The key terms agreement is a preliminary agreement between Woodside and PetroChina. It agrees 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. Supply is targeted to commence during the period 2013 to 2015. The agreement is 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.
The key terms agreement was signed in Sydney this morning by Don Voelte, CEO Woodside Energy Ltd. and Zhou Jiping, Vice-President China National Petroleum Corporation (on behalf of PetroChina). Present at the signing ceremony were Australian Prime Minister John Howard and Chinese President Hu Jintao. Woodside Chief Executive Don Voelte said the agreement further strengthened the company’s position as an LNG supplier of choice in the Asia-Pacific region.
PetroChina is one of China’s largest energy companies. An agreement with such a significant foundation customer provides increased certainty to enable Woodside to move the Browse development forward.
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