No FLNG for Woodside’s Browse Basin fields after all?
Australian energy company Woodside is still working on the development concept for its Browse Basin gas fields, offshore W. Australia.
While the concept initially called for three FLNG facilities, Woodside in March 2016 decided not to move forward with the development, citing „current economic and market environment.“
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)
The Browse FLNG Development concept was based on three FLNG facilities utilising Shell’s FLNG technology and Woodside’s offshore development expertise to commercialise the Brecknock, Calliance and Torosa fields containing gross contingent resources (2C) of 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate).
Announcing last year it wouldn’t press ahead with Browse FLNG, Woodside CEO Peter Coleman said the company remained committed to the FLNG solution despite the delay.
However, the company’s quarterly update released on Thursday speaks otherwise, meaning moving further away from the FLNG concept.
Namely, the company said it has made significant progress in narrowing alternative concepts for the development of Browse.
“Woodside prefers a concept utilising existing LNG process infrastructure on the Burrup Peninsula, subject to reaching acceptable terms with the Burrup infrastructure owners. Woodside continues to target the selection of a Browse development concept in H2 2017,” the company said.
While the Floating LNG solution seems to be off for the Browse fields, there is another project Woodside is still working on with an FLNG facility in mind.
Namely, in partnership with ExxonMobil Woodside is looking to develop the Scarborough offshore gas field in Australia.
Scarborough, discovered in 1979, is located off the coast of Western Australia approximately 220 kilometers northwest of Exmouth in 900 meters of water. It is one of the most remote of the Carnarvon Basin gas resources. Woodside bought a stake there in 2016.
In a statement on Thursday, Woodside said that development concepts for the Scarborough gas field comprising either an FLNG facility or use of existing LNG process infrastructure on the Burrup Peninsula, will be investigated and assessed in 2017.
Back in January, Woodside had said that the Final Investment Decision for the Scarborough might be expected in 2020.
Four years ago, in 2013, Exxon and BHP Billiton had received the environmental approval for the Scarborough field development via what was to be the world’s largest FLNG facility. The FID had been slated for 2014-2015, but the collapse in oil prices then forced the partners to pull the breaks on the project.
Offshore Energy Today Staff