Australia and East Timor agreed Wednesday to accelerate development of the long delayed Greater Sunrise gas project, with Prime Minister Anthony Albanese pledging to channel at least a third of Australia’s future revenue from the field into infrastructure funding for its smaller neighbour.
Albanese and East Timorese Prime Minister Xanana Gusmao made the commitment during talks in Dili, calling for the offshore gas project to move forward as quickly as possible after decades of political and commercial setbacks.
The renewed push comes as East Timor seeks to strengthen its economy and reduce reliance on dwindling oil revenues, while Australia aims to reinforce strategic ties in a region drawing increased interest from China.
In a joint statement released by the Australian government, both leaders said they “share an ambition for Greater Sunrise to be developed as soon as possible for the benefit of both states.”
Australia said it will establish an infrastructure fund for Timor Leste that will receive 10 percent of total state revenue generated from the project. The funding will come entirely from Australia’s share of future earnings.
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According to the statement, this structure means “at least a third of Australia’s revenue from the project” would be transferred to Timor Leste to support roads, ports, and other public works.
East Timor has long argued that the project should help drive domestic growth rather than simply export raw resources.
A central issue remains where the gas will be processed. Timor Leste favors building a liquefied natural gas facility on its southern coast, while Australia has historically supported piping the gas to an existing plant in Darwin.
The joint statement acknowledged Dili’s preference for onshore processing and said Australia would support “any commercially viable solution” proposed by the Sunrise Joint Venture, provided it complies with the maritime boundary treaty between the two nations.
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The Greater Sunrise fields contain an estimated 5.1 trillion cubic feet of gas and sit about 140 kilometers south of East Timor and more than 400 kilometers from northern Australia.
Discussions over the resource date back to the 1980s, initially involving Indonesia before East Timor gained independence. Progress stalled for years due to disputes over borders, revenue sharing, and development plans.
In December, Australia’s Woodside Energy and the Timorese government agreed to study a project capable of producing five million metric tons of gas annually.
Timor Gap, East Timor’s national oil company, holds more than 56 percent of the field.
Albanese’s visit marked his first official trip to East Timor as prime minister and resulted in a broader partnership agreement covering defence cooperation, border security, and economic development.
The visit also comes as Timor Leste deepens engagement with multiple global partners, including China, raising the stakes for Australia to maintain influence in its northern neighbourhood.
Both governments said they will fast track negotiations and urged the Sunrise Joint Venture to present a detailed development proposal as soon as possible.
