Ahead of historic meeting with Southeast Asian leaders, Australia cuts boundary deal with East Timor – RTÉ World Report

JAKARTA — East Timor is a tiny country, with a land area around the same as the North of Ireland and a population of 1.3 million people. Its existing oil and gas reserves will be depleted in less than a decade, and with little sign of growth in other parts of the economy, it badly needs this deal with Australia How much money it ends up getting will depend on fluctuating oil and gas prices and on what subsequent deal is worked out to extract and process the underwater oil and gas. The companies with rights to drill in the field have floated, pun intended, the idea of a floating platform in the Timor Sea to process the gas there. But Australia wants to pipe to Darwin and use existing facilities, which would mean an 80% revenue cut for East Timor. The Timorese want pipe to East Timor and process there, giving a Dili 70% revenue cut but potentially allowing the Timorese to develop spin-off industries that could modernise its economy.