East Timor, a country located in Southeast Asia has vast natural resources of petroleum.
East Timor petroleum if exploited properly can earn huge revenues for the country, and can help in the economic development of the country which can further contribute to the country's all-round progress.
East Timor petroleum has vast reserves in sea. In the year 1989 when East Timor was under Indonesian rule a treaty was signed between Indonesia and Australia called Timor Gap Treaty which formed guidelines for exploitation of petroleum resources from the bed of the Timor Sea. The revenue sharing was kept 50% between both the parties. Now when East Timor has gained independence revenue sharing has become an issue between it and Australia.
East Timor being one of the poorest nations of the world has its hope resting on petroleum reserves. It is estimated that petroleum and natural gas resources under the sea are worth US $30 billion. Australia takes a lion's share of 72% revenue from petroleum lying in Timor sea. Moreover the petroleum fields are nearer to East Timor than to Australia. The major oil fields are:
- Greater Sunrise
- Buffalo
- Carolina
- Laminaria
- Bayu Undan
Negotiations are going on to solve the dispute of revenue sharing between Australia and East Timor.
