In a sign that the tide is starting to turn for the offshore oil and gas sector, Woodside Energy Ltd. and partner Mitsui E&P Australia have agreed to spend $1.9 billion to develop the Greater Enfield reserves offshore Western Australia.

The project, which entails developing the Laverda Canyon, Norton over Laverda (WA-59-L) and Cimatti (WA-28-L) oil accumulations, is targeting 2P reserves of 69 MMboe. Plans call for six subsea production wells and six water injection wells, with reserves being produced via a 31-km subsea tieback to the existing Ngujima-Yin FPSO facility in the Vincent Field, which cuts expenses for the project.

“We have achieved investment spend at the low end of our guidance range by leveraging the latest technologies and using existing FPSO infrastructure,” Woodside CEO Peter Coleman said June 27. “This allows us to accelerate the development of previously stranded resources.”

First oil is expected in mid-2019.

“Greater Enfield is a demonstration of our phased and sustainable approach to growth,” Coleman added.

The decision to proceed with the project comes as commodity prices continue to fluctuate following the U.K.’s decision to leave the EU, a move that knocked down oil prices by 6% early June 24. However, analysts don’t believe Brexit will have a long-term impact on prices, which have risen from a low point of about $27 per barrel to nearly $49 per barrel.

As the market works to rebalance itself, oil and gas companies have focused on finding better technology, trimming costs and spending, reworking field development concepts and renegotiating contracts to improve project economics.

Unfavorable economics prompted Woodside and its partners to shelve the Australian Browse LNG project in March amid challenging market conditions. At the time, Woodside said it remained committed to the project and would work with joint venture partners—BP, Shell, Japan Australia LNG and PetroChina—to prepare a new work program and budget to progress the development while seeking further capital efficiencies.

Such moves—specifically breakthroughs in the development concept, technology and contracting—made monetizing the Greater Enfield project possible, Coleman said.

OneSubsea, now a Schlumberger company, landed the FEED contract for Greater Enfield in September 2015. Its workscope includes designing the full subsea production architecture solution, including subsea multiphase boosting. OneSubsea said it aims to deliver capex savings through standardized hardware and integrated subsea production and boosting controls technology.

The project will be supported by subsea multiphase booster pumps in the Laverda area and gas lift in the Cimatti area, Woodside said.

“With development costs of less than $28 per barrel, Greater Enfield is an attractive project in a low-price environment,” Coleman told Reuters.

The company expects the project will increase its reserves by 41 MMboe.

Woodside serves as operator with a 60% stake, while Mitsui E&P Australia holds the remainder.

The project is one of several getting the green light.

A week ago BP and partner Egyptian Natural Gas Holding Co. sanctioned Phase 1 of deepwater Atoll development in Egypt’s Mediterranean Sea. First gas is expected in 2018.

—Velda Addison