Max Lane
On March 24, the Senate resumed debate of the Greater Sunrise Unitisation Bill 2004, a bill to allow for the implementation of the Greater Sunrise International Unitisation Agreement that the East Timorese government was pressured to sign last year. The IUA covers how government revenues from the Greater Sunrise gas field are to be calculated.
The Greater Sunrise field — expected to generate $10 billion in government revenues over the project's life — lies to the north of the median line between East Timor and Australia and the tax revenues from it should belong entirely to East Timor. But the Australian government refuses to recognise the half-way line as a border and claims sovereignty over 82% of the field.
The East Timorese parliament is refusing to ratify the agreement until it is satisfied that Canberra is willing to negotiate in good faith on the issue of the border.
If the bill is enacted, the Howard government will be able to increase pressure on the East Timorese parliament to ratify the agreement.
A consortium of companies — consisting of Woodside Petroleum, ConocoPhillips, Shell and Osaka Gas — has invested $200 million in the project. Canberra claims the consortium is unwilling to proceed with further large-scale investment, estimated at $7 billion, until the East Timorese parliament ratifies the agreement.
During debate on March 24, Democrat Senator Natasha Stott Despoja introduced an amendment to condemn the Howard government's withdrawal from the United Nations Convention on the Law of the Sea and cases relating to maritime boundaries before the International Court of Justice. This amendment was lost, with the Democrat and Greens senators voting for it and Coalition and ALP senators voting against.
The amendment also called for all government revenues collected from the Greater Sunrise project to be kept in trust until the dispute between Australia and East Timor over the maritime boundary is settled. This amendment was also lost, with Coalition and Labor senators voting against.
"Here we have the fraudulent, coercive theft of the one great resource this new, poor neighbour of ours has to develop its future and to secure its future", Greens Senator Bob Brown said during the debate on the bill.
Senator Kim Carr justified Labor senators support for the bill by claiming that East Timorese Prime Minister Mari Alkatiri had indicated in private conversations with ALP shadow foreign minister Kevin Rudd that he had no problems with Labor MPs supporting the bill.
However, in a statement issued on March 26, Alkatiri said: "'I clearly voiced my concerns regarding the IUA bill, and consider that the Australian actions and statements in regard to the IUA undermine the prospects for its approval by the East Timor national parliament. These actions are the unilateral issuance of licences, by Australia, in an area of the Greater Sunrise field described as a disputed area in the text of the IUA. There are Australian statements that claim that this area is an area of 'sole Australian jurisdiction'. This is categorically incorrect."
Alkatiri added: "There is widespread lack of support for the IUA in East Timor. The facts that Australia is issuing licenses in disputed areas; has not committed to a time frame to determine our maritime boundaries; claims to have insufficient resources to enter into more than bi-annual meetings to negotiate our boundaries; has withdrawn from the International Court of Justice on maritime boundaries and continues to exploit the Laminaria, Corallina and Buffalo oil fields which lie in an area of sea claimed by East Timor and which are nearing the end of their lives despite our official objections, does not help East Timor's trust in Australia to abide by any legally binding agreement entered into. If permanent maritime boundaries were agreed expeditiously and in accordance with international law, many of these issues would dissolve."
The debate on the bill will resume on March 29.
From Green Left Weekly, March 31, 2004.
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