Timor-Leste Buys Shell's Stake in Greater Sunrise
The government of Timor-Leste has agreed to buy Shell’s 26.56% stake in the Greater Sunrise field for US$300mn.
Shell’s Australian unit, Shell Australia, and the government of Timor-Leste have entered into a sales and purchase agreement (SPA) for the sale of Shell’s interest, the two parties said in a joint statement issued November 21. The deal is conditional on receiving funding approval from the Timor-Leste Council of Ministers and National Parliament, as well as regulatory approvals and partner pre-emption rights.
Shell Australia chairman, Zoe Yujnovich said that the transaction will allow the Timor-Leste government and joint venture partners to pursue their aspirations for the Greater Sunrise development.
“We respect the Timor-Leste government's determination to develop the Sunrise fields through an onshore LNG facility on its south coast. Although we formed different views about the optimal development scenario, we understand the priorities of the Timor-Leste government and wish it well in pursuing its aspirations to develop this important resource for the nation,” Yujnovich said.
“This sale aligns with our global strategy to reshape Shell into a simpler and more resilient company,” Yujnovich added.
The deal comes shortly after government of Timor-Leste bought ConocoPhillips' 30% stake in the Greater Sunrise gas field.
“Timor-Leste appreciates Shell’s willingness to sell its interests in the Greater Sunrise project,” Timor-Leste’s special representative Xanana Gusmao stated. “Shell’s attitude throughout the negotiations shows that it is ready to consider not only its commercial interests but also the interests of small nations.”
The sale transaction comprises Shell’s permits NT/RL2 and NT/RL4 within Australia waters and PSC 03-19 and PSC 03-20 within Timor-Leste waters and associated governance agreements.
The Sunrise and Troubadour gas and condensate fields, collectively known as the Greater Sunrise fields, are located approximately 150 km south east of Timor-Leste and 450 km north west of Darwin in the Northern Territory.