SYDNEY (Australia): A contentious maritime border treaty between East Timor and Australia which cuts through lucrative gas and oil fields within the Timor Sea shall be torn up, each sides said Monday.
Dili and Canberra are working dispute above the issue for several years while using the matter recently transported to the Permanent Court of Arbitration during the Hague.
East Timor has now officially notified its southern neighbour it desires to end the Certain Maritime Arrangements inside the Timor Sea (CMATS), which carves up future revenue from energy reserves in the neighborhood.
“The federal government of Australia is taking note for this wish and recognises that Timor-Leste has got the straight to initiate the termination within the treaty,” each sides said inside of a joint statement.
“Accordingly, the Treaty on Certain Maritime Arrangements in the Timor Sea will stop being in effect adjusted three months through the date of the notification.”
It would not give an exact date for notification, but added that both governments were dedicated to negotiating new permanent maritime boundaries.
East Timor, which gained independence from Indonesian occupation in 2002, is impoverished and depends heavily on oil and coal exports.
In 2006, it signed the CMATS treaty with Australia, which covers the vast Greater Sunrise gas field between the two nations, worth millions of dollars.
But Dili has since accused Australia of spying to find commercial advantage in the 2004 negotiations and demanded the treaty be ripped up.
Until Monday, Australia had argued it turned out legal, binding and valid.
Dili officially dropped its spying case against Canberra prior to UN’s highest International Court of Justice in June 2015 after Australia returned sensitive documents.