Woodside Deletes Its Browsing History A Play in Three Acts

Parts: Colin Barnett, Premier of Western Australia Ann Pickard, Shells Australian chair The Press The Unions The Environmentalist

Act 1
Our longest act. It goes over forty years, but nothing actually happens. The Press: In 1967, exploration commences in the Browse Basin. In 1971, gas is discovered at Scott Reef. Kevin: The gas isnt wanted. What Woodside is drilling for is oil. The gas is so far offshore and so far from markets that it cant be developed economically. The Press: Sporadic exploration over the years, and then drilling in years 2000 and 2005 to 2008 reveal major gas accumulations. Kevin: By now, gas is a more marketable commodity, as LNG is sold internationally. But the distance of the Browse Basin from anywhere else still makes the resources difficult to develop.

Act 2
Covers the last five years. A lot seems to happen, and tensions and tempers are raised, but again, nothing results. Its like a tale, told by an idiot, full of sound and fury, signifying nothing, and like Shakespeares Macbeth, is regarded by many people as a tragedy. The Press: In 2008, the government signed a strategic assessment agreement to assess locations for an LNG processing facility in the Kimberley for the Browse Basin reserves. In April 2009, traditional owners in the Kimberley agreed with WA Premier Colin Barnett and Woodside to allow the construction of the gas processing hub at James Price Point, in return for $1 billion dollars in compensation over 30 years. Colin Barnett announced his success: Colin Barnett: This agreement has immense implications for the whole nation. The compensation package would create economic opportunities for Aborigines in the area and would include health and education programs and freehold land agreements. It will allow an opportunity to achieve economic independence and self-determination.

Woodside Deletes Its Browsing History

The Press: A multi-million dollar assessment of the gas hub recommended the project go ahead, despite the environmental risks. The assessment covered environmental, social, economic and Indigenous impacts. But the process was disputed by Peter Robertson of the Wilderness Society: The Environmentalist: With the WA Premier being the proponent of the gas plant precinct at James Price Point, the entire WA assessment process has become a sham, with embarrassing conflicts of interest on the Environmental Protection Authority board. The EPA failed to consider sites outside the Kimberley. There were failings in the assessment of whales, dolphins, sawfish, sea turtles, bilbies, dinosaur footprints, monsoon vine thicket and dredging, many of which have been criticised by independent scientists. The Press: Tensions between protesters and Woodside escalate, with protesters clashing with contractors on the dirt track into the gas hub site. There were blockades, with some people chaining themselves to bulldozers. There were disputes from some aboriginal groups, and Colin Barnett threatened compulsory purchase if a deal could not be agreed. But at the end of 2011, Western Australia's Supreme Court ruled that compulsorily acquisition of land for the gas hub was invalid. This ruling put the future of the gas project in doubt. The gas hub still needed approval from the Federal Government, as well as a final investment decision from Woodside and partners Kevin: By 2012, there had been lengthy debate about the project future in light of soaring labour and equipment costs, the high Australian dollar, and ongoing protests by environmental and Aboriginal groups. In July, Ann Pickard of Shell gave this warning: Ann Pickard: If we can't keep the prices down and we can't find a way to improve the productivity, onshore LNG plants will become increasingly difficult to build. Kevin: In November 2012, matters came to a head between Shell and the government. Colin Barnett told ABCs Q&A program that he did not favour the Floating LNG route. Colin Barnett: If you think about Floating LNG, theres not a single job in construction in Australia, not a single crew member on it for Australia. The two choices are Floating LNG or develop at James Price Point.

