Monday, May 31, 2010

E. Timor ready to rip up gas deal



The Prime Minister of East Timor, Xanana Gusmao, has vowed to make a historic stand against corporate giants that plunder the resources of tiny nations, signalling his country is prepared to forgo billions of dollars from the Greater Sunrise gas fields in the Timor Sea.
Stepping up pressure on Australian-based Woodside over its plans to develop a floating liquefied natural gas platform above the fields, Mr Gusmao said: "Many developing countries fall victim to the corporate resource giants exploiting and plundering the sovereign resources of impoverished nations.
"Timor-Leste [East Timor] will be the country that goes down in history as the nation to put a stop to it," Mr Gusmao told theHerald at the weekend.
Mr Gusmao also criticised Woodside for appointing the former Australian diplomat Brendan Augustin as its manager in East Timor. "We viewed his appointment as another example of the continued disregard and disrespect Woodside has demonstrated towards our country and our people."
During speeches in East Timor over the past week, Mr Gusmao has repeatedly referred to Woodside's failed $1 billion operation in the impoverished north-west African country of Mauritania, which collapsed amid alleged corruption, shady money deals, police interrogations and a coup.
Mr Augustin, who was placed at the forefront of the Mauritania operation while on unpaid leave from the Department of Foreign Affairs and Trade, has not been accused of any wrongdoing. But his appointment raised questions about the relationship between the department and Woodside.
A Woodside spokesman said the company was "deeply disappointed at the personal attack on one of its employees".
Mr Augustin and another Woodside executive walked out of the office of the National Petroleum Authority, the regulator of East Timor's petroleum industry, in Dili on May 18.
The authority had refused to accept Woodside's draft plan for a floating platform, insisting the company also submit detailed plans for pipelines to both Darwin and East Timor.
Woodside says its draft development plan has been formally lodged, while the authority insists it has not.
East Timor's leaders will today intensify their campaign for the gas to be piped to a processing plant in East Timor by releasing a statement that accuses Woodside and its joint venture partners of wanting to push ahead with a floating plant so it can develop new technology.
Mr Gusmao said his country would not pay for unproven technology at the expense of the Timorese. "Here in Timor-Leste we struggled long and hard for our independence, here our soil carries the blood of those who fought for our freedom, so we respect our laws, our sovereignty and our democratic institutions," he said.
Woodside's chief executive, Don Voelte, has insisted East Timor cannot walk away from the agreement.

Friday, May 28, 2010

Technip Secures Subsea Contract for Kitan Project


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Kitan Oil Field
Technip has been awarded a contract by Eni for the Kitan field development project. This field is located in approximately 350 meters of water, in an area of the Timor Sea jointly administered by Timor-Leste and Australia, 500 kilometers off the Australian coast and about 250 kilometers south of the Timor-Leste capital of Dili.
The contract covers:
  • project management and engineering,
  • supply and installation of 23 kilometers of flowlines(1) and risers(2),
  • installation of the umbilical(3) system.
Technip's operating center in Perth, Australia will execute the contract. The pipelines will be manufactured at the Group's plant in Le Trait, France.
Offshore installation is scheduled to start in the first half of 2011 using the Venturer, a construction vessel from Technip's fleet.
This award reinforces Technip's position in the expanding Subsea market in Asia Pacific.

