Browse FLNG development operator Woodside has pushed back its schedule for the large project to focus further on reducing costs, according to its CEO Peter Coleman, with the FEED stage not set to get underway until mid-2015.
Like several other major projects around the world, the Browse Floating LNG development is essentially going to sit in an extended engineering phase, while Woodside and its partners not only further improve on any efficiencies but also wait for the oil price to eventually head upwards again.
The revised schedule into FEED entry has been agreed by the Browse joint venture partners.
Woodside has already completed basis of design (BOD) as well as key pre-FEED work for the proposed development, and is now progressing additional strategic activities.
Coleman chose to look on the decision (the word ‘delay’ wasn’t used once) as an opportunity, with the substantial shift in market conditions presenting it with the chance to seek significantly lower cost outcomes for the development, drawing on lessons learned from other projects.
“The changes we are experiencing in our industry are starting to flow through our supply chain. We will use the time we now have to maximise long-term economic benefits for the development,” he said.
The additional strategic activities being undertaken include further progressing primary approvals, managing the impacts of the maritime boundary change affecting the Browse retention leases, and additional technical work to optimise and de-risk the development.
Woodside anticipates that the development will be in a position to enter the FEED phase mid-2015, and is targeting a final investment decision (FID) mid-2016. Its partners in Browse are BP, Japan Australia LNG, PetroChina and Shell.