Foreign minister, Mr Alexander Downer, said the two countries would soon appoint ambassadors. He hoped the move would enhance business, cultural and community links.

With its partners, ENI-Agip, Hardman Resources, Fusion Oil and Gas and Roc Oil, a $100 million exploration program is planned for early in the new year. Estimates suggest there are between 100 million and 180 million barrels of oil as well as natural gas in the area.

In other Woodside news, the company awarded British IT company, Logica, a two-year, five million dollar outsourcing technology contract which replaces three current service providers.