Australian energy company Woodside, developing the Browse Basin gas fields offshore W. Australia, has said it will not move forward with the development at this time considering the current economic and market environment.
Since FEED entry, Woodside said it has been focused on delivering targeted cost savings and value enhancements. While significant progress was made to improve project value, this has been offset by an extremely challenging external environment, the company added.
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 will now work with the Browse Joint Venture participants to prepare a new work program and budget to progress development activities, the company explained..
The company said it remained focused on satisfying its work program commitments under the Browse retention leases. The Browse retention leases were renewed in 2015 and the current term of the leases ends in mid-2020. Woodside’s participating interest in the Browse resources is 30.6% (net Woodside 2C share of 4.9 trillion cubic feet of dry gas and 142.6 million barrels of condensate)
The Browse FLNG Development concept was based on three FLNG facilities utilising Shell’s FLNG technology and Woodside’s offshore development expertise to commercialise the Brecknock. Calliance and Torosa fields containing gross contingent resources (2C) of 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate).