Timor-Leste’s acquisition of Woodside stake key to advancing Greater Sunrise

DÍLI, 10 November 2026 (TATOLI) – Timor-Leste’s planned US$200 million acquisition of a 33.44% stake in the Greater Sunrise gas project from Australian energy company Woodside follows nearly seven years of negotiations aimed at safeguarding the country’s interests and advancing development of the offshore resource, Prime Minister Xanana Gusmão has said.

Speaking on the second day of parliamentary discussions on the proposed 2027 General State Budget (GSB), Xanana said the Government had spent years negotiating with Australia and Woodside to ensure Greater Sunrise gas would be piped to Timor-Leste’s southern coast for processing, rather than being sent to Darwin, Australia.

He said the Government had consistently maintained that developing the gas project on Timor-Leste’s southern coast would generate greater economic benefits, create employment opportunities and support the country’s long-term development.

During the conciliation process with Australia, Timor-Leste presented technical studies to demonstrate the feasibility of its proposed development model. The Conciliation Commission also requested both parties to provide evidence of their financial capacity to develop the project.

However, Xanana questioned the quality of the technical documentation submitted by Woodside, arguing that it did not contain sufficient studies on the proposed development of Greater Sunrise.

“When we examined Woodside’s report, we found no studies on Greater Sunrise,” he said.

He said Timor-Leste’s technical assessments had provided stronger grounds for the country’s position, helping convince the Conciliation Commission to give serious consideration to its proposed development model.

Xanana also disclosed that the Government had stepped up pressure on Woodside by informing the company, before September, that Timor-Leste would not renew its agreement concerning Greater Sunrise unless an understanding was reached on the project’s future.

He said the decision strengthened Timor-Leste’s negotiating position and helped accelerate discussions, eventually prompting Woodside to proceed with the transfer of its participating interest.

The Prime Minister added that Timor-Leste had undertaken several offshore technical studies to demonstrate its ability to develop the gas field independently.

The Government is targeting 2034 for the commencement of Greater Sunrise operations, he said.

Kuda Tasi and Jahal production expected in 2028

Turning to the Kuda Tasi and Jahal offshore oil and gas fields, Xanana said construction was expected to begin in 2027, with production scheduled to start in 2028.

He acknowledged that revenues generated during the initial stages could be relatively modest, as part of the proceeds would be used to recover previous investments, including expenditure on technical assessments and project preparations.

Beyond generating petroleum revenues, Xanana stressed the need to strengthen Timor-Leste’s domestic technical capacity by training young people and local professionals to take on increasingly important roles in managing the country’s oil and gas industry.

He said Timor-Leste should draw lessons from countries that had successfully developed the technical expertise and institutional capacity needed to manage their petroleum resources.

The Prime Minister also emphasised that the economic benefits of petroleum projects should extend beyond government revenues and reach communities in areas surrounding the developments.

He said local businesses and communities should have opportunities to benefit through employment, the provision of services and the sale of locally produced goods.

“Indirect benefits are very important,” he said.

Timor-Leste’s state-owned oil company, Timor GAP, and Woodside formalised the transfer of Woodside’s 33.44% participating interest in the Greater Sunrise project on 27 October, marking a significant step towards increasing the country’s ownership of the offshore development.

Journalist: Afonso do Rosário
Editor: Isaura Lemos de Deus
Translation: Filomeno Martins