Woodside Energy has agreed to sell its 33.44% participating interest in the Greater Sunrise gas project in the Timor Sea to Timor-Leste's national oil and gas company TIMOR GAP for up to $200 million, paving the way for the latter to consolidate ownership of the development.
The agreement covers Woodside's entire interest in the Sunrise Joint Venture, including Retention Leases NT/RL2 and NT/RL4 and Production Sharing Contracts JPDA 03-19 and JPDA 03-20, the companies announced on October 27.
TIMOR GAP currently holds a 56.56% interest in the joint venture and signed an agreement in September 2026 to acquire Osaka Gas' remaining 10% stake, subject to relevant conditions.
The completion of both acquisitions would give TIMOR GAP full ownership of the Greater Sunrise project, which it plans to develop through a pipeline to Natarbora on the southern coast of Timor-Leste.
Under the agreement with Woodside, TIMOR GAP will pay $13.71 million upon completion of the transaction, with a further $11.29 million due within 30 days of a final investment decision (FID) on the LNG development.
The remaining $175 million is contingent on production and will become payable within 365 days of the commencement of loading of the first LNG cargo produced from the project for sale to a customer.
The initial payment is also subject to a post-completion adjustment for cash calls and working capital between the transaction's effective date of November 1, 2026, and its completion.
Woodside expects the transaction to close in the first half of 2027, subject to government, regulatory and joint venture approvals, as well as other customary conditions.
TIMOR GAP Targets Development on Timor-Leste's Southern Coast
The Greater Sunrise project comprises the Sunrise and Troubadour gas and condensate fields, located approximately 150 kilometers southeast of Timor-Leste and 450 kilometers northwest of Darwin in Australia's Northern Territory.
TIMOR GAP intends to accelerate the development of the fields and advance the selection of the Timor LNG development concept, with plans to bring the gas ashore on Timor-Leste's southern coast.
“We are now in a stronger position than ever to expedite the development of Greater Sunrise and advance the selection of the Timor LNG development concept, bringing us closer to realizing our nation’s long-standing aspiration of developing Greater Sunrise on Timor-Leste’s southern coast,” said Rui Soares, President and CEO of TIMOR GAP.
The agreement follows progress towards a new fiscal, regulatory and legal framework for Greater Sunrise, including alignment on key principles underpinning a new production sharing contract and associated fiscal framework in August 2026.
Woodside, which has been working with the governments of Timor-Leste and Australia, TIMOR GAP and Osaka Gas on the project's development, will no longer hold a participating interest in the joint venture following completion of the sale.
“While Sunrise remains a high-quality resource, the transaction further simplifies Woodside's portfolio and allows capital and management attention to be focused on opportunities that present the greatest shareholder value,” said Woodside CEO Liz Westcott.
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week
