By Ross Kelly
SYDNEY--Woodside Petroleum Ltd. (WPL.AU) said Thursday it's
growing increasingly confident that early engineering and design
work will start on its proposed multibillion Browse floating
liquefied-natural-gas joint venture in the coming months.
Progress on the venture, which is operated by Woodside and
includes Royal Dutch Shell PLC (RDSA.LN) and BP PLC (BP.LN), had
been thrown into doubt by a collapse in oil and LNG prices.
Analysts have also speculated that Shell, which will provide the
floating LNG technology, may wish to delay Browse while it
concentrates on completing its US$70 billion takeover bid for BG
Group PLC and develops that target's assets.
Peter Coleman, Woodside's chief executive, told the company's
annual investor briefing in Melbourne that it still sees Browse
moving into front-end engineering and design, or FEED, work in the
middle of 2015. The company was so confident of moving ahead it
could now say it was "expecting" a mid-year start to FEED rather
than "targeting" it, Mr. Coleman added.
A spokesman for Shell said the company wouldn't speculate on a
date for FEED entry. All of the Browse joint-venture partners have
to agree to fund and commence the work before it can begin.
A final investment decision on the project is expected in the
second half of 2016, Woodside said. It's possible the project could
still be delayed following completion of FEED.
Last month, Mr. Coleman indicated after Woodside's annual
shareholder meeting that Shell remained enthusiastic about the
project.
"We've already had discussions with Shell around their
commitment to Browse and every indication I have from them is that
Browse is still front-of-mind for them," Mr. Coleman said at the
time.
Write to Ross Kelly at ross.kelly@wsj.com
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