Woodside agrees to sell LNG to China

Woodside Energy Ltd. has signed an agreement with PetroChina Co. Ltd. for the potential sale of 2-3 million metric tons per annum of LNG for a period of 15-20 years from the Woodside-operated Browse LNG development.

Offshore staff

PERTH, Western Australia -- Woodside Energy Ltd. has signed an agreement with PetroChina Co. Ltd. for the potential sale of 2-3 million metric tons per annum of LNG for a period of 15-20 years from the Woodside-operated Browse LNG development.

"The deal confirms the strengthening relationships between Australia and China, and demonstrates China's emerging role as a major global LNG player," says Mark Chatterji, Woodside CFO. "The full contract has the potential to bring revenues in the order of A$35 billion to A$45 billion ($28.9-$37.2 billion) into Australia. As such, we believe this would represent the largest single export deal signed by an Australian company. We see this agreement as a vote of confidence in the Browse development and in Australian LNG as a clean fuel of choice."

Woodside holds 16.67% share in North West Shelf LNG production. The integrated operations of the North West Shelf have provided the foundation for the company's business over the last 20 years. Woodside holds an equity share of just under 50% in the three Browse gas fields

According to Chatterji, the preliminary agreement sets out commercial parameters normally included in a sale and purchase agreement, including LNG price. "Woodside and PetroChina will continue to work together towards an LNG supply agreement," he says.

The agreement provides increased certainty that will enable Woodside and its partners to move the Browse development forward.

"This agreement will enhance PetroChina's ability to deliver clean and reliable energy to their customers. China has made a strategic choice to add LNG to its energy portfolio, and we are ideally placed to meet this growing demand," Chatterji says.

9/7/2007

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