AUSTRALIA AND EAST TIMOR SEAL MARITIME BORDER DEAL

>> MELBOURNE/THE HAGUE: Australia and East Timor have reached a breakthrough agreement on a maritime border, ending a decade-old row between the two nations that has stalled a US$40 billion (1.3 trillion baht) offshore gas project.

The Permanent Court of Arbitration in The Hague announced yesterday that the neighbouring countries had reached an agreement “on the central elements of a maritime boundary delimitation between them in the Timor Sea” — but that details would remain confidential until the deal was finalised.

Arbitration began last year and the talks, hosted by Denmark, resulted in a deal on Aug 30.

The countries agreed to establish a special regime for the Greater Sunrise field, paving the way for its development and the sharing of the resulting revenue, the court said in a statement.

“Until all issues are resolved, the details of the Parties’ agreement will remain confidential,” the statement said.

“Nevertheless, the Parties agree that the agreement reached on 30 August 2017 marks a significant milestone in relations between them and in the historic friendship between the peoples of Timor-Leste [East Timor] and Australia.”

The leader of East Timor’s delegation, chief negotiator and former President Xanana Gusmao, hailed the agreement as a historic moment which would mark the beginning of “a new era in Timor-Leste’s friendship with Australia”.

“I thank the Commission for its resolve and skill in bringing the Parties together, through a long and at times difficult process, to help us achieve our dream of full sovereignty and to finally settle our maritime boundaries with Australia,” Mr Gusmao said.

East Timor, a former Portuguese colony, has struggled to develop as an independent nation since a violent break from occupying forces from Indonesia in 1999.

as reserves, once claimed by Australia, is a key to its economic future.

The long-running political dispute has led the owners of the Greater Sunrise fields — Woodside Petroleum, ConocoPhillips, Royal Dutch Shell and Japan’s Osaka Gas — to shelve the project.

The existing maritime boundary is aligned with Australia’s continental shelf, but East Timor has long argued that the border should lie precisely half way between its coastline and Australia’s.

Australia had previously resisted renegotiating a permanent border but under pressure from the United Nations has agreed to enter talks with East Timor.

Having reached an agreement, the two countries will continue to meet with the commission in order to finalise talks in October.