Nigel Wilson – Last-minute negotiations are taking place on arrangements between Australia and East Timor that could result in legislation implementing the Timor Sea Treaty being introduced into Parliament either today or tomorrow.

Parliament is expected to pass the legislation within two days under emergency procedures similar to those used to beef up immigration controls 18 months ago.

Negotiations on the international unitisation agreement covering the Sunrise reservoirs in the Timor Sea hit a road block last week when East Timor's prime minister Mari Alkitiri demanded an equitable share of the revenues from petroleum developments.

He implied that Australia's negotiating tactics were penalising East Timor and would restrict its capacity to be economically independent of Australian aid.

Australia has demanded the unitisation agreement be concluded before Federal Parliament ratifies the treaty.

Ratification is a pre-condition for two Japanese power utilities completing contracts for the supply of $20 billion worth of liquefied natural gas from the Bayu Undan reservoirs.

Sources yesterday used the legal phrase "largely agreed" to describe the status of negotiations but suggested the final haggling was over the amount of money that East Timor would receive from any development of the Greater Sunrise reservoirs. Owners Woodside, ConocoPhillips, Shell and Osaka Gas, are considering a $5 billion export development using the world's first floating LNG production facility.

It is understood the government is planning to introduce a package of bills covering amendments to taxation, customs, crimes at sea, and the petroleum submerged lands legislation will be affected by the treaty that was ratified by the East Timor Parliament on December 17.