Woodside Petroleum Ltd expects the government’s tax deal with the resources industry to have no negative impact on its massive North West Shelf liquefied natural gas project in western Australia, it said on Friday.
Friday’s tax deal will bring the project, which is producing about 16 million tonnes of LNG per year, under the petroleum resource rent tax but Woodside said the change will have no major impact as it is already heavily taxed under the current system with 12.5 percent in royalties and 30 percent in excise taxes.
Woodside shares fell on Friday on expectations the North West Shelf project would be impacted negatively by the new resource tax and at 0400 GMT, the stock traded down 2.5 percent, underperforming a flat broader market .
“Woodside expects the North West Shelf’s transition to the PRRT to have no negative impact relative to our existing taxation arrangements and we look forward to discussions with the policy transition group,” it said in an e-mailed statement.
“For Woodside, the maintenance of the company’s growth projects on the existing petroleum tax regime is a sensible outcome which maintains the value of those assets.”
Woodside is the operator of the A$20 billion ($16.93 billion) North West Shelf venture, which is Australia’s largest LNG project.
The six equal partners in the North West Shelf joint-venture are Woodside, BHP Billiton Plc/Ltd, Chevron , BP Plc, Royal Dutch Shell and Japan Australia LNG (MiMi) Pty Ltd, which is a joint-venture of Mitsubishi Corp and Mitsui and Co.
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Source: Interactive Investor, July 2, 2010;