WA's Browse FLNG Project JV Agrees to Enter FEED, FID Planned for 2H 2016

Subject to approval and registration, Woodside’s participating interest in the Browse resources will be 30.6 percent (net Woodside 2C share of 4.7 Tcf of dry gas and 138.6 million barrels of condensate).

In parallel, Woodside and the other Browse Joint Venture participants entered into a new Joint Operating Agreement (JOA) that sets out the governance and management arrangements for the assets of the Browse Joint Venture and supports the progression of the proposed development to FID. Woodside remains operator of the Browse FLNG Development.

Woodside has also submitted acceptances to the regulators for retention lease renewal offers for petroleum retention leases WA-28-R, WA-29-R, WA-30-R, WA-31-R, WA-32-R, TR/5 and R2, on the terms and conditions offered by the Commonwealth-Western Australia Offshore Petroleum Joint Authority and the WA Minister for Mines and Petroleum.

The FEED phase entry decision follows the Browse Joint Venture participants executing the Browse FLNG Development Domestic Gas and Supply Chain Key Principles Agreement (KPA) with the State of Western Australia.

The KPA sets out the Browse Joint Venture participants’ commitment to negotiate a Development Agreement with the State reflecting agreed principles.

The principles include commitment to reserve for domestic use within Western Australia gas equivalent to 15 percent of LNG production from the State’s approximate 65 percent share of the Torosa field (the volume reserved for domestic gas equates to a gross (100 percent) 2C of approximately 0.8 Tcf of dry gas).

The KPA also contemplates marketing Browse gas volumes reserved for domestic gas diligently and in good faith with potential buyers. Where mutually acceptable terms cannot be reached with buyers and reserved gas is not sold, it will be kept in reserve for future domestic use.


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