Energy giant Woodside Petroleum says it remains committed to the Browse project, after reporting an 11 per quarterly fall in revenue due to lower oil and gas prices.
Woodside says it’s working with the other joint venture Browse participants on a new work program and budget to progress development activities, and expects to “pursue further capital efficiencies” for the development.
Woodside indefinitely shelved its $50 billion Browse offshore floating LNG project in March following steep oil price falls.
“Woodside remains committed to the earliest commercial development of the world class Browse resources and to floating LNG as the preferred solution, but the economic environment is not supportive of a major LNG investment at this time,” the company said on Wednesday.
It comes after Fortescue Metals Group chief executive Nev Power told News Limited that other parties should now be given an opportunity to develop the remote Browse gas fields off the north coast of Western Australia when the current retention leases expire in 2020.
Woodside has reported revenue of $US982 million ($A1.26 billion) for the three months to March 31, down from $US1.1 billion in the December quarter.
Production volumes for the quarter were down 4.8 per cent to 23.7 million barrels of oil equivalent (mmboe), largely due to maintenance work at its North West Shelf oil asset in WA, while sales volumes decreased 4.0 per cent.
Woodside chief executive Peter Coleman said the company was progressing well with its low cost, high value growth strategy.
“We are taking advantage of market conditions and applying latest technology to reduce life-cycle costs further enhancing our position as a low cost operator,” Mr Coleman said in a statement.
This would improve project concepts to deliver a portfolio of globally competitive decision-ready projects, he said.
Woodside shares dropped 42 cents, or 1.6 per cent, to $26.40.