The Government of Australia and the Democratic Republic of Timor-Leste have formalized a new stage in their bilateral relationship with the creation of the“Parseria Foun ba Era Foun” (New Partnership for a New Era), which includes a strong commitment to activate the development of the Greater Sunrise offshore gas project in the Timor Sea.
The offshore gas project and its geostrategic impact
Within the framework of this partnership, both governments have reaffirmed their common interest in rapidly advancing the exploitation of the Greater Sunrise gas field, a reserve estimated at more than 5 trillion cubic feet of natural gas. The agreement includes accelerating the regulatory and contractual processes related to the Petroleum Mining Code, production sharing contracts and the associated fiscal regime.
The ministers responsible for natural resources in both countries committed to personally oversee the progress of the technical negotiations in the coming months. The Sunrise Venture Joint Venture, comprised of Woodside Energy, Timor GAP and other entities, will be responsible for submitting a final development proposal, which will provide for a commercially viable solution in accordance with the 2018 Maritime Boundary Treaty.
Australia will finance an Infrastructure Fund that will direct at least one-third of Australian revenues derived from the project to Timor-Leste. This fund will be established once the joint development plan is approved, with the objective of strengthening Timor-Leste’s technical and institutional capacity and supporting its coastal industrialization strategy, including the proposed onshore processing in the Tasi Mane corridor.
Both governments see the Greater Sunrise project as a hub for energy cooperation, and a catalyst for Timor-Leste’s economic diversification. In addition, the revenues and knowledge transfer derived from gas development are expected to contribute to strengthening the Asian country’s economic resilience.
In addition to the energy component, the partnership also underscores Australia’s support for Timor-Leste’s accession to ASEAN and strengthens bilateral cooperation in maritime security, cybersecurity, vocational training and labor mobility.
Source: PM
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