30-April-2013 3:41 PM, Business Insider Australia, Ben Collins
Woodside Petroleum has struck a deal with Shell that outlines the key principles that would apply if the companies work together to develop Browse.
Earlier this month Woodside shelved plans for the development of Browse liquefied natural gas processing plant at James Price Point near Broome, Western Australia, with CEO Peter Coleman saying at the time that it wasn’t “commercial to proceed.”
When it dumped its plans for the onshore processing operation, it said it was reviewing “alternative concepts”.
Its agreement with Shell provides a framework that would enable the Browse joint venture to consider floating liquefied natural gas as a development concept, the company said today in a statement.
Woodside is a 31.3% equity holder and operator in Browse. It said today it would now talk to its joint venture partners to progress FLNG as a development idea.
This could “commercialise” the Browse resources quickly, said Coleman today.
It would also build the company’s “long-standing relationship with Shell,” he said.
“It also provides the opportunity for Western Australia to become an industrial, operational and technology centre for excellence for floating LNG worldwide.”
Earlier this month when Woodside dumped the onshore processing plans WA premier Colin Barnett said he was disappointed.
Barnett said onshore processing would create more jobs in Western Australia.
At the time, he also claimed it was unlikely an offshore project would get the go ahead, as it required the tick of approval from Woodside’s joint venture partners.
After it decided not to progress with the onshore plant Woodside declared a special dividend of US$0.63 per share.