Premier welcomes Woodside's Browse decision

  • Browse JV enters front-end engineering and design phase

01 July: Premier and State Development Minister Colin Barnett has today welcomed the decision by Woodside Petroleum Ltd to enter the front-end engineering and design (FEED) phase for the proposed floating liquefied natural gas (FLNG) development in the Browse basin.

 

"I am very pleased to see the Browse Joint Venture participants take this step into this new phase; it's a positive move in the development of the Browse LNG resource," Mr Barnett said.

 

"This follows the signing of a Key Principles Agreement with the Browse FLNG proponents last week for the provision of domestic gas and a supply chain in Western Australia - the first time the State's domestic gas policy will be applied to an FLNG project.

 

"I would like to thank the joint venture partners for the professional way they have embarked upon all the negotiations around this project.

 

"I am now looking forward to the development and finalisation of a detailed Development Agreement, prior to the joint venture making its final investment decision, which is expected in late 2016.

 

"News that this project is progressing well is excellent for the resources sector in Western Australia and for WA as a whole.

 

"This decision will lift confidence in resources and in the business community."

 

Under the Key Principles Agreement, the joint venture has committed to reserve gas equivalent to 15 per cent of production from the State's share of the Torosa reservoir, one of three gas fields that make up the Browse project.

 

The integrated supply chain in WA will provide port, marine, aviation, storage and transport services over the life of the project.

 

Fact File

  • The State's share of Torosa is estimated to be 65 per cent
  • State royalties are estimated at more than $1 billion over the life of the project

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