We perform a detailed field theoretical study of nonequilibrium Josephson oscillations between interacting Bose-Einstein condensates confined in a finite-size double-well trap. We find that the Josephson junction can sustain multiple undamped Josephson oscillations up to a characteristic time scale $\tau_c$ without quasipartcles being excited in the system. This may explain recent related experiments. At larger times the dynamics of the junction is governed by fast Rabi oscillations between the descrete quasiparticle levels. We predict that a selftrapped BEC state will be destroyed by these Rabi oscillations.