Woodside
to sell 40% interest in WA-271-P and Enfield production licence
WA-28-L
Posted: 31 March 2004
Woodside has agreed to sell 40 per cent of its WA-271-P exploration
permit and associated Enfield production licence WA-28-L in Western
Australia to Mitsui for US$464.5 million.
The effective date of the transaction is 1 January 2004.
Under sale and joint operating agreements negotiated with Mitsui
E&P Australia Pty Ltd, a wholly owned subsidiary of Mitsui &
Co., Ltd. Mitsui will become a full joint venture participant in
WA- 271-P and the Enfield production licence WA-28-L. In addition,
Mitsui will participate in future exploration and production in
the permit.
The sale is expected to close by the end of April 2004 after the
conditions of Australian
Government approval have been obtained. Woodside’s acting
Chief Executive Officer, Keith Spence, said the sale fulfilled a
key step in Woodside’s growth strategy for the Greater Enfield
Area.
Woodside has held a 100% interest in WA-271-P since it was awarded
in 1997. The permit contains the Vincent, Enfield and Laverda discoveries.
“Our recent announcement to develop the Enfield oil project,
and favourable market conditions, enable Woodside to realise immediate
value from the sale while still maintaining significant exposure
to the long-term growth potential of the Greater Enfield Area,”
he said.
Mr Spence said Woodside was delighted to welcome Mitsui as a joint
venturer, particularly as Mitsui brought particular experience in
the Japanese oil market where most of the Enfield crude would be
sold.
“Mitsui, one of Japan’s largest conglomerates, has
an extensive energy group involved in international oil and gas
exploration and production, marketing, oil refining and LNG operations,”
Mr Spence said.
“Woodside has a long-established relationship with Mitsui
through its involvement in the Woodsideoperated North West Shelf
Venture and this transaction allows us to extend that relationship.”
Mitsui has an established presence in Australia through the Wandoo,
Cliff Head, Yolla and Casino projects.
Mr Spence said proceeds from the sale would be dedicated to Woodside’s
extensive suite of development projects for which the Company expected
to commit about A$4 billion over the next three-to-five years.
He said Woodside maintained its objective of producing about 100
million barrels of oil equivalent by 2007 through the addition of
projects such as the Neptune discovery in the Gulf of Mexico and,
beyond 2007, the Tiof oil discovery in Mauritania and other discoveries
in the Greater Enfield Area.
For more information see www.woodside.com.au
Posted by Richard Price,
Editor Pipeline Magazine
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