- 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.