Woodside Welcomes New Participant to Browse LNG Project

---

Researched by Industrial Info Resources Australia (Perth, Australia)--Woodside Petroleum Limited (ASX:WPL) (Perth, Australia) is celebrating sale of 14.7% of the Browse liquefied natural gas (LNG) project to Japan Australia LNG (MIMI).

The value of the sale is US$2 billion (AU$1.92 billion) and represents an estimated total of 14.7% percent equity in the Browse LNG project on an assumed unitised basis. The division of parts that MIMI will purchase is a 16% stake in the East Browse joint venture and an 8% interest in the West Browse project. Woodside has accepted the offer by MIMI, subject to agreement by all Browse LNG project joint venture parties.

Participants in the Browse project are: Woodside (operator), BP plc (NYSE:BP) subsidiary BP Developments (London, England), Chevron (NYSE:CVX) (San Ramon, California), BHP Billiton (NYSE:BHP) (Melbourne, Australia), and Shell Developments Australia, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands). If the deal is agreed upon by all parties then Woodside will decrease its share to 31.3%.

Japan Australia LNG (MIMI) Proprietary Limited is a 50:50 joint venture formed by Japanese companies Mitsui & Company Limited (NASDAQ:MITSY) (Tokyo, Japan) and Mitsubishi Corporation (OTC:MSBHY) (Tokyo, Japan). MIMI has existed since 1985 with a base in Perth, Western Australia. MIMI holds a 16.67% equity interest in the North West Shelf Venture, which currently operates the largest LNG production project in Australia.

The North West Shelf Venture is operated by Woodside. Staged development of five LNG trains has made up the Karratha gas plant. The six-party joint venture that forms the North West Shelf Venture includes: BHP Billiton Petroleum, BP Developments Australia, Chevron Australia, Shell Development (Australia) and MIMI. These same six participants could be party to the Browse Joint Venture, on the proviso that all other participants accept the agreement made between Woodside and MIMI.

Woodside and MIMI also plan to further develop their business relationship with an aim to discuss further collaboration and alliance on additional projects outside of Australia. Woodside has signed a memorandum of understanding with MIMI to export 1.5 million metric tonnes of Browse LNG per year, subject to completion of the equity offer.

A financial investment decision (FID) on the Browse LNG project will be made in the first half of 2013. A successful financial go-ahead on the project will be inclusive of announcements and finalisation of LNG sales deals and will also finally see participants reach a settlement on best gas capitalisation practices.

The shareholders have held differing opinions on the preferred development options throughout the concept select phase. Woodside has remained adamant that the large-scale onshore LNG plant at James Price Point is the best option at the best location. The remaining parties have all supported the option of sending the gas to the existing North West Shelf Venture to be processed at the Karratha Gas Plant. Protestors against the Browse LNG plant development at the proposed James Price Point site remain vigilant in the fight against the project developing according to Woodside's plans.

Australian natural gas project developers are taking the opportunity while it lasts to sell LNG to Japan and develop lasting monetary relationships whilst demand remains high for Australian natural gas in the global marketplace.

View Project Report - 86000877 86000878 300029796 300012020 300013685

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.