Pluto LNG Project

Davood NattaghiMarch 2012

Facts

Objectives and Aims

Introduction

Reasons for Delay

Time Schedule

Overview

Agenda

Bibliography & References

Appendix

Project Introduction

Operator: Woodside Petroleum LtdLocation: North West Shelf of Western AustraliaTimeframe: 25 year lifespan, expected to start production during first half of calendar year 2012Initial Estimated Cost: £ 8 billionReserves: about 5 trillion cubic feet of natural gasSupply volume: 4.3 million tons natural gas per year

Project Overview

LNG PlantPlatform & Topsides FacilityPipeline / Mono Ethyl Glycol (MEG) LineSubsea Production WellsFlow lines and Risers

Project Overview

The project is a joint venture between Woodside the operator, Tokyo Gas and Kansai Electric, who became project partners in January 2008Project is underpinned by 15-year sales agreements with Kansai Electric and Tokyo Gas

90%

5% 5%

Interest Proportion

WoodsideTokyo GasKansai Electric

Provide a reliable source of clean energy to Woodside’s customers in the Asia-pacific region Boost the West Australian economy by at least £19 billion over its lifetimeCreate up to 6,000 jobsMaximising opportunity for Australian suppliers and contractorsProtection of the environment

Project Aims

Project Initial Schedule

Project Facts

Pluto project is now 15 months behind original scheduleProject costs rose from £ 8 billion to almost £ 10 billionWoodside Petroleum’s full year profits fell by 4.3 percent

Reasons for Delay

Bad weather and heavy rain Mechanical faults experienced with installationDesign faults Onshore commissioning errors Project complexity and labour issues

Bendeich, M. (2011) Reuters, 17 June, [Online], Available: http://www.reuters.com/article/2011/06/17/woodside-

lng-pluto-idUSL3E7HH03A20110617 [3 March 2012].

Booz, A. (2006) 'Capital project Ececution in the oil and gas industry '.

Kobelke, D. (2006) 'Pluto LNG Development Industry Briefing', November.

Ltd, T.G.C. (2007) 'Contract Conclusion of the Pluto LNG Project', August.

Ltd, W.E. (2009) 'Pluto powers ahead', Pluto Pulse, October.

News.au (2011) News., 17 June, [Online], Available: http://www.news.com.au/business/breaking-news/woodside-

petroleum-delays-western-australian-pluto-lng-project-again [5 March 2012].

offshore-technology (2011), April , [Online], Available: http://www.offshore-technology.com [6 March 2012].

Ordons News (2011), 18 June, [Online], Available: http://www.ordons.com/oceania/australasia/27096-woodside-

petroleum-blames-western-australian-pluto-lng-project-delay-on-poor-weather.html [4 March 2012].

Thewest (2012), 22 February , [Online], Available:

http://au.news.yahoo.com/thewest/business/a/-/news/12978404/pluto-delays-hit-woodsides-profit/ [6 March

2012].

Bibliography & References

Wilkinson, R. (2011) Oil & Gas Journal, 24 June, [Online], Available: http://www.ogj.com/articles/2011/06/woodside-again-

delays.html [4 March 2012].

Woodside (2011), [Online], Available: http://www.woodside.com.au [6 March 2012].

Young, E.&. (2011) 'Capital project life cycle management for oil and gas'.

ABC, News (2010) Youtube , 30 November , [Online], Available: http://www.youtube.com/watch?v=mHIIQZXutHw [7 March

2012].

Bibliography & References

Thank you for your attention

Appendix