Australia, East Timor promise to supercharge stalled gas project

Australia and East Timor have pledged to develop a long-stalled gas project as soon as possible under a new agreement that further cements Australia’s position as the Pacific’s preferred security partner.

Prime Minister Anthony Albanese and his counterpart Xanana Gusmao announced the “new partnership for a new era” — or Parseria Foun ba Era Foun — in Dili on Wednesday afternoon after being greeted by hundreds of children.

The comprehensive agreement commits both sides to ongoing cooperation, consultation and mutual respect for sovereignty while strengthening defence, policing and economic ties.

“A new partnership for a new era, elevating the friendship between Timor Leste and Australia to a new level, the first of its kind between our two nations,” Mr Albanese said.

“We live in uncertain times with a lot of turbulence around the world. We are reliable partners and we can cooperate in the development of the vision that we both share for a peaceful, stable and prosperous region.”

In a joint statement, the leaders said their countries “share an ambition for Greater Sunrise to be developed as soon as possible”, after the negotiations over the gas fields have dragged on for years.

A maritime boundary treaty was finally struck in 2019 but the companies involved in the project have stalled over where to process the gas.

“Guided by the same spirit of friendship and cooperation in which we agreed the treaty and facilitated the Sunrise Joint Venture’s carrying out of the historic independent concept study in 2024, Australia and Timor-Leste commit to working closely together and with the Sunrise Joint Venture in good faith to develop an ambitious timeline,” the leaders said.

For years, East Timor has pushed for gas from the project in the Timor Sea to be processed on the country’s south coast. But the companies behind the development have, until recently, insisted it would be cheaper to process in Australia.

After their talks on Wednesday, the two leaders said in their statement that “Australia acknowledges Timor-Leste’s commitment to onshore processing” and would support “any commercially viable solution to develop Greater Sunrise proposed by the Sunrise Joint Venture”.

Mr Gusmao told reporters that he’d impressed on Mr Albanese the importance of gas from the project being processed onshore in East Timor.

“This is essential for our national development . . . (the) development of Greater Sunrise will provide jobs and opportunities for young Timorese to gain skills and participate in emerging industries,” he said.

Negotiations over the maritime boundary treaty were marred after it emerged that Australian spy agencies had bugged Timorese government offices in 2004 to gain an upper hand in talks.

Under the new partnership, the number of Timorese working in Australia will increase from 5000 to 10,000 over the next two years.

Australia will also increase to $20 million the funding it is providing East Timor for technical support and building the capability underpinning it becoming ASEAN’s newest member nation.

The leaders have also agreed to stronger cooperation between defence, policing, border security and cybersecurity agencies.

Two new programs, one private sector and one humanitarian development, will improve the quality and reach of health, education and disability services in East Timor.