48 Woodside Petroleum Ltd|Annual Report 2018
Kitimat LNG
In 2018, we focused on developing a globally
competitive project which will be aligned with
LNG market demand growth.
The Kitimat LNG Development is a 50/50 joint venture
between Woodside Energy International (Canada) Limited
and Chevron Canada Limited (Operator).
The project is targeting a globally competitive cost of supply,
with significant reductions in Kitimat LNG unit cost already
achieved since Woodside’s investment in the project in 2015.
Key activities in 2018 have included progressing value
enhancement opportunities in the Kitimat LNG design to ensure
necessary project cost competitiveness is achieved; advocating
for a clear, stable and competitive fiscal framework with
governments; continuing the appraisal of the Liard upstream
natural gas resource and maintaining engagement and support
for the project with First Nations and local communities.
In 2019, the joint venture is focusing eorts on activities to
drive down costs across the full value chain, advocating with
governments and maintaining engagement with key stakeholders.
Woodside interest: 50%
Community garden in Timor-Leste, supported by the Sunrise Joint Venture in partnership with HIAM Health
Australia and Timor-Leste signed a new treaty on
6 March 2018 to establish their permanent
maritime boundaries in the Timor Sea.
The new treaty provides a pathway to the development
of Greater Sunrise, provided the underlying arrangements,
including the new Greater Sunrise PSC and agreed fiscal
regime, are on terms and conditions equivalent to the existing
regime and give the Sunrise Joint Venture the fiscal and
regulatory certainty necessary for a commercial development
to proceed.
Negotiations between the two Governments and the Sunrise
Joint Venture on the new Greater Sunrise PSC commenced in
November 2018.
While the new PSC arrangements are being negotiated, the
Sunrise Joint Venture will meet its obligations under existing
PSCs (JPDA 03-19 and JPDA 03-20) and Retention Leases (NT/
RL2 and NT/RL4), continue ongoing social investment activities
in Timor-Leste and maintain an oce in Dili.
Woodside interest: 33.44%