Woodside CEO unveils company’s energy transition strategy and presents an update on value proposition

Woodside CEO Meg O’Neill has unveiled Woodside’s strategy to thrive through the energy transition, including a new target to invest $5 billion in emerging new energy markets by 2030. “We expect LNG to remain an important part of the energy mix in our region for decades to come, both as a lower-carbon source of fuel for coal-dependent countries and as convenient firming capacity for renewables,”


Ms O’Neill said at an investor briefing.
“But our significant investment target in new energy is aimed at positioning Woodside as an early mover in this evolving market and supporting the decarbonisation goals of our customers. “We have a vision to build a low cost, lower carbon, profitable, resilient and diversified portfolio. Woodside aims to do this by leveraging our world-class Tier 1 portfolio and allocating capital to the right opportunities at the right time.
“Our investment decisions are informed by robust market analysis, so we understand macro trends for our products and a range of outcomes dependent on different climate scenarios. Individual opportunities are assessed through a disciplined capital allocation framework and clear investment criteria, always considering the fit with our emissions reduction targets and shareholder returns.

“Woodside’s success is underpinned by the commitment of our teams and high performing culture, as well as our application of an environmental, social and governance mindset through the organisation. “In 2021 Woodside delivered on what we set out to do – tackling costs, achieving final investment decisions on the Scarborough and Pluto Train 2 projects, continuing delivery of Sangomar and progressing our new energy opportunities – plus we announced a proposed merger with BHP’s petroleum business. “The rationale for the merger with BHP’s petroleum business is compelling. After completion, Woodside will have a larger, diversified portfolio of long-life assets and increased cash generation to build resilience and support future investment and shareholder returns.

“The merged portfolio would have an exciting pipeline of near-term developments: Sangomar in Senegal; Mad Dog Phase 2, Shenzi North and other attractive opportunities in the Gulf of Mexico; and Scarborough offshore Western Australia. These, together with other potential oil, gas and new energy developments, will provide an enviable hopper of opportunities competing for capital.
“Scarborough truly is a world-class project and the development of its 11 trillion cubic feet of gas through the expanded Pluto LNG facility is a gamechanger for Woodside. The project has an internal rate of return of more than than 13.5% and a globally competitive cost of supply of LNG delivered to north Asia of $5.8 per MMBtu.

“Recently we welcomed Global Infrastructure Partners into the Pluto Train 2 Joint Venture with their acquisition of a 49% participating interest.
“In recent months we announced progress on four new energy projects: H2Perth and H2TAS in Australia and Heliogen and H2OK in the US. Our projects are designed to be phased, starting small with the potential to build scale. In each case the project location has been chosen for specific reasons, preferably near available renewables or close to market, ensuring they are customer led.

“We expect that in the mid-2020s the transition to new energy will be underway, including the start-up of the first of our own projects,” she said.

Information Source: Read the article

Oil and gas, press , | Energy, Climate, Renewable, Wind, Biomass, Sustainability, Oil Price, LPG, Solar,Electric