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- Woodside exits Sunrise after decades of debate
- Offloading the Greater Sunrise fields to TIMOR GAP for $200 million
- Project delayed due to its remoteness and political debate between Australia and Timor-Leste
- TIMOR GAP aiming to ramp-up development
Woodside Energy Group (ASX: WDS) has entered into an agreement with Timor-Leste’s state-owned TIMOR GAP to sell its participating interest in the Sunrise Joint Venture, including the titles containing the Greater Sunrise fields, for total consideration of up to $200 million.
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The Sunrise and Troubadour gas and condensate fields were discovered in 1974 in the Timor Sea, about 150 km south of Timor-Leste and 450 km north-west of Darwin.
Big enough to be focus of a significant LNG development, the project has been delayed due to its remoteness and political debate between Australia and Timor-Leste.
Woodside CEO, Liz Westcott, said the transaction reflects Woodside’s disciplined approach to portfolio management and capital allocation.
“Greater Sunrise has been an important part of Woodside’s portfolio for many years and we recognise the project has the potential to deliver long-term economic and energy security benefits for Timor-Leste and the region.
“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.
“Woodside has worked closely with the governments of Timor-Leste and Australia, TIMOR GAP and Osaka Gas to advance Greater Sunrise, including the proposed new fiscal, regulatory and legal framework required to support its future development.
“Reaching alignment on the key principles underpinning a new Greater Sunrise Production Sharing Contract and associated fiscal framework in August provides an appropriate point for Woodside to sell its participating interest to TIMOR GAP.
“We are committed to working constructively with TIMOR GAP, Osaka Gas and the Governments of Timor- Leste and Australia to support an orderly transition and preserve the progress made towards the future development of Greater Sunrise.”
The agreement also provides for a scenario where the new Greater Sunrise production sharing contract contemplated in the Treaty between the Democratic Republic of Timor-Leste and Australia Establishing Their Maritime Boundaries in the Timor Sea becomes effective prior to completion of the transaction.
This comprises US$13.71 million payable on completion of the transaction, US$11.29 million payable following an affirmative Final Investment Decision in relation to the development of resources in the Greater Sunrise Special Regime Area for the purpose of producing LNG, and US$175 million payable within 365 days of the commencement of loading of the first LNG cargo produced from petroleum from the Greater Sunrise Special Regime Area which is for sale.
TIMOR GAP holds a 56.56% interest in the Sunrise Joint Venture and announced on 2 September 2026 that it had entered into an agreement with Osaka Gas to acquire Osaka Gas’ 10% interest in the Sunrise Joint Venture subject to satisfaction of relevant conditions precedent.
WDS was down 2.88% to $32.23. Mkt cap $63.07B.
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