Contracts awarded

Woodside’s Browse LNG project has moved into its next stage of development with the oil and gas company awarding two contracts for the design phase of the offshore and onshore infrastructure of the project.

The contracts were announced at the company’s annual results presentation by Woodside managing director Don Voelte last week.

Coming on the back of a Supreme Court ruling which paved the way for an agreement with the traditional owners of the site of the proposed precinct two weeks ago, the announcement is a major step forward in the development.

The first two contracts for the design of three LNG production trains to be situated onshore at James Price Point, was won by a joint venture including Leighton Contractors and John Holland while a Japanese joint venture headed by engineering corporation Chiyoda was awarded the second.

The presentation indicated Woodside is drafting documents ahead of signing the indigenous land use agreement in coming weeks. Mr Voelte said the decision kept the company on track for a final investment decision on the project for mid-2012.

The meeting also shed light on Woodside’s plans for developing the Browse project’s three LNG reserves with the Calliance and Brecknock fields slated for development before the third field, more distant Torosa, coming on line last.

Mr Voelte said the Calliance and Brecknock fields were likely to supply 12 million tonnes per annum of LNG for the first stage of the development with the option to double the production at a later date.