North West Shelf Welcomes Depreciation Decision

The North West Shelf Joint Venture has welcomed the Budget announcement that the Government has decided to place caps on the effective life of assets used by the oil and gas industry.

Woodside Managing Director John Akehurst said on behalf of the Venture that the decision demonstrated that the Government understood the importance of providing an investment regime for new oil and gas projects which is internationally competitive.

"We are pleased that the Government has recognized that implementation of the extremely long write-off periods previously being proposed would have made it very difficult for Australia to compete against other low-cost suppliers and capture new liquefied natural gas sales contracts in Asia," he said. "We therefore congratulate the Minister for Industry, Tourism and Resources, Mr. Macfarlane, and his colleagues, for recognizing the competitive pressures which exist in the gas industry around the world and for responding accordingly.”

The six equal Participants in the North West Shelf Venture are: Woodside Energy Ltd. (operator); BHP Billiton Petroleum (North West Shelf) Pty Ltd; BP Developments Australia Pty Ltd; Chevron Australia Pty Ltd; Japan Australia LNG (MIMI) Pty Ltd; and Shell Development (Australia) Proprietary Limited.