Apache, Santos to revive Reindeer / Devils Creek gas project  

The SMH reports the Reindeer gas field and Devils Creek processing plant projects in WA may go ahead after all - Apache, Santos to revive WA gas project.

Apache Corporation and Santos are seeking to revive a $900 million natural gas project in Western Australia after signing an accord to sell the fuel to an iron ore venture proposed by Citic Pacific.

The restart of work on the project, involving the development of the Reindeer gas field and the onshore Devil Creek processing plant, depends on signing contracts for engineering and construction by mid-March, Houston-based Apache said in a statement yesterday. Previous contracts worth $390 million with Clough Ltd. were scrapped last month after the project was halted.

Citic Pacific said yesterday a unit had signed an agreement to buy gas from the Reindeer project for seven years starting in the second half of 2011. The contract is worth $US1.3 billion, assuming an oil price of $US50 a barrel, it said. The value of Australian mining and energy projects fell 4% in November from April as the economic outlook worsened, the government's commodities forecaster said.