Woodside Petroleum, as a participant in the $40 billion Browse Joint Venture project, advises that, following completion of front-end engineering and design (FEED) work, the Browse Joint Venture participants have decided not to progress with the development at this time, considering the current economic and market environment.
Woodside CEO Peter Coleman commented that, while Woodside remains committed to the earliest commercial development of the Browse resources and to FLNG as the preferred solution, the economic environment is not supportive of a major liquefied natural gas (LNG) investment at this time. He added that Woodside would use the additional time to pursue further capital efficiencies for Browse, and will work with the Browse Joint Venture participants to prepare a new work program and budget to progress development activities.
Woodside says that it remains 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) as reported in the Woodside 2015 Annual Report.
PetroChina Co., BP, and Japan Australia LNG Pty, a venture between Mitsubishi Corp. and Mitsui & Co., are also partners in the Browse development project, according to Woodside’s website.