The former president of East Timor says Australia is arguing for an "unsustainable" maritime border as it would include sovereignty of his country if it was strictly followed.
The ongoing conciliation over a maritime border between Australia and East Timor should give a result based on a halfway point rather than a continental shelf boundary, East Timor former president Jose Ramos-Horta told an event in Sydney on Sunday.
East Timor notified Australia in January that it wished to tear up a 2006 treaty which split 50-50 future revenue of the Greater Sunrise oil and gas reserves in the Timor Sea.
The reserve contains gas and oil worth an estimated $50 billion but how the share of the spoils will be divided up must now be revisited.
"If Australia insists on the continental shelf claim, then it would claim Timor-Leste or vice-versa," Dr Ramos-Horta said at a lecture in Balmain.
"We would leave Tasmania alone, they have very nice people there ... we would provide them significant development assistance," he said.
The East Timor government wanted a fair outcome for all, Dr Ramos-Horta said.
"We simply call for a just result."
Opposition infrastructure minister Anthony Albanese said East Timor should get a fair share of oil and gas in the region and it could still work out well for both sides.
"This could be a win-win for Australia and the East-Timorese and that should be what we're looking for," Mr Albanese told journalists.
Australia had previously defended the rights of East Timor but other actions surrounding the negotiations were something to be less proud of, including allegations Australia spied on East Timorese officials, he said.
"Good neighbours treat the less powerful in a positive way - we have obligations to the East Timorese to treat them fairly."
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