The project remains on track to enter FEED in early 2011 and to be in a position to take a Final
Investment Decision by mid 2012, as required by the retention lease conditions. These conditions were accepted by each of the Browse Joint Venture participants in December 2009.
The Basis of Design (BOD) phase of the Browse LNG Development has been completed on schedule and to budget, and that work is now progressing through the assurance review process. Woodside is continuing to deliver against the Browse retention lease conditions and schedule ssued by the State and Commonwealth governments.
In February 2010 the Browse Joint Venture participants unanimously selected the development concept, which includes locating the Browse LNG Plant onshore at the Western Australian Government's LNG Precinct, 60km north of Broome. The Browse Joint Venture will invest approximately A$400 million in the development in 2010.
The first of the pre-FEED contracts, for the Central Processing Facility, has been awarded. The
remaining three packages – Subsea and Pipelines, Dry Tree Units and Downstream – are on track to be placed before year end.
As part of the FEED phase, Woodside will commence a significant mobilisation of personnel to
Contractor offices. There are currently more than 300 Woodside staff working on Browse. These include 16 Kimberley Indigenous people already on staff or in training.
The Western Australian Government is progressing the land tenure process at its James Price PointLNG Precinct. Negotiations continue between Woodside, the State and traditional owners.
The joint Federal-State Government Strategic Assessment of the State’s LNG Precinct is being
managed by the Western Australian Government. A public Strategic Assessment Report is due to be released by the end of 2010 for public comment, with the approvals process for the Precinct expected to be concluded by mid 2011. Woodside's Upstream Environmental Impact statement and Field Development Plans are also on track to be submitted for approval next year.
The contingent resources contained in the three Browse fields are 13.3 Tcf sales gas and 360 million barrels of condensate. Appraisal has been completed for the Brecknock and Calliance fields. Further appraisal work will be undertaken on Torosa to improve the conservative recovery factor.
Marketing of Woodside’s share of LNG targeted to come from the Browse project is progressing. The Key Terms Agreement (KTA) with CPC Corporation Taiwan for the potential sale of 2 to 3 million tones per annum of LNG for a period of 15 to 20 years has been extended to allow continuation of Heads of Agreement discussions into 2011. Positive discussions continue with other potential buyers in the Asia- Pacific region for the remaining available volumes.