Adds Capricorn Energy exposure to delay in final paragraph
Independent Australian producer Woodside Energy has delayed the start-up of its 82pc-owned 100,000 b/d Sangomar offshore oil project in Senegal to mid-2024 because of some remedial work.
Woodside was previously targeting first oil from the project by the end of 2023, which was also delayed from early 2023 and an initial target of 2022. The new mid-2024 target follows the identification of remedial work on a floating production storage and offloading (FPSO) facility, Woodside said on 18 July.
The remedial work was unexpected, Woodside's chief executive Meg O'Neill said. The work will be conducted while the FPSO remains at a shipyard in Singapore, to minimise impact to the project schedule.
"The change in project schedule has no impact on Woodside's production guidance for 2023," O'Neill said. Woodside's full-year 2023 production guidance is 180mn-190mn bl of oil equivalent.
Woodside also announced a 7-13pc increase in capital expenditure for the project to $4.9bn-5.2bn, from $4.6bn earlier. The capex increase reflects higher shipyard costs because of timing, with the rest of the Sangomar project progressing as planned.
The project was 88pc complete as of 30 June.
UK-listed Capricorn Energy said today that it could miss out on a payday if first oil from Sangomar does not occur in the first half of 2024. Capricorn is due a contingent payment of between $25mn-50mn, agreed when it sold its stake in the Senegalese field to Woodside in 2020, but this clause expires at the end of June next year. Shares in Capricorn fell by more than 10pc in London morning trade today.
