Canberra – Australia's treatment of East Timor over oil and gas revenues has been compared to the actions of the late disgraced businessman Christopher Skase.

Melbourne businessman Ian Melrose has funded television advertisements, which will air over the Easter weekend, criticising Australia's position on talks with East Timor over sea boundaries.

East Timor has argued that the permanent boundary of the section of Timor Sea known as the joint petroleum development area should be midway between the two countries.

This would hand the struggling nation most of the sea's oil and gas resources, to which it is entitled under international law, proponents say.

But Australia says the boundary should be at the edge of the continental shelf which puts the line much closer to Timor and gives Australia many of the known resources.

Mr Melrose said the situation was similar to that of Mr Skase, who died in Spain in 2001. Mr Skase fled Australia without facing court in 1991 when his business collapsed with personal debts of $170 million and corporate debts of $1.7 billion.

"Christopher Skase stole money and then refused to come back to Australia to face the courts," Mr Melrose said. "The Australian government has stolen oil and gas royalties and is now refusing to obey international law and face the courts."

Mr Melrose said the ads marked the anniversary of the government's decision to withdraw from the International Court of Justice (ICJ). "Permanent maritime boundaries established in accordance with current international law would see billions of dollars worth of oil and gas revenue flow to East Timor, the poorest country in Asia," he said.

A second ad, also to air this week, compares the Australian government withdrawing from the the ICJ, to a person withdrawing recognition from a local court to avoid paying parking fines.