East Timor Regulator Refuses to Accept Woodside Plan

East Timor’s petroleum regulator has refused to accept Woodside Petroleum Ltd.’s plan to develop the Sunrise gas project, insisting on more detailed analysis of alternatives, including a plant in the southeast Asian nation.
“Woodside and its partners have not done their homework properly,” Gualdino Da Silva, president of the National Petroleum Authority in East Timor, said in a telephone interview from Dili yesterday.
Australia’s second-largest oil and gas producer and its partners, including Royal Dutch Shell Plc, selected floating liquefied natural gas technology for the Sunrise project in the Timor Sea, the Perth-based company announced April 29. The use of a floating plant is the best commercial option, and East Timor and Australia would each receive more than A$13 billion ($11 billion) in revenue, Woodside Chief Executive Officer Don Voelte said May 21.
The government of East Timor has remained opposed to any proposal that doesn’t include building a plant on its soil to process the gas into LNG. Woodside ruled out that option because it was more expensive, Voelte said. The Sunrise partners also considered piping the gas to Darwin in northern Australia.
Woodside rose 1.8 percent to A$42.10 in Sydney, while the benchmark S&P/ASX 200 Index gained 1 percent.
Sunrise is unlikely to be going anywhere in the near future given the political impasse with East Timor,” Neil Beveridge, an analyst at Sanford C. Bernstein in Hong Kong, said in an e-mail today. With Woodside focusing on an expansion of its A$13 billion Pluto LNG venture in Western Australia, the company is “probably in no rush to be making compromises.”
‘Threw Documents Back’
The Australian company and the East Timor regulator dispute whether the Sunrise partners’ proposal has been lodged with authorities in the country.
Voelte said last week Woodside executives presented the plan to the regulator in Dili.
“We were trying to deliver our field development plan, which we did successfully deliver, but they went running out after us and threw it back in the car because I think they were told not to accept it,” Voelte said in Sydney. Voelte said he met for more than two hours this month with East Timor President Jose Ramos-Horta, without seeing Prime Minister Xanana Gusmao.
Da Silva said the petroleum authority wouldn’t single out a Sunrise proposal for evaluation until Woodside and the Sunrise partners had provided “in-depth” analysis on all three development options and had reached an “in-principle” agreement with the two governments.
The Woodside executives walked out of the May 18 meeting in Dili after officials from the regulator explained their position, Da Silva said.
The Australian company has received requests to meet with regulators in East Timor and Australia since the May 18 Dili meeting and “looks forward to continuing engagement,” Roger Martin, a Woodside spokesman in Perth, said in an e-mail today.
Voelte said the companies and the governments are required by a treaty to select the best commercial option for the field. Woodside has a 33 percent stake in Sunrise. ConocoPhillips has 30 percent, Shell owns 27 percent and Osaka Gas Co. 10 percent.
The East Timorese regulator is concerned about the Sunrise delays, Da Silva said. Still, “we are not going to accept this and expedite this just for the sake of the revenues,” he said. “We’d like to do this properly. We should not compromise the framework in place and the need for alignment between the stakeholders.”

'Woodside is trying to steal Timor reserves'

Timor Leste's Prime Minister has accused Woodside Petroleum and the partners of Sunrise liquefied natural gas project of trying to steal his country's natural resources from a gas field it's developing in the Timor Sea.

"I don't believe Woodside company because it is a liar," Xanana Gusmao said. "They intend to steal our oil and gas in the Timor Sea as they don't want to bring the pipeline to [Timor Leste]."
Gusmao’s comments came after Woodside lodged a proposal last Friday for a floating LNG development at the Greater Sunrise gas field against Dili’s preference to pipe the gas to onshore, according to local media reports.
In response, the National Petroleum Authority (ANP) has turned down the proposal, claiming the Sunrise joint venture had failed to provide feasibility studies of other development options.
Gusmao has called on the Timorese “to defend our wealth in the Timor Sea”.
“The pipeline must come to [Timor Leste], not to Darwin or floating as Woodside's desires," Gusmao was cited as saying on News.com.au.
The Timorese Prime Minister has also accused the Sunrise joint venture of breaking its promise to provide training for Timorese engineers.
The joint venture has hired only 30 local people so far in its Timor Sea exploration, he said.
The massive Greater Sunrise gas field in the sea between Australia and Timor Leste is estimated to hold 240 million barrels of light oil and 154 billion cubic metres of natural gas worth tens of billions of dollars.
Timor Leste sees the resources as key to lifting its 1.1 million people out of poverty by stimulating the local economy and creating jobs.
The nation has no major industry and unemployment is more than 30%, News.com.au reported.
Darwin is 450 kilometres from Greater Sunrise. Timor Leste is closer, but Woodside says a deep trench off the East Timorese coast would make building a pipeline there more difficult.
The joint venture partners for Sunrise include Shell, Osaka Gas and ConocoPhillips.
Woodside and partners Royal Dutch/Shell, Osaka Gas and ConocoPhillips are licensed to develop Greater Sunrise.

