Multi-Billion Dollar Suit Filed

An American company that is claiming a stake in the Timor Sea energy reserves has filed a suit against the Australian and Indonesian governments as well as the US energy giant ConocoPhillips.

Oceanic Exploration and its subsidiary Petrotimor today filed a suit in the US District Court that could amount to more than $US30 billion.

The claim is made largely under the RICO (Racketeer Influenced and Corrupt Organisations) Act and alleges a pattern of corrupt behaviour by CononcoPhillips over the past 30 years.

It also alleges complicity of the Australian and Indonesian governments.

Petrotimor and Oceanic Exploration claim the Portuguese rulers of East Timor granted them exploration rights over the Timor Gap before Portugal abandoned the colony in 1974. Indonesia invaded East Timor and took control in 1975.

Australia struck a deal with Indonesia in 1989 to share Timor Sea energy reserves with the signing of Timor Gap Treaty. Australia then signed a new treaty with East Timor following its independence in 2002.

ConocoPhillips intends to pipe Timor Gap gas to Darwin.

Petrotimor is claiming actual damages of $US10.5 billion ($A13.6 billion).

A US court could certainly up the amount of damages awarded if the case under the RICO Act is indeed proved.