Woodside awards Browse contracts

Preparations for the Browse gas development have begun with Woodside Petroleum awarding several contracts for the initial design phase, a day after the joint venture partners selected a gas processing site.

Woodside today said that the Browse project had now entered the 'basis of design' phase, which determines the major design parameters that will enable the development of the offshore gas fields and onshore facilities at James Price Point, 60km north of Broome.

Yesterday, Woodside and JV partners Chevron, Shell, BHP Billiton and BP all agreed to process gas from the Browse fields at the state government preferred gas hub site at James Price Point.

It followed an ultimatum that was delivered to the partners late last year by both federal and state governments to follow a strict development timetable and expenditure requirements.

Today, operator Woodside said dual contracts for the onshore component were awarded to Bechtel Oil, Gas and Chemical Inc - Bechtel Australia and Kellogg Brown and Root.

Contracts for the offshore components have been awarded to a joint venture between WorleyParsons Services Pty Ltd and Granherne Pty Ltd, otherwise known as Select Granherne, for the facilities scope, while the subsea and pipelines scope was awarded to UK company J P Kenny Pty Ltd.

"The Basis of Design phase will be followed by Front End Engineering and Design in 2011 to enable a Final Investment Decision by mid-2012," Woodside said in a statement.

According to federal and state government requirements, the JV partners must spend a minimum of $1.25 billion on works up to the final investment decision.