia was an illegitimate occupier of East Timor. As such, contracts exchanged between Australia and Indonesia in relation to the exploration and exploitation of resources in the now disputed waters should be declared non-binding. Having achieved independence in 2002, East Timor has a right to self-determination, including the right to establish maritime boundaries with neighbouring countries.

Second, the Exclusive Economic Zone of a country refers to the area of water that extends up to 200 nautical miles from the shore. Countries have a right to explore and exploit the resources in an under this water. If neighbouring countries EEZ overlap, meaning they are less than 400 miles apart, a median line approach is usually used to determine the maritime boundary. The Median Line Principle was established in the 1982 United Nations Convention on Law of the Sea. The MLP is the favoured process within the international community for establishing sea boundaries in disputed waters.

Third, despite appeals from East Timor, Australia refuses to acknowledge the jurisdiction of the International Court of Justice and the International Tribunal on the Law of the Sea. These the two independent bodies are used to arbitrate maritime boundary disputes.

Fourth, since 1999 Australia has unilaterally exploited natural resources in contested waters. Under the MLP, it is probable that in addition to other sites, the oil and gas fields of Laminaria/Corallina, Bayu Undan and Greater Sunrise fall within East Timor’s EEZ. East Timor has already been short-changed in relation to Laminaria/Corallina and Bayu Undan given Australia’s acceptance of royalties from these resource rich areas. Furthermore, if Australia and Timor agree to an 80-20 split in revenue from the yet to be developed Greater Sunrise site as has been suggested, tens of billions of dollars in royalties rightfully belonging to one of the world’s poorest nations will be lost to East Timor and claimed by Australia.

Finally, negotiations are not taking place on a level playing field. Inadequate medical facilities, poor nutrition standards and low levels of personal income, literacy and school attendance are, among many other pressing social problems, retarding the development of East Timor. Thus, their willingness to defer a decision on maritime boundaries and accept a compromised position on revenue splitting arrangements stems for a desperate need for capital. The price one is prepared to pay for glass of water when in the desert is obviously different to the one paid when they are not.

East Timor is not requesting a handout. They are not calling for Australian generosity. Rather, they seek their legal entitlements. Australia has, therefore, a number of moral obligations. The exploitation and exploration of oil and gas resources in contested waters must stop. Royalties received from disputed territories should be placed in trust. And, Australia must resubmit to the jurisdiction of the ICJ and ITLS.

Shaun Cannon is Executive Officer of the Melbourne Catholic Commission for Justice, Development and Peace and a member on the Timor Sea Non-Government Organisation Working Group.