Browse partners accept lease renewals

Woodside Petroleum and its joint venture partners in the Browse Basin project have accepted renewal offers for the project's retention leases offered by the state and federal governments.

Woodside holds a 50 per cent stake in the project with Chevron, Royal Dutch Shell, BHP Billiton and BP holding the balance.

On December 3, the Browse partners received offers for renewing the leases, which stipulated the partners must spend $1.25 billion over the next 30 months to ensure the earliest commercialisation of the Browse resources and given 30 days to decide.

The terms also included the partners select the Kimberley LNG precinct as a development precinct, namely James Price Point, within 120 days unless they could demonstrate another concept that was likely to be commercially viable at an earlier time.

The Browse Basin project off the Kimberley coast is expected to cost at least $30 billion to develop and the basin itself is thought to contain 4.7 trillion cubic feet of gas and about 120 million barrels of condensate.

Shares in Woodside were up four cents, or .08 per cent, trading at $47.40 at 1410AEST.

Full announcement below:

RENEWALS ACCEPTED FOR BROWSE BASIN RETENTION LEASES
The Browse Joint Venture participants have accepted renewal offers for Browse Basin retention leases WA-28-R, WA-29-R, WA-30-R, WA-31-R, WA-32-R, TR/5 and R 2, on the terms and conditions offered by the Joint Authority and the WA Minister for Mines and Petroleum.

Full details of the terms and conditions of the retention leases renewal offers were provided to the market in Woodside's announcement on 3 December 2009.