Woodside still in talks for third-party gas

WOODSIDE remains in discussions to secure third-party gas for the expansion of the Pluto liquefied natural gas project, and expects to complete talks by the end of this year.
Woodside still in talks for third-party gas
Woodside still in talks for third-party gas
Woodside still in talks for third-party gas
Woodside still in talks for third-party gas
Woodside still in talks for third-party gas

"We're continuing discussions with various parties to send large volumes of gas to Pluto for processing," chief executive officer Don Voelte told a briefing on Wednesday.

He added the talks were at the point where the company had reserved two LNG train footprints for the remainder of the discussions.

Voelte also touched on the company's reasons for pushing back its internal timetable for making a final investment decision for Pluto Train 2 and Train 3, saying it was due to a combination of Chevron's Gorgon project not advancing as fast as predicted and Woodside's exploration campaign progressing slower than expected.

"The progress of Gorgon has not developed as we had anticipated, and we now have a longer period of time."

He added the company felt it had a good handle on the ultimate resource potential at the inner Pluto hub.

"We've drilled two wells with a discovery at Eris. High-quality 3D seismic also provides good calibration of the remaining potential. We believe we know what's there and it's good because we can subsea it directly back to the existing Pluto platform," Voelte said.

The success of the Larsen Deep-1 well, especially the high-pressure gas found in the shallower secondary objective, had reduced the risk on the follow-up Remy and Martin prospects, which the company plans to drill later this year.

Other wells include the Camus and Moyet prospects that are also planned for this year as well as one further discretionary well.

Over in the southern Cazadores hub, Voelte said the results had been disappointing with the Dalia South well failing to encounter hydrocarbons.

"While this is a large area and significant work is required to understand the area's potential, this well result has reduced the likelihood of the Cazadores area to deliver significant gas volumes for Pluto in the near term," Voelte added.

He also noted the company was trying to understand why the Alaric well had encountered gas pay in several stacked Triassic reservoirs while the first well Tiberius-1 had came up dry.

"The Alaric well clearly indicates that there is gas in the area and what we now need to understand is the history of these pinnacle reefs and how to better predict where reservoir may be developed."

Shares in Woodside were relatively unchanged this morning at $43.48.

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