Woodside: Green light for $2B worth NWS project (Australia)

Australia’s Woodside, as operator of the North West Shelf (NWS) project, has approved the Greater Western Flank Phase 2 (GWF-2) project off the north-west coast of Australia.

According to Woodside, the GWF-2 project will develop 1.6 trillion cubic feet of raw gas (2P 100% project basis) from the combined Keast, Dockrell, Sculptor, Rankin, Lady Nora and Pemberton fields using subsea infrastructure and a 35 km, 16” pipeline connecting to the existing Goodwyn A platform.

The total investment for the project is expected to be approximately $2.0 billion (operator’s estimate; 100% cost), with initial project start-up expected in 2H 2019.

Gas delivery will initially start from five wells in the Lady Nora, Pemberton, Sculptor and Rankin fields, followed by the remaining three wells in the Keast and Dockrell fields in 1H 2020.

The GWF-2 project is the fourth major gas development for the NWS project in the past seven years, Woodside said.

Woodside CEO Peter Coleman said GWF-2 is an economically robust project that will deliver significant value by leveraging Woodside’s substantial experience in delivering major subsea tieback projects.

“The GWF-2 Project continues a series of NWS Project subsea tiebacks that are commercialising its gas reserves in a timely and efficient manner to extend plateau production,” Coleman said.

The NWS project participants are: Woodside Energy Ltd. (operator; 16.67%); BHP Billiton Petroleum (North West Shelf) Pty Ltd (16.67%); BP Developments Australia Pty Ltd (16.67%); Chevron Australia Pty Ltd (16.67%); Japan Australia LNG (MIMI) Pty Ltd (16.67%); and Shell Australia Pty Ltd (16.67%).

Energy Minister greets the project

The Hon Josh Frydenberg MP, Australia’s Minister for Resources, Energy and Northern Australia has welcomed the announcement of investment in the GWF- project.

Frydenberg said the project start-up will add to the $34 billion invested in the North West Shelf project to date.

According to Frydenberg, since it commenced production in 1984, the North West Shelf project has provided more than 40 percent of Australia’s total oil and gas production and has delivered more than 4,000 shipments of liquefied natural gas (LNG) to the Asia-Pacific region since its first cargo in 1989.

Frydenberg concluded that, at a challenging time, this announcement is another sign of the strength and resilience of Australia’s resources and energy sectors which have seen 15 projects worth around $13 billion approved for investment since November 2014.