JAKARTA (TheInsiderStories) – Indonesia government will observe the newly signed border agreement between Australia and East Timor on Tuesday (6/3) and ensure that the agreement will not affect Indonesia’s maritime rights under 1982 United Nations Convention on the Law of the Sea.

The agreement between the Democratic Republic of Timor Leste and Australia on the Maritime Zones of the Timor Sea Through the Conciliation Commission, under the mechanism under the 1982 Sea Law Convention was signed in New York, U.S.A.

“The Government of Indonesia welcomes the action of peace under the 1982 Sea Law Convention in finalizing the maritime border between the two countries. We will observe periodically,” said Foreign Ministry spokesman Arrmanatha Christiawan Nasir in an official statement.

Australia and East Timor have signed a treaty ending a long-running dispute over their maritime border, a move which could unlock billions of dollars in revenues from offshore oil and gas. The two countries also agreed on a revenue-sharing mechanism from the giant offshore gas field “Greater Sunrise”.

Australia and East Timor sign treaty on maritime border. (Photo: special)

Under the agreement, Timor Leste will receive a larger share of revenues than Australia depending on the concept of developing as much as 70 per cent of revenue if the gas is channeled to the country or 80 per cent if channeled to Australia for processing.

The treaty was signed at the United Nations headquarters in New York by the Australian Foreign Minister Julie Bishop and East Timor’s Deputy Prime Minister Agio Pereira.

Greater Sunrise discovered in 1974 has made a profit of around $40 to $50 billion. The offshore oil field is located 150 kilometers southeast of East Timor and 450 kilometers northwest of Darwin.

Minister for Border Affairs of Timor Leste, Hermenegildo Augusto Cabral Pereira, said the development of gas fields through a pipeline that will reach the southern coast of the country will become a game changer.

Such a project would provide a “transformational impact” on the country’s socioeconomic environment, of which 65 per cent of the 1.5 million population is “young job-seekers,” Pereira said.

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