ASIA/EAST TIMOR - East Timor and Australia sign agreement on oil and gas revenues from disputed undersea fields: a step forward for impoverished island

Friday, 13 January 2006

Dili (Fides Service) - East Timor has at last signed a deal with Australia for revenues from disputed oil and gas fields in the Timor Sea. The pact signed in Sydney ensures a 50:50 revenue split from the Greater Sunrise energy field in the strip of sea between the island of Timor and Australia. The agreement ends a long-running dispute over lucrative energy reserves in the Timor Sea and was necessary since the previous agreement was stipulated between Australia and Indonesia of which East Timor was still a part.
Both governments are pleased with the agreement reached after two years of talks. Impoverished East Timor could earn up to 10 billion dollars from the deal. However the fact that agreement sees the countries delay for 50 years a decision on a permanent maritime boundary in the Timor Sea has triggered protests on the part of 12 NGOs from East Timor and the Justice and Peace Commissions of the Catholic island’s two diocese Dili and Baucau. A statement signed by the directors of the Justice and Peace Commissions and the co-ordinator of the Centre of Information on the Sea of Timor to which the 12 NGOs belong, stated that the maritime frontier with Australia should not be postponed sine die.
East Timor became a Democratic Republic independent from Indonesia on 20 May 2002 as a result of a referendum after a period of temporary UN administration. Today the young Asia democracy is searching for the right path to development and civil and moral and economic growth.
In addition to political problems there are also economic difficulties. Since independence chronic poverty has become acute and 60% of its gross domestic product is derived from loans from other countries or aid from the UN World Food Programme. The steep fall in the price of coffee, principal export for Dili aggravated the state of the economy already sorely tried by structural adjustment plans of the International Monetary Fund. Half the population is illiterate and 40% has no access to clean water. The main activity is subsistence farming which involves 85% of the labour force but fails to produce sufficient income. This new agreement on energy resources represents an important step for the country’s development.
With 95% of the population Catholic, East Timor is the Asian country with the highest concentration of Catholics and the Church plays an important role in the formation of consciences of the citizens. (PA) (Agenzia Fides 13/1/2006 righe 28 parole 289)


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