Treaty on Certain Maritime Arrangements in the Timor Sea
Encyclopedia
Officially known as the Treaty between Australia and the Democratic Republic of Timor-Leste on Certain Maritime Arrangements in the Timor Sea (CMATS), the treaty provides for the equal distribution of revenue derived from the disputed Greater Sunrise oil and gas field between Australia
and East Timor
. The field is located in the Timor Gap
where Australia and East Timor have overlapping claims over the continental shelf or seabed. Prior to the treaty, East Timor would only have received about 18% of the revenue from the field.
CMATS also puts on hold the right by both countries to claim sovereign rights, discuss maritime boundaries or engage in any legal process in relation to maritime boundaries or territorial jurisdiction for 50 years which is the duration the treaty is in effect.
CMATS is one of three treaties concerning the exploitation of gas and petroleum in the Timor Gap and is to be "read together" with the other two treaties, namely the Timor Sea Treaty
of 2002 and the Sunrise International Unitization Agreement
(Sunrise UIA) of 2003.
CMATS was signed in Sydney on January 12, 2006 by Australian Foreign Affairs Minister Alexander Downer
and his East Timorese counterpart Jose Ramos-Horta. It came into force on February 23, 2007 with the exchange of notes in Dili
, East Timor
. The East Timor parliament had ratified the treaty while Alexander Downer invoked the national interest exemption to fast-track ratification at the Australian Parliament.
of their respective maritime
boundaries. It will also not amount to a renunciation of any right or claims.
for the period CMATS is in force. Both countries will also not start any proceedings against the other before any court on issues related to maritime boundaries or delimitation in the Timor Sea. Furthermore, no court proceedings involving the countries shall decide or comment on anything related to maritime boundaries or delimitation and any such comment or finding shall be of no effect and shall not be relied upon at any time. Neither country shall also pursue in any matters related to maritime boundaries or delimitationinternational organisation.
This "postponement" on settling the question of sovereignty over the seabed is aimed at providing stability for the legal regime governing the exploitation of the Greater Sunrise field and removing the "petroleum factor" once the two countries get down to settling their maritime boundaries.
page). East Timor had not granted any such activity as it had not attained independence at the said date. The state of domestic legislation on the said date was confirmed by two side letters, one from Jose Ramos-Horta confirming East Timor's position, and the other from Alexander Downer confirming Australia's position. This has been argued to be unfair to East Timor as it legitimises Australia's exploitation of petroleum in the disputed areas outside the Joint Petroleum Development Area established under the Timor Sea Treaty.
Af for the method of payment, Australia is to pay East Timor half the total revenue earned by itself and East Timor less the amount of revenue earned by East Timor. On the event East Timor's revenue exceeds that of Australia, no payment will be made by East Timor but subsequent payments by Australia to East Timor shall be adjusted accordingly.
Each party can request the appointment of an assessor to determine the amount of revenue earned by either country.
and any future agreement drawn up pursuant to the Timor Sea Treaty. CMATS however does not revoke the Timor Sea Treaty or the Sunrise IUA.
East Timor's parliament ratified the treaty on February 20, 2007. CMATS was tabled in the Australian parliament on the first sitting day of 2007 on February 6, 2007 and on February 22, 2007, just before the exchange of notes with East Timor, Minister for Foreign Affairs Alexander Downer wrote to inform the parliament's Joint Standing Committee on Treaties of his decision to invoke the national interest exemption, to speed up ratification of the treaty by not first referring it to the Joint Committee.
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and East Timor
East Timor
The Democratic Republic of Timor-Leste, commonly known as East Timor , is a state in Southeast Asia. It comprises the eastern half of the island of Timor, the nearby islands of Atauro and Jaco, and Oecusse, an exclave on the northwestern side of the island, within Indonesian West Timor...
. The field is located in the Timor Gap
Timor Gap
The Timor Gap is often used to refer to an area of ocean between Timor, Indonesia and Australia. In actuality, it refers to a gap in a seabed boundary which Australia and Indonesia negotiated in 1972 – the part of the line they could not define because, Portugal, who governed East Timor, declined...
where Australia and East Timor have overlapping claims over the continental shelf or seabed. Prior to the treaty, East Timor would only have received about 18% of the revenue from the field.
CMATS also puts on hold the right by both countries to claim sovereign rights, discuss maritime boundaries or engage in any legal process in relation to maritime boundaries or territorial jurisdiction for 50 years which is the duration the treaty is in effect.
CMATS is one of three treaties concerning the exploitation of gas and petroleum in the Timor Gap and is to be "read together" with the other two treaties, namely the Timor Sea Treaty
Timor Sea Treaty
Formally known as the Timor Sea Treaty between the Government of East Timor and the Government of Australia was signed between Australia and East Timor in Dili, East Timor on May 20, 2002, the day East Timor attained its independence from United Nations rule, for joint petroleum exploration of the...
of 2002 and the Sunrise International Unitization Agreement
Sunrise International Unitization Agreement
This agreement is officially known as the Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to the Unitisation of the Sunrise and Troubadour Fields....
