“ This is the second major cost adjustment since the project costs were originally calculated at $11.2 billion in 2007. The central reason for this latest cost blowout was the need to rebuild flare towers that did not meet cyclone specifications. Flare towers are a well established, tried and tested technology. This raises concern within the Timorese Government given the potential cost blowouts for the untested floating LNG technology proposed by Woodside for Greater Sunrise, which holds far greater risks than simple flare tower technology.”
“If similar cost blow outs were to occur with Greater Sunrise, the costs would effectively be paid for by the People of Timor-Leste; before any revenue stream flowed to the nation.”
"Similarly, Woodside continued to announce the Greater Sunrise project was progressing well when communications had all but ceased last year. The insistence of Timor-Leste’s petroleum regulator, the ANP that Greater Sunrise remained in the “concept selection” phase was met with a similar response from Woodside. In recent months, Woodside has relented to meet the conditions required by the regulators. Woodside has now presented the information on three development concepts; the pipeline to Timor-Leste option, the pipeline to Darwin option and the Floating LNG option, in order to comply. "
"These documents are being carefully scrutinized by the ANP along with the Australian regulators. Its reveal Woodside’s assessment that a pipeline to Timor-Leste would cost some $400 million less than a pipeline to Darwin. Independent studies commissioned by Timor-Leste indicate the cost savings with a pipeline to Timor-Leste are likely to be much higher," Timor Government said.
"The Government has consistently maintained their position that the option of the pipeline to Timor-Leste is the safest and most economically viable, following the spirit of the treaties covering the Timor Sea which promote shared benefits. The one productive field in the area, Bayu Undan, has its’ gas piped to Darwin, which has provided a huge boost to the Northern Territory economy."
Spokesperson for the Government, Secretary of State Agio Pereira, noted “we are confident that Timor-Leste has both the national and international expertise to assess thoroughly the development options for Greater Sunrise and we affirm our commitment to manage responsibly the resources of Timor-Leste. We continue to prepare for the commercial success of the pipeline to Timor-Leste and look forward to benefits flowing to all stakeholders, particularly our People.”