https://www.engineeringnews.co.za
Energy|LNG|Petroleum|Projects
Energy|LNG|Petroleum|Projects
energy|lng|petroleum|projects

Woodside flags $1.2bn charge against asset bought under BHP merger

15th February 2024

By: Reuters

  

Font size: - +

Woodside Energy, Australia's largest energy firm, flagged a non-cash post tax-asset impairment of around $1.2-billion from its Shenzi oil and gas field in its 2023 fiscal earnings, sending its shares down to close at a two-month low on Thursday.

Woodside had acquired the Shenzi deepwater oil and gas fields in the Gulf of Mexico off the coast of Louisiana as part of its merger with the petroleum assets of BHP Group in 2021.

Shenzi represented around 5% of 2023 production for Woodside.

Woodside, which recently shelved plans for a $52-billion oil behemoth tie-up with smaller rival Santos, said it also expects a non-cash post-tax impairment of $300-million for the Wheatstone project in Western Australia that is operated by Chevron.

The oil and gas firm is set to record around $1.5-billion of total asset impairments for 2023.

Shares of the company closed down 3% at A$30.24 to hit their lowest since December 14.

The company also flagged a reduction in reserves at the Shenzi assets, which offset improved performance at its North West Shelf and Pluto LNG projects.

"The reduction in reserves at Shenzi are mainly associated with the performance of infill sidetracks and performance of the Shenzi North development following start up," Woodside said in a statement.

Henry Jennings, senior market analyst at Marcus Today, said the fall in reserves at Shenzi and the expected impairments "could have been one of the reasons" why the merger with Santos did not happen.

"Woodside has been weak for a while, so suspect the market assumed it was in the wind," added Jennings.

The company said it had also sanctioned reserves additions from deepwater projects in Gulf of Mexico, adding that the boost in performance at North West Shelf and Pluto helped the firm in achieving record production in 2023.

Edited by Reuters

Comments

Showroom

Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 19 April 2024
Magazine round up | 19 April 2024
19th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.078 0.133s - 158pq - 2rq
Subscribe Now