02/07/2009 - 14:54

Browse cost blowout wrong: Woodside

02/07/2009 - 14:54

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Woodside Petroleum says a report claiming a cost blowout at the Browse gas development offshore Western Australia to $50 billion is "simply wrong".

Browse cost blowout wrong: Woodside

Woodside Petroleum says a report claiming a cost blowout at the Browse gas development offshore Western Australia to $50 billion is "simply wrong".

'The Australian' newspaper today reported that an informed source had put the Browse project's costs on par with Chevron's massive Gorgon liquefied natural gas project, where a final investment decision (FID) is expected in the coming months.

Woodside spokesperson Roger Martin told WA Business News the report is "grossly misleading".

"The final cost for the Browse development will not be known until a final investment decision has been made," he said.

A date for the FID has not been scheduled with the Browse partners first to decide on the location of the gas processing plant.

Woodside has already announced its preferred option, nominating the state government's Kimberley LNG hub at James Price Point near Broome.

Woodside's partners - BP, BHP Billiton, Chevron and Shell - have yet to announce their preferred location.

A decision on the location of the processing plant is expected by the end of this year.

Another option for the processing of Browse gas is at existing LNG facilities on the Burrup Peninsula, near Karratha.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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