Woodside increases investment spend to $5 billion

Woodside chief executive Meg O’Neill (Woodside investments)
Woodside CEO Meg O'Neill

Woodside expects to hike its investment spending by about a third to $5 billion in 2022, advancing oil and gas growth projects in Western Australia and Senegal as well as stepping up efforts to start producing hydrogen.

The company’s fourth quarter report noted a broad range of highlights for the quarter, which included strong revenue supported by increased product pricing, executing the binding share sale agreement with BHP for the proposed merger, taking final investment decisions on the Scarborough and Pluto Train 2 projects and progressing Woodside’s strategy for new energy investment.

Related article: Woodside completes Pluto Train 2 sell-down to GIP

Recapping the final quarter of 2021, Woodside CEO Meg O’Neill said, “Woodside entered into a sale and purchase agreement with Global Infrastructure Partners for the sale of a 49 per cent non-operating participating interest in the Pluto Train 2 Joint Venture in November. This transaction completed earlier this week.

“Significant progress was made at our Sangomar Field Development Phase 1 in Senegal, with equipment continuing to arrive in country ahead of the subsea installation campaign scheduled to commence in the second quarter of this year.

“During the quarter, land was secured for two proposed hydrogen and ammonia projects, H2Perth and H2TAS in Australia and the proposed hydrogen project, H2OK in North America. Front-end engineering design commenced on the H2OK project and we signed a memorandum of understanding with two potential hydrogen customers.

“In November, we sold our first carbon offset LNG cargo to Uniper Global Commodities SE, and our first carbon offset LPG cargo to Vitol Asia Pte Ltd.

Related article: Woodside kicks off design work for H2OK project

“Construction of the Pluto-KGP Interconnector pipeline between Pluto LNG and the Karratha Gas Plant was completed ahead of the targeted ready for start-up in H1 2022 with commissioning currently underway. The Pyxis Hub and Julimar-Brunello Phase 2 tie-back projects achieved ready for start-up, with both delivered ahead of schedule and under budget,” she said.

“In December, we announced a target to invest $5 billion in new energy products and lower-carbon services by 2030. This significant investment will position Woodside as an early mover in the new energy market and support the decarbonisation goals of our customers.

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