FRETILIN welcomes the purchase of Woodside’s stake in Greater Sunrise Project
DÍLI, 28 October 2026 (TATOLI) – The Revolutionary Front for an Independent Timor-Leste (FRETILIN) welcomes the announcement that the Australian Woodside Energy and Timor-Leste’s Timor GAP have struck an agreement to sell its 33.44% stake in the development of the Greater Sunrise oil and gas field.
“This acquisition places Timor-Leste in a stronger position with regards to the development of Greater Sunrise field and it is consistent with the demand I have personally made as Prime Minister in the First Constitutional Government since January 2006 that as a matter of justice, the pipeline for Greater Sunrise should come to Timor-Leste since the Bayu Undan has been piped to Australia,” Secretary General of FRETILIN, Mari Alkatiri said in a statement.
“When this agreement is finalised, coupled with the earlier agreement for the purchase of Osaka Gas Australia’s 10% Stake, Timor GAP will own 100% participation in the project. 100% stake means 100% responsibility, but this does not imply that Timor-Leste is now the sole decision maker in the development of Greater Sunrise field.” Alkatiri explained.
The 2018 Maritime Boundary Treaty between Timor-Leste and Australia, particularly the Greater Sunrise Special Regime under Annex B established that any decision on the development of the Greater Sunrise field is subject to the approval of institutional arrangements constituted by the treaty representing both countries through the designated Authority and the Governance Board whose decision is by consensus.
FRETILIN’s members of parliament voted against the inclusion of this provision in the maritime boundary treaty in 2018, arguing that commercial interests such as the split of resources and their development should be addressed in a separate agreement as its inclusion in the maritime boundary treaty does not serve the best interest of Timor-Leste.
“We have come to see how the argument of FRETILIN is now vindicated in that even though Timor GAP is the sole holder of interests with 100% stake in the Greater Sunrise, it does not hold the sole power to decide on the development of the field,” he said.
“Timor-Leste has been able to finance its development thanks to the Petroleum Fund, which was established by the FRETILIN led First Constitutional Government in 2006. However, the country has finite natural resources and financial resources, which have to be used responsibly,” the Former Prime Minister warned.
“Due to the absence of attention to sustainable economic development in the last two decades, despite relatively abundance financial resources and the peaceful environment, Timor-Leste is now facing a real danger of running into fiscal cliff,” the Secretary General of FRETILIN said. “100% participation means 100% responsibility which include financing of the field’s development. But it is imperative for the government to be wise in utilising the financial resources to avoid the Greater Sunrise being a burden and curse. It has to be a bless for Timor-Leste!” Alkatiri concludes.
FRETILIN is of the view that it is the right time for the government to engage all stakeholders to ensure Greater Sunrise serves as the cornerstone for economic diversification to bring about sustainable development and that it is not turned into a mere electoral commodity.
TIMOR GAP, Timor-Leste’s national oil and gas company, on Tuesday (27/10), signed a sale and purchase agreement with Woodside Energy Ltd to acquire Woodside’s entire participating interest in the Greater Sunrise fields in the Timor Sea.
Under the Agreement, TIMOR GAP will acquire all of Woodside’s interests in Retention Lease NT/RL2, Retention Lease NT/RL4, and Production Sharing Contracts JPDA 03-19 and JPDA 03-20. On completion, TIMOR GAP will hold 100% of the participating interests in the Greater Sunrise project.
The transaction values Woodside’s Greater Sunrise interests for a total consideration of US$ 200 million, payable at different stages of the project: Base Consideration of US$ 13.71 million, payable at Completion, FID Contingent Consideration of US$ 11.29 million, payable within thirty (30) days of that FID being made; and, a Production Contingent Consideration of US$ 175 million, payable within three hundred and sixty-five (365) days of commencement of loading of the first cargo of such liquefied natural gas which is ultimately for sale to a customer, in accordance with the terms of the Agreement.
The move follows a similar agreement in September, when Osaka Gas agreed to sell its 10% stake in the joint venture to TIMOR GAP.
Once both transactions are finalised, TIMOR GAP would take full control of the asset by securing Woodside Energy’s 33.44% stake and Osaka Gas’s 10% interest.
Completion of the transaction is subject to satisfaction of conditions precedent, including relevant government, regulatory and joint venture approvals, with completion targeted to occur in H1 2027.
TATOLI
