Following completion of front-end engineering and design (FEED) work, the Browse Joint Venture participants have decided not to progress further with the floating LNG development concept at this time considering the current economic and market environment, operator Woodside informed on Tuesday.
The proposed Browse project is located 425 kilometers north of Broome in Western Australia. The project’s reference case is based on three FLNG facilities to develop the Brecknock, Calliance and Torosa fields in the Browse Basin.
Prior to the FEED work, the Browse Joint Venture selected Shell’s FLNG technology in conjunction with a subsea development as the preferred development concept for the Browse resources.
However, according to Woodside, extremely challenging external environment has offset the company’s focus on delivering targeted cost savings and value enhancements.
Woodside CEO, Peter Coleman , said: “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 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. Accordingly, we will use the additional time to pursue further capital efficiencies for Browse.”
Woodside said it will now work with the Browse Joint Venture participants to prepare a new work program and budget to progress development activities.