Woodside agrees $200 million Sunrise JV sale to TIMOR GAP

By Elena Vasquez

Woodside Energy has agreed to sell its 33.44% participating interest in the Sunrise Joint Venture to TIMOR GAP for up to $200 million, leaving Woodside without a stake in the project if the transaction closes.

The sale covers Woodside’s interests in the NT/RL2 and NT/RL4 titles and in JPDA production sharing contracts 03-19 and 03-20, which contain the Greater Sunrise fields.

What changes in the Sunrise JV?

TIMOR GAP, the national oil company of Timor-Leste, holds 56.56% of the project. Last month, it agreed to buy Osaka Gas Australia’s 10% share, subject to closing conditions. Woodside said its departure would leave it with no participating interest in the Sunrise JV.

Woodside CEO Liz Westcott said: “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.”

She added: “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.”

Once the transfer closes, Woodside will have no participating interest in Sunrise.

How is the $200 million payment structured?

The consideration includes $13.71 million payable at completion. That payment will adjust for cash calls and working capital between the transaction’s effective date of Nov. 1, 2026, and completion.

A further $11.29 million would fall due on an affirmative final investment decision for liquefied natural gas development in the Greater Sunrise Special Regime Area.

The remaining $175 million would become payable within 365 days of the first loading of LNG cargo produced for sale from petroleum in that area. The agreement places most of the headline value beyond completion.

The sale agreement also addresses the possibility that a new Greater Sunrise Production Sharing Contract takes effect before the transaction closes.

Most of TIMOR GAP’s payment depends on the LNG investment decision and the first cargo, not just completion.

What needs to clear before completion?

Completion is expected in the first half of 2027, subject to government, regulatory and JV approvals. In its third-quarter report issued Oct. 21, Woodside said the existing JPDA PSC 03-19 and 03-20 terms had been extended to March 31, 2027, to support implementation of new PSC arrangements.

Westcott also said Woodside had 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.

The sale still needs the required approvals and new contract terms before it can close.

The next watch item is the affirmative LNG investment decision in the Greater Sunrise Special Regime Area, which would trigger a $11.29 million payment and provide a decision point for the first cargo.