Energy giant Woodside and its partners have committed $1.2 billion to extend Australia's largest oil and gas development.
The Persephone project will be the third development of the North West Shelf project, off the coast of Western Australia, in the past six years.
Woodside said the new development would contribute to the ongoing success of the 30-year-old oil and gas field.
The approval of funds for Persephone comes amid uncertainty about Woodside's future growth, after its exit from the $US2.7 billion Leviathan joint venture gas deal in Israel in May.
A final investment decision on its other major growth prospect, WA's Browse project, is expected late next year.
"The NWS project celebrated 30 years of domestic gas production and 25 years of LNG exports earlier this year and approval of Persephone is the next step in continuing this success story," Woodside chief executive Peter Coleman said on Thursday.
Woodside will operate Persephone, and holds a 16.7 per cent stake alongside project partners including BP, Chevron, Shell and BHP Billiton.
The project is expected to produce its first gas in early 2018, and will help maintain supply to Woodside's Karratha gas plant.
Woodside shares dropped $1.09, or 2.8 per cent, to $38.47, amid further weakness in oil prices.
