May 28, 2003

OILING THE WHEELS (see also Bleating Hearts)

Prime Minister Mari Alkatiri explains Dili's position on oil - and corruption to Eric Ellis


Q Have all outstanding obstacles concerning the Bayu Undan field been resolved? Can production go ahead?

A Agreement [with Australia] has been reached but we still need parliament to ratify. I approved everything with Conoco-Phillips [the developer] last week. I am sure it will be passed. Everybody's always pushing us to go faster but we are doing our best.

Q Is your position on sea boundaries around the Greater Sunrise field non-negotiable?

A Our position is clear. We claim 100% of what we think is ours but we also recognise there are overlapping claims and we need to negotiate them immediately for a stable regime. But what we think is our sovereign right we will never give up.

Q Is Australia bullying you on Greater Sunrise?

A Australia is one of the major contributors in this country, and we thank the Australian government, but business is business. They know me very well and they know I never give up when I think it's the right of my people.

Q How will the oil and gas royalties be handled fiscally?

A We will set up an independent fund, which can only be spent with the approval of the parliament. But even we think we will need an independent body to monitor this, with appropriate checks and balances. I have full power to do anything I like but I am governing to create a very solid state, with a transparent system.

Q People are complaining of rising corruption...

A I challenge anybody to prove that there is corruption within the system. There are rumours [but] there is no corruption, for sure.