(Sunrise UIA) of 2003.
CMATS was signed in Sydney on January 12, 2006 by Australian Foreign Affairs Minister Alexander Downer
Alexander Downer
Alexander John Gosse Downer is a former Australian Liberal Party politician who was Foreign Minister of Australia from March 1996 to December 2007, the longest-serving in Australian history...
and his East Timorese counterpart Jose Ramos-Horta. It came into force on February 23, 2007 with the exchange of notes in Dili
Dili
Dili, spelled Díli in Portuguese, is the capital, largest city, chief port and commercial centre of East Timor.-Geography and Administration:Dili lies on the northern coast of Timor island, the easternmost of the Lesser Sunda Islands....
, East Timor
East Timor
The Democratic Republic of Timor-Leste, commonly known as East Timor , is a state in Southeast Asia. It comprises the eastern half of the island of Timor, the nearby islands of Atauro and Jaco, and Oecusse, an exclave on the northwestern side of the island, within Indonesian West Timor...
. The East Timor parliament had ratified the treaty while Alexander Downer invoked the national interest exemption to fast-track ratification at the Australian Parliament.
Without prejudice to the final settlement of borders
CMATS will not prejudice or affect Timor-Leste’s or Australia’s legal position or legal rights to the delimitationBoundary delimitation
Boundary delimitation, or simply delimitation, is the term used to describe the drawing of boundaries, but is most often used to describe the drawing of electoral boundaries, specifically those of precincts, states, counties or other municipalities...
of their respective maritime
Ocean
An ocean is a major body of saline water, and a principal component of the hydrosphere. Approximately 71% of the Earth's surface is covered by ocean, a continuous body of water that is customarily divided into several principal oceans and smaller seas.More than half of this area is over 3,000...
boundaries. It will also not amount to a renunciation of any right or claims.
Treaty duration
The treaty replaces Article 22 of the Timor Sea Treaty, making its validity period the same as CMATS's, which is until 2057. The Timor Sea Treaty can however be renewed by the agreement of both parties.Moratorium
Both parties will not "assert, pursue or further by any means in relation to the other party" its claims to sovereign rights, jurisdiction and maritime boundariesBorder
Borders define geographic boundaries of political entities or legal jurisdictions, such as governments, sovereign states, federated states and other subnational entities. Some borders—such as a state's internal administrative borders, or inter-state borders within the Schengen Area—are open and...
for the period CMATS is in force. Both countries will also not start any proceedings against the other before any court on issues related to maritime boundaries or delimitation in the Timor Sea. Furthermore, no court proceedings involving the countries shall decide or comment on anything related to maritime boundaries or delimitation and any such comment or finding shall be of no effect and shall not be relied upon at any time. Neither country shall also pursue in any matters related to maritime boundaries or delimitationinternational organisation.
This "postponement" on settling the question of sovereignty over the seabed is aimed at providing stability for the legal regime governing the exploitation of the Greater Sunrise field and removing the "petroleum factor" once the two countries get down to settling their maritime boundaries.
Existing petroleum exploitation to continue
Under CMATS, both countries can continue with petroleum exploitation activities in areas in which had been authorised by its domestic legislation on 19 May 2002. This is taken to allow Australia to continue with petroleum exploration and exploitation activities in the Laminaria-Coralina and other fields it claims to be located in its territorial waters as a result of the Agreement between the Government of the Commonwealth of Australia and the Government of the Republic of Indonesia Establishing Certain Seabed Boundaries in the Area of the Timor and Arafura Seas, Supplementary to the Agreement of 18 May 1971 (See Australia-Indonesia borderAustralia-Indonesia border
The Australia–Indonesia border is a maritime boundary running west from the two countries' tripoint maritime boundary with Papua New Guinea in the western entrance to the Torres Straits through the Arafura Sea and Timor Sea and terminating in the Indian Ocean...
page). East Timor had not granted any such activity as it had not attained independence at the said date. The state of domestic legislation on the said date was confirmed by two side letters, one from Jose Ramos-Horta confirming East Timor's position, and the other from Alexander Downer confirming Australia's position. This has been argued to be unfair to East Timor as it legitimises Australia's exploitation of petroleum in the disputed areas outside the Joint Petroleum Development Area established under the Timor Sea Treaty.