Woodside Deletes Its Browsing History

Ann Pickard: The Prelude Floating LNG project will create 1000 full-time jobs for the full lifetime of the project. Theres no boom-and-bust construction work, but long-term employment. Most of the people on Prelude will be Australians. By 2015, I expect to see double the workforce here in Perth, from 400 to 800 people, and a lot of those new people will be working on Prelude. Colin Barnett: I don't think it is safe environmentally to have such a massive offshore production and storage facility for gas and oil. Hopefully, it never will, but accidents do happen, like the Gulf of Mexico and also Montara. Ann Pickard: No, I dont agree that Prelude is environmentally unsafe. Its designed around safety and safety is absolutely paramount in the design, so obviously I disagree. Prelude will have its seven wells starting drilling in January 2012, and these are the first cappable wells for Australia. Everything we do is focused on prevention to make sure we can stop anything happening, it's all about prevention. If anything goes wrong, then we've got the cap, so I don't see a Macondo or Montara happening. You can't ever say never, but we sure are focusing on the prevention side. Colin Barnett: The development of Browse with Floating LNG technology would be "a silly result" for Western Australia. We would be stark raving mad as a country not to have Australian participation in the development of Australian resources. It's pretty obvious that there's been some discussion within the joint venture about Floating LNG. If the project is offshore, there's very few jobs for Australia, the whole structure will be built offshore, and indeed there'll be no gas coming onshore at all. That'd be a disastrous result for Australia and Australia's natural resources. Ann Pickard: I think floating LNG is an option for just about anything offshore Australia given the cost structure. Onshore LNG still has a place, but Australia has become the most costly place to develop onshore LNG projects. Australias tax structure, combined with the high cost of labour and materials, all contribute to the problematic environment. Kevin: In March of this year, anti-gas protesters in Broome called on Shell to intervene in Woodsides drilling and excavation works at James Price Point. The Environmentalist: The drilling would damage the fragile coastal ecology of the area and plunder an Aboriginal burial ground full of culturally sensitive sites. Woodside plan to excavate the area to build a port to export LNG. We know Shell prefers the option of a floating platform to process gas offshore rather than destroying the Kimberley coast.

Woodside Deletes Its Browsing History

The Press: On April 12th, in an announcement to the Australian Stock Exchange, Woodside said James Price Point "does not meet the company's commercial requirements for a positive investment decision". A major review of the proposed LNG processing plant, near Broome, had found it would not deliver the returns the company needed. Woodside said they will immediately engage with the Browse joint venture to recommend evaluation of other development concepts to commercialise the Browse resources, which could include floating technologies, a pipeline to existing LNG facilities in the Pilbara or a smaller onshore option at the proposed Browse LNG precinct near James Price Point. It leaves the future of what was going to be one of Australia's biggest-ever resources projects in limbo. Colin Barnett: Of the options that Woodside has announced today, one is Floating LNG that hasnt been done anywhere in the world yet. New technology, new risks, certainly safety issues attached to that. For a Floating LNG option in an area prone to cyclones, staff would have to be taken off the plant three days in advance of severe weather. A Floating LNG option will significantly diminish the returns to WA. It would be a tragedy and a missed opportunity, if that gas did not come onshore into Australia at James Price Point. Its a missed opportunity for literally thousands of people to work on the construction and hundreds to work on the ongoing operations, and for gas to be available in our economy. The other option is to pipe it into the North-West Shelf. I doubt that will happen because that involves the agreement of another whole joint venture. The last option is a smaller scale project on James Price Point. Obviously that would be the one that I would prefer. If this does not go ahead at James Price Point, it is going to break the hearts of Aboriginal people. Kevin: The Australian Workers' Union accused Woodside Petroleum of bypassing Australian workers in favour of offshore operations and higher profits, aided by the Greens. Their national secretary Paul Howes said: The Unions: This decision by Woodside to shelve the LNG project at James Price Point is the great Australian rip-off. They have sacrificed tens of thousands of Australian jobs at the altar of higher profits for Woodside and their partner Shell executives. I call on the Federal Government not to renew Woodside's retention lease on the Browse Basin.

