$5b development for North West Shelf Venture

The North West Shelf Venture project off the coast of Western Australia will receive a $5 billion expansion to extend the life of the gas and oil operations.

The North Rankin 2 development will include the installation of a platform about 135 km off Karratha to recover the remaining low-pressure gas from the ageing North Rankin and Perseus gas fields.

"This project will extend the field life of the North Rankin and Perseus fields and will support the venture's onshore gas commitments to supply customers post 2013," Woodside chief executive Don Voelte said.

Woodside is the operator of the venture, which has five other participants - BHP Billiton, BP Developments Australia, Chevron Australia, Japan Australia LNG (MIMI), and Shell Development (Australia).

North Rankin 2 will stand in 125 m of water and will be connected to the existing North Rankin A platform by a 100 m bridge.

North Rankin A platform will be refurbished to allow the two platforms to operate as a single integrated facility.

BHP Billiton petroleum chief executive, Michael Yeager, said North Rankin 2 would deliver gas from the North West Shelf for another 25 years.

"This extension of the North West Shelf project follows our approval of the fifth LNG (liquefied natural gas) train, which significantly expanded the LNG facility as well as the Angel gas and condensate field which are under development," Yeager said.

The North West Shelf Venture partners are developing a fifth train at the project, which will increase total annual output from the project to 16.3 million tonnes.

The $2.5 billion train is expected to be completed by the end of the year.

The Venture supplies LNG to long-term customers in Asia, including Japan and Korea.