Take the gas train, Woodside urges By Nigel Wilson 22aug03
WOODSIDE wants to proceed with a fifth liquefied natural gas production train worth $1.5 billion on the North West Shelf, and has recommended the project to its NW Shelf partners.
Outgoing managing director John Akehurst said yesterday the partners would have to decide on the timing of the fifth train, putting the issue squarely at the feet of Shell, BP and ChevronTexaco, all of which have competing projects in the market areas the fifth train would service.
It was a remarkably blunt response by the normally exceedingly polite Mr Akehurst, who is retiring as Woodside's managing director.
Mr Akehurst detailed a first-half profit of $272.2 million, up 3 per cent, after restating its year-earlier result to a loss of $472.6 million because of an accounting change to successful efforts treatment of exploration spending.
First half revenue was up 14 per cent at $1.1 billion while net operating cashflow was 8 per cent higher at $569 million.
Mr Akehurst said the company hoped it had "reached the bottom" of its production decline.
He said it would still achieve its new target of producing 58 million barrels of oil equivalent this year, despite the phased shutdown of North West Shelf production platforms as the $800 million second gas trunkline was connected to offshore facilities.
The company has accelerated its plans to develop the Chinguetti discovery in Mauritania with a development/appraisal well now scheduled for later this year.
The results of this well would help Woodside - operator and 35 per cent owner of Chinquetti - reach a declaration of commerciality in the fist quarter of next year.
Woodside hopes to make a final investment decision on Chinguetti by the middle of next year and is about to call tenders for 1.1 million barrels floating production storage and offtake vessel (FPSO) for the project.
to blackscorpion, it hurts to say this but well done to the pies.
HDR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held