Friday, May 21, 2010

Woodside Still Working With East Timor to Resolve Gas Dispute

By James Paton
May 21 (Bloomberg) -- Woodside Petroleum Ltd. Chief Executive Officer Don Voelte said he’s still seeking to resolve a dispute with East Timor over how to develop the Sunrise project after meeting with the country’s president.
“There is disappointment that has to be dissipated,” Voelte said. “The people I have found are very professional, very emotional over the issues. We plan to work with them and get something that’s the best answer for both countries.”
While East Timor has rejected a plan by Woodside and its partners to use floating liquefied natural gas technology at the Sunrise venture, Voelte said in Sydney today he believes that it’s the best commercial option and would deliver the most revenue to both countries. East Timor has said it remains opposed to any proposal that doesn’t include a plant on its soil.
Voelte said he met for more than two hours earlier this month with East Timor President Jose Ramos-Horta, without seeing Prime Minister Xanana Gusmao. “We’ve struggled a bit with the Prime Minister’s office,” he told reporters after an American Chamber of Commerce in Australia lunch.
Piping the gas to an LNG facility in East Timor would be an “expensive” option, he said. Woodside, Royal Dutch Shell Plc, ConocoPhillips and Osaka Gas Co. aim to use a floating LNG platform to produce 4 million metric tons of the fuel a year from the field which lies between Australia and East Timor.
The development plan for the Sunrise project was “officially lodged” with an East Timorese regulator, Voelte said, even though officials tossed the documents back into a car as the Woodside delegation left a meeting in the capital Dili.
The two countries completed a treaty in 2007 for the administration of the Timor Sea field, which straddles a boundary between Australian waters and an area the nations manage jointly. They agreed to share royalties.
Woodside owns 33 percent and is the operator, ConocoPhillips has a 30 percent stake, Shell has about 27 percent, and Osaka Gas Co. 10 percent

Monday, May 17, 2010

Gap in Rules on Oil Spills From Wells

By KATE GALBRAITH

Published: May 16, 2010
The catastrophic Deepwater Horizon oil spill began off the coast of Louisiana — hundreds of miles from Mexico and far from any other country.

