Woodside sets its sights on higher output, reserves

19th November 2019 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Oil and gas major Woodside is hoping to increase production by more than 6% between 2019 and 2028, while also working to triple its reserves.

For 2019, Woodside has narrowed its production guidance to between 89-million and 91-million barrels of oil equivalent.

In an investor briefing on Tuesday, CEO Peter Coleman said that the timing was right for Woodside to implement plans to triple its reserves, with work under way to deliver on this target.

“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 that the recent breakthrough at the Scarborough field, where resource volumes increased by 52%, showed momentum was building towards a final investment.

“We have unlocked huge potential for this world-class resource, using advanced technologies and subsurface expertise to increase the estimated resource volume.”

The company has also agreed on a tolling price with project partner BHP for processing the Scarborough gas through the Pluto project.

“Our vision for an integrated seven-train liquefied natural gas processing centre on the Burrup Hub is taking shape, with a final investment decision reached on the Pluto-Karratha gas plant interconnector pipeline,” Coleman added.

The addition of the Scarborough, and Browse 1 and 2 projects is expected to increase production to around 150-million barrels of oil equivalent in the period to 2028, the company told investors.