East Timor Sunrise gas field’s new majority owner

THE controversial Woodside-operated Sunrise gas field has a new majority owner — East Timor

Map of the Sunrise gas field joint development area. Picture: Supplied

THE controversial Woodside-operated Sunrise gas field has a new majority owner — East Timor.

The Timor-Leste government has completed the purchase of controlling equity in the Sunrise gas field from Shell and ConocoPhillips with its national oil company Timor Gap completing the deal to pay $490 million to ConocoPhillips for its 30 per cent stake. This adds to the $420 million Shell got for a 26.6 per cent interest.

Japan’s Osaka Gas owns a 10 per cent stake and Woodside Petroleum Limited is a 33 per cent shareholder.

ConocoPhillips said it was pleased to finally complete the transaction with the government of Timor-Leste.

“ConocoPhillips recognises the importance of the Greater Sunrise Fields to the nation of Timor Leste, and this sale gives them a significant working interest in this important development.” executive vice- president and chief operating officer Matt Fox said.

The Sunrise and Troubadour gas and condensate fields, known as the Greater Sunrise fields, are about 150km southeast of Timor-Leste and 450km northwest of Darwin.

They have remained undeveloped for almost two decades due to a dispute between the joint venture that wanted the gas to flow to an LNG plant in Darwin and the Timor-Leste government which has always wanted the development on its shores.

It has long been argued that the Timor-Leste government’s insistence that the gas resource be developed through a new LNG plant built on its southern coast, is technically and financially unfeasible. It would require a costly pipeline across the Timor Trench as well as the new multibillion-dollar LNG plant.

However the Timor-Leste government says the plan is crucial to its national saying it will bring wealth, skilled jobs and development to the fledgling nation. It is paying for engineering work for a south coast LNG plant and pipeline to prepare for front-end engineering in 2020.

The Australian Government has said it recognises the development of Greater Sunrise is crucial to Timor-Leste’s development and prosperity.

It says Australia wants to see Greater Sunrise developed in a way that maximises benefits and opportunities for the people of Timor-Leste.