Woodside highlights growth projects, notes Louisiana LNG partnership talks well under way
Woodside anticipates a 4-5% compound annual growth rate for portfolio sales from 2024 to 2030, underpinned by “targeted acquisitions and excellence in project execution,” and offsetting declining legacy production with new growth opportunities that the company expects to deliver long-term profitability and cash flow.
Woodside had record production of 193.9 MMboe, or 530,000 boe/d, for full-year 2024, underpinned by early production performance at Sangomar offshore Senegal, the company reported as part of its full-year 2024 results Feb. 24.
Net profit after tax was $3.6 billion, 115% higher year-on-year. Underlying net profit after tax was $2.9 billion, down 13% from the previous year, primarily due to lower realized oil and gas prices.
“Sangomar ramped up to nameplate capacity [100,000 b/d] within 9 weeks of its June 2024 startup, achieving 94% reliability in the fourth quarter,” said Woodside chief executive officer Meg O’Neill. “Sangomar’s contribution of 12.9 million boe of sales generated around $950 million in revenue, demonstrating the project’s value,” she continued (OGJ Online, June 10, 2024).
In a call with investors Feb. 24, O’Neill said the early production performance at Sangomar is “underpinned by excellent reservoir productivity and connectivity, leading us to increase approved reserves and extend our production plateau forecast into the second quarter of 2025.” The company also is evaluating phase two development options (OGJ Online, Feb. 17, 2025).
Growth projects
On the call, O’Neill highlighted “excellent progress” made elsewhere on major growth projects.
The Scarborough project in Western Australia now 80% complete and on track for first LNG cargo in 2026 (OGJ Online, Oct. 11, 2024). In 2024, the company completed the Pluto Train 2 module program, part of the Scarborough project, with all 51 modules now in position and completed installation of the 433-km trunk line (OGJ Online, Dec. 26, 2024).
The Trion project in Mexico is more than 20% complete and targeted for first oil in 2028.
All major contracts were awarded in 2024, and the project has moved into the construction phase, with work beginning on the floating production units, O’Neill said.
Louisiana LNG
The Woodside Louisiana LNG project—formerly Driftwood LNG and acquired through a 2024 deal with Tellurian Inc.— is expected to deliver long-term profitability and cash flow, O’Neill said (OGJ Online, July 22, 2024). The project is under construction in Calcasieu Parish, La.
“Louisiana LNG is an advantaged US Gulf Coast project, fully permitted for 27.6 [million tonnes/year] of LNG production, with a competitively priced EPC contract with Bechtel and with civil works largely de-risked. This compelling opportunity is attracting interest from high-quality partners, and we are progressing towards readiness for a final investment decision [FID] from the first quarter of 2025,” she said.
Asked about reaching FID without a sell down, O’Neill said Woodside “would not take FID without confidence that we have partners either signed up already or extremely close to signing up.”
While acknowledging complex commercial negotiations, she said “there's potential for us to have the whole 50% sold down by FID.”
Woodside is deep in negotiations with a number of high-quality counter parties, she said.
Mikaila Adams | Managing Editor - News
Mikaila Adams has 20 years of experience as an editor, most of which has been centered on the oil and gas industry. She enjoyed 12 years focused on the business/finance side of the industry as an editor for Oil & Gas Journal's sister publication, Oil & Gas Financial Journal (OGFJ). After OGFJ ceased publication in 2017, she joined Oil & Gas Journal and was named Managing Editor - News in 2019. She holds a degree from Texas Tech University.
