(WO) – Woodside will exit the long-stalled Greater Sunrise gas fields in the Timor Sea, agreeing to sell its 33.44% unitized participating interest in the Sunrise Joint Venture to Timor-Leste national oil company TIMOR GAP for up to $200 million, most of it contingent on the project reaching first LNG.
The deal covers the titles holding the Greater Sunrise fields: retention leases NT/RL2 and NT/RL4 and production sharing contracts JPDA 03-19 and JPDA 03-20. Woodside said the transaction carries an effective date of Nov. 1, 2026, and is targeted to complete in the first half of 2027, subject to government, regulatory and joint venture approvals.
Payment is staged against development milestones. TIMOR GAP will pay $13.71 million at completion, subject to adjustment for cash calls and working capital from the effective date, and $11.29 million after a positive final investment decision on an LNG development of the Greater Sunrise Special Regime Area. The bulk, $175 million, falls due within 365 days of the first LNG cargo being loaded from the development. Woodside therefore books only $25 million unless the project is sanctioned and built.
TIMOR GAP already holds 56.56% of the joint venture and announced on Sept. 2 an agreement to buy Osaka Gas’s 10% interest, subject to conditions. If both transactions close, the Timor-Leste state company would control the fields outright, leaving the choice of development concept, including the long-disputed question of where gas would be processed, with Timor-Leste.
Woodside CEO Liz Westcott said the sale reflects the company’s discipline on portfolio management and capital allocation, and that it simplifies the portfolio so capital and management time can go to the opportunities with the best shareholder returns. She called Sunrise a high-quality resource with potential long-term economic and energy-security benefits for Timor-Leste and the region.
Westcott said Woodside had worked with the governments of Timor-Leste and Australia, TIMOR GAP and Osaka Gas on a new fiscal, regulatory and legal framework for the fields. Agreement in August on the key principles of a new Greater Sunrise production sharing contract and its fiscal terms, she said, made this an appropriate point to hand over the interest. Woodside has committed to supporting an orderly transition.
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