North West Shelf to Process 3rd Party Gas

Woodside, as operator of the North West Shelf (NWS) Project, informed that the NWS Project participants today signed a non-binding Letter of Intent with Hess Exploration Australia Pty Ltd to process resources from Hess’ permits in the Carnarvon Basin.

The Letter of Intent specifies the proposed terms, including tariff fees, to toll resources from WA-390-P, WA-474-P, and potentially other permits, through the NWS Project’s Karratha Gas Plant. It is intended that, subject to the parties entering into binding agreements, Hess will deliver gas to the NWS Project’s offshore infrastructure for processing at the Karratha Gas Plant and will market and deliver its own volumes.

Woodside’s Senior Vice President NWS Niall Myles said that the Letter of Intent forms the basis for the negotiation of binding agreements in 2015.

“The Letter of Intent with Hess is an important step indicating the Karratha Gas Plant is ‘open for business’ – it provides an attractive option for third party gas owners to commercialise their resources in proximity to existing LNG infrastructure.”

“The North West Shelf Project has a proven track record with more than 30 years of safe and reliable operations. This opportunity has the potential to add value for the NWS participants through efficient use of infrastructure and provide real benefits to Western Australia and the Pilbara,” Mr Myles said.

A tie-in and operational integration front-end engineering and design (FEED) studies agreement is expected to be executed for the project in early 2015.

The North West Shelf Project participants are: Woodside Energy Ltd. (Operator 16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%); and Shell Australia Pty Ltd (16.67%).