Sydney Morning Herald: Woodside Petroleum Calls for Alignment on Sunrise gas

Woodside Petroleum has called for a resolution between Australian and East Timor of the renewed uncertainty over the administration of the Sunrise gas resource in the Timor Sea as it seeks to break the stalemate around its long-stalled $US13 billion ($17 billion) Sunrise gas project.

Woodside said settling the issues around the management of the Sunrise resource "would provide more certainty to investors and could potentially advance the development of Greater Sunrise".

The comments come after fresh uncertainty was thrown over Sunrise by East Timor last week when the parliament passed a law establishing a maritime council with the intent of settling permanent boundaries with Australia. In a statement, government spokesman Agio Pereira said East Timor now considered the CMATS treaty covering the Sunrise resource "invalid", throwing the issue of boundaries, put aside for 50 years under the treaty, back into contention.

But last week's offer of resignation of Prime Minister Xanana Gusmao may offer improved prospects for a negotiated settlement between Australia and East Timor on Sunrise. Mr Gusmao's successor is likely to be the opposition FRETILIN party's Rui Araujo, a former health minister, in a unity government that may be more open to discussions on Sunrise, East Timor expert Damien Kingsbury at Deakin University said. MORE