Agreement Reached on Sunrise Gas Project

At a meeting on Tuesday in Singapore, Joint Venture participants in the Sunrise Gas Project agreed on a way forward that will enable critical decisions to be made on development of the Greater Sunrise gas fields by the end of October.

Woodside Energy Ltd., Operator of the gas fields, said that a significant degree of alignment had been achieved among the four Joint Venture participants.

Woodside’s Timor Sea Gas Business Unit Director, Mr Chris Cronin, said Woodside, as Project Operator, would undertake a full appraisal of the alternative LNG proposals as part of aligning the Venture participants. The alternatives are an onshore LNG plant sponsored by Phillips and an offshore floating LNG facility sponsored by Shell.

The Venture's appraisal is scheduled to be completed in time for development decision making at the end of October in parallel to signing heads of agreements for gas sales. Prospective customers, such as El Paso and domestic gas consumers, will be advised of progress during this period.

Mr. Cronin said the Sunrise Gas Project was an important investment opportunity for each Joint Venture participant. "The Project has a significant role to play in contributing to East Timor's development," he said. Mr. Cronin said that a positive development decision would require timely resolution of Australia's and East Timor's positions on fiscal terms to be applied to the investments. "We believe that a stable investment climate and reasonable taxation rates are beneficial to all stakeholders. We are keen to engage in discussions on this issue with the soon to be established East Timorese administration and will continue in our efforts to resolve outstanding issues with Australia."

The Sunrise Gas Project Joint Venture participants are Woodside (Operator) 33.44%, Phillips 30.0%, Shell 26.56% and Osaka Gas 10%.