Timor-Leste government spokesperson Agio Pereira said in a statement on Thursday the government disagreed with Australia's assertion that it has absolute and exclusive jurisdictional rights, including taxation rights, over the entire length of a petroleum export pipeline, including into the Joint Petroleum Development Area shared by the two countries.

“Australia’s claim would deny Timor-Leste any jurisdictional rights relating to this pipeline or activities relating to this pipeline,” Pereira said.,

“This is inconsistent with the text and purpose of the (Timor Sea) Treaty and is not supported by any negotiating or other documents that have been brought to light, in particular as it pertains to jurisdiction within the Joint Petroleum Development Area.”

As a result of the impasse, Pereira said the government believed the...