Total
0
Shares
Woodside Energy (ASX:WPL)- Acting CEO, Meg O'Neill (left) and Former CEO, Peter Coleman (right) - The Market Herald
Acting CEO, Meg O'Neill (left) and Former CEO, Peter Coleman (right)
Source: Woodside/Twitter
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Energy giant Woodside Petroleum (WPL) raises its cost estimate for the Scarborough project by five per cent to US$12 million (A$16.2 billion)
  • The company is currently working towards its final investment decision for the project
  • The new estimate includes modifications to a gas-processing train to handle production from Scarborough
  • The estimate also incorporates an eight per cent increase in production from 6.5 million to 8 million tonnes per annum
  • On the market this morning, Woodside is up 0.78 per cent and is trading at $21.99 per share

Woodside Petroleum (WPL) has raised its cost estimate for the Scarborough project by five per cent as it works towards a final investment decision.

The project is now expected to cost Australia's largest natural gas producer US$12 billion (about A$16.2 billion).

The new estimate incorporates modifications to the site's gas-processing train, Pluto Train 1, to handle production from Scarborough.

The estimate also incorporates an eight per cent increase in production from 6.5 million to 8 million tonnes per annum.

One up and running, the company forecasts an internal rate of return of more than 12 per cent.

Acting CEO Meg O’Neill said that the Scarborough development is a transformational project.

"Significant progress has been made towards our targeted final investment decision on Scarborough and Pluto Train two this year. The cost update includes value-accretive scope changes to deliver an approximately 20 per cent increase in
offshore processing capacity and to modify Pluto Train 1 to allow increased Scarborough gas processing," she said.

"It also reflects the work undertaken with our contractors to optimise the execution schedule and manage costs in preparation for final investment decision."

On the market this morning, Woodside is up 0.78 per cent and is trading at $21.99 per share at 11:22 am AEST.

WPL by the numbers
More From The Market Herald
Brickworks (ASX:BKW) - Managing Director, Lindsay Partridge - The Market Herald

" Brickworks (ASX:BKW) lays down $239m profit and increases dividend

Leading brick and paver manufacturer Brickworks has tabled its full year results, revealing a statutory net profit after tax of $239 million and
Commonwealth Bank (ASX:CBA) - CEO, Matt Comyn - The Market Herald

" Commonwealth Bank (ASX:CBA) faces 30 criminal charges for insurance sales

The investments watchdog has brought 30 criminal charges against Commonwealth Bank (CBA) for its promotion and sale of insurance between 2011 and 2015....
CIMIC Group (ASX:CIM) - Executive Chairman & CEO, Juan Santamaria - The Market Herald

" CIMIC’s (ASX:CIM) CPB Contractors wins Western Sydney Airport bid

CIMIC (CIM) Group company CPB Contractors, with its joint venture partner Acciona, has been chosen to deliver Western Sydney International Airport airside civil
Fortescue Metals (ASX:FMG) - - The Market Herald

" Fortescue Metals (ASX:FMG) signs joint venture with Wintawari Corporation

Fortescue Metals (FMG) has signed a co-management framework with members of Wintawari Guruma Aboriginal Corporation.