Woodside Petroleum Ltd says East Timor's government has ignored requests for talks on the stalled Sunrise development and that competitors had shown interest in buying the $7 billion project.
Woodside chief executive Don Voelte used his last annual general meeting with the energy giant to express dismay at the stalemate with the East Timor government, which has effectively blocked the planned liquefied natural gas project in the Timor Sea.
East Timor wants a processing plant built on its shores, but Woodside prefers a floating vessel concept.
Mr Voelte said Woodside had "done everything right", abiding by a process set up by the East Timorese and Australian governments. But efforts to secure a meeting with the "guy that's stopping this" – East Timor Secretary of State Agio Pereira – had so far failed.
"Something's broken and I'm really disappointed," Mr Voelte told reporters after the meeting in Perth on Wednesday. "At least talk to us."
Woodside had enough projects on its plate and didn't particularly need Sunrise for its growth plans but had already made a substantial investment in the proposal, he said.
East Timor, on the other hand, needed the project to boost economic growth, but its government was denying its people the chance to prosper, Mr Voelte said. The oil and gas giant could sell the asset, but it was not the company's way to give up, he said.
"When you take a look at all the failures they've had with their E&P (exploration and production) industry outside of Sunrise – nine straight dry holes, people have walked away from the concessions etcetera – they need, let me repeat, they need Sunrise.
"Of course, we can monetise the project some other way, but that's not Woodside. I can sell the project to another oil and gas company – I got lots of people knocking on the door for that. I can sell it to maybe one of our joint-venture partners, but that's maybe giving up on this thing."
Partners in the project are Royal Dutch Shell, Osaka Gas and ConocoPhillips. Woodside predicts the project, which would cost at least $7 billion to develop, would boost East Timor's coffers by $13 billion, Mr Voelte said.
"For a government that was such great freedom fighters... 12 years later now, what's the measurement of this government on nation building?
"By objecting to Sunrise being built, they must be objecting to promoting the quality of life and improving the livelihood of their people.
"And I just don't get it – I don't understand it. This can fill out their future fund."
Woodside at the meeting gave no clues about Mr Voelte's successor.
Mr Voelte a straight-talking Nebraskan leaves the company in the second half of calendar 2011 after seven years at the helm. Chairman Michael Chaney said the selection process was on track and the company expected to unveil its new chief during the June quarter.
Mr Voelte described Woodside as "a proudly independent company... and may it ever remain so", amid speculation it could be a takeover target for BHP Billiton Ltd. Woodside shares closed up 55 cents, or 1.19 per cent, at $46.60.