1. The Government of Australia and the Government of the Democratic Republic of East Timor, reinforcing their wish to cooperate in the development of the petroleum resources of the Timor Sea in accordance with the Timor Sea Treaty ("the Treaty"), will work expeditiously and in good faith to conclude an international unitisation agreement ("the Agreement") for certain petroleum deposits in the Timor Sea known as Greater Sunrise by 31 December 2002.

2. The conclusion of the Agreement is without prejudice to the early entry into force of the Treaty, and is without prejudice to the agreement recorded in paragraph 9 of the 20 May 2002 Exchange of Notes between the Government of Australia and the Government of the Democratic Republic of East Timor which states that the Treaty is suitable for immediate submission to their respective treaty approval processes and that the parties will work expeditiously and in good faith to satisfy their respective requirements for the entry into force of the Treaty.

3. This Memorandum of Understanding will enter into effect upon signature.

Signed at Dili on the twentieth day of May 2002

For the Government of Australia	For the Government of the Democratic Republic of East Timor
John Howard (Prime Minister)	Mari Alkatiri (Prime Minister)

(The Sunrise IUA Agreement was negotiated and signed on 6 March 2003.)