Japan Australia LNG ends Browse deal with Woodside

Woodside Petroleum Ltd.

Woodside Petroleum Ltd. has provided an update on the Browse LNG project in Western Australia.

In connection with Woodside's sale of equity in the Browse LNG Development to Japan Australia LNG (MIMI Browse) Pty. Ltd. (MIMI) and advised to the Australian Securities Exchange (ASX) May 1, 2012: Woodside and MIMI entered into an agreement (JMA) to jointly market co-mingled LNG to the Asian market, primarily to Japanese customers; and Woodside and MIMI entered into a long-term sales and purchase agreement (SPA) for 1.5 million tons of LNG a year from the Browse LNG Development

The SPA was conditional upon a final investment decision on Browse being taken by Dec. 31, 2013. Because the Browse joint venture participants decided not to proceed with an onshore development and to enter a Basis of Design for a floating LNG development concept, both parties recognize that this condition will not be satisfied. Consequently, MIMI has given Woodside notice terminating the SPA. The JMA has not been terminated.

Woodside and MIMI continue working actively on marketing of co-mingled LNG volumes in the Japanese market. In addition, Woodside remains in ongoing discussions with other regional customers regarding potential sales from its portfolio of Australian LNG developments, including Browse.

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