Oil and Gas News

Woodside makes productive finish to 2019

Woodside chief executive officer Peter Coleman says the Greater Enfield project offshore Western Australia has underpinned a solid December quarter in which progress has also been achieved at the company’s growth projects.

Located 60km off Exmouth, Greater Enfield guided an increase in Woodside production from 24.9 million barrels of oil equivalent (MMboe) in the September 2019 quarter to 25.7 MMboe in the December 2019 quarter. The company’s output also increased from 24.1 MMboe in the same quarter a year earlier.

“Production and sales revenue increased compared with the third quarter of 2019 due to the strong performance from Greater Enfield,” Coleman said.

In the September quarter, 2019 sales volumes reached $1.164 billion, jumping to $1.304 billion by the end of the December quarter. The December figures did drop from the $1.419 billion registered in the same period a year earlier.

Woodside finished 2019 on a high when the Government of Senegal approved the exploitation plan for the Sangomar oil field development 100km offshore Dakar.

Subsequent to the period, Woodside took an unconditional final investment decision (FID). This followed the Government of Senegal’s grant of the exploitation authorisation and execution of the host government agreement.

The development entered the execution phase, major contracts were awarded, and the joint venture presented an FID statement to the Government of Senegal. Woodside is hopeful the development will target its first oil in early 2023.

“This is a significant milestone and the joint venture has commenced the execute phase of the development, expected to produce first oil in early 2023,” Coleman said.

Woodside also reported a 52 per cent increase in the Scarborough gas resource in the Burrup Peninsula offshore Western Australia.

The estimated gross contingent resource dry gas volume for the Scarborough field increased to 11.1 Tcf from 7.3 Tcf.

“We also marked some outstanding achievements for the Scarborough development off Western Australia, with a 52 per cent increase in the estimated gross contingent resource and a head of agreement with BHP which includes a tolling price for the processing of Scarborough gas through Pluto Train 2 and the existing Pluto facilities,” Coleman said.

The environmental impact statement/environmental review document (EIS/ERD) for the Browse to North West Shelf project in the offshore Browse Basin was released for an eight-week public consultation during December 2019.

Woodside is ready to enter front-end engineering design (FEED) at the project, subject to finalising the gas processing agreement.

“For Browse, Woodside is ready to enter FEED subject to finalising the gas processing agreement and we are progressing key approvals, including the release of the environmental impact statement and environmental review documents for public comment,” Coleman said.

He added that the company was taking steps towards realising its vision for the Burrup Hub, a regional LNG hub on the Burrup Peninsula.

Woodside announced contractual arrangements were entered into with DDG Operations for the construction of the pipeline and its ongoing operation and maintenance.

“We took a final investment decision for the pipeline component of the Pluto-KGP Interconnector,” Coleman said. “We executed a long-term sale and purchase agreement with Uniper for the sale of LNG commencing in 2021, demonstrating strong customer support for our growth strategy.”

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