Woodside moving on Scarborough, Pluto sales

Woodside Petroleum has launched a campaign to selldown equity in the planned Pluto train 2 project; while it has also commenced drilling at Greater Western Flank phase 3.

The Perth-based oil and gas producer is still planning a final investment decision on the Scarborough project and expansion at Pluto before year’s end.

Some equipment has already been delivered or is due for delivery in coming months, while the company has been reviewing cost estimates in recent weeks, sharpening up what had been touted as a $US 11 billion project. 

In a results release today, Woodside said it had appointed Morgan Stanley and Rothschild & Co for the Pluto Train 2 sales process.

Up to 49 per cent of the equity at Pluto 2 will be up for grabs, while Woodside will also test the market to selldown Scarborough.

The company said it had achieved suitable commercial terms with partner BHP to proceed to reduce its own share.

Woodside will similarly be selling down its stake in the Sangomar proejct in Senegal.

At Greater Western Flank phase 3, part of the North West Shelf Venture, development drilling commened in June, and the project is 41 per cent complete.

In the June quarter, Woodside’s revenue was $1.3 billion, up 65 per cent on the corresponding period in 2020 when oil prices were much lower.

That was despite volumes being down more than 10 per cent due to turnaround activities and weather.

Shares in Woodside fell 1 per cent to $22.97 at the close.