• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 19 hours Oil prices going Up? NO!
  • 3 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 10 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 48 mins The Tony Seba report
  • 6 hours Kenya Eyes 200+ Oil Wells
  • 6 hours Are Electric Vehicles Really Better For The Environment?
  • 13 mins LNG Shortage on the Way
  • 1 day Oil prices going down
  • 2 days Could oil demand collapse rapidly? Yup, sure could.
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 15 hours Saudi Arabia turns to solar
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 1 day Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Could Venezuela become a net oil importer?
  • 6 hours OPEC soap opera daily update
  • 1 day Tesla Closing a Dozen Solar Facilities in Nine States
Cashing In On The Coming $10 Trillion Crypto Boom

Cashing In On The Coming $10 Trillion Crypto Boom

Perhaps the fastest-growing niche in…

OPEC Edges Closer To Production Agreement

OPEC Edges Closer To Production Agreement

A successful OPEC agreement in…

Shell Cancels $4.6B in Floating LNG Contracts

The continuing downward pressure on oil prices has led Royal Dutch Shell PLC to scrap a $4.6-billion contract with South Korean shipbuilder Samsung Heavy Industries Co. Ltd. for three floating LNG (FLNG) units that were earmarked for Australian projects.

The deal was originally signed in June last year, with each of the three FLNG platforms to have a production capacity of 3.9 million tons per year and 17,000 to 22,000 b/d of condensate.

Related: Another Major Natural Gas Pipeline Project Bites The Dust

Shell’s move to cancel this contract follows a March decision by Australian Woodside Petroleum to halt the development of the $40-billion Browse gas project off Western Australia’s Kimberley coast. The contract in question was for FLNG vessels to service this particular project, so Shell’s decision was expected.

The FLNG units were destined for the Brecknock, Torosa, and Calliance gas fields. Together, these three fields are believed to hold gross contingent resources of 15.4 tcf of dry gas and 453 million bbl of gas condensate.

Related: OPEC’s No. 2 Under Serious Threat From Political Instability

Woodside has 30.6 percent participating interest in the Browse project. Shell Australia has 27 percent, while BP Developments Australia has 17.33 percent, Japan Australia LNG 14.40 percent and PetroChina International Investment 10.67 percent.

Though development of Browne has been suspended, Woodside is still holding out for a final investment decision, which is expected to come during the second half of this year. The front-end engineering and design work has already been completed on this project.

Related: Low Oil Prices? Texas Is Doing Just Fine

Samsung, for its part, has noted in a regulatory filing that the contract from Shell was voided due to the existing tough market conditions, i.e. low oil prices.

Instead, the focus will be shifted to the Prelude FLNG vessel, which is slated for completion sometime this year.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News