Energy giant Woodside will push ahead with its $1.2 billion Persephone gas project off the Western Australian coast.
Woodside and fellow stakeholders, which include global giants BP, Chevron, Shell and BHP Billiton, have approved the project, which will be the third major development for the North West Shelf in the past six years.
The project is expected to cost $1.2 billion, with work expected to start in 2018.
Woodside chief executive Peter Coleman said the project would help maintain supply to its Karratha gas plant.
The development showed Woodside’s commitment to the the oil and gas rich North West Shelf, off the coast of the Pilbara region of WA.
“The NWS project celebrated 30 years of domestic gas production and 25 years of LNG exports earlier this year and approval of Persephone is the next step in continuing this success story,” he said.
Woodside owns just over 16 per cent of Persephone and will operate the project on behalf of its partners.
The project is set to produce its its first gas in early 2018. Woodside shares were down 17c to $39.39 at 10:14am (AEDT).
In other Woodside news, Robert Cole has resigned from his post as executive director of Woodside Petroleum to take up the position of managing director at Beach Energy in 2015.
Oil and gas explorer Beach Energy said in a statement Mr Cole would be assume the role of managing director from June 1 next year, following Woodside Petroleum’s announcement this morning that Mr Cole had resigned, effectively immediately, as Woodside’s executive director.
Beach Energy said the June date would be a place-holder unless an earlier date is available or mutually agreed upon. Mr Cole will succeed Reg Nelson, who has served as Beach Energy’s managing director since 2002.
Chairman of Beach Energy, Glenn Davis, said Mr Cole would bring “tremendous industry experience and understanding, with a deep skill set in values based leadership, strategy planning and execution” to the oil and gas exploration company.
Mr Cole had been on the board of Woodside from February 2012 and was leader of Woodside’s corporate and commercial division.
Source: The Australian