Shell cancels FLNG orders for Browse development

Royal Dutch Shell PLC has cancelled a $4.6-billion contract with South Korean shipbuilder Samsung Heavy Industries Co. Ltd. for three floating LNG vessels.

Royal Dutch Shell PLC has cancelled a $4.6-billion contract with South Korean shipbuilder Samsung Heavy Industries Co. Ltd. for three floating LNG vessels.

The vessels, ordered in June 2015, were earmarked for development of the Browse gas-condensate fields offshore the Kimberley coast of Western Australia for the Woodside Petroleum Ltd.-led consortium.

However, the Browse FLNG project was postponed indefinitely in March this year because of the poor prevailing economic and market environment (OGJ Online, Mar. 24, 2016).

Up to three FLNG facilities measuring 488-m-long and 78-m-wide were planned for Browse, each capable of producing 3.9 million tonnes/year of LNG and 17,000-22,000 b/d of condensate. Another scenario envisaged two FLNG vessels with one moved around to different locations on the three targeted fields.

The three fields in question—Brecknock, Torosa, and Calliance—are 425-km north of Broome and estimated to contain gross contingent resources of 15.4 tcf of dry gas and 453 million bbl of condensate.

The FLNG vessels were to be based on Shell technology that is being pioneered for the nearby $6-billion, 3.6 million-tpy Prelude project. The Prelude FLNG vessel is due for completion later this year.

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