Government aims to advance offshore gas development and expand domestic economic opportunities.
Timor-Leste’s planned US$200 million acquisition of a 33.44% participating interest in the Greater Sunrise gas project from Australian energy company Woodside followed nearly seven years of negotiations aimed at securing the country’s interests and advancing offshore petroleum development. Prime Minister Kay Rala Xanana Gusmão outlined the Government’s position on 10 November 2026 during parliamentary discussions on the proposed 2027 General State Budget (GSB) in Dili, highlighting plans to process the gas on Timor-Leste’s southern coast rather than transport it to Darwin, Australia.
Speaking on the second day of the budget discussions, Prime Minister Xanana said the Government had consistently advocated for a development model that would deliver greater economic benefits to Timor-Leste, generate employment and contribute to long-term national development.
During the conciliation process with Australia, Timor-Leste submitted technical studies to demonstrate the feasibility of processing the gas domestically. The Conciliation Commission also requested both parties to provide evidence of their financial capacity to develop the project. However, the Prime Minister questioned the technical documentation submitted by Woodside, stating that it lacked sufficient studies on the proposed development.
“When we examined Woodside’s report, we found no studies on Greater Sunrise,” he said.
Prime Minister Xanana added that Timor-Leste had strengthened its negotiating position by informing Woodside, before September 2026, that the Government would not renew its agreement concerning Greater Sunrise without an understanding on the project’s future. He said this decision accelerated discussions and encouraged the transfer of Woodside’s participating interest.
The Government also conducted offshore technical assessments to demonstrate its capacity to develop the gas field independently, with operations targeted to commence in 2034.
Addressing other petroleum developments, Prime Minister Xanana said construction of the Kuda Tasi and Jahal offshore oil and gas projects was expected to begin in 2027, with production scheduled to start in 2028. He acknowledged that initial revenues would be used partly to recover previous investments, including technical assessments and project preparations.
He also emphasised the importance of developing local technical expertise by training young people and professionals for roles in the petroleum industry. Furthermore, he highlighted the need to ensure surrounding communities benefit through employment, local services and the sale of locally produced goods.
“Indirect benefits are very important,” he said.
On 27 October 2026, Timor-Leste’s state-owned oil company, Timor GAP, and Woodside formalised the transfer of Woodside’s 33.44% participating interest in Greater Sunrise.
Source: TATOLI – Agencia Noticiosa de Timor-Leste