But many oil spills, almost by definition, become international events. Oil slicks can easily be carried to distant shores by the sea currents. A huge Australian oil spill last year in the Timor Sea caused angst in Indonesia and East Timor.
There has even been concern that the crude gushing into the Gulf of Mexico could make its way to the Atlantic Ocean, tugged along by powerful currents.
In the event of a spill that affects multiple countries, a number of global conventions devised through the International Maritime Organization govern prevention and clean-up efforts. There are also regional agreements — the United States, for example, maintains agreements with Canada, Mexico, Panama, Russia and the British Virgin Islands, according to the State Department.
But experts say there are large gaps in what the international agreements cover.
“There is a tremendous body of international law addressing oil pollution, dealing with matters including construction and seaworthiness of ships, safety of navigation, pollution response, and liability,” said Tim Stephens, a senior lecturer on the law faculty at the University of Sydney and the co-author of a forthcoming textbook on the law of the sea.
However, the international maritime conventions apply “primarily or exclusively” to accidents involving tankers — the devastating 1999 Erika spill off the coast of Brittany, France, was from a tanker, for example, he said in an e-mail message.
They do not apply to accidents involving oil platforms, like the Deepwater Horizon spill.
“It is definitely an omission,” Mr. Stephens said, adding that only “tentative” steps have been taken so far to make the maritime agency’s rules applicable to platform spills.
The regulatory discrepancy has a simple explanation: tankers move across international boundaries all the time, whereas platforms remain fixed in place. But as oil companies push their exploration farther offshore with the help of new technology, spills like Deepwater pose an increasing risk — and could galvanize new action.
A key area for exploration and production-related spills is liability.
“There is no global convention governing this issue,” said Sergei Vinogradov, a senior lecturer at the Center for Energy, Petroleum and Mineral Law and Policy at the University of Dundee, in Scotland.
By contrast, liability from tanker spills is covered by two 1992 conventions, one dealing with civil liability and the other with an oil-pollution compensation fund, he said in an e-mail message.
A different area in which more international coordination on spills is needed is the Arctic. That region is widely regarded as the next frontier for petroleum production. It holds perhaps 13 percent of the world’s undiscovered oil, according to a 2008 assessment by the U.S. Geological Survey, but it is also among the most fragile environments on Earth.
An international oil-spill conference next year in Portland, Oregon, is supposed to focus on Arctic issues, said Robin Rorick of the American Petroleum Institute, which is one of the conference sponsors, along with several U.S. agencies.
In the aftermath of the Deepwater spill, the conference agenda is certain to change, but Mr. Rorick said that the Arctic would remain a point of emphasis. The issue is growing more pressing as companies prepare to drill there — Shell Oil plans to drill several exploratory wells off northern Alaska this summer.
Even outside of formal agreements, international advice and assistance is often a key feature of oil-spill response. In the Deepwater case, a number of countries — including Norway, Britain, France and Germany — have offered equipment and assistance to the United States in dealing with the spill.
And the administration of President Barack Obama plans important changes to the Minerals Management Service, the U.S. agency that regulates the offshore oil industry, somewhat along the lines of restructuring that previously took place in Australia, Britain and Norway.

The U.S. agency enforces safety and environmental requirements for oil rigs. It also collects money from oil and gas leases on U.S. government land as well as mineral-extraction royalties. This is a conflict of interest, and the Obama administration plans to split the agency, which is part of the Department of the Interior, into two parts in order to address the problem.
As Tom Zeller Jr. reported last week in the New York Times (of which the International Herald Tribune is the global edition), Australia created a special offshore safety agency in 2005, called the National Petroleum Safety Authority, to minimize conflicts of interest. Norway created its Petroleum Safety Authority in 2004, for similar reasons.
Britain also walled off the functions of safety and revenue-collection following a deadly 1988 explosion of the Piper Alfa rig in the North Sea. It moved safety oversight from the Department of Energy to the Health and Safety Executive.
The United States will also undoubtedly look to other countries as it tries to understand how to strengthen safety requirements to prevent another oil spill.
One technology that could have been useful in the Deepwater case is an acoustic valve to shut off the well by remote control in an emergency. Such devices are required by Brazil and Norway, but not by the United States, where the oil industry successfully resisted a proposal years ago to require its use, according to Oystein Noreng, who heads the petroleum studies unit at the Norwegian School of Management.
“In Norway, for more than 40 years, we have had a fairly harmonious coexistence between a large offshore oil industry and some of the world’s largest fishing industries,” Mr. Noreng said in an e-mail message. “Nobody can say that a disaster like the one in the U.S. Gulf of Mexico could not happen in Norway, but we have invested in the additional line of defense, thanks to political wisdom.”

Thursday, May 13, 2010

Timor takes Sunrise case to ASX

 

