Australia's Browse FLNG JV Decides Not to Proceed with Development

Woodside Pertroleum Limited announced Wednesday that the joint venture for the Browse floating liquefied natural gas (FLNG) project offshore Western Australia (WA) will not to proceed with the development, citing the existing economic and market environment for the decision after completing the front-end engineering and design (FEED) work.

The Browse FLNG operator said an extremely challenging external environment negated the impact of FEED work that had focused on delivering targeted cost savings and value enhancements.

“We have undertaken a comprehensive and rigorous process to assess all elements of the development. The decision represents a disciplined approach to large-scale capital investment and is consistent with our requirements for a development concept to be commercially robust across a range of scenarios," Woodside CEO Peter Coleman said in the press release.

“Woodside remains committed to the earliest commercial development of the world-class Browse resources and to FLNG as the preferred solution, but the economic environment is not supportive of a major LNG investment at this time," he added.

Woodside intends to leverage on the high quality work on the Browse FLNG project that has been delivered, including the involvement of the WA Government to agree key principles for domestic gas and supply chain arrangements and the WA and Commonwealth Governments to manage maritime boundary changes.

The joint venture remains focused on satisfying its work program commitments under the Browse retention leases, which were renewed in 2015. The current term of the leases ends in mid-2020. Woodside will now work with the Browse Joint Venture participants to prepare a new work program and budget to progress development activities.

“Accordingly, we will use the additional time to pursue further capital efficiencies for Browse,” Cole said.

Woodside holds a 30.6 percent participating interest in the Browse resources, amounting to 2C share of 4.9 trillion cubic feet of dry gas and 142.6 million barrels of condensate. Shell holds 27 percent stake in the project, while BP, Japan Australia LNG and PetroChina hold interest of 17.33 percent, 14.4 percent and 10.67 percent, respectively.

The latest decision by the Browse FLNG project partners came earlier than expected. In January, Woodside has indicated that FEED work was progressing ahead of a final investment decision in the second half of this year


Have a news tip? Share it with Rigzone!


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

More from this Author
Rigzone Staff
e-mail us at
 -  ExxonMobil Starts Fuels Production at ... (Sep 21)
 -  How to Become a Safety Engineer (Sep 18)
 -  How to Become a Geologist (Sep 15)
 -  Oil, Gas Industry Leadership Group to ... (Sep 14)
 -  CB&I Wins China PDH Unit Contract (Sep 11)

Most Popular Articles

From the Career Center
Jobs that may interest you
Completions Supervisor
Expertise: Drilling Foreman / Drilling Supervisor|Production Engineering|Workover or Completion
Location: Watkins, CO
Lead Riser Engineer
Expertise: Project Engineer|Subsea Engineering|Umbilicals, Risers and Flowlines
Location: Houston, TX
United States El Reno: Perforating Specialist, Assoc
Expertise: Perforation|Petroleum Engineering
Location: El Reno, OK
search for more jobs

Brent Crude Oil : $59.02/BBL 3.79%
Light Crude Oil : $52.22/BBL 3.07%
Natural Gas : $2.92/MMBtu 1.31%
Updated in last 24 hours