Aust hypocritical on sea disputes: Gusmao

East Timor's former leader Xanana Gusmao has attacked Australia for hypocrisy over maritime boundary disputes.

The two nations are at loggerheads over plans to develop the Greater Sunrise gas field in the Timor Sea.

In a speech to the Australian National University in Canberra on Monday Mr Gusmao seized on comments former foreign minister Bob Carr made during the same lecture three years ago.

Mr Carr had encouraged countries involved in the South China Sea maritime boundary dispute to pursue their territorial claims and accompanying maritime rights in accordance with international law.

"Australia's demand of other nations, to do what Australia itself refuses to do, rings hollow," Mr Gusmao said.

"We know that the great nation of Australia is better than this."

He hopes Australia can engage in good faith on the matter.

The former guerilla fighter, 68, who has served as president or prime minister since East Timor became independent in 2002, in February took up a new post as planning and strategic investment minister.

His country's ties with Australia have been strained by a legal dispute over a 2006 treaty that carves up revenue from oil and gas 50:50.

Australia has been accused of spying in order to gain an advantage during the negotiations over the treaty and East Timor took the matter to the International Court of Justice.

Negotiations have since restarted.

Australian resource company Woodside in February walked away from plans to develop the multi-billion dollar reserves citing regulatory and fiscal uncertainty.