Woodside Speaking To Apache, Kufpec About Gas For Pluto 2

Woodside Petroleum Ltd. (WPL.AU) Thursday said it has entered negotiations with Apache Corp. (APA) and Kuwait Foreign Petroleum Exploration Company, or Kufpec, to buy gas for a possible expansion of its Pluto liquefied natural gas project.

Woodside said it has signed a non-binding letter with the two parties "setting out key principles to facilitate negotiation on a non-exclusive basis" for the possible sale of gas from the Apache-operated Julimar and Brunello fields to support a second LNG train at Pluto.

Perth-based Woodside was responding to recent reports quoting Apache as saying it expects to sell gas to Woodside for Pluto-2.

"As previously advised, Woodside continues to discuss Pluto Train 2 options with a number of parties in the Carnarvon Basin," Woodside said in a statement.

By Ross Kelly, Dow Jones Newswires; 61-2-8235-2957; ross.kelly@dowjones.com