Under Timor-Leste law, the President can only veto a bill once, and must ratify it if the bill wins parliament’s vote of approval a second time.

Buying ConocoPhillips and Shell’s interests gives Timor-Leste a majority stake in the gas project, along with remaining partners Japan’s Osaka Gas and Australia’s Woodside Petroleum.

The buy-out is seen as a pivotal first step in the government’s multi-billion-dollar vision to create an onshore gas-processing industry, that includes construction of a pipeline from the Sunrise gas fields to Suai.

Having majority ownership in Sunrise would also give Timor-Leste more control over its gas reserves, which have an estimated value of $US65billion, and more control over where the gas should be piped and processed.

Previously, gas was to be processed in Darwin at a facility owned by ConocoPhillips.

Energy companies involved in the project have been concerned about the economics of Timor-Leste processing facility, people familiar with the deal have said.

Commentators have said that the exit of ConocoPhillips could change the equation.

On December 13, President Francisco Lu Olo Guterres vetoed the decree saying in a statement it could lead to misuse of the nation’s petroleum fund and called for the proposal to be revised.

The law change removes a 20 percent cap on state participation in oil projects and allows Sunrise and other projects to bypass approvals by parliament in future.

Guterres promulgated the decree on Thursday based on law, according to a statement from his office.

“The President of the Republic examined the said Decree, confirmed by the National Parliament, noting that there was no change on its wording, as previously submitted for promulgation,” the statement said.
“In this context, the President of the Republic must promulgate the Decree No. 3 / V "within eight days of receiving it", according with what is written in the final part of paragraph 2 of article 88th of the Constitution.

”Lu Olo’s approval of the decree “does not mean a political or legal judgment favourable to said Decree,” the statement said.

On January 10, during the second parliamentary vote that saw 41 members of parliament approve the decree, members of the opposition Fretilin party staged a walkout in protest of the bill, declaring the bid “illegal”

Fretilin have said the decree could misrepresent or dilute the difference between financial assets and other assets.

The Timor-Leste government has maintained that development of the nation’s own gas industry is a key plank in its sustainable national development plan, central for diversification of economy, using the gas to develop new industries and expertise.

To date the move to pipe gas to the South coast has bipartisan support.

Last week, Mari Alkatiri, the leader of Fretilin told Lusa: "Our position is more than clear. We are in favour of the development of Greater Sunrise, but we are in favour of a sustainable development that benefits the people and that does not harm our people."