New production sharing contracts (PSC's) for the disputed Timor Sea area were being drawn up in Australia 'as he spoke' said East Timor's Chief Minister, Dr Mari Alkatiri.

He said they were being finalised "in Australia by East Timor."

"They are based on world best practises for gas developments', Dr Alkatiri said at the inaugural gas to liquids conference in Perth yesterday.

He said that the disputed sea bed boundary was also of concern to him and on the agenda, but was some time off and his priority was to finalise the gas related agreements before moving on.

He said however that his main priority as Chief Minister was to provide health and a secure economy for his people.

He was looking forward to his country's economy to rise from A$63 million dollars to A$2.5 billion dollars per annum, primarily through hydrocarbon royalties.

The corporate tax rate in East Timor is currently in excess of 44% and 90% of the revenue from gas projects in the disputed area is proposed to be channeled though the fledgling economy.

Dr Alkatiri was speaking in Perth on the way to the Commonwealth Heads of Government meeting in Brisbane.