Local Content Front And Center For Browse FLNG Development

HOUSTON and PERTH, Australia, July 6, 2015 /PRNewswire/ -- Woodside Energy Ltd. and OneSubsea®, a Cameron (NYSE: CAM) and Schlumberger (NYSE:SLB) company, jointly announce that OneSubsea has been awarded a front-end engineering and design (FEED) contract for the proposed Woodside-operated Browse FLNG Development offshore northwest Australia.

A dedicated team of OneSubsea experts, operating out of OneSubsea's Perth city office, will now work collaboratively with Woodside to fully define and determine the optimal subsea production system design and equipment requirements for the Browse FLNG Development.

The contract will involve up to 20 locally employed people working on the subsea scope over the next 12 to 18 months as Woodside prepares for a final investment decision (FID).

The scope was tendered to internationally and locally based suppliers. OneSubsea was selected with a competitive proposal reflecting the current economic climate.

Woodside CEO Peter Coleman said the contract award is the first of a number anticipated to be awarded in the future to Australian-based engineering firms, manufacturers and suppliers associated with the subsea elements of the Browse FLNG Development.

"Our local content commitment is focused on working with Australian-based suppliers with world-class capabilities to partner with us on our operations and developments," he said.

In 2013, OneSubsea opened a state-of-the-art life-of-field facility in Kewdale, Western Australia that was built to support Woodside and other operators in the region. The facility will be key in the development of this project.

Jack Moore, Chairman and CEO of Cameron, a parent company of OneSubsea, said, "engaging early with clients in the project life cycle is key to determining the optimal, cost- effective solution that aims to maximize project returns in the current economic environment. This has been our approach with Browse and we are excited to have been selected for this award."

"Through further collaboration with Woodside on this important FEED, we will be able to apply the wide breadth of expertise OneSubsea has to provide the optimal range of field development options that align with the project's goals," he said.

The contract award is the first under OneSubsea's frame agreement with Woodside signed in January 2014.

Under the terms of the five-year frame agreement, OneSubsea is qualified to supply subsea equipment and services, including subsea engineering services and life of field services, for selected Woodside developments offshore Australia.

The Browse FLNG Development is proposing to commercialize the Brecknock, Calliance and Torosa fields - collectively known as the Browse resources – which are estimated to contain gross (100%) contingent resources (2C) of 15.4 trillion cubic feet (Tcf) of dry gas and 453 million barrels of condensate¹.

Woodside is targeting a FID on the proposed development in the second half of 2016.

¹ Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Woodside reports Contingent resources net of the fuel and flare required for production, processing and transportation up to a reference point and non-hydrocarbons not present in sales products. Contingent resources estimates may not always mature to reserves and do not necessarily represent future reserves bookings. All Contingent resource volumes are reported at the 'Best Estimate' (P50) confidence level. The estimates of petroleum resources are based on and fairly represent information and supporting documentation prepared by qualified petroleum reserves and resources evaluators. Unless otherwise stated all petroleum resource estimates refer to those estimates set out in the Reserves Statement in Woodside's most recent Annual Report released to ASX and available at   www.woodside.com.au/Investors-Media/Annual-Reports. Woodside is not aware of any new information or data that materially affects the information included in the Annual Report. All the material assumptions and technical parameters underpinning the estimates in the Annual Report continue to apply and have not materially changed. The estimates have been approved by Mr Ian F. Sylvester, Woodside's Vice President Reservoir Management, who is a full-time employee of the company and a member of the Society of Petroleum Engineers. Mr Sylvester's qualifications include a Master of Engineering (Petroleum Engineering) from Imperial College, University of London, England, and more than 20 years of relevant experience.

SOURCE Cameron

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