Woodside Petroleum Ltd. is positioning to lift gas-export capacity in coming years in expectation that rising supplies of LNG will be absorbed by higher Asian demand, reported WSJ.
Woodside CEO Peter Coleman said in a company press release: “Our production results demonstrate we are a world-class operator. We achieved our second highest annual production, record LNG production and reduced gas unit production costs to $0.61/mmbtu (or $3.5/boe). All while improving safety and environmental performance."
“We look forward to the first LNG cargo from Wheatstone in mid-2017, followed by the start-up of Train 2, six to eight months later. Wheatstone LNG is expected to provide more than 13 MMboe (Woodside share) of annual production once fully operational.
“We made two acquisitions in Senegal and Western Australia at an average cost of approximately $1.10/boe. At the SNE oil field in Senegal, we have commenced a two well appraisal campaign to improve our understanding of the reservoir and inform development planning. The addition of the Scarborough area assets offshore Western Australia increases our resource base close to existing Woodside-operated infrastructure.
“In Myanmar, where we announced back-to-back gas discoveries in 2016, we are preparing to commence a significant drilling program that includes a minimum of two appraisal and two exploration wells, with scope for an additional three wells. This program will improve our understanding of the resource base and assist in identifying a path to commerciality.
“We are evaluating opportunities to maximise our investment in Pluto LNG by undertaking further capacity enhancements and mid-scale or large-scale expansion. In addition, we are planning for the construction of infrastructure that will enable us to supply LNG from Pluto to fuel the local mining and marine sectors. This is part of our broader objective of growing the LNG market," he said.
Global supply currently outstrips demand, after multibillion-dollar investments in new facilities in Australia and as the U.S. begins exporting. Yet Coleman said demand continues to grow, and unlike the oil industry there are no stockpiles of LNG or loaded cargo ships floating at sea.