Woodside Deletes Its Browsing History

I wouldn't be surprised to see Greens Leader Christine Milne sharing a glass of champagne with Woodside executives in toasting their magnificent victory. The political party meant to be standing up to the corporate giants and the big oil majors have provided Woodside with the perfect cover for abandoning the project. They don't care about Australian jobs. All they care about is winning ideological battles that once again leaves Australian workers as their victims. Ann Pickard: We believe that floating technology would be the fastest, most economic and best technical solution for processing gas from the Browse project. Floating LNG can bring significant long-term, sustainable jobs to Western Australia, Australia, and the Kimberley, as well as providing employment and business opportunities for Kimberley indigenous people. The Press: WA Opposition Leader Mark McGowan said the Premier's constant interfering and meddling caused the James Price Point project to be lost. Mr Barnett should never have interfered in the commercial arrangements or the exact siting of the project onshore. The Premier has no one to blame but himself. His handling of the James Price Point issue has been abysmal right from the beginning. Kevin: The Australian Conservation Foundation welcomed Woodsides retreat from James Price Point: The Environmentalist: This is not just a win for the pristine Kimberley coast, for the heritage-listed dinosaur track ways, migratory humpback whales, endangered bilbies and the monsoonal vine thickets. We need to understand that as environmentalists, working with industry and their investors, we influenced this decision. Woodside could not afford this development and they could not afford the loss of social licence and corporate reputation. Kevin: Aboriginal groups were less pleased about the lost job opportunities and benefits that would have come to the Kimberley: The Press: A highly respected Aboriginal woman who was in favour of the James Price Point gas hub feels betrayed by Woodside, her own people and protesters who waged war on the project. Rita Augustine is a 78 year old elder of the Jabirr Jabirr tribe. She was in tears yesterday as she spoke of feeling let down and deeply saddened that $1.5 billion dollars in benefits from the project appeared lost to her people. Last year she wrote to The West Australian and then Greens leader Bob Brown saying he was putting dinosaur prints above people by opposing the project. Yesterday she said I feel betrayed by Woodside. We had an agreement with Woodside but I dont

Woodside Deletes Its Browsing History

know if that still stands. I also feel let down by some of my people here in Broome and the outsiders who came in the protest against us. It really hurt me. A bitter division split aboriginal groups, and one tribe remain fiercely opposed to the project. Rita Augustine said the suicide rate among their young people was an epidemic and the money could have saved peoples lives and culture through education, jobs, better health and housing. Is that too much to ask for? I know you care about the whales and dinosaur footprints, but what about us? These people who were protesting were selfish towards our people, even the protesters that came from overseas. It had nothing to do with them. It is not their country. The Environmentalist: Since the start of this project, the Australian Conservation Foundation has maintained Browse basin gas offshore from the Kimberley can be processed on floating platforms or piped south to existing facilities without threatening the magnificent natural and cultural values of the Kimberley. Some of the financial benefits from the offshore gas should be directly to support Kimberley people and the environment. ACF is respectful and supports job opportunities and benefits for Kimberley Traditional Owners that go hand in hand with a healthy environment. Kevin: Colin Barnett said that on his recent trip to Asia, major gas customers Mitsui, Mitsubishi and PetroChina had expressed their concerns about Shell Floating LNG technology. All three customers are equity partners in the Browse consortium. Colin Barnett: I must say I sensed a bit of reluctance (about Floating LNG) on behalf of the customers. The issue is reliability of supply and Browse is in a cyclone belt. There will be six cyclones a year on average coming through that area, and if a cyclone is anywhere in the vicinity it is necessary to decouple the vessel from the subsea technology. It is necessary to evacuate the crew of about 400, that will probably take about three days. When the cyclone has left it will take another three days to re-establish it. Kevin: Woodside and Shell, which has in the past defended the safety of its technology, did not comment.

Act 3
And so we come to the third act of our play. You, ladies and gentlemen, will be our actors. And you, over the next fourteen weeks, will be writing the script.

Woodside Deletes Its Browsing History