Mending Ties: Australia, Timor-Leste sign historic maritime border treaty

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Australia and Timor Leste have reached a historic agreement over a longtime maritime border dispute. The agreement will give both countries a share of the profits from gas and oil reserves in the Timor Sea worth billions of dollars. Greg Navarro has more.

Smiles and praise dominated a signing ceremony at the UN in New York this week between leaders from Australia and Timor Leste.

JULIE BISHOP AUSTRALIAN FOREIGN AFFAIRS MINISTER "This treaty reflects a new chapter in Australia-Timor-Leste relations. Congratulations to all involved in this process."

But the question over who can lay claim to the gas and oil rich Timor Sea has been the centre of a contentious, long running dispute. Australia had argued for a boundary that gave it control over much of the resource reserves.

Tom Clarke: "For many years the Australian government simply refused to negotiate permanent boundaries, we unilaterally depleted fields that were a lot closer to East Timor than Australia."

The UN Conciliation Commission brokered a first of its kind agreement that recognises the rights of both nations and establishes a maritime boundary along the median point between the two countries.

AGIO PEREIRA TIMOR-LESTE DEPUTY MINISTER OF THE PRIME MINISTER "We were, I must confess, reluctant to be the test case. Nevertheless, we were advised by the leading experts in international law that this was our one and only recourse."

The agreement will give Timor Leste a greater share of the profits from those resource reserves estimated to be worth billions of dollars.

GREG NAVARRO SYDNEY "The biggest prize in all of this what's known as the Greater Sunrise Basin, which is estimated to hold more than $50 billion in untapped gas reserves."

JULIE BISHOP AUSTRALIAN FOREIGN AFFAIRS MINISTER "We know this resource is crucial to Timor-Leste's development."

Experts say regardless of questions over Australia's past actions in the Timor Sea, the two countries share a historical bond.

PROF. DONALD ROTHWELL COLLEGE OF LAW, AUSTRALIAN NATIONAL UNIV. "Without Australian intervention in East Timor in 1999, We may not have an independent East Timor now so the military intervention was pivotal in East Timor becoming an independent state."

While the two nations have agreed to split profits, there is still no agreement as to where the oil and gas will be processed which experts say could hamper future negotiations. Greg Navarro, CGTN, Sydney.