Australia – Timor Leste
JDA14@AUTL
Asia
A. Treaty between Australia and the Republic of Indonesia on the Zone of Cooperation in an Area between the Indonesian Province of East Timor and Northern Australia. 1989
[JDA14@AUTL#1A Australia-Indonesia Treaty on ZOCA 1989]
B. Timor Sea Treaty between the Government of East Timor and the Government of Australia. 2002
[JDA14@AUTL#1B Timor Sea Treaty 2002]
C. The government of Australia and the Government of the Democratic Republic of Timor-Leste Relating to the Unitisation of the Sunrise and Trans boundary Fields 2003
[JDA14@AUTL#1C Agmt on Unitisation of Sunrise Troubadour 2003]
D. Treaty between Australia and the Democratic Republic of Timor-Leste on Certain Maritime Arrangements in the Timor Sea (CMATS) 2006
[JDA14@AUTL#1D CMATS Treaty 2006]
E. Treaty between Australia and the Democratic Republic of Timor-Leste establishing their Maritime Boundaries in the Timor Sea (6 March 2018)
[JDA14@AUTL#1E Treaty establishing Maritime Boundaries in Timor Sea 2018]
Map Source: https://www.scmp.com/news/asia/southeast-asia/article/2060508/australia-and-timor-leste-negotiate-permanent-maritime
Signature and Implementation Dates:
A. Signed December 11 1989
B. Signed 20 May 2002; entry into force: 2 April 2003, Terminated on 30 August 2019
C. Signed on 6th March 2003 and came into force on 23rd February 2007
D. Adopted 12 January 2006
E. Adopted 6 March 2018
Maritime Border Defined
Joint Authority / Unitization for certain fields
Summary:
Prior to the independence of Timor-Leste in 2002, In 1989, Australia and Indonesia established a ‘Zone of Cooperation’ JDA for the overlapping claims in the Timor Sea. Australia and the Indonesian-occupied province. The Zone of Cooperation was divided into three sections; Area A was subject to ‘joint control and equal sharing of the benefits of hydrocarbon exploitation. Areas B and C were subject to Australia and Indonesia, respectively, and each had to pay the other 10% of the tax revenues collected from its assigned area.
After independence, the 1989 treaty was replaced by the 2002 Timor Gap treaty which established a Joint Petroleum Development Area (JPDA) in what was Area A of the ZOCA. The revenue split was changed to 90% Timor-Leste / 10% Australia within the JPDA. Areas B and C were eliminated.
that is coextensive with Area A. The subsequent 2018 treaty appointed the designated authority to develop the undeveloped Sunrise gas field, revenues split percentages depending on development path chosen.
For the past 20 years, gas and condensate from the JDA has been processed into LNG at the Darwin LNG plant.
Split:
1989:
A Zone of Cooperation is hereby designated in an area between the Indonesian Province of East Timor and northern Australia, which comprises Areas A, B and C. Oil and gas revenue shared on a 50/50 basis in a central area, and a 90/10 revenue split in favour of Indonesia to the north and Australia to the south of the central area
<From JDA14@AUTL#1A [2][4]>
2002
Treaty defines this area of the seabed between Australia and East Timor, as the Joint Petroleum Development Area (JPDA). The revenue … from oil and gas production in the JPDA will be shared in the proportions of 90:10 East Timor to Australia. Australia’s and East Timor’s title to all petroleum
produced in the JPDA, as well as any costs involved in the Treaty, will be 10 % for Australia and 90% for East Timor.
<From JDA14@AUTL#1B [12][13]>
2018
The Parties shall share upstream revenue, meaning revenue derived directly from the upstream exploitation of Petroleum produced in the Greater Sunrise Fields: (a) in the ratio of 30 per cent to Australia and 70 per cent to Timor-Leste in the event that the Greater Sunrise Fields are developed by means of a Pipeline to Timor-Leste; or (b) in the ratio of 20 per cent to Australia and 80 per cent to Timor-Leste in the event that the Greater Sunrise Fields are developed by means of a Pipeline to Australia.
<From JDA14@AUTL#1E [Annex B(2)]>
Governance:
1989:
The Joint Authority shall have juridical personality and such legal capacities under the law of both Contracting States as are necessary for the exercise of its powers and the performance of its functions. In particular, the Joint Authority shall have the capacity to contract, to acquire and dispose of movable and immovable property and to institute and be party to legal proceedings.
<From JDA14@AUTL#1A [7]>
2002
The Joint Commission shall consist of commissioners appointed by Australia and East Timor. The commission will have one more commissioner appointed by East Timor than by Australia (Article 6(c)(i)). The Joint Commission will establish policies and regulations for petroleum activities in the JPDA and oversee the work of the Designated Authority, a listing of more detailed powers and functions of the Joint Commission is set out in Annex D to the Treaty.
The treaty provides in Annex E that the Greater Sunrise field be unitised on the basis that 20.1 percent of it lies in the JPDA and 79.9 percent is attributed to Australia.
<From JDA14@AUTL#1B [22] [26]>
2003
A Sunrise Commission (“the Commission”) shall be established for the purpose of facilitating the implementation of this Agreement and shall consult on issues relating to exploration and exploitation of petroleum in the Unit Area.
<From JDA14@AUTL#1C [9]>
2018
The Parties hereby establish the Greater Sunrise Special Regime. Within the Special Regime Area, the Parties shall jointly exercise their rights as coastal States pursuant to Article 77 of the Convention. The governance and exercise of jurisdiction within the Special Regime Area is as set out in the Greater Sunrise Special Regime.
The Designated Authority shall be responsible for carrying out the day-to-day regulation and management of Petroleum Activities in the Special Regime Area.
Other References:
Australian Parliamentary Analysis of Timor Sea Treaty (2002)
JDA14@AUTL#1B Timor Sea Treaty Analysis 2002
<JDA institute Locator><Original Source>
Australian Parliamentary Analysis of Treaty establishing Maritime Boundaries in Timor Sea (2018)
JDA14@AUTL#1E Treaty establishing Maritime Boundaries in Timor Sea 2018 - Parliamentary Analysis
<JDA institute Locator><Original Source>
Ong, David M., 'The New Timor Sea Arrangement 2001: Is Joint Development of Common Offshore Oil and Gas Deposits Mandated under International Law?' (2002) 17(1) International Journal of Marine & Coastal Law 79
Kingsbury, Damien, 'Woodside gas deal could redraw Australia-East Timor borders'
JDA14#AUTL#4 Kingsbury - Timor Aust JDA issues 2013
Implementation Agreements Source Locators:
A JDA Institute Locator ; Original Source
B. JDA Institute Locator ; Original Source
C. JDA Institute Locator ; Original Source