Drilling in the Timor Sea

Charles Scheiner, author of Drilling East Timor: Australia’s Oil Grab in the Timor Sea, had this to say about The Treaty on Certain Maritime Arrangements in the Timor Sea (CMATS): “Australia, one of the largest and most powerful countries in the Asia-Pacific region, recently legalized its thievery of tens of billions of dollars in resources from one of the smallest and weakest, according to critics of a new treaty” (Scheiner, 30). How right is he? Thievery?

For those of you that may be clueless: A treaty was signed in an attempt to end our dispute with East Timor (Timor-Leste). CMATS allows us, Australia, to use oil and natural gas under the Timor Sea. However, it is ironic because international law experts say that without this treaty, there is no way we could claim anything in the Timor Sea—oil and gas should belong entirely to Timor-Leste. Under the treaty we are also allowed to develop other undersea oil and gas reserves in previously contested areas; however, until all the petroleum is extracted and sold, Timor-Leste has its right to a maritime (sea) boundary. (Scheiner, 30)

Is this a Reversed Robin Hood Story?! Some say yes, I say partly.

Timor-Leste is one of the youngest and poorest nations in Asia, quite the opposite of us. Many think that if Timor-Leste could have waited longer to sign a treaty, then they could have received a better deal. The East Timor and Indonesia Action Network had this to say, this transaction “may be the best that could be achieved at this time, given the pressures on Timor-Leste from Australia and oil companies and the tremendous economic, political, size and other disparities in an inherently unequal negotiation process” (Scheiner, 30) . Of course there are going to be pressures, we are dealing with oil here!

The oil and gas markets are not going to show less mercy on any country, so countries like Timor-Leste need to bulk up and use this to get ahead. Oil is such a commodity right now that almost any area could make a fortune off a place like the Timor Sea. So Timor-Leste needs to stop throwing the “underdeveloped card” and pull it together to become a strong power. Critics say that we keep them from developing when their negative, depressed attitudes actually keep them suppressed. Some people would argue that you have to reach rock bottom to rise to the top. Here’s your chance Timor-Leste.

Greater Sunrise is the largest area claimed by both countries and is split Timor-Leste, 18 Percent and Australia, 82 percent. We get 82 percent of the revenues since it lies almost entirely on our side of the median line. (Scheiner, 32) However, the operation of Greater Sunrise has not been decided yet. There are three options under consideration:

“(1) Transporting the gas to Timor-Leste and processing it at a new LNG plant in Timor-Leste. An LNG plant located in Timor-Leste would be much closer to the field than a plant in Australia. It would also provide important stimulus to the local economy. Therefore, the Timor-Leste Government is actively encouraging the companies to give serious consideration to this option.
(2) Transporting the gas to Darwin, Australia and processing it at an existing LNG plant in Darwin.
(3) Processing the gas at sea at an LNG plant located on a ship.”



Jeffrey Smith and David Webster wrote an article entitled: East Timor's blood, Australia's oil?

Australia has received a bad reputation through this whole deal. I do not believe that we make the best decisions possible, but not many countries do—look at America and the war on Iraq. I do believe in making the best out of all situations. Look at me, the whole college thing did not work and I still made it. “Making it” is in the eyes of the beholder however. Some people would not choose the life I live: Waking up at noon to open my bar, surfing from 2:00 to 4:00 then reopening my bar until the last customer leaves. I call this paradise. Timor-Leste should do what I did, adapt. Years after, people are still complaining. If these people were as adamant about developing their countries as they are about protesting us, then they would set. I’m not saying we have the best relations with Timor-Leste, but I think we could use the Timor Sea to establish a friendship. (Scheiner, 31)

Can’t we all just get along? …Probably not.

“The Australian Government has continually and blatantly refused to abide by international law. Instead, it has bullied the poorest country in Asia into a series of dodgy resource sharing deals, to take billions of dollars that simply do not belong to us,” said Tom Clarke of the Australian Timor Sea Justice Campaign (Scheiner, 31). I am not a big fan of government myself but this statement is a little harsh. A better treaty could be constructed but the truth is, no treaty between us and Timor-Leste is going to suffice after everything they have gone through.

La’o Hamutuk, part of the East Timorese Movement Against the Occupation of the Timor Sea, has made an effort to point out that they are the largest foreign contributor to our national budget. Timorese President Xanana Gusmao called it “A question of life or death,…a question of being continually poor, continually begging or to be self-sufficient.” (Scheiner, 32)

Take, take, take and never giving anything back. But is that true? What about the 50 Australian federal police offices we sent to contain gangs in East Timor’s capital on May 27. 2006.


“Australia will assist East Timor to build appropriate institutions and policies for the efficient use of future oil and gas revenues.”

And for kicks and giggles

Scheiner, Charles. "Drilling East Timor: Australia's Oil Grab in the Timor Sea." Multinational Monitor 27.1 ([YEAR]): 30-32. Academic Search Premier. 31 January 2007.