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Woodside considers FLNG for Browse

30th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Australian oil and gas major Woodside was considering project partner Shell’s floating liquefied natural gas (FLNG) technology to develop the Browse project, in Western Australia.

The ASX-listed Woodside told shareholders that it had entered into an agreement with Shell, setting out key principles that would apply if the Browse resource was developed using the FLNG technology.

The company said that it would immediately engage with the remaining joint venture partners regarding the agreement, the extent of work on alternative development concepts, and the obligations under the Browse retention leases.

CEO Peter Coleman noted that the FLNG technology had the potential to commercialise the Browse resource in the earliest possible timeframe, and to further build the company’s long-standing relationship with Shell.

“This agreement enables Woodside, as operator of the Browse LNG development, to strengthen our development and operational capabilities through the potential use of Shells 'design one, build many' FLNG technology.”

Coleman noted that the agreement also provided Western Australia the opportunity to become an industrial, operational and technology center for excellence for FLNG worldwide.

In April this year, Woodside announced that it would delay the onshore development of the A$45-billion Browse project, saying the project was no longer commercially viable.

The project includes three gasfields estimated to contain a combined contingent resource of about 13.3-trillion cubic feet of dry gas and 360-million barrels of concentrate. First gas production had initially been slated for 2017.

The Browse LNG project is jointly owned by Woodside, Shell, BP, Chevron and PetroChina, which acquired its stake in the project through a $1.63-billion deal with BHP.

Edited by Creamer Media Reporter

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