LINDSAY MURDOCH

THE East Timorese government has complained to the ASX (Australian Security Exchange) about Woodside's announcement that it plans to build a floating liquefied natural gas platform above the multibillion-dollar Greater Sunrise field in the Timor Sea.
A briefing prepared for East Timor's parliament says that in a letter to the ASX, the government has accused Woodside of not providing the public and press with accurate information about the status of the project.
The letter says statements by Woodside have ''the potential to mislead the market as to the true position with regard to the development of the Greater Sunrise project''.
It says the statements ''may have an impact upon the way in which Woodside is perceived by the market and thus [have] an impact upon its share price''.
The letter reiterates demands by East Timor's leaders that the Woodside-led consortium build a pipeline to a processing plant on their country's south coast.
Amid growing acrimony over the project, the leaders have said repeatedly they would not approve either a floating platform or piping the gas to an existing plant in Darwin, which the consortium also considered.
The letter says the government's stand had been made ''patently apparent to Woodside''. It also says it is clear from a number of recent press releases, and other releases of information, that "Woodside has ignored the government's position''.
In the letter, East Timor asks the ASX to instruct Woodside to correct statements the company made about Greater Sunrise in its 2009 annual report, market statements and statements made at the company's annual general meeting on April 30.
Those statements ''clearly give the public and investors the impression that a decision on the development of the Greater Sunrise field is imminent and that it is Woodside and its joint-venture partners that have the final say as to how the development should proceed''.
The letter says Woodside's statements had failed to acknowledge that the ''Greater Sunrise fields cannot be developed'' without East Timor's consent.
The letter asks Woodside to inform the ASX and the public within seven days ''as to the true position with regard to the development of the Greater Sunrise field''.
It says this includes that negotiations on development of the field are ongoing with relevant authorities in East Timor, and that ''no decisions will be made regarding the development of the field until such a time as all necessary mechanisms for negotiation and discussion of issues relating to the project have been concluded''.
East Timor asks for confirmation that Woodside would make no further releases that fail to acknowledge that East Timor has indicated it will not agree to any development of the field unless a pipeline is built from the field to East Timor.
Woodside chief executive officer Don Voelte told journalists last week - after East Timor's Prime Minister, Xanana Gusmao, refused to meet him in Dili - that East Timor could not walk away from the Greater Sunrise agreement it signed only 2½ years ago.
Source:  The age

Monday, May 10, 2010

Timor 'can't dump' gas pact

Timor 'can't dump' gas pact

 
LINDSAY MURDOCH, DARWIN
 
WOODSIDE chief executive Don Voelte has hit back at threats by East Timorese leaders to veto the multibillion-dollar Greater Sunrise joint venture in the Timor Sea, saying, ''Believe me, they can't walk away from it.''
Speaking a day after East Timorese Prime Minister Xanana Gusmao refused to meet him and other representatives of the venture consortium in Dili, Mr Voelte said East Timor's credibility would be damaged if it reneged on a treaty signed only 2½ years ago.
''But that is not the issue - we will win it on the merits of the program,'' he told journalists in Darwin.
Mr Voelte said that under the treaty East Timor and Australia did not have a legal right to veto. ''They are required to approve the project as long as they come to a conclusion it is the right option on a commercial basis using good industry practice.''
East Timor's leaders last week reacted angrily to an announcement that the consortium would build one of the world's first floating liquefied natural gas platforms above the field.
They repeatedly have demanded the gas be piped to a processing plant in East Timor and said they would not approve a floating platform or piping the gas to an existing plant in Darwin, another option considered by the consortium.
Mr Voelte denied an accusation by the regulator of East Timor's petroleum industry that Woodside had failed to comply with its legal obligations before announcing its plans for a floating platform.
The Age revealed yesterday that the independent National Petroleum Authority had criticised Woodside in a confidential letter for failing to provide detailed reports and findings on all three development options for the field before deciding on the floating platform.
''Absolutely false and wrong,'' Mr Voelte said when asked about the authority's accusations. ''We have followed every one of our legal commitments … we have great legal advice that we have followed and we will not make a mistake in that regard.''
Mr Voelte said that next week Woodside would send to the regulator, as it was obliged to do, a ''big, thick'' comprehensive field development plan.
He said East Timor had done its own surveys and if there were disagreements about the project ''we are happy to sit down with them and come to the truth''.
Mr Voelte said the floating platform would maximise benefits to East Timor and Australia, ''which we believe is worth over $13 billion to each country''.
He said it was a ''country-building project'' for East Timor. ''I think when we give them all the details and the transparency they are going to have a very difficult time … vetoing the project.''
Mr Voelte said Woodside was not looking for a fight with East Timor.
Asked about Mr Gusmao's refusal to meet him in Dili, he said it would be hard for the Prime Minister to ''hold that position''.
''Positions change,'' he said.

