Woodside Energy turns its back on Browse LNG development, stating that the current economic climate makes it unviable to proceed further.
Browse was planned to be a sizeable offshore development, located in the Browse Basin, 264 miles (425km) north of Broome, Western Australia; with reserves estimate to be in the region of 15.9 trillion cubic feet of dry gas and 436 million barrels of condensate.
A statement from Woodside read: ‘While significant progress was made to improve project value, this has been offset by an extremely challenging external environment.’
Woodside Turns Its Back On Browse Development
Woodside Energy had already invested heavily into the project, awarding a string of contracts for early phase front-end engineering and design (FEED) work, much of it taken from the nearby Giant Shell Prelude FLNG project.
It’s on the back of this that Woodside claims to have been able to make its discussion not to progress further with the development.
Woodside CEO, Peter Coleman, added: “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,”
Browse LNG Partners
The Browse development is a joint venture between Woodside Energy; Shell; BP; Japan Australia LNG and PetroChina.
Woodside will now work with the Browse Joint Venture participants to prepare a new work program and budget to progress development activities.