Woodside will not pursue its proposed Browse LNG development near James Price Point in northwestern Australia, the company announced on 12 April 2013.
Following the completion of a technical and commercial evaluation, Woodside determined that the concept did not meet its commercial requirements for a positive final investment decision.
A tender evaluation completed for all upstream and downstream scopes of work showed that the development would not deliver the required commercial returns, the company said.
Woodside will now work with its Browse partners - which includes Shell, BP, Japan Australia LNG, and BHP Billiton Petroleum - to recommend evaluation of other development concepts to commercialize the Browse resources, which could include floating technologies, a pipeline to existing LNG facilities in the Pilbara or a smaller onshore option at the proposed Browse LNG Precinct near James Price Point.
Woodside said it will propose a work program and budget for the remaining 20 months of the retention leases with a commitment to timely development. Woodside is the operator of the East and West Browse joint ventures. It holds a 34% equity interest in the East Browse joint venture and a 17% equity interest in the West Browse joint venture.
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