Woodside Petroleum seeks delay to Browse LNG project

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Woodside Petroleum will apply to delay by more than six months a decision on its controversial and expensive liquefied natural gas project in WA’s Browse Basin.

The company said in a statement that it and its partners would seek amendments to its Browse Basin retention leases, including conditions relating to readiness for a final investment decision.

Woodside wants a final investment decision that is due by mid 2012 extended into the first half of 2013.

“While the joint venture has to date met the schedule imposed by the retention lease conditions, the variation would allow time to better evaluate the outcomes of front-end engineering and design work and the results of the tender processes for the developments major contracts,” the company said in a statement.

Earlier this month, Woodside said it didn’t expect the $30 billion project would be delayed by a court deeming the compulsory acquisition by the WA government of land for a processing hub as invalid.

However it has been reported that a construction camp at Broome and a $100 million road have been delayed.

The community has been divided and some have had an ongoing battle with Woodside over its plans to build a $30 billion liquefied natural gas (LNG) precinct at James Price Point.

Environs Kimberley director Martin Pritchard described the decision as “another nail in the coffin” for the project.

“We’re calling on the premier (Colin Barnett) to suspend decisions on the project and not waste $120 million of taxpayers’ money on the road that’s planned to the proposed gas hub, because it looks like it’s going to the Pilbara,” he said.

“We also want certainty for Broome. The longer an announcement on a decision to go to the Pilbara is delayed, the more angst it creates for our community.”

Mr Pritchard said Woodside should think about its corporate social responsibility, as well as its share price.