LNG

The Japan Bank for International Cooperation (JBIC) has signed a US$1 billion loan agreement to help finance the Scarborough Gas Project in Western Australia to provide feed-gas supplies for the Train II development at Pluto LNG operated by Woodside Energy.

Woodside Energy, the operator of two liquefied natural gas export plants in Western Australia and the Scarborough Gas Project for LNG expansion, is seeking support from shareholders on its climate policies and urging them to attend the April 24 annual general meeting online or in person.

JERA Co. Inc, Japan’s biggest liquefied natural gas importer and utility company, has agreed to acquire a large stake in the Scarborough gas field development offshore Western Australia from Woodside Energy for US$1.5 billion, giving a financial boost to the Pluto LNG expansion.

Woodside Energy, the Western Australian LNG plant operator with global oil and gas interests, expects to recognise non-cash, post-tax asset impairments amounting to around US$1.50 billion with US$1.20Bln related to the Shenzi asset, the deepwater oil and gas fields in the Gulf of Mexico, and the remainder for Wheatstone LNG.

Woodside Energy, the Australian operator of the North West Shelf and Pluto LNG plants in Western Australia, reported an increase in quarterly revenues due to higher realised prices and supported by record full-year production.

Woodside Energy, the operator of the North West Shelf and Pluto LNG plants in Western Australia, is having to undertake remedial work and a cost review of its biggest overseas project, the Sangomar Field Development offshore Senegal in West Africa, and has pushed back the start-up because of work to be undertaken in Singapore on the production facility.

Woodside Energy and the Ngarluma Aboriginal Corporation (NAC) have entered into a bilateral Indigenous Land Use Agreement and a modern benefits-sharing and relationship agreement relating to lands being investigated for the proposed Woodside Power Project in the Pilbara region of Western Australia.

Woodside Energy, the operator of the Australian North West Shelf and Pluto LNG export plants, has published the Environmental Impact Statement (EIS) for the latest export proposal from Western Australia.

The EIS was drawn up on the directions of the Australian Department of Climate Change, Energy, the Environment and Water .

The final EIS includes responses to comments received during the public consultation process held over an eight-week period from December 2019 to February 2020.

As operator of the proposed Browse-to-NWS Project, Woodside said it welcomed the publication of the final EIS as a milestone for the project.

The Canberra Ministry will now prepare its recommendation report and provide it to the Minister.

Liquefaction

The proposed Browse-to-NWS Project would send feed gas from fields in the offshore Browse Basin to be processed at the NWS facility's Karratha Gas Plant.

“Browse and the NWS Project Extension are expected to contribute to our communities for decades to come,” said Woodside.

“The proposed Browse-to-NWS Project could contribute to energy security in Western Australia and in the Asia-Pacific region, with production capacity of 11.4 million tonnes per year (LNG, LPG and Domestic Gas),” said the Perth-based company.

Woodside Chief Executive Meg O'Neill said moving into the assessment phase for the proposed Browse Basin project was a significant and positive step in the regulatory approval process.

The Browse Basin natural gas resources offshore Western Australia have been the subject of previous project suggestions, including floating LNG.

“The final EIS provides comprehensive detail of potential environmental impacts, proposed mitigations and management measures,” stated O’Neill.

“The processing of Browse gas through the Karratha Gas Plant could provide energy needed in Western Australia and overseas, while providing jobs and taxation revenue that support our host communities,” she explained.

Woodside noted that key work activities continued in support of progress towards front-end engineering design.

The company added that the corresponding State Environmental Review Document Response to Submissions would also be published once accepted by the Western Australian Environmental Protection Authority.

Woodside Energy Group Ltd, the new name of Australian LNG plants operator Woodside Petroleum, and BHP Group have formally completed the merger of Woodside with BHP’s oil and gas portfolio to create a global energy company.

As a result of the merger, Woodside said it was a top 10 global independent energy company by hydrocarbon production and the largest energy company listed on the Australian Securities Exchange.

Woodside said the larger, more diversified portfolio was expected to deliver significant cash flow to help fund committed projects and shareholder returns.

Woodside Chief Executive Meg O’Neill said completion of the merger was one of the most significant events in Woodside’s 67-year history and marked the start of a new chapter for the company.

