Australian energy company Woodside, as a operator of the Browse FLNG Development, offshore W. Australia, has announced that agreement has been reached to enter the front-end engineering and design (FEED) phase for the proposed development.
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.
The Browse FLNG Development concept is based on three FLNG facilities utilising Shell’s FLNG technology and Woodside’s offshore development expertise to commercialise the Brecknock. Calliance and Torosa fields (gross (100%) contingent resources (2C) of 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate).
As part of the entry into the FEED phase, the Browse Joint Venture participants 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 of the participants across the combined Browse project. No monetary consideration was payable in respect of the EAD.
Subject to approval and registration, Woodside s participating interest in the Browse resources will be 30.6% (net Woodside 2C share of 4.7 trillion cubic feet of dry gas and 138.6 million barrels of condensate). In parallel, Woodside and the other Browse Joint Venture participants entered into a new Joint Operating Agreement (JOA) that sets out the governance and management arrangements for the assets of the Browse Joint Venture and supports the progression of the proposed development to FID.
Woodside remains operator of the Browse FLNG Development. Woodside has also submitted acceptances to the regulators for retention lease renewal offers for petroleum retention leases WA-28-R. WA-29-R. WA-30-R, WA-31-R. WA-32-R. TR/5 and R2, on the terms and conditions offered by the Commonwealth-Western Australia Offshore Petroleum Joint Authority and the WA Minister for Mines and Petroleum.