Final investment decisions (FID) on Woodside’s Scarborough, Pluto Train 2 and Browse have all been deferred due to a slumping oil price.
Woodside announced today it was enacting a number of measures in response to both the oil price crash and the COVID-19 pandemic, which included the postponement of FIDs and an approximately 50 per cent reduction in total expenditure for 2020.
Woodside CEO Peter Coleman said these were “extraordinary times that no one could have foreseen”.
“Our immediate priorities have been minimising the risks from COVID-19 to staff, contractors and the communities where we operate, and maintaining our ability to deliver gas to the Western Australian and overseas customers who depend on us,” he said.
“The development of the Scarborough and Browse gas resources through Woodside’s proposed Burrup Hub remains among the world’s most cost-competitive LNG investment opportunities and one which will provide significant economic returns to shareholders, governments and communities for decades to come.”
FIDs for Scarborough and Pluto Train 2 are now expected in 2021, while a date for Browse was not specified.
Woodside said it would continue its investments in Sangomar Field Development Phase 1, Pyxis Hub and Julimar-Brunello Phase 2.
The reduced expenditure means planned turnarounds of two LNG trains at the Karratha Gas Plant have been deferred until September 2020 and August 2021 respectively, while most of the company’s exploration activities have also been postponed.
The announcements come after the company was lashed by unions in the past fortnight for cutting hundreds of jobs at its major WA projects with no renumeration for workers.
Woodside didn’t confirm the number of jobs lost, but said it was complying with expert health and government guidance by reducing the number of people on worksites and in facilities.
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