Woodside has recently signed an agreement to sell its stake in the Greater Sunrise field to TIMOR GAP for up to $200 million. This agreement is structured so that payments are made based on developmental progress.
Financial Details of the Agreement
Under this agreement, TIMOR GAP will initially pay $13.71 million upon completion, which may be adjusted based on cash costs and working capital from the effective date. An additional $11.29 million will be paid following a positive final investment decision for the development of LNG at the Greater Sunrise field. The majority of the payment, amounting to $175 million, must be made within 365 days after the first LNG shipment from the field. Thus, Woodside will only record $25 million unless the project is established and operational.
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Comments from Woodside's CEO
Liz Westcott, CEO of Woodside, stated that this sale reflects the company's discipline in portfolio management and capital allocation, helping to streamline the portfolio so that management time and capital can be dedicated to opportunities with the highest returns for shareholders. She also regarded the Sunrise field as a high-quality resource and emphasized its potential importance for the economic and energy security of Timor-Leste and the region.
Westcott added that Woodside has collaborated with the governments of Timor-Leste and Australia, TIMOR GAP, and Osaka Gas to establish a new financial, regulatory, and legal framework for these fields. The agreement in August on the key principles of a new production sharing contract for the Greater Sunrise field and its financial terms, according to her, has made this a suitable point for divesting this stake. Woodside is also committed to supporting a smooth transition.
The sale of this stake to TIMOR GAP is viewed as an important step towards the development of the Greater Sunrise field and securing energy resources for the region. This field, known for its significant production capacity, is considered one of the key projects in the energy sector in Southeast Asia and could have significant economic and social impacts on Timor-Leste and neighboring countries.
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