Treaty on Certain Maritime Arrangements in the Timor Sea

Officially called the Treaty between Australia and the Democratic Republic of Timor-Leste on Certain Maritime Arrangements in the Timor Sea (CMATS), the treaty provides for the equal distribution of revenue derived from the disputed Greater Sunrise oil and gas field between Australia and East Timor. The field is located in the Timor Gap where Australia and East Timor have overlapping claims over the continental shelf or seabed. Prior to the treaty, East Timor would only have received about 18% of the revenue from the field.

CMATS also puts on hold the right by both countries to claim sovereign rights, discuss maritime boundaries or engage in any legal process in relation to maritime boundaries or territorial jurisdiction for 50 years which is the duration the treaty is in effect. CMATS is one of three treaties concerning the exploitation of gas and petroleum in the Timor Gap and is to be "read together" with the other two treaties, namely the Timor Sea Treaty of 2002 and the Sunrise International Unitization Agreement (Sunrise UIA) of 2003.

CMATS was signed in Sydney on January 12, 2006 by Australian Foreign Affairs Minister Alexander Downer and his East Timorese counterpart José Ramos-Horta. It came into force on February 23, 2007 with the exchange of notes in Dili, East Timor. The East Timor parliament had ratified the treaty while Alexander Downer invoked the national interest exemption to fast-track ratification at the Australian Parliament.

The Treaty is now the subject of an action by East Timor before the Permanent Court of Arbitration in the Hague as a result of the Australia-East Timor spying scandal. Hearings commence on 29 August 2016.

CMATS will not prejudice or affect Timor-Leste’s or Australia’s legal position or legal rights to the delimitation of their respective maritime boundaries. It will also not amount to a renunciation of any right or claims.

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