Woodside Energy is forging ahead with its Sangomar field development offshore Senegal, for which it has started the subsea installation campaign and the phase one project is on track for start-up in the second half of 2023.
“At Sangomar the subsea installation campaign began in September and development drilling progressed, with six of the planned 23 wells now complete. The project was 70% complete at [third] quarter end with first oil targeted for the second half of 2023,” said chief executive Meg O’Neill.
In tandem, construction and conversion activities for the project’s floating production storage and offloading (FPSO) facility progressed in preparation for its planned departure to Singapore later in the year to complete the topsides integration and commissioning.
FPSO provider Modec of Japan earlier this year elected to move the Sangomar FPSO that was being converted in China. The integration and commissioning scope was initially lined up for Cosco Shipping Heavy Industry’s Dalian yard. But work on the floater became challenging due to China’s strict and protracted coronavirus protocols and the Sangomar floater’s topsides will now be integrated and commissioned at Keppel Offshore & Marine.
Woodside earlier this month completed the SNE North-2 well offshore Senegal, which was targeting a near-field tie-back to the under construction Sangomar FPSO. However, this well encountered sub-commercial quantities of hydrocarbons and was plugged and abandoned.
The Australian operator is also stealing a march with its Trion field development offshore Mexico.
The operator on Thursday confirmed an exclusive Upstream story of earlier this week that it had indeed issued tenders for “major scopes of work” ahead of the potential final investment decision in 2023.
“The floating production unit bid package was issued to prospective contractors and other key scopes of work bid packages will be issued in the fourth quarter in order to provide cost and schedule predictability to support FID,” said Woodside.
“The field development plan (FDP) has matured, and engagements are planned with the regulator ahead of FDP submission in 2023.”
Mad Dog 2 woes
However, Woodside is not faring so well with its Mad Dog Phase 2 development in the US Gulf of Mexico, which is plagued by project commissioning issues that the operator admitted would now delay start-up until 2023. An issue was detected with two of the Argos floating production facility’s flexible joints during testing and this has pushed the expected on stream date to beyond year-end.
Announcing its third quarter results, Woodside said it would provide an update on Mad Dog 2 as further information becomes available.
Woodside’s plans to build carbon capture and storage capability on its home turf also made headway during the third quarter with the award of a greenhouse gas assessment permit over the Calliance field in and technical work for a CCS solution is maturing. The company is too participating in joint ventures that were awarded greenhouse gas assessment permits in the Northern Carnarvon and Bonaparte offshore basins in Australia.
Woodside in the third quarter achieved record revenues of US$5.858 billion, up 70% from the previous three months. The company also boosted its production to another record – 557,000 barrels of oil equivalent per day – in the three months ended 30 September following its acquisition of compatriot BHP’s petroleum assets.
The third quarter also saw Woodside deliver another record – sales volumes up 59% from Q2 to 57.1 million barrels of oil equivalent.
“This is our first full quarter following the merger and these results demonstrate the new, expanded Woodside is delivering what we promised: safe, reliable energy from a more diverse portfolio,” added O’Neill.
The company on Thursday also upgraded its full-year production guidance to between 153 million and 157 million boe.
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