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
hardman resources limited