The local oil and gas supply sector, wondering is there were any new projects coming over the "Horizon" have been provided with a major boost with Woodside today highlighting a string of new projects that are firmly in its development schedule.
Woodside outlined its plans to further grow production in the years ahead, focusing on what it describes as “cost-effective opportunities to maximise the potential of its existing assets while unlocking value from its significant resource base”.
At Woodside’s annual Investor Briefing Day, CEO Peter Coleman said the company had successfully navigated a challenging external environment and was now poised to deliver value growth while maintaining its commitment to shareholder distributions.
“In the near term we expect to generate increasing cash flow and returns from our existing business and committed projects, and we see further upside potential from lower capital intensity and quicker-to-market opportunities.
“Our portfolio offers exciting prospects for growing shareholder value that will coincide with rising global demand for gas and an anticipated supply shortfall.
“In particular, Woodside is well positioned to capitalise on an expected increase in demand from emerging Asian markets.
“Woodside has taken advantage of market conditions to strategically build its portfolio with a view to growing production by attracting resources to existing facilities on the planned Burrup Hub.
“At a time when large greenfield projects are challenging, Woodside is preparing to capture new value from low-cost brownfield developments.
Mr Coleman outlined three five-year horizons, during which Woodside would focus on cash generation, unlocking value and repeating successes.
The Horizon 1 and Horizon II projects highlighted are of particular interest to the local and regional service and supply sector.
Woodside outlined a number of exciting Horizon 1 and II growth opportunities including:
- An expansion of its Pluto LNG project in WA with a Final Investment Decision (FID) target of the second half of 2018; and
- The development of its Senegal discoveries, offshore Africa with a FID decision likely in 2017
Its Horizon II growth projects included:
Development of the large Browse gas field development off the WA coats with a FID in 2020 and the development of the historic Scarborough gas field, also located off the WA coasts. The company also added potential developments of its large, offshore Myanmar discoveries to its Horizon II opportunities.
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*Image courtesy of Woodside Energy Ltd.