Royal Dutch Shell Plc  .com Rotating Header Image BP Wants In On Gorgon,No Longer Looking To Sell Reserve Stake

February 26, 2008: 09:45 PM EST

MELBOURNE -(Dow Jones)- BP PLC (BP) said Wednesday it wants to be part of the Greater Gorgon liquefied natural gas development offshore Western Australia state, stepping pack from a previous proposal to sell its stake in the project’s gas reserves.

One option for the U.K. oil major, which doesn’t own an interest in the actual LNG project, is taking a stake in some of the infrastructure associated with the giant Gorgon development, said BP spokesman Peter Metcalfe.

“We’re very keen to see the resource developed and we’re discussing development plans with our co-venturers,” said Perth-based Metcalfe.

BP had previously been discussing selling its 12.5% stake in the Io field, which is attached to the Janz field, part of the Greater Gorgon joint venture operated by Chevron Corp. (CVX). BP was marketing to sell the stake to Royal Dutch Shell (RDSB.LN), people familiar with the situation told Dow Jones Newswires in May 2006. The interest, which was previously known as Permit WA267P, was bought from Shell several years ago.

Gorgon, which would produce 15 million tons of LNG a year under the latest plans, will be the nation’s biggest ever resources project but isn’t expected to start exporting until well into the next decade. Chevron has declined to give a cost projection or timetable for the project, which is still awaiting approval.

A Chevron spokesman confirmed there has been ongoing discussions between BP and the owners of the development but wouldn’t comment on any commercial discussions. Chevron has a 50% stake in the project, and Exxon Mobil Corp. (XOM) and Shell both own 25% stakes.

-By Matt Chambers, Dow Jones Newswires; 61-3-9671-4393; [email protected]

  (END) Dow Jones Newswires
  02-26-08 2145ET
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