Sydney – The Australian government announced on Thursday that it had granted seven new licences to explore oil in the Sea of Timor.

Australian Minister for Resources, Warwick Parer, said that the new licences, granted to local and foreign oil companies, would lead to an expected investment of more than US$88 million during the next six years. Three of the licences are located in the area known as Timor Gap, an area being jointly explored by Indonesia and Australia.

Portugal has challenged the agreement entitled Timor Gap Treaty, signed in 1989 between Jakarta and Australia and allowing both countries to explore the resources in the area.

Indonesia invaded East Timor in 1975 and annexed it one year later but the United Nations still regards Portugal as the territory's administering power.