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Friday, 29 August, 2008, 18:50 GMT | more prices >>

Xena cheer for Woodside at Pluto

By Upstream staff

Woodside Petroleum has drilled two successful gas appraisals on the Xena discovery in its Pluto area off Western Australia, but failed with the Ixion-1 deep-water gas wildcat, also near Pluto.

Ixion-1 was drilled in Block WA-370-P in 1335 metres of water, and was plugged and abandoned as a dry hole, said Woodside. Two more wells are planned in the same area.

The shallow-water Xena-2 and Xena-3 appraisal wells "confirmed both the nature of the reservoir and the presence of gas saturated sands in a previously unpenetrated fault block. With the result being within the range of expected outcomes, no further appraisal drilling is required prior to development planning", said Woodside.

The company is currently building the first train of its 90%-owned Pluto liquefied natural gas project, and is progressing with the engineering of a second train. Woodside wants to be ready to take a final investment decision before year end, subject to gas availability.

The operator is in discussions with potential contractors about the engineering, procurement and construction management (EPCM) contract for Train 2, and has engaged two groups - Foster Wheeler-Worley Parsons and Technip-Chiyoda-Fluor - to each prepare a project execution plan for the front-end engineering and design phase.