The Australian and East Timor governments are embroiled in an oil and gas controversy involving the pipeline to Darwin from the Bayu Undan gas field.

Foreign Minister Julie Bishop and Attorney-General George Brandis issued a statement on Friday saying Australia will vigorously defend legal action initiated by the government of East Timor which disputes Australia's right to tax the pipeline.

They say the treaty that covers the project states: "A pipeline landing in East Timor shall be under the jurisdiction of East Timor. A pipeline landing in Australia shall be under the jurisdiction of Australia."

The field is in the Joint Petroleum Development Area. The government of East Timor is being sought for comment.

Source: https://au.news.yahoo.com/thewest/wa/a/29638531/australia-east-timor-in-gas-pipeline-row/