Woodside to Recommend Floating LNG to Develop its Browse Project - Bloomberg

Posted - By James Paton - Aug 19, 2013 8:12 PM ET - Bloomberg

Woodside Petroleum Ltd. (WPL), Australia’s second-biggest oil producer, will recommend using Royal Dutch Shell Plc (RDSA)’s floating liquefied natural gas technology to its partners to develop the Browse project.
The selection of floating LNG requires the approval of the Browse partners, including BP Plc (BP/), PetroChina Co. and Shell, Perth-based Woodside said today in a statement.
“A compelling case has emerged for floating LNG as the best option for early commercialization” of Browse, off the West Australian coast, Chief Executive Officer Peter Coleman said in the statement.
Woodside in April scrapped a plan to build Browse onshore at an estimated cost of $45 billion, in favor of studying cheaper options as costs in Australia rise. Floating LNG may be almost 20 percent cheaper than building the Browse project on land, Deutsche Bank AG said earlier this year.
Woodside last year sold a 14.7 percent stake in Browse to Mitsubishi Corp. (8058) and Mitsui & Co. for $2 billion. BHP Billiton Ltd. (BHP), Australia’s largest oil producer, agreed in December to sell its stake in Browse to PetroChina Co. for $1.63 billion.

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