Browse floating LNG gains traction

Woodside is increasingly confident on a Browse floating LNG (FLNG) final investment decision in late 2016

Browse has moved into front-end engineering and design (Feed) as Woodside is optimistic that costs can be cut to competitive levels. It is eyeing a breakeven return on capital at current oil prices and a long-term return of 12%-15%. The Perth-based operator signaled that it could slash upstream costs by 20%-30%, although downstream costs remain too high. “On the downstream, we still have work to do, and we needed to get into the Feed part of the project to knuckle down on that work and firm up what we can do with respect to the construction costs in the yard in Korea and getting efficiencies as best we can,” the company’s chief executive, Peter Coleman, told shareholders. Woodside is targeti