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    Oz Woodside Plans to Triple Reserves

Summary

Australian explorer Woodside is working to implement plans to triple its oil and gas reserves to 3.71bn barrels of oil equivalent by 2027, CEO Peter Coleman said November 19.

by: Shardul Sharma

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Oz Woodside Plans to Triple Reserves

Australian explorer Woodside is working to implement plans to triple its oil and gas reserves to 3.71bn barrels of oil equivalent by 2027, CEO Peter Coleman said November 19 at the company’s annual Investor Briefing Day. Woodside’s reserves at the end of 2018 stood at 1.23bn boe.

According to Woodside’s Briefing Day report, the growth will primarily come from the Scarborough and Browse gas projects in Australia, Sangomar oil project off Senegal and A-6 project in Myanmar. The company is targeting production growth of over 6% during 2019-2028, the report said.

“Everything we have learned and achieved in progressing the Burrup Hub in the past year has demonstrated that this is a world-class development opportunity and a compelling investment. As a low cost, high margin producer, Woodside is delivering near-term value through our robust base business and efficient operations while progressing growth plans to create sustained, longer-term value,” Coleman said.

He said that the recent breakthroughs on Scarborough show momentum is building towards final investment. “We have unlocked huge potential for this world-class gas resource, using advanced technologies and subsurface expertise to increase the estimated resource volume by 52%,” Coleman said.

“And significantly, Woodside and BHP have agreed the tolling price for processing Scarborough gas at Pluto. Woodside’s expertise in project delivery is evident, with the Greater Enfield and Greater Western Flank Phase 2 projects both delivered on time and under budget,” he added.

Woodside on November 18 said it had agreed a tolling price with BHP for the processing of gas from their Scarborough field off northwest Australia at the Pluto LNG facility. The Perth-based producer said in a statement that the agreed price would be valid until March 31 2020. It did not disclose the price, but said it was based on BHP maintaining no more than a 25% interest in the WA-1-R block containing Scarborough until a final investment decision on the project is taken.

Coleman said that the integrated seven-train LNG processing centre on the Burrup Hub is taking shape, with a final investment decision reached on the interconnector pipeline. Earlier this month, Woodside said it has taken a final investment decision on the pipeline component of the Pluto-North West Shelf (NWS) interconnector and has entered into contractual arrangements with DDG Operations for the construction of the pipeline and its ongoing operation and maintenance. The Pluto-NWS interconnector will connect Pluto LNG and the NWS project’s Karratha Gas Plant and is the first component of the infrastructure needed to transport gas between the two facilities.

In Senegal, Woodside is in the final stages of readiness to take the final investment decision on the Sangomar Phase 1 development, Coleman said.

“The Woodside team is focused on delivering sustainable growth and is drawing on Australian and global expertise in technology and energy research,” he said.