Woodside says CNOOC LNG stake mostly agreed
Tuesday, April 16 2002 - 08:10 AM WIB
"I believe we have put in a very competitive bid for LNG supply," Woodside managing director John Akehurst told reporters after the group's annual meeting.
"We have also now largely agreed with CNOOC on an equity sale to CNOOC in the event we are successful in winning the LNG supply contract."
Agreeing an equity stake in the project for China National Offshore Oil Corp was a prerequisite for the contract, but Akehurst declined to give further details.
The North West Shelf resource project offshore Western Australia, operated by Woodside, is one of three shortlisted by China to supply three million tonnes a year of LNG from 2006 to a new receival terminal in Guangdong province.
The other competing suppliers are BP PLC which plans to supply LNG from its Tangguh gas field in Papua and Qatar's Ras Laffan Co
"We are well advanced in our shipping proposal and we have also made good progress with the possibility that CNOOC may wish to actually wish to make a capital investment in the fifth LNG train," Akehurst said.
The North West Shelf ships around 7.5 million tonnes a year of LNG mostly to Japan from three production trains.
The venture had committed to a fourth 4.2 million tonne production train aimed mainly at an expansion of Japnese demand and is seeking China's demand to underpin a commitment to a fifth train of similar size.
Akehurst said there were no indications that China would divide the three million tonne contract between separate suppliers.
"All the negotations have been on a three million tonne contract at this stage, but there is always the possibility that a split might occur," he said.
If the contract were for a smaller one million tonnes, the venture would look for other opportunities to provide the necessary demand, or possibly build a smaller fifth train. (*)