The new offer will see Timor Leste’s revenue from the Greater Sunrise development jump from $2 billion to around $5 billion, slightly under the 50% share Prime Minister Mari Alkatiri was after, from the potential $12 billion in expected revenue over the 25 year life of the project.

Several weeks ago opposition leader Mark Latham waded into the debate declaring that, if elected, Labor would restart the negotiations in an attempt to broker a better deal for Timor Leste. Greater Sunrise operator Woodside said that such a move could jeopardise the future of the entire project by delaying any ratification of the current treaty.

It appears that the Timorese have realised that a percentage of something is better than a large percentage of nothing. At the same time the Liberal government has moved to prevent the negotiations becoming an election issue by increasing Timor Leste’s interest in Greater Sunrise from the previous 18%.

The expected concession from the tiny state is the acceptance of the Timor Sea Treaty which, in places, leaves the maritime boundary between the two countries less than 80km off the Timor coast.

Under the current arrangement Timor Leste also receives 90% of the revenues from the Bayu-Undan gas project, which has been more profitable than expected due to the record international crude prices.