Due to the coronavirus pandemic and the fall in oil prices, Australian independent gas producer Woodside Petroleum has decided to reduce its planned expenditure in 2020 by around 50% to AUD2.4bn (US$1.5bn), including a 60% cut in investment expenses to AUD 1.7-1.9bn (US$1-1.2bn). The firm will also slash its operating spending by AUD100m (US$61m).
To reduce its expenditure, Woodside will defer the major turnaround for the trains 3 and 4 of its Karratha Gas Plant (NorthWest Shelf LNG plant), to September 2020 and August 2021, respectively. In addition, Woodside Petroleum will postpone a final investment decision (FID) on its 6 Mt/year Scarborough LNG project and on the 5 Mt/year expansion of its 5 Mt/year Pluto LNG from mid-2020 to 2021.
Moreover, Woodside Petroleum delayed to an unknown date the FID for the 3.9 Mt/year Browse LNG project worth AUD30bn (US$18.2bn). In October 2019, the company already deferred the FID from late 2020 to the first half of 2021. The three projects play a pivotal role in driving Woodside’s planned 6% annual growth in production through 2028.