Browse FLNG Development will now enter the front-end engineering and design (FEED) phase following a recent decision by Woodside Petroleum.
The FEED phase involves undertaking the activities required to finalise 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 commercialisation, 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 realise potential opportunities from this mega project,” he said.
Premier and State Development Minister, Colin Barnett, has welcomed the decision by Woodside.
“I am very pleased to see the Browse Joint Venture participants take this step into this new phase; it’s a positive move in the development of the Browse LNG resource,” Mr Barnett said.
“This follows the signing of a Key Principles Agreement with the Browse FLNG proponents last week for the provision of domestic gas and a supply chain in Western Australia – the first time the State’s domestic gas policy will be applied to an FLNG project.
“I would like to thank the joint venture partners for the professional way they have embarked upon all the negotiations around this project.
“I am now looking forward to the development and finalisation of a detailed Development Agreement, prior to the joint venture making its final investment decision, which is expected in late 2016.
“News that this project is progressing well is excellent for the resources sector in Western Australia and for WA as a whole.
“This decision will lift confidence in resources and in the business community,” said Mr Barnett.
Under the Key Principles Agreement, the joint venture has committed to reserve gas equivalent to 15 per cent of production from the State’s share of the Torosa reservoir, one of three gas fields that make up the Browse project.
The integrated supply chain in WA will provide port, marine, aviation, storage and transport services over the life of the project.