Oil and Gas News

Woodside exits Canadian project to focus on Australia

Scarborough

Woodside has decided to offload its 50 per cent interest in the proposed Kitimat LNG (KLNG) development in Canada to focus on opportunities in Australia and Senegal.

The exit will include the divestment or wind-up and restoration of assets, leases and agreements covering the 480 km Pacific Trail Pipeline route and the site for the proposed LNG facility at Bish Cove.

Woodside will retain a position in the Liard Basin upstream gas resource.

The company has stated that it will work with Kitimat joint venture participant and operator Chevron Canada to protect value during the exit.

Chevron announced its plan to divest its 50 per cent interest in KLNG in December 2019.

Acting chief executive officer Meg O’Neill said exiting KLNG will allow Woodside to focus on the successful delivery of higher value opportunities in Australia and Senegal.

“Following Chevron’s decision to exit KLNG and subsequent decision in March 2021 to cease funding further feasibility work, Woodside undertook a comprehensive review of our options for the project and our wider development portfolio,” she said.

“The Kitimat LNG proposal was designed to develop a new source of LNG to supply Asian markets in the latter part of this decade. However, we have decided to prioritise the allocation of capital to opportunities that will deliver nearer-term shareholder value.

O’Neill further advised that Woodside is focused on working towards the targeted final investment decision for the Scarborough LNG development in Western Australia in the second half of 2021 and the continued successful execution of its Sangomar oil project offshore Senegal.

“Retaining an upstream position in the prolific Liard Basin provides Woodside a low-cost option to investigate potential future natural gas, ammonia and hydrogen opportunities in British Columbia,” she said.

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