Ian Macfarlane (Groom, Liberal Party, Minister for Industry, Tourism and Resources) Share this | Hansard source

I thank all honourable members who have contributed to this debate on the Offshore Petroleum Amendment (Greater Sunrise) Bill 2007 and the Customs Tariff Amendment (Greater Sunrise) Bill 2007. Some of those contributions I agree with; some of those contributions I disagree with. I am not going to take the time of the House to go through them, but from what I have heard there is strong support for the passage of these bills from both sides of the House.

I also thank those members of the opposition who have supported the Offshore Petroleum Amendment (Greater Sunrise) Bill 2007 and the Customs Tariff Amendment (Greater Sunrise) Bill 2007. The bills implement an agreement between Australia and Timor-Leste to develop and commercialise the Sunrise and Troubadour petroleum fields in the Timor Sea as a single unit. These fields, collectively known as the Greater Sunrise petroleum resource, straddle the border between the Joint Petroleum Development Area, established by the Timor Sea Treaty, and an area of Australian jurisdiction.

The policy on this issue was fully debated and agreed to for incorporation into the Petroleum (Submerged Lands) Act 1967, the Customs Tariff Act 1995 and other related acts of 2004. These bills ensure that the same details are incorporated into the Offshore Petroleum Act 2006, the Customs Act 1995 and the consequential amendments to other acts. The legislative framework for the unit development of the Greater Sunrise field provides for investor certainty, which is a necessary precondition for the development of this resource.

Development of the Greater Sunrise field will provide substantial benefits for both Australia and Timor-Leste. From development will flow investment, exports, employment and revenue. It can also be expected to enhance the Timor Sea as a destination for exploration activity, to the benefit of both nations, particularly Timor-Leste. The development of the Greater Sunrise field will further build on the success of the cooperative arrangements that Australia has with Timor-Leste. The Bayu-Undan field within the Joint Petroleum Development Area is generating revenue for both Timor-Leste and Australia, with gas being piped to a liquefied natural gas plant near Darwin.

The credentials of Australia and Timor-Leste to act in cooperation were established with the ratification of the Timor Sea Treaty, which governs the development of the resources of the Joint Petroleum Development Area. Now that they have been ratified by both countries, the Greater Sunrise unitisation agreement and the more recent treaty on certain maritime arrangements in the Timor Sea—the CMATS treaty—will further consolidate these credentials.

The Australian government is pleased to honour its agreement with Timor-Leste by making legislative provisions for the Greater Sunrise unitisation agreement’s implementation. The CMATS treaty does not require the introduction of legislation. The government looks forward to continuing its cooperative and mutually beneficial relationships with Timor-Leste. The bills continue Australia’s commitment to the unitisation of the Greater Sunrise resource. I look forward to the day when Australia and Timor-Leste can announce the commencement of petroleum production from Greater Sunrise. I thank the honourable members for their support of these bills and I commend the bills.

Question agreed to.

Bill read a second time.

Ordered that the bill be reported to the House without amendment.

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