The package, that includes adaptions to Timor-Leste’s Petroleum Activities Law, Petroleum Fund Law, Tax Law and two laws regulating the taxation of the Bayu-Undan field exploration and specificities of the labor and migratory regime of the exploitation of Bayu-Undan, were approved 42 in favour and 23 opposed.

In a pointed statement after the vote, Agio Pereira, the Minister of State of the Presidency of the Council of Ministers and Acting Minister of Petroleum and Minerals, said that the ratification of the Treaty, as well as the approval of the four bills would “finally enable Timor-Leste to achieve full sovereignty in the Timor Sea.”

“An important step not only in ensuring independence and integrity as well as to guarantee economic independence,” Pereira said. 

He stressed that this Treaty would “allow the development of various sectors of activity, the creation of new jobs, the development of infrastructure and will foster investment and economic diversification."

He further noted that “the entry into force of the Treaty will allow the collection of 100% of the proceeds from future exploitation of the Buffalo Fields and parts of the Laminaria and Coralina Fields licenses” and that “the Greater Sunrise Agreement is an integral part of the Treaty”.

Sources close to Dili have said the treaty will be officially ratified by an exchange of diplomatic notes when Australia’s Prime Minister visits Timor-Leste on August 30, the 20th anniversary of Timor-Leste independence from Indonesia.
Under the treaty, Timor-Leste will get the biggest share of revenue from exploiting the Greater Sunrise gas field in the Timor Sea. It will be split either 80-20 if gas is piped to Australia for processing or 70-30 if it is piped to Timor-Leste.