Woodside to Finalise $2 Bln Browse Development Sale in 3Q 2012

Australia’s Woodside has announced that all conditions precedent required for the sale of an estimated 14.7% unitised interest in the Browse Development to Japan Australia LNG (MIMI Browse) Pty Ltd (MIMI) have been satisfied.

The company has said that it and will finalise the sale during Q3 2012.

“The sale to MIMI signals a very positive step in the  development of Browse, and underscores the value of this world-class resource,” Mr Coleman said.

To remind, Woodside, which today reported a 1H 2012 net income of $$812 million, on May 1 announced it had accepted  an offer from Japan Australia LNG (MIMI Browse) Pty Ltd (MIMI) to purchase a minority portion of Woodside’s equity in the proposed Browse LNG Development for US$2 billion, subject to joint venture pre-emption rights. The effective date is 1 January 2012.

The sale involves MIMI taking 16% interest in the East Browse joint venture and 8% interest in the West Browse joint venture. This would give MIMI an estimated 14.7% interest in the Browse development on an assumed unitised basis. Woodside’s assumed unitised interest in Browse would fall from 46% to 31.3%. Woodside remains operator of the development.

Woodside yesterday agreed to waive its pre-emption rights in respect of a proposed sale of Chevron Australia Pty Ltd’s entire equity stake in the Browse joint ventures to Shell Development (Australia) Pty Ltd.

Andy Brown, Upstream International Director for Shell, said: “The Browse gas fields are a key LNG development opportunity for Australia. We’re committed to continue working with Woodside (as operator), the other JV participants and key stakeholders to secure the best possible development plan for this important resource.”

The deal will see Shell acquire Chevron’s 16.7% interest in the East Browse JV and Chevron’s 20% interest in the West Browse JV.

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Offshroe Energy Today Staff, August 22, 2012