Gas Week

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Woodside deal with PetroChina to supply 2-3mt LNG/yr from WA Browse project: $35-45bn revenues

Posted by gasweek on 20 September, 2007

A deal with PetroChina Co was for 2-3 million tonnes of LNG a year from the Browse project, off Western Australia, which Woodside operated, for 15 to 20 years, reported The Daily Telegraph (7/9/2007, p.83).

Revenues and terms: The agreement would bring revenues of $35-45 billion. Woodside’s preliminary agreement with PetroChina set the key commercial parameters normally included in a sale and purchase agreement, including LNG price. “The parties will negotiate in good faith to conclude an LNG supply agreement based on the key terms agreement,” Woodside said. “Supply is targeted to commence during the period 2013 to 2015.” The agreement was subject to conditions, including a final investment decision on the Browse project and relevant government approvals. “The Browse joint venturers have not been party to the agreement to this point; however, the agreement provides the opportunity for commingled sales,” Woodside said.

Heavyweights at deal-signing: The key terms agreement was signed in Sydney by Woodside chief executive Don Voelte and Zhou Jiping, vice-president China National Petroleum Corporation on behalf of PetroChina. Present at the signing ceremonies for Woodside and Gindalbie were Prime Minister John Howard and China’s President Hu Jintao. The Browse basin was off the Kimberley coast of WA. The development, expected to cost up to $10 billion to develop, was to deliver its first gas to Japanese customers by the end of 2010.

The Daily Telegraph, 7/9/2007, p. 83

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