Woodside has decided to halt the development of its multi-billion Browse LNG project off the Kimberley coast following a comprehensive and rigorous review of the project.
The company announced that its efforts to deliver targeted cost savings and value enhancements were offset by collapsing oil prices and difficult market environment, prompting the joint venture partners to shelve the project for the time being.
Woodside CEO Peter Coleman described the decision to discontinue the development of the project as “a disciplined approach” to large-scale capital investment. He said the company and its JV partners will now work to prepare a new work program and budget to progress development activities.
“Woodside remains committed to the earliest commercial development of the world-class Browse resources and to FLNG as the preferred solution, but the economic environment is not supportive of major LNG investment at this time,” Mr Coleman said.
“Accordingly, we will use the additional time to pursue further capital efficiencies for Browse.”
Woodside holds 30.6% interest in the Browse resources located offshore approximately 425 km north of Broome in Western Australia.
The remaining interest in the projects is held by Browse JV participants Shell Australia Pty Ltd (27.00%), BP (17.00%), Japan Australia LNG (14.40%) and PetroChina International Investment (10.67%).