Woodside's Browse LNG Joint Venture to Commence Early Works

   By Ross Kelly 
 

SYDNEY--Woodside Petroleum Ltd. (WPL.AU) said Wednesday its Browse floating liquefied-natural-gas joint venture, which includes Royal Dutch Shell PLC (RDSA) and BP PLC (BP.LN), had agreed to progress with early engineering and design work.

The decision to start so-called front-end engineering and design, or FEED, demonstrates the joint venture can still identify potential value in the project despite a slump in LNG and oil prices.

The Browse natural gas fields are situated in waters off the coast of northwestern Australia. The joint venture is mulling whether to develop the resource using up to three multibillion-dollar floating LNG vessels, which would process the gas for export out at sea where it lies.

FEED work allows companies to finalize the costs and technical definition of large construction projects ahead of making a final investment decision.

Woodside said it's still targeting a final investment decision on Browse in the second half of calendar 2016.

Write to Ross Kelly at [e-mail]

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