• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 12 mins WTI @ 67.50, charts show $62.50 next
  • 9 hours Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 10 hours Mike Shellman's musings on "Cartoon of the Week"
  • 6 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 15 hours Venezuela set to raise gasoline prices to international levels.
  • 5 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 9 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 15 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 22 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 21 hours Corporations Are Buying More Renewables Than Ever
  • 11 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 1 day Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 12 hours France Will Close All Coal Fired Power Stations By 2021
Peak Lithium Won’t Happen Anytime Soon

Peak Lithium Won’t Happen Anytime Soon

Peak lithium is not happening…

Libyan Oil Recovers, Exceeds 1 Million Bpd

Libyan Oil Recovers, Exceeds 1 Million Bpd

Libya’s oil output has once…

Australia, East Timor Agree On Border, Pathway To Develop Giant Gas Fields

Greater sunrise

Australia and East Timor have reached an agreement in their long-running dispute over their maritime border and on a pathway to develop the gas fields in the Greater Sunrise territory they share, The Hague-based Permanent Court of Arbitration said on Sunday at the end of the latest round of talks.

Since East Timor gained independence in 2002, Australia and East Timor have been unable to establish permanent maritime borders to regulate how much each of the countries should receive in revenues from the Greater Sunrise basin within their borders—revenues estimated at billions of dollars.

The Law of the Sea and established practice say that a boundary would be settled at equal distance between two countries. This would place most of the potentially prolific Greater Sunrise fields in East Timor’s territory. Australia, however, has always claimed that the boundary should be at the edge of Australia’s continental shelf, closer to East Timor’s land.

Following a conciliation process, now Australia and East Timor have reached an “agreement on a treaty which delimits the maritime boundary between them in the Timor Sea and addresses the legal status of the Greater Sunrise gas field, the establishment of a Special Regime for Greater Sunrise, and a pathway to the development of the resource,” the court said.

“The treaty also establishes revenue sharing arrangements between the governments of Timor-Leste and Australia where the shares of upstream revenue allocated to each of the Parties will differ depending on downstream benefits associated with the different development concepts for the Greater Sunrise gas field,” it added.

Australia and East Timor will sign the Maritime Boundaries Treaty on March 6 in New York at a ceremony hosted by the Secretary-General of the United Nations, António Guterres.

The fields in the Greater Sunrise area are estimated to contain 5.13 trillion cubic feet of gas and 225.9 million barrels of condensate, according to the operator, Woodside, which has 33.44 percent in the joint venture. ConocoPhillips with 30 percent, Shell with 26.56 percent, and Osaka Gas with 10 percent are the other partners in the joint venture.

With the agreement between Australia and East Timor, the consortium now can start thinking about development options. But the long-running dispute has so far delayed decisions, and according to Reuters, development is at least a decade away.

According to reports, East Timor could receive up to 80 percent of the revenue from Greater Sunrise, but the tiny nation might agree to less if gas from the fields is piped to a terminal in its territory.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News