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Woodside production volumes fall

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LNG Industry,

Woodside has announced a 7.1% fall in production volumes in 4Q14, compared to 3Q14. The fall has been attributed to lower LNG and condensate volumes, associated with the planned shutdown of NWS Train 1. As a result, sales volumes were 1.6% lower, which was partially offset by timing of shipments.

Sales revenue fell 10.1%, reflecting lower LNG sales volumes and lower il prices.

However, compared to the corresponding period in 2013, 4Q14 results reported a 0.9% rise in production volumes. Sales volumes were 4.8% higher and sales revnue was up 6.9%.

During 4Q14, Woodside entered a binding transaction to acquire Apache’s Wheatstone LNG and Kitimat LNG project interests. Under the terms of the agreement, Woodside will acquire a 13% interest in the Wheatstone LNG project and a 65% interest in the Julimar-Brunello upstream gas development. Woodside also acquired a 50% interest in the Kitimat LNG project.

Development activities

During 4Q14, Woodside completed basis of design and key pre front-end engineering and design (FEED) work on the Browse FLNG project. Additional strategic activities continue ahead of FEED phase entry and include further progressing primary approvals, managing impacts of the maritime boundary change affecting the Browse retention leases and additional technical work to de-risk the development.

Woodside anticipates that the development will be in a position to enter the FEED phase in mid-2015. The company is targeting a final investment decision In mid-2016.

Woodside believes that the revised schedule will provide an opportunity to seek significantly lower cost outcomes for the Browse FLNG development.

In December 2014, Woodside signed a Heads of Agreement (HOA) WITH pavilion Gas for the supply of up to 0.56 million tpy of LNG from its portfolio for a term of 13 years, starting in 2020. The HOA is expected to be converted into a Sale and Purchase Agreement (SPA) this year.

Adapted from press release by

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