Woodside Sees Higher Costs at Pluto LNG Project

Woodside has completed its most recent review of the cost and schedule of the Pluto foundation project. The review concluded that the project is 82% complete and remains on schedule to deliver first gas from the Pluto field at the end of 2010 and first liquefied natural gas in early 2011.

Depending on the drawdown of project contingencies, the final cost of the foundation project is expected to be 6% to 10% over the A $11.2 billion approved by Woodside at the time of the final investment decision in July 2007.

The expected increase in cost is due to lower than budgeted productivity in both onshore and offshore construction.

Pluto Development

Located offshore Western Australia, the massive Pluto LNG project consists of developing two gas fields, Pluto and Xena, which are situated in the highly productive Carnarvon Basin.

Approved by Woodside in July 2007, the more than $10 billion (US Dolllars) field development plan includes five subsea big bore wells producing to a shallow-water production platform 17 miles (27 kilometers) away. Gas will be transported from the fixed platform through 112 miles (180 kilometers) of pipeline to an onshore LNG plant. A single-train LNG processing facility, the new Burrup LNG Park will have a production capacity of 4.7 million tons (4.3 million tonnes) a year, as well as an export jetty and storage facilities.

Located in 2,723 feet (830 meters) of water, the five subsea wells are being developed through subsea trees linked to two subsea production manifolds.