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Woodside Starts FEED for Browse FLNG

LNG carrier
LNG carrier courtesy of Woodside

Published Jul 1, 2015 6:37 PM by The Maritime Executive

Woodside, as a participant in the Browse FLNG Development, has advised that agreement has been reached to enter the front-end engineering and design (FEED) phase for the proposed Browse FLNG development off Australia’s north-west coast.

The FEED phase involves undertaking the activities required to finalize the costs and technical definition for the proposed development to enable a final investment decision (FID). It includes determining a range of details related to the commercialization, timing and sequencing of FLNG deployment.

Woodside CEO Peter Coleman said the decision to enter the FEED phase on Browse was a significant step towards developing the world class Browse resources. “We are excited to be moving into the next phase of the Browse FLNG Development using FLNG technology. In particular, we acknowledge the support of key government stakeholders and especially commend the current and previous Ministers responsible for resources for their consistent, clear and long-term approach to oil and gas development.

“We will continue to work with governments, Australian industry, local communities and other relevant stakeholders to realize potential opportunities from this mega project,” he said.

The Browse FLNG Development concept is based on three FLNG facilities using Shell’s FLNG technology and Woodside’s offshore development expertise to commercialize the Brecknock, Calliance and Torosa fields.

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 trillion cubic feet 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.

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.

Woodside is targeting an FID on the proposed development in the second half of 2016.