Subject: Woodside Says It Met Terms of Treaties for Sunrise Project With East Timor


also Voelte's conscience clear on East Timor

Woodside Says It Met Terms of Treaties for Sunrise Project With East Timor

By Ben Sharples - Jun 2, 2010

Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, says it's fulfilled all obligations governing the Sunrise liquefied natural gas project in waters between Australia and East Timor.

Developing Sunrise through the use of a floating LNG platform plant has "robust economics, maximizing total revenue to Australia and Timor-Leste," Woodside Chief Executive Officer Don Voeltetold a conference in Sydney today.

East Timor is opposed to any proposal that doesn't include building a plant on its soil to process the gas into LNG. The Sunrise venture, which includes Royal Dutch Shell Plc and is operated by Woodside, ruled out that option because of cost.

About 82 percent of the gas is located in Australian waters, and the country should receive about $19 billion in revenue over the life of the project, Voelte said. The Asian nation will earn about $13 billion for its 18 percent share, Voelte said in the presentation, filed to the Australian stock exchange.

Woodside rose 1.7 percent to A$44.15 in Sydney trading at 10:09 a.m. The benchmark S&P/ASX 200 Index gained 1.7 percent.

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Voelte's conscience clear on East Timor

The West Australian

June 3, 2010, 9:26 a


Woodside Petroleum has met all its obligations regarding the Sunrise liquefied natural gas project, managing director and chief executive Don Voelte says.

"Woodside has fulfilled all its obligations under international treaties," Mr Voelte told the UBS Resources conference in Sydney in prepared remarks.

Sunrise is located in waters between Australia and East Timor, and the joint venture partners recently unanimously selected a floating LNG platform to develop the project.

The other two options - piping the LNG back to a processing plant in East Timor or Darwin - were rejected.

Piping the oil to East Timor had the highest capital cost and significant technical risks, Mr Voelte said.

But the East Timor authorities have expressed a desire for the LNG to be processed in the Asian nation.

Mr Voelte said the floating LNG platform option had "robust economics, maximising total revenue to Australia and Timor-Leste and maximising the return to the Sunrise joint venture".

"We have selected the concept that provides best commercial advantage consistent with good oilfield practice," Mr Voelte said.

"While I cannot get into the specific details on the economics of Sunrise floating LNG development, I can say that at this stage in the development the calculated returns are robust and exceed all Woodside's threshold economic hurdle rates."

Mr Voelte said East Timor would earn about $US13 billion ($A15.45 billion) over the life of the project from its 18 per cent share of the gas, while Australia stood to take home about $US19 billion ($A22.58 billion) from its 82 per cent share.

At 9.25am, Woodside was up 67 cents, or 1.54 per cent, at $44.10, on a day when the broader market was up about 1.6 per cent.

Apart from Woodside, which will operate the project, the joint-venture partners also include Conoco Phillips, Royal Dutch Shell and Osaka Gas.

 

 


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