Diverse portfolio

“The merger delivers a diverse portfolio of quality operating assets, plus a suite of growth opportunities across oil, gas and new energy that promises ongoing value for our shareholders,” stated O’Neill.

Woodside has acquired the entire share capital of BHP Petroleum International and issued 914.76 million new Woodside shares to BHP, which BHP will distribute to its eligible shareholders.

Woodside will receive net cash of about US$1 billion, which includes the cash remaining in the BHPP bank accounts immediately prior to completion.

This reflects $1.8Bln of net cash flows generated by BHPP between the effective date of 1 July 2021 and completion, less $800 million representing BHP’s entitlement to cash dividends paid by Woodside over the same period.

All completion payment entitlements are subject to a customary post-completion review which may result in an adjustment.

The new Woodside shares start trading on the ASX on 2 June 2022. Trading of Woodside American Depositary Shares on the New York Stock Exchange would commence on the same date.

London trading

Woodside shares will be traded on the main market of the London Stock Exchange on 6 June 2022.

The company has commenced activities to integrate the two organisations, including standardisation of reporting across all jurisdictions.

Woodside said the updated production guidance, reserves position and other related information will be released in due course.

Woodside’s net profit after tax for the first half of 2022 will incorporate the contribution of the BHPP portfolio from completion and the accounting treatment of the BHPP portfolio will align with Woodside’s policies.

“We are focused on unlocking pre-tax annual synergies of more than $400 million as we merge the two businesses,” said O’Neill.

“It is exciting to welcome the BHP Petroleum team to Woodside Energy and start delivering on our shared vision for the future,” she added. 

Woodside Petroleum said it could be time to revive the cancelled Browse LNG export project to use the vast natural gas reserves in the fields offshore Western Australia at a time of future global shortages as Europe breaks with Russia as a supplier.

The Woodside comments were made by Chief Executive Meg O’Neill in front of shareholders at the Woodside Annual General Meeting held at the Perth Convention & Exhibition Centre.

“The likelihood that major energy customers will continue moving away from Russian energy sources also strengthens the case for other undeveloped gas fields, such as Browse, to be brought on-line,” O’Neill told the meeting.

The Browse LNG project was previously planned using 13.3 trillion cubic feet of gas from the Browse Basin offshore northwest Australia.

An onshore export plant with an initial 10 million tonnes per annum of output had almost reached the design stage when it was cancelled by the Government.

“We are in this position of financial strength at a time of significant volatility in global commodity markets including oil and gas, exacerbated by Russia’s invasion of Ukraine,” explained O’Neill.

“Against this backdrop of geo-political uncertainty, security of energy supply becomes ever more important. Reliable supply from Woodside’s established and emerging projects will be increasingly valuable to customers in our region,” she stated.

Pluto expansion

O’Neill also commented on current projects including the Pluto LNG expansion in Western Australia and the Sangomar oil project offshore Senegal in West Africa.

“Construction of the Pluto-KGP Interconnector pipeline between Pluto LNG and the Karratha Gas Plant was completed in late 2021, enabling processing of third-party gas to begin in March this year,” O’Neill told shareholders.

“The Interconnector links our two most significant producing assets, optimising production at both Pluto and KGP and providing us with optionality for the future,” she added.

“We also achieved ready for start-up for the first phase of Pyxis Hub, and for Julimar-Brunello Phase 2, which are important tie-backs for the Pluto and Wheatstone LNG projects respectively,” said the CEO.

O’Neill also noted that on the ground in Karratha, major civil works were well underway on the construction of an accommodation village for the Pluto Train 2 construction workforce.

“Manufacture of the Scarborough pipeline commenced in February and fabrication of the offshore floating production unit topsides is targeted to begin this quarter,” she said.

In West Africa, O’Neill declared that the Sangomar oil project in Senegal was on schedule.

“Construction of our Sangomar project offshore Senegal is progressing well, with the Phase 1 development close to 60 percent complete and on track for first oil in 2023,” she said.

“We have successfully drilled and completed the first four production wells and a second drill ship remains on schedule to commence drilling in mid-year,” added O’Neill.

She explained that conversion activities for the Floating Production Storage and Offloading (FPSO) unit were progressing and the subsea installation campaign was scheduled to start later in 2022.