Timor-Leste plans to pay up to US$200 million for Woodside Energy's stake in the Greater Sunrise gas project, Prime Minister Xanana Gusmão told parliament on Tuesday, in a deal that would put one of Asia's largest undeveloped offshore gas resources under full Timorese ownership.

Gusmão confirmed the plan during debate on the proposed 2027 General State Budget, saying the government would pay US$200 million for Woodside's 33.44 per cent interest in the Sunrise Joint Venture. State-owned TIMOR GAP and the Australian energy company formalised the stake transfer on 27 October.

Staged payments tied to development

Most of the money will only change hands if the long-delayed project is actually built. TIMOR GAP will pay US$13.71 million when the sale completes, with a further US$11.29 million due within 30 days of a positive final investment decision on a liquefied natural gas development. The remaining US$175 million falls due within 365 days of the first LNG cargo being loaded for sale.

The transaction carries an effective date of 1 November 2026 and is targeted to complete in the first half of 2027, subject to government, regulatory and joint venture approvals. Woodside will then exit the Sunrise Joint Venture entirely.

Path to full ownership

TIMOR GAP already holds a 56.56 per cent interest in the joint venture. On 2 September it also agreed to buy Osaka Gas's 10 per cent stake, subject to conditions. Completing both purchases would give the state company full ownership of Greater Sunrise, which it plans to develop through a pipeline to Natarbora on Timor-Leste's southern coast.

The Sunrise and Troubadour fields, collectively known as Greater Sunrise, lie about 150 kilometres south-east of Timor-Leste and 450 kilometres north-west of Darwin. They are estimated to hold 5.1 trillion cubic feet of gas and 226 million barrels of condensate.

Construction timetable set out

Gusmão also told parliament that construction at the Kuda Tasi and Jahal offshore oil and gas fields was expected to start in 2027, followed by production in 2028. Operations at Greater Sunrise are targeted for 2034.

Woodside chief executive Liz Westcott has said the sale followed collaboration with Timor-Leste, Australia, TIMOR GAP and Osaka Gas on the project, including a proposed new fiscal and legal framework. For Timor-Leste, Asia's smallest economy, Greater Sunrise has been a national priority for decades: the fields were discovered in 1974 and have never produced, while successive governments have argued over whether the gas should be piped to Timor-Leste or to Australia.

That dispute is now effectively settled in Dili's favour if the sales complete. The remaining test is whether TIMOR GAP can finance and deliver a development that has defeated every previous attempt to bring it into production.