Saturday, September 17, 2011

Merrill lists Browse LPG options for Woodside | The Australian

Merrill lists Browse LPG options for Woodside | The Australian

In a 44-page report sent to clients yesterday, Merrill Lynch analyst David Heard said Woodside's confidence of making a final investment decision (FID) by the middle of next year appeared to have waned since Mr Coleman took over from the bullish Don Voelte almost four months ago.

This was due to cost blowouts and delays at Woodside's majority owned Pluto project, the failure to sanction a Pluto expansion project and persistent opposition to Browse from environmentalists and some indigenous landowners.

"In our view, this suggests tough retention licence conditions have become a liability rather than an asset and that the potential for significant deferral or abandonment of FID for a greenfield Browse project has increased," Mr Heard said.

4 comments:

  1. The report says ...His report said a quick greenfield development at James Price Point was the best option for Woodside shareholders from a net present value perspective.... That says it all. This was in the article that the link lead me to from your blog.

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  2. The report also states....... This was due to cost blowouts and delays at Woodside's majority owned Pluto project, the failure to sanction a Pluto expansion project and persistent opposition to Browse from environmentalists and some indigenous landowners.

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  3. David Heard seems to be very well informed and provided great commentary on the ABC today

    It is in all Australian's interest to monetise these gas reserves over a long period of time and optimising existing infrastructure .... we lose a huge number of tax dollars as operator write down huge CAPEX ... operators, banks, governments all want early revenue. The reserves belong to the people of Australia and we should have a say in what is a sensible development.

    Browse to Burrup in the future not Browse to Kimberley now

    anonomous 40 year Oil&Gas veteran

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  4. Well said mate,from a 30 year oil and gas veteran.

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