East Timor drops bugging claims against Australia to help resolve maritime border dispute
The East Timor government claimed the espionage gave Australia an unfair advantage in negotiations over the Certain Maritime Arrangements in the Timor Sea (Cmats), which divides future revenue from the tens of billions of dollars worth of oil and gas that lie beneath the sea.
In a joint statement issued on Tuesday by the East Timor and Australian governments, the two countries confirmed East Timor had withdrawn from Cmats and the treaty would cease to operate from 10 April this year.
As the final in a series of “confidence-building measures”, East Timor agreed to withdraw two arbitration cases before the permanent court of arbitration (PCA) in The Hague: the “espionage case” and a second arbitration concerning jurisdiction of a gas pipeline from Bayu-Undan to Darwin.
The dispute over the Timor Sea – more precisely the lucrative oil fields beneath the sea – has pre-empted and then overshadowed the short and chequered history between independent East Timor and Australia.