By Ross Kelly
SYDNEY--Woodside Petroleum Ltd. (WPL.AU) said Wednesday its
Browse floating liquefied-natural-gas joint venture, which includes
Royal Dutch Shell PLC (RDSA) and BP PLC (BP.LN), had agreed to
progress with early engineering and design work.
The decision to start so-called front-end engineering and
design, or FEED, demonstrates the joint venture can still identify
potential value in the project despite a slump in LNG and oil
prices.
The Browse natural gas fields are situated in waters off the
coast of northwestern Australia. The joint venture is mulling
whether to develop the resource using up to three
multibillion-dollar floating LNG vessels, which would process the
gas for export out at sea where it lies.
FEED work allows companies to finalize the costs and technical
definition of large construction projects ahead of making a final
investment decision.
Woodside said it's still targeting a final investment decision
on Browse in the second half of calendar 2016.
Write to Ross Kelly at ross.kelly@wsj.com
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