Australia and East Timor had a multi billion dollar oil and gas treaty and this multi billion dollar treaty is now at the threat of being abandoned based on spying claims by Australia.
Both Australia and East Timor issued a joint statement on Monday 9 Jan 2017 declaring the deal to be dead, just over four months after East Timor took the unprecedented step to demand confidential conciliation talks with Australia at The Hague.
Relations between the neighbours have been strained since it was revealed in 2013 Australian spies bugged the cabinet office of the East Timor government in Dili during negotiations for the 2006 treaty. There have been tense relationships since 2013 where no Australian minister has visited East Timor after the spying claims first became public. Also Australia was also subject to a special order by the International Court of Justice to cease all spying against its neighbour. Australia also unsuccessfully sought to challenge the jurisdiction of the international commission at the Permanent Court of Arbitration at The Hague to hear East Timor’s complaint.
East Timor now believes the bulk of the resources fall within its territory. A previous treaty will still remain in force and is worth up to $40 billion.
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