Dili – Partners in the Sunrise gas field joint venture met East Timorese President Jose Ramos-Horta on Thursday after the government angrily rejected plans to process Timor Sea gas on a floating platform.
About 100 protesters greeted the delegation led by Australia's Woodside Petroleum as it arrived at Dili airport, in a show of opposition to the plans East Timor has said break Australia's obligations under a resources treaty.
Woodside chief executive Don Voelte told reporters the proposal for a floating LNG plant was still up for discussion and did not necessarily exclude East Timor's demands for a permanent plant on its shores.
But he added that while it would be technically feasible to pipe the gas to an onshore facility in East Timor, a floating plant makes more economic sense for everyone involved.
"Let me say that its a proposal at this time. Its a discussion, its a beginning of a round of information flowing," he told reporters. "Im not here to argue. Im not here to say its our way or the highway, but Im just saying the discussion begins at this time."
The Sunrise Joint Venture comprises Woodside (33.4 percent), ConocoPhillips (30 percent), Shell (26.6 percent) and Osaka Gas (10 percent).
Australia and East Timor agreed to split projected multi-billion dollar revenues 50-50 from the Greater Sunrise gas field in 2006, after protracted wrangling over their maritime boundary.
Shell would build and operate the floating platform, and estimates it will produce around four million tonnes of LNG a year as well as condensate.
East Timorese government spokesman Agio Pereira issued a statement last week accusing Woodside of "arrogance" by announcing the joint venture's preferred option without consulting Dili.
"This is not only a source of great concern, but reflects an unacceptable level of arrogance. The approach has significantly compromised future relations with the government of Timor-Leste," he said.
"Timor-Leste will not approve any development of Greater Sunrise that does not include a pipeline to Timor-Leste. The government considers Woodsides announcement a waste of valuable time, money and human capital."
Opposition Fretilin party secretary-general Mari Alkatiri accused the government of Prime Minister Xanana Gusmao of politicising the issue ahead of next year's elections.
"They have demonstrated their lack of capacity to deal with this issue. Politically its much better for them just to reject (the joint proposal) and make public statements of rejection because this is very political," he said.
A spokesman for Woodside said the Sunrise delegation was expected to meet government officials later Thursday.