Browse Joint Venture (JV) is to start front-end engineering and design (FEED) for the Browse floating LNG Project off the Kimberley coast in Australia.
The project has already completed its preliminary front-end engineering and design (Pre-FEED).
Completion of the FEED phase will help finalise the cost and technical definition to advance the project to its final investment decision (FID).
The phase will also determine the commercialisation plans, timing and sequencing of FLNG deployment.
Browse JV shareholder include MIMI Browse (14.40%), Woodside Browse (30.60%), Shell Development (Australia) (27%), BP Developments Australia (17.33%), PetroChina International Investment (Australia) (10.67%).
The project plans to use three FLNG facilities utilising Shell’s FLNG technology and Woodside’s offshore development experience to explore 15.4 trillion cubic feet of dry gas and 453 million barrels of condensate from the Brecknock, Calliance and Torosa fields.
Woodside CEO Peter Coleman said the decision to enter the FEED phase on Browse was a significant step towards developing the world class Browse resources.
Coleman said: "We will continue to work with governments, Australian industry, local communities and other relevant stakeholders to realise potential opportunities from this mega project."
As the project enters the FEED phase, the partners involved signed an equity alignment deed (EAD), which the companies will exchange a series of equity interests between the participants, establishing a single aligned interest for all participants.
The JV, which Mitsui and Mitsubishi participate through Japan Australia LNG (MIMI Browse), has also agreed to integrate the East Browse and West Browse JVs.
Post integration, working interests held by MIMI Browse in the venture will be 14.40%.
According to the project partners, the target for a final investment decision is scheduled for the second half of 2016.
Last week, the Western Australian government signed an agreement with Woodside-led consortium for the provision of domestic gas from the Browse project.
Image: Shell’s Floating LNG. Photo: courtesy of Shell.