James Paton – Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, continues to face opposition from East Timor's government to proposals for developing the Sunrise project in the Timor Sea.

East Timor objects to plans to pipe the gas to Darwin or use a floating plant, Agio Pereira, a government spokesman, said in an e-mailed statement today. East Timor is committed to processing the fuel on its own soil, he said.

Woodside had sought to make a decision by the end of March on how to proceed with Sunrise, one of more than a dozen proposed liquefied natural gas ventures in Australia targeting rising demand for cleaner-burning fuels.

Roger Martin, a spokesman for Woodside in Perth, said by e-mail he declined to comment.

Woodside is the operator of the Sunrise project, with a 33 percent stake. ConocoPhillips has a 30 percent interest, Royal Dutch Shell Plc has 27 percent and Osaka Gas Co. has 10 percent.