ConocoPhillips agreed to sell its 30 percent interest in the Greater Sunrise Fields to the government of Timor-Leste for $360 million.
Proceeds from this transaction will be used for general corporate purposes, ConocoPhillips said in a statement.
“Although we differ with the government on its proposed development plan for Sunrise, we recognize the importance of the field to the nation of Timor-Leste, and the sale of our interest to the government gives them a working interest in this important development,” said Matt Fox , executive vice president, strategy, exploration and technology, at Conoco Phillips.
The transaction is expected to close in the first quarter of 2019.
The sale gives the government of Timor-Leste interest in the Woodside-operated multi-billion Greater Sunrise LNG project that stalled due to the maritime border dispute between Timor-Leste and Australia.
The project received a major boost in March this year when the two governments signed a treaty establishing permanent maritime boundaries as well as a framework to jointly develop the Greater Sunrise gas fields.
The fields were discovered in 1974 and hold gross contingent resources of 5.13 Tcf of gas and 225.9 million barrels of condensate, according to Woodside.
The Australian LNG player, together with its partners plans on developing the resources through the Sunrise LNG project.
When the interest sale deal between ConocoPhillips and the government of Timor-Leste closes, partners in the Sunrise LNG project will include the operator Woodside with a 33.44 percent stake, Timor-Leste government (30 percent), Shell (26.56 percent) and Osaka Gas with a 10 percent stake.