Woodside, one of the largest Australian energy companies, has recently reached an agreement to sell its entire 33.44% stake in the Greater Sunrise gas project to the state-owned TIMOR GAP in Timor-Leste for a maximum amount of $200 million. This agreement could place one of the largest inactive offshore gas resources in the region under full Timorese ownership.
Financial details of the agreement
Under this deal, TIMOR GAP will pay Woodside $13.71 million upon completion of the transaction, with an additional $11.29 million to be paid after a final investment decision is made. This agreement represents significant changes in the ownership structure of gas resources in the region.
Project background and challenges
The Sunrise and Troubadour fields, collectively known as Greater Sunrise, are located about 150 kilometers southeast of Timor-Leste and 450 kilometers northwest of Darwin. It is estimated that this project contains 5.1 trillion cubic feet of gas and 226 million barrels of condensate. However, the project has remained undeveloped for decades due to disputes over processing facility locations and the commercial viability of competing development concepts.
CEO of TIMOR GAP, Rui Soares, stated that consolidating ownership could accelerate project development and the selection of Timor's LNG concept. Meanwhile, Woodside's CEO, Liz Westcott, described the sale as a reflection of the company's approach to portfolio management and capital allocation.
Future outlook
The recent agreement between Woodside and TIMOR GAP could bolster Timor-Leste's efforts to establish a domestic LNG industry and contribute to the economic development of the country. Given the significant gas resources available in the region, this project could play a vital role in energy supply and economic growth for Timor.
Overall, this agreement not only aids in changing the ownership structure of gas resources in Timor-Leste but could also be seen as a milestone in Timor's efforts to create sustainable and independent energy industries.