E Timor can't stop us: Don Voelte

E Timor can't stop us: Don Voelte


WOODSIDE chief executive Don Voelte has told East Timor it cannot legally block a decision by a Woodside-led consortium to process Timor Sea gas offshore rather than in Dili.

Mr Voelte said the tiny nation of 1 million people was bound by the treaty it signed with Australia in 2006, under which the Sunrise gasfields were to be developed in line with best commercial advantage.
He said the treaty was "very defined, not done under duress and done with much due diligence".
"They're walking away from it now?" Mr Voelte said during a joint press conference with Northern Territory Chief Minister Paul Henderson yesterday.
"I don't think it's going to work. It'll do them a lot of damage."
East Timor's leaders have repeatedly demanded Sunrise gas be piped to a processing plant in East Timor.
They have threatened to block the floating platform concept and the alternative of piping the gas to production facilities in Darwin.
Mr Voelte said claims made by the Timorese regulator that Woodside had breached its legal obligations by failing to disclose reports and findings on all three possible development plans were "absolutely false". He said a field development report would be submitted to regulators next week.

Saturday, May 8, 2010

10 Most Important Relationship Laws


We all crave being loved, cared for appreciated and understood. 99% of what we do, think, say, fear and desire can be, one way or another, linked back to our need for affiliation and approval. And this is not surprising, because without close satisfying relationships our life becomes lonely, boring and meaningless. Relationships, on the other hand, make it exciting, meaningful and fulfilling. But also frustrating. Especially when people refuse to act according to our wishes or expectations.


When it happens, we have two options:
1) Try to change other people and convince them to do the “right thing” ( usually we have an explanation ready of what the right thing is)
2) Change the way we relate to others and learn why we sometimes face difficulties when it comes to creating and sustaining relationships with others.
Here are the 10 Most Important Relationships Laws:
1. THE LAW OF SIMILARITY. Like attracts like. We do not attract people that we want to attract into our life. We attract people who are similar to us, because we resonate with them. There are no accidental encounters. Just after effects of our past thoughts, expectations and actions.
2. THE LAW OF BRICK WALL. Precautions that we take to avoid getting hurt include not letting any emotions get too close to our heart, but this also turns you into a prisoner keeping you safely tucked behind the walls.  “Playing it safe” is a sure way to avoid a broken heart, but it is also a sure way of leaving happiness outside your life.
3. THE LAW OF INACTION. Nothing will change in your life until you take a step to make it happen. Any satisfying long-lasting relationship requires patience and sustained effort.
4. THE LAW OF HALFWAY. It takes two people to make a relationship work. You can meet another person halfway, but you can not walk the whole way for them. Your zone of control ends where another person’s feelings and goals begin. If the other person is not moving towards you, your efforts will be wasted.
5. THE LAW OF MIRROR. People that we dislike serve as our mirrors. They are reflections of our own negative qualities. This is why we react so strongly to them. The traits of character that aggravate us most about others are the same ones we deny in ourselves. The best way to change other people’s behavior is to improve your own character. Then there will not be any need to send so many “mirrors” your way.
6. THE LAW OF YING YANG.  The transition from one opposite to another is what creates balance and diversity in life. One opposite cannot exist without the other. Happiness alternates with sadness, laughter with tears, success with failure, gain with loss. Everything has its beginning and end. When you face a dark phase in your life, know that it will not last forever. This is the circle of life. Very often in order to understand something and appreciate it you have to see the other side of the coin as well.
7. THE LAW OF YOUR OWN WORTH. Other people almost always perceive us the way we perceive ourselves. To be loved and appreciated by others we must first accept and appreciate ourselves. If you are trying to make everyone else like you, you risk losing your true self in the process. You should always strive to be your best self, but never to please others by changing who you really are.
8. THE LAW OF HARMONY. We are all looking for harmony in everything: in the outside world and inside our heart. When you achieve inner harmony, you automatically create harmonious relationships with the outside world. Harmony does not mean the absence of challenges or conflicts that can lead to personal growth. It means that your mind, your feelings and your actions are in line with your life purpose and your most important goals.
9. THE LAW OF COMPLETION. Very often we are looking for relationships that can give us more of what we want, be it material stability, knowledge, or love. We are looking for people and goals that will make us feel complete by providing us with something that we lack. By doing this we are giving the control of our happiness and well-being into the hands of others and we lose our independence. A sense of completion should come from within, and should not depend on others.
10. THE LAW OF RESONSIBILITY. Our reality is just a reflection of you inner thoughts. What does not exist in your consciousness will never happen in reality. Blaming other for your misfortunes is just like trying to stop a truck approaching you at a full speed by cursing the driver. Until YOU jump aside the situation is not going to change. If you want to improve relationships with other people without conflict, manipulation and threats, start by changing your perspective. Making you happy is not anyone else’s responsibility, duty or moral obligation, only your own!

