Gel Wilson – Australian officials expect talks on a maritime boundary between Australia and East Timor to be "long and intricate".

The issue is a major test of Australia's relations with the new country, with ownership of oil and gas reserves worth billions of dollars at stake.

Foreign Minister Alexander Downer and East Timor president Jose Ramos Horta agreed on a starting date of November 10 during discussions last month Australian officials do not expect a quick outcome. "This story is going to be around for a while. The talks are going to be long and intricate," one official said.

East Timor has been pressing Australia to establish a maritime boundary since before its independence in May last year. It argues existing boundaries are irrelevant, because they are based on agreements Australia struck with Indonesia in the 1970s and 1980s.

Agreements covering the $US3 billion development of the Bayu Undan gas reserves and the potential development of the Greater Sunrise reservoirs are regarded as temporary by East Timor.

East Timor's parliament passed a maritime boundaries law in July last year claiming a 200 nautical mile exclusive economic zone.

In March last year Australia gave formal notice it was withdrawing from international legal mechanisms to resolve boundary issues.