woodside energy group

Australia’s Woodside Energy Group Ltd (WDS.AX) announced on Tuesday that it anticipates the initial barrel of oil from the Senegal Sangomar project in Africa to commence flowing by mid-2024, which is a slight delay compared to the original target of late 2023.

Woodside, holding an 82% stake in the oil and gas field being developed off the coast of Senegal, has also revised the project’s cost estimate to a range of $4.9 billion to $5.2 billion. This represents an increase of 7% to 13% from the previous estimate of $4.6 billion.

The delay is attributed to unforeseen remedial work required on the floating production storage and offloading (FPSO) facility of the Sangomar Field Development Phase 1 project.

Woodside CEO Meg O’Neill stated, “We have made the cautious decision to conduct the necessary remedial work while the FPSO is still at the shipyard in Singapore.”

As of June 30, the overall project progress stands at 88%, according to the company, clarifying that any adjustments to the project schedule will not impact its production guidance for 2023.

In a separate development, Woodside has initiated the marketing of a new African crude oil sourced from Sangomar. This move aligns with Europe’s search for alternative supplies to replace Russian oil, which has been subjected to sanctions. These efforts come amidst extended global output cuts expected to continue into 2024.


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