Woodside Browse Project Could Cost Billions

The Australian newspaper is reporting today that that project will be a virtual blow-out, costing about A$50 billion.

Spokesman Roger Martin said a final cost won't really be known until a final investment decision is made, he said "The speculation in the report this morning is grossly misleading."

Woodside Petroleum and its partners had hoped to agree by last night on a location for the project, but failed to do so under concerns that the project could be delayed indefinitely. A Woodside spokesman now says a site should be chosen by later in 2009, that's a year later than they had originally planned. But the delay will give them time to evaluate the Kimberly liquefied natural gas precinct. The indecision in the ability to pick a location means that the proposed timetable for the Kimberly project is probably pushing $25 billion now. Environmentalists are also against development in the region and Woodside partners are now eyeing the Browse gas as refill when reserves at the NWS run low.

While it looks like the project could cost the partners billions, for Woodside it would mean giving a much needed boost to Kimberley's indigenous population.

And with that in mind, it's no surprise that Woodside is urging government officials to urge its partners get the project done fast.

Partner Chevron said last night it supported "the responsible development of the Browse fields without delay" and said a decision would be made "when all of the options are fully explored".

A second partner, Royal Dutch Shell Plc, was equally unwilling to commit.

"Given the complexity, scale, challenges and expected cost of this development, Shell believes it is critically important Browse LNG is progressed in a prudent and responsible manner," a spokeswoman said.