Australia signs new Timor Gap treaty
The Australian government has signed a new treaty with the United Nations Transitional Authority in East Timor for the disposition of gas reserves in the Timor Sea.
The Byun Undan Gas Recycling Development Plan, believed to be worth $2 billion, involves a consortium of six companies from Australia, Britain, Japan and the United States. The consortium will explore for liquid gas, mainly propane and butane, in the Timor Gap.
The agreement was reached after the Indonesian government allowed East Timor to participate in the deal. In 1989, the Indonesian and Australian governments signed the Timor Gap Treaty which divided oil and gas reserves between themselves.