East Timor may derail Woodside project

East Timor may derail Woodside project

XAVIER LA CANNA

Woodside Petroleum Ltd will send a high-level team including chief executive Don Voelte to East Timor, after the tiny nation threatened to sink plans for a multi-billion-dollar gas project.
East Timor, also known as Timor-Leste, on Friday accused the Australian oil and gas company of arrogance over a decision not to house a liquefied natural gas (LNG) processing plant on its shores.
It threatened to pull the plug on a planned liquefied natural gas (LNG) development at the Greater Sunrise fields, between Australia and East Timor.
The oil company responded at its annual general meeting in Perth, where Mr Voelte promised to send a delegation to East Timor next week.
"Myself and the head of our Sunrise project, Jon Ozturgut, and our team will travel to Dili next week as well as to Darwin and speak to the Northern Territory's Chief Minister Paul Henderson as well as the various officials include (Jose) Ramos-Horta, the president of Timor Leste," Mr Voelte said.
The statement from East Timor's government came after Woodside on Thursday revealed that joint venture partners unanimously agreed to use a floating platform to process LNG from the Greater Sunrise fields.
Woodside is the operator of the joint venture project that also has participation from ConocoPhillips, Shell and Osaka Gas.
Both Darwin and East Timor had been vying to house the $5 billion facility, which will process the gas from the huge field, believed to have a gas resource of 5.13 trillion cubic feet, plus 225.9 million barrels of condensate.
East Timor's secretary of state for the Council of Ministers, H.E. Agio Pereira, on Friday said his nation was committed to building an onshore petroleum industry, which included a pipeline from his country to the Greater Sunrise field.
"Timor-Leste will not approve any development of Greater Sunrise that does not include a pipeline to Timor-Leste," Mr Pereira said.
"Woodside was acutely aware of the government's position before today's announcement but chose to proceed regardless.
"This is not only a source of great concern, but reflects an unacceptable level of arrogance," Mr Pereira said.
Mr Voelte said East Timor's reaction was premature.
"I just know what is going to happen and that is the citizens of Timor-Leste are going to start to wonder why their government doesn't promote something that will improve their lives, will provide millions of dollars of income, provide jobs and everything else," Mr Voelte told the shareholders' meeting.
"It is probably just a bit of positioning I suspect," he said.
Woodside has said it chose the floating LNG option because under an agreement between East Timor and Australia in 2007 the fields had to be developed in line with best commercial advantage.
RBS analyst Johannes Faul said Mr Voelte should have been smarter in the way he approached working with the East Timorese government.
"He has obviously got them offside so now has to fly up," Mr Faul said.
"It is all about damage control and to contain their (East Timor's) anger," he said.
Shares in Woodside were up five cents at $45.50 on Friday.