Díli, Oct. 22, 2024 (Lusa) - The Cabinet office minister for Timor-Leste, Agio Pereira, met on Tuesday with oil company INPEX to explore "possible partnerships" in the development of the Greater Sunrise offshore oil and gas field and the country's southern coast, the Timorese government announced.
The meeting, the third held since last June, was "aimed at exploring possible partnerships in the development of energy infrastructure in Timor-Leste, including the potential of Greater Sunrise," the executive said on its official website.
"INPEX presented proposals to support the development of Greater Sunrise, including solutions for gas transport and distribution. These initiatives aim to promote energy and industrial development in Timor-Leste, creating new economic and employment opportunities for the population," the Timorese government emphasised.
Agio Pereira, who is also the Timorese authorities' interlocutor in the discussions on Greater Sunrise, emphasised the “importance of holding discussions and exploring all the possibilities that contribute to Timor-Leste being able to make the most of its natural resources, in order to boost economic growth and job creation”.
The meeting was attended by INPEX's executive vice-president of operations, Yosuke Ueda, representative in Timor-Leste, and Brodie Ryota Sugai, business development consultant.
INPEX, Japan's largest oil and gas exploration and production company, owns 9.6% of the Bayu-Undan joint venture and investments in Indonesia and Australia.
The Greater Sunrise project has been embroiled in a stalemate, with Dili advocating the construction of a pipeline to the south of the country and Woodside, the consortium's second largest partner, leaning towards a connection to the existing plant in Darwin, Australia.
The consortium is made up of Timorese company Timor Gap (56.56%), operator Woodside Energy (33.44%) and Osaca Gas Australia (10.00%).
The permanent maritime boundary agreement between Timor-Leste and Australia determines that Greater Sunrise, a shared resource located 150 kilometres offshore Timor-Leste and 450 kilometres from Darwin, will have to be divided, with 70% of the revenues going to Timor-Leste in the case of a pipeline to the country, or 80% if processing is in Darwin.
To try to overcome the impasse, the exploration consortium has ordered a study into the development of the gas field, which will be carried out by the UK's Wood PLC and should be finalised by the end of the year.
The development of Greater Sunrise and the arrival of the gas pipeline on the country's southern coast are considered priorities by the Timorese authorities for the country's economic growth and development.
The Timorese prime minister, Xanana Gusmão, announced on Friday that Timor-Leste has increased the state budget for 2025 by US$650 million (€599.2 million) to implement the agreement it hopes to sign soon with Australia on Greater Sunrise.
"Because we believe that things are going well and because we know that, when this [the signing of the agreement] happens, there will be a need to start, so we put the money" in the state budget for 2025, said the head of the Timorese government, in an interview with the Lusa news agency in Lisbon.
Timor-Leste's proposed 2025 state budget, which will be debated in the Timorese parliament between 6 and 25 November, amounts to US$2.6 billion (€2.4 billion), which represents an increase of US$650 million compared to the 2024 state budget.
Xanana Gusmão did not clearly announce a date for the signing of the agreement with Australia. "I can't exactly say when [the agreement will be signed], on what day, but everything is indicating that we're on the right track," said Xanana Gusmão.
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