FED: Timor Gap oil set to provide modest income for new nation

AAP General News (Australia)
12-09-1999
FED: Timor Gap oil set to provide modest income for new nation

A federal parliamentary committee has been told Timor Gap oil is likely to provide
only a few million dollars a year for the new and destitute nation of East Timor.

But the committee has also heard that East Timor could eventually approach economic
self-sufficiency through a thriving trade in cattle, coffee and other crops.

MICHAEL POTTS, first assistant secretary for international organisations at the Department
of Foreign Affairs and Trade, says the Timor Gap has just one small oil field producing
revenue of about $3-5 million a year.

He says that amount - after costs - is divided equally between Australia and Indonesia.

Mr POTTS says a new field is coming on line and could produce oil worth tens of millions
of dollars by 2003-2005.

AAP RTV mb/mfh/msk/rp

KEYWORD: TIMOR GAP (CANBERRA)

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