Peter Coleman. Picture: Astrid Volzke/The West Australian.
The Woodside boss, who is trying to work out whether a land-based development of the Browse LNG project is viable in WA's high cost construction environment, also highlighted Australia's low ranking on several global productivity measures.
They included a 50th rank out of 51 in terms of total factor productivity growth in a survey by the Economist Intelligence Unit, and the World Economic Forum's ranking of Australia this year of 42nd in terms of labour market flexibility and 96th in terms of burdens caused by government regulation.
Woodside shares closed down three cents at $33.90 in a broadly firmer market.
Photo Damian Kelly
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Woodside links with tycoon sanctioned by US over junta ties
ReplyDeleteWOODSIDE Petroleum has struck an exploration deal in Myanmar with a local tycoon who worked with notorious former dictator Ne Win and was hit with US sanctions in 2008 because of his alleged close links to the country's military regime.
The Perth-based company said on Monday that it would take a 50 per cent interest in an exploration block operated by private company MRPL, which is owned by one of Myanmar's richest men, Michael Moe Myint.
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WOODSIDE SEEMS TO HAVE FORGOTTEN ALL ABOUT WHAT WENT WRONG WITH PLUTO.
Woodside CEO Peter Coleman takes swipe at new kids on the LNG block
THE cost blowouts and delays being reported by LNG developers with little to no experience in either LNG or Australia are damaging the investment reputation of both the country and Woodside Petroleum, the company's chief executive, Peter Coleman, has warned.
Speaking at an Australian Petroleum Production and Exploration Association event in Perth yesterday, Mr Coleman noted that cost increases coupled with rising global supply competition represented a major challenge for the industry in Australia as it worked to attract ongoing international investment.
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With seven large-scale liquefied natural gas projects ramping up in Australia, Woodside chief executive Peter Coleman said investors would look to deploy capital elsewhere if operators failed to maintain revised cost estimates and schedules.
While he conceded the cost global mega projects had generally increased by 20 per cent to 25 per cent over the construction phase, he said five project operators had not produced LNG in Australia before.
"Not only are we seeing the mega projects over $10bn increase and go out in time, that's exacerbated by establishing a new operation in Australia and working in a new technology base," Mr Coleman told reporters in Perth today.
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THE EXPORT RACE IS BAD FOR LOCAL GAS SUPPLY.
AUSTRALIA'S rush to become the world's biggest liquefied natural gas exporter threatens to lead to high prices and a shortfall in domestic supplies, leaving most of the country to rely on coal-fired electricity for the next 25 years.
Major research to be released today shows the Gladstone region in central Queensland could face a gas shortfall from next year because demand from proposed projects in the area, which include Rio Tinto Alcan's Yarwun refinery expansion, exceeds the capacity of the pipelines to supply the gas.
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FRENCH oil giant Total could have as much as $US10 billion ($9.54bn) available for M&A, but if it's looking in Australia then it should think again.
That's the view of Bank of America-Merrill Lynch analyst Matthew Yates, who says a rush of 10 deals in Australia since 2006 means Total is overweight in this country, and generating disappointing returns from its flagship liquefied natural gas projects.