Woodside awards dual FEED contracts for Pluto expansion

WOODSIDE Petroleum has expressed confidence in its ability to secure enough gas for Trains 2 and 3 of its Pluto LNG project by awarding dual front-end engineering and design contracts for the expansion.
Woodside awards dual FEED contracts for Pluto expansion Woodside awards dual FEED contracts for Pluto expansion Woodside awards dual FEED contracts for Pluto expansion Woodside awards dual FEED contracts for Pluto expansion Woodside awards dual FEED contracts for Pluto expansion

A joint venture between Foster Wheeler, WorleyParsons and KBR secured the contracts, with FEED studies expected to be completed in the second half of 2010.

In a statement, Woodside said it had decided to award dual FEED contracts to provide the necessary due diligence for the engineering, procurement and construction management phase of Train 2 and Train 3 in the fastest timeframe.

The company also said its total costs, including the dual contracts, for the FEED phase remained within the $100-150 million guidance.

Last month, Woodside was dealt a blow by Chevron in the race to secure third-party gas to help underpin the Pluto expansion after the US major snatched Apache Energy and Kufpec Australia gas for its Wheatstone LNG project.

Apache and Kufpec had previously been in talks with Woodside about processing gas from their Julimar and Brunello fields through Pluto.

However, Woodside remains confident about securing enough gas for the expansion and remains in discussions with other third-party gas owners in the Carnarvon Basin.

The company is also about to start a 20-well exploration drilling campaign in the Greater Pluto area to support the expansion.

The $12 billion Pluto LNG project currently consists of a single train facility targeting first gas by the end of 2010 and first LNG in early 2011.

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