The international energy giant is set to clear the last domestic regulatory hurdle for development as the Senate's Economics Legislation Committee prepares to endorse the provisions implementing the agreement between the Sunrise partners (Woodside Operator) and the East Timor Government, which would provide the framework for the $6 billion development.
However, Woodside is still to find a market for the gas and must win ratification from the East Timor Government.
Relations between Australia and East Timor have already soured over the boundary dispute with the tiny island nation claiming it is being denied billions of dollars in royalties from the existing developments in the area.
The Timorese also want Australia to cease production from the disputed fields until a resolution has been reached.
The Senate's Economics Legislation Committee move to endorse the provisions implementing the agreement between the Sunrise partners and East Timor only came about after the ALP decided to pass the bill following a letter from Woodside to Resources Minister Ian Macfarlane, saying it planned to maximise local content in the Greater Sunrise development.
As part of this policy it intended to prepare a local industry participation plan for the project and liaise with Australian and East Timor stakeholders.
Whether the East Timorese ratify the agreement is another thing with the Prime Minister Mari Alkatiri saying the country was coerced into signing the agreement.
