More strikes could impact Pluto timetable: Woodside
WOODSIDE Petroleum has flagged that while its Pluto LNG project remains on track for first liquefied natural gas in early 2011, more strikes by Pluto workers could pose a risk to the timetable.
In a company presentation, Woodside said the Pluto Train 1 was 85% complete at the end of 2009 and remained on schedule for first gas later this year and first LNG in early 2011.
However, the company said the timetable was subject to a “productive industrial relations environment”.
“A risk mitigation plan is in place, if required, to ensure LNG delivery obligations are covered.”
Woodside was recently faced with strike action by Pluto construction workers which sparked concerns that the project could be delayed and face higher costs.
In the company’s annual report, chief executive officer Don Voelte said the cost projection for the project remained within the guidance provided last November of not exceeding $12.3 billion.
On the company’s plans for the Pluto expansion, Voelte said Woodside was aiming to be in a position to make a final investment decision on Train 2 by the end of year and Train 3 by the end of 2011.
During 2009, Woodside began a 20-well drilling program in the Greater Pluto area to find more gas to underpin the project’s expansion.
Four of the wells drilled so far have found gas with drilling on the fifth well, Larsen-1, currently progressing.
According to the company, Larsen-1, in WA-404-P, has encountered gas and is drilling ahead to the well’s primary target.
On the international front, Woodside is planning to drill and complete up to two additional developments at the Neptune oil field in the Gulf of Mexico.
A further 2-3 exploration wells are also planned to be drilled at the company’s other GoM assets from July with the Maersk Developer.
Thursday, 25 February 2010
PNN
PNN
