Australia's Woodside Petroleum to exit Canada's Kitimat LNG project
Australia's Woodside Petroleum Ltd said it would sell its 50% interest in the proposed Kitimat LNG development project in Canada, and expect a hit of about $40 million to $60 million in full-year net profit as a result.
The exit would comprise the sale or wind-up of agreements and assets on the Pacific Trail Pipeline route and at the site for the proposed facility, Woodside Petroleum said.
The proposed project's operator Chevron Canada, a unit of U.S. oil and gas major Chevron, had already decided to divest its 50% interest in December 2019, and stopped feasibility work at the site in March this year. (https://bit.ly/3op4gda)
"The Kitimat LNG proposal was designed to develop a new source of LNG to supply Asian markets in the latter part of this decade," Woodside acting Chief Executive Officer Meg O'Neill said in a statement.
"However, we have decided to prioritise the allocation of capital to opportunities that will deliver nearer-term shareholder value."
(REUTERS Reporting by Soumyajit Saha in Bengaluru; Editing by Rashmi Aich)
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