By Robb M. Stewart
MELBOURNE, Australia--Royal Dutch Shell PLC (RDSB) and
PetroChina Co. (PTR) are looking to cut jobs in an effort to
contain costs at their venture in eastern Australia, where the
energy companies plan to build a multibillion-dollar operation for
extracting and exporting natural gas trapped in underground coal
seams.
A spokesman for Arrow Energy Pty. Ltd., a 50-50 venture between
Shell and its Chinese partner, said the company is focused on
reducing overall costs and continues to assess options to develop
its gas reserves. Those options include looking at possible
collaboration opportunities, he said.
"We have not ruled out any development options," Arrow spokesman
Miguel Holland said.
Mr. Holland declined to comment on when the review was expected
to conclude or how many jobs might be cut.
Arrow, which was bought by Shell and PetroChina in 2010, has
proposed a giant processing terminal on the east coast that would
compete with three other ventures also seeking to export liquefied
natural gas. Arrow already produces gas from fields in Queensland
state, supplying local power stations.
Shell on Friday announced its first profit warning in a decade,
forecasting fourth-quarter earnings of US$2.2 billion, down about
70% from US$7.3 billion a year earlier. The Anglo-Dutch energy
company's profits have been dented in recent years by its strategy
of focusing investments on large, complex projects and expanding
its production of natural gas.
Write to Robb M. Stewart at robb.stewart@wsj.com
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