Weak oil prices weigh on Woodside shares
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More news: Shares in Woodside Energy are down nearly 1% to $24.62, weighed down by a nearly 2% decline in benchmark oil prices overnight as investors await an imminent decision by the Organization of the Petroleum Exporting Countries and its allies on production cuts.
Meanwhile, Woodside said it has renegotiated an engineering procurement and construction agreement with contractor Bechtel for its recently-acquired Louisiana LNG project in the US.
Woodside signs revised construction contract for US LNG project
The news: Oil and gas giant Woodside Energy has signed a revised engineering procurement and construction contract with contractor Bechtel for its recently-acquired Louisiana LNG project in the US.
The numbers: Woodside said it will spend up to $1.3 billion from now until the March-end on the project, with the forward cost for the foundation development estimated at $900 to $960 per tonne, unchanged from the time of acquisition.
Bechtel is constructing an initial three-train LNG facility and export terminal project with 16.5 million tonnes per annum.
The context: Woodside chief executive Meg O’Neill said the company had secured competitive revised EPC pricing, and also opened the data room with strong interest from potential project partners.
Woodside acquired the project from NYSE-listed energy firm Tellurian in October for $1.2 billion, and is targeting a final investment decision (FID) in the first quarter of 2025.
The Louisiana LNG project has a total permitted capacity of 27.6 million tonnes per annum across five LNG trains. The company has said the project and would enable it to better serve global customers and capture further marketing opportunities across both the Atlantic and Pacific Basins.
The source: ASX announcement
