Woodside has announced that the partners in the Browse Joint Venture development have decided not to progress work on the development at this time, due to the current economic and market environment.
The decision follows completion of front-end engineering and design (FEED) work on the project. Woodside said that, since FEED entry, it has been focused on delivering targeted cost savings and value enhancements. The company notes that any progress it has made to improve project value has been offset by an “extremely challenging external environment.”
Woodside CEO, Peter Coleman, said: "We have undertaken a comprehensive and rigorous process to assess all elements of the development.
"The decision represents a disciplined approach to large-scale capital investment and is consistent with our requirements for a development concept to be commercially robust across a range of scenarios.
"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 a major LNG investment at this time.
"Accordingly, we will use the additional time to pursue further capital efficiencies for Browse."
Woodside confirmed that it will work with the Browse Joint Venture participants to prepare a new work programme and budget to progress development activities.
Edited from press release by Callum O'Reilly
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