PERTH, Australia – Woodside says the partners in the Browse FLNG development offshore northwest Australia have agreed to enter the front-end engineering and design (FEED) phase.
This will examine activities required to finalize costs and technical definition to enable a final investment decision (FID) to be taken, possibly during the second half of 2016. The FEED will also determine details related to commercialization, timing, and sequencing of the deployment of floating LNG (FLNG).
The current concept is based on three FLNG facilities based on Shell’s FLNG technology and Woodside’s offshore development experience. These will process resources from the offshore Brecknock, Calliance, and Torosa fields with 2C resources of 15.4 tcf of dry gas and 453 MMbbl of condensate.
As part of the FEED process, the Browse joint venture also entered into an equity alignment deed (EAD) which comprises a series of exchanges of equity interests between the participants, establishing a single aligned interest for each across the combined Browse project. Subject to approvals, Woodside’s interest will be 30.6%.
In parallel, the partners entered into a new joint operating agreement (JOA) that establishes governance and management arrangements for their assets and supports the progression of the proposed FLNG development to FID, with Woodside to remain operator.
The decision to enter FEED follows execution of the Browse FLNG development domestic gas and supply chain key principles agreement with the state of Western Australia.
This commits to reserve for domestic use 15% of LNG production from the state’s approximate 65% share of the Torosa field.