Woodside awards expansion contracts for Pluto

PERTH, Nov 11 (Reuters) - Woodside Petroleum Ltd (WPL.AX) has stepped up pace on the proposed expansion of its Pluto liquefied natural gas (LNG) project in Australia, awarding initial engineering contracts up to A$150 million ($140 million).

Woodside said on Wednesday it has awarded engineering contracts for the second and third LNG processing trains at Pluto to a joint venture comprising Foster Wheeler (FWLT.O) and WorleyParsons Ltd (WOR.AX), as well as to U.S. engineering firm KBR Inc (KBR.N).

Woodside, Australia's second-largest oil and gas producer, is hoping to swiftly expand production at Pluto, located in Western Australia, as it would significantly improve the profitability of the A$12 billion plant.

The move to award front-end engineering design (FEED) contracts is a key step forward for Woodside to meet its targetted timeline of approving a second-train expansion by the end of 2010.

The total FEED costs are expected to range between A$100 million and A$150 million, and the studies are expected to be completed in the second half of 2010, Woodside said in a statement.

The Pluto LNG plant is currently a single-train production facility with an output of 4.3 million tonnes per annum. First LNG shipments are expected in late 2010. ($1=1.074 Australian Dollar) (Reporting by Fayen Wong)