In response to recent market conditions and global events, Woodside has released the following statement outlining actions it is taking.
“The current uncertain global investment environment arising from the spread of COVID-19, combined with oversupply of crude oil and LNG, has led to significant decline in prices, requiring decisive and swift action. Woodside’s priority is to protect the health and safety of our people, contractors and communities, while ensuring the operational and financial integrity of our business.
“Woodside is taking a prudent approach to cash flow management, given the considerable uncertainty in the near-term investment environment and the magnitude of forward capital investment decisions. We will take appropriate actions to ensure our credit rating remains robust, and that we are well prepared to invest when market conditions stabilise and improve. We are focused on creating differentiating shareholder value.”
Key features of Woodside’s response:
Implementation of strategies to reduce the risk of transmission of COVID-19 to Woodside’s people, contractors and communities and its potential impact on Woodside’s business.
Changes to Woodside’s 2020 work plan resulting in an approximately 50% reduction in forecast 2020 total expenditure.
Review of all non-committed activities supporting Woodside’s growth activities resulting in an approximately 60% reduction in Woodside’s 2020 guided investment expenditure.
Deferral of targeted final investment decisions (FID) for Scarborough, Pluto Train 2 and Browse.
Continuing to progress capital investments in Sangomar Field Development Phase 1 (Sangomar), Pyxis Hub and Julimar-Brunello Phase 2.
Woodside’s production guidance remains unchanged.
“These actions bolster the financial resilience that Woodside has developed in recent years in preparation for growth and position the company to maximise opportunities after the simultaneous impact of demand and supply shocks passes.”