Project update on Browse

12 April 2013 - Woodside announced on Friday 12 April that the Browse LNG development concept does not meet the company’s commercial requirements for a positive final investment decision.

Link to Woodside announcement.

Kvaerner and partners have been involved in the concept and FEED for the dry tree unit (DTU) delivery competition since June 2010, and was selected as one of two final players for the delivery competition of the Browse DTU.

“The tendering process for this project has been a long race in which we have been able to mature our delivery model with our Chinese partner COOEC. This is – and will continue to be – of great value to us,” says President & CEO, Jan Arve Haugan.

“Such important decisions in projects are solely up to the licence partners, we respect that and we acknowledge that re-evaluations happen from time to time. It is part of the oil and gas business,” Haugan continues.

At this point in time the future implications for the Browse Project are unclear.  However, with   Kvaerner’s in-depth understanding of the project we feel uniquely positioned with our portfolio of products to assist Woodside going forward as they may require. There is, however, no doubt that the decision to re-evaluate the current LNG field development concept will impact the project execution timeline significantly.

“We appreciate that Woodside acknowledges the high quality of the work underpinning the bids received from its contractors. We are confident that our tender demonstrated execution security, quality and safety culture which is inherent in our delivery model”, says Haugan.

Kvaerner is an international company with a solid track record.  Primary focus on the international topside market has, up until now, been on the Browse project.  Although other projects have been progressing in parallel they will take time to mature into contracts.  The company sees a significant portfolio of prospects in its target regions.