Timor Sea oil, gas deal to be signed. 12/01/2006. ABC News Online

Australia and East Timor will today officially sign a deal on the development of oil and gas reserves in the Timor Sea.

The two countries reached agreement last month after two years of often bitter negotiations.

Any negotiations on maritime boundaries will be postponed for up to 50 years under the deal to allow oil and gas development projects to go ahead.

Foreign Affairs Minister Alexander Downer says he believes the agreement is fair for both countries.

"There will be a moratorium on any claims against the boundaries as they are constituted," he said.

"And that's a good thing from our point of view and a good thing from East Timor's point of view, in that they'll get a substantial additional flow of revenue, over and above what they get from the joint development area once the Greater Sunrise field is exploited."

Mr Downer says he was not going to approve an agreement that was not in Australia's interests.

"I always make the point as the Australian Foreign Minister, I vigorously stand up for Australia," he said.

"I'm a very, very proud Australian and it's not my job to stand up for other countries.

"On the other hand, I think we've been generous to East Timor so I think financially they do pretty well out of it."