Two thirds of Browse gas royalties to WA

The federal government has signed an agreement to give the almost two thirds of the royalties of a Woodside-run gas project to Western Australia.

The Torosa petroleum pool, which is expected to be developed through the proposed Browse floating LNG project, sits on both Commonwealth and Western Australian lease areas off the Kimberley coast.

Industry Minister Ian Macfarlane signed an agreement with the WA government on Wednesday which will allocate 65.4 per cent of the royalties to the state.

Around 34 per cent will go to the Commonwealth.

Woodside is yet to make a final investment decision on the project and Mr Macfarlane acknowledged there was still "much work" to be done before the project was viable.