Timor Sea Treaty terms stay
The terms of the Joint Petroleum Development Area established under the Timor Sea Treaty will continue to be applied over the said area.Negotiations for permanent boundaries
Both parties are not obliged to negotiate permanent maritime boundaries for the period of the treaty.Division of Greater Sunrise' revenues
Both countries will share the upstream (valued as at oil well) revenue from the Greater Sunrise field on a 50:50 basis. The upstream value of the petroleum shall be determined at "arm's length" basis. The increase in East Timor's share on the proceeds from Greater Sunrise from 18.1% to 50% could be said to be the result of pressure based on East Timor's argument that the field was located closer to it than Australia and should therefore belong to it, a stand which is used by those who say a 50% share is still not adequate for East Timor.Af for the method of payment, Australia is to pay East Timor half the total revenue earned by itself and East Timor less the amount of revenue earned by East Timor. On the event East Timor's revenue exceeds that of Australia, no payment will be made by East Timor but subsequent payments by Australia to East Timor shall be adjusted accordingly.
Each party can request the appointment of an assessor to determine the amount of revenue earned by either country.
Treaties governing petroleum resources exploitation
All obligations related to exploring and exploiting for petroleum by Australia and East Timor for the duration of CMATS shall be governed by CMATS, Timor Sea Treaty, Sunrise International Unitization AgreementSunrise International Unitization Agreement
This agreement is officially known as the Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to the Unitisation of the Sunrise and Troubadour Fields....
and any future agreement drawn up pursuant to the Timor Sea Treaty. CMATS however does not revoke the Timor Sea Treaty or the Sunrise IUA.
Water column jurisdiction
East Timor shall have "sovereign rights" over the water column north of the southern border of the Joint Petroleum Development Area established under the Timor Sea Treaty while Australia gains "sovereign rights" over the water column south of the line. The coordinates of the line is determined in Annex II of the treaty.| Point | Longtitude (E) | Latitutde (S) |
|---|---|---|
| Water column jurisdiction line in Annex II | ||
| 1 | 126° 31' 58.4" | 11° 20' 02.9" |
| 2 | 126° 47' 08.4" | 11° 19' 40.9" |
| 3 | 126° 57' 11.4" | 11° 17' 30.9" |
| 4 | 126° 58' 17.4" | 11° 17' 24.9" |
| 5 | 127° 31' 37.4" | 11° 14' 18.9" |
| 6 | 127° 47' 08.4" | 10° 55' 20.8" |
| 7 | 127° 48' 49.4" | 10° 53' 36.8" |
| 8 | 127° 59' 20.4" | 10° 43' 37.8" |
| 9 | 128° 12' 28.4" | 10° 29' 11.8" |
Timor-Leste/Australia Maritime Commission
A Maritime Commission comprising one minister each appointed by the two countries. The commission should meet at least once a year.No further re-apportionment of Greater Sunrise revenue
The parties agree not to re-determine the apportionment ratio of the Greater Sunrise field for the period the treaty is in force.Duration of CMATS
CMATS shall remain in force for 50 years after its entry into force, which was on February 22 2057, or five years after the exploitation of the Greater Sunrise field ceases, whichever earlier. CMATS will be terminated if a development plan for the Greater Sunrise field is not approved within six years after its entry into force, or if production of petroleum from the field does not commence within 10 years after the date of entry into force of this Treaty. Should petroleum production take place in the Greater Sunrise field after the termination of CMATS, all the terms of this treaty shall come back into force and operate from the date of commencement of production.Entry into force
CMATS will enter into force after an exchange of notes by both parties that their respective parliaments have ratified the treaty. The exchange of notes occurred on February 23, 2007.East Timor's parliament ratified the treaty on February 20, 2007. CMATS was tabled in the Australian parliament on the first sitting day of 2007 on February 6, 2007 and on February 22, 2007, just before the exchange of notes with East Timor, Minister for Foreign Affairs Alexander Downer wrote to inform the parliament's Joint Standing Committee on Treaties of his decision to invoke the national interest exemption, to speed up ratification of the treaty by not first referring it to the Joint Committee.
See also
- Sunrise International Unitization AgreementSunrise International Unitization AgreementThis agreement is officially known as the Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to the Unitisation of the Sunrise and Troubadour Fields....
- Timor GapTimor GapThe Timor Gap is often used to refer to an area of ocean between Timor, Indonesia and Australia. In actuality, it refers to a gap in a seabed boundary which Australia and Indonesia negotiated in 1972 – the part of the line they could not define because, Portugal, who governed East Timor, declined...
- Timor Gap TreatyTimor Gap TreatyOfficially known as the 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, the Timor Gap Treaty is a treaty between the governments of Australia and Indonesia...
- Timor Sea TreatyTimor Sea TreatyFormally known as the Timor Sea Treaty between the Government of East Timor and the Government of Australia was signed between Australia and East Timor in Dili, East Timor on May 20, 2002, the day East Timor attained its independence from United Nations rule, for joint petroleum exploration of the...