CRNCY - Woodside delays Sangomar start to mid-2024 hikes cost estimate after review

2023-07-18 07:48:42 ET

Woodside Energy ( NYSE: WDS ) -0.9% pre-market Tuesday after warning of delays and cost increases at its Sangomar oilfield Phase 1 project in Senegal following a cost and schedule review.

The company said it now expects a total project cost of US$4.9B-$5.2B, up from its previous estimate of US$4.6B, and is targeting first oil for mid-2024, compared with the previous target of late 2023.

Woodside ( WDS ) cited unexpected remedial work needed on the floating production storage and offloading facility at the project.

"We have taken the prudent decision to have the remedial work conducted while the FPSO remains at the shipyard in Singapore," CEO Meg O’Neill said.

The company said the overall project was 88% complete as of June 30, and any change in the project schedule had no impact on production guidance for 2023.

Capricorn Energy ( OTCPK:CRNCY ) plunged nearly 13% in London trading to their lowest level since March 2020 after saying it could miss out on a contingent payment after Woodside pushed back the date it expects first oil from Sangomar.

More on Woodside Energy:

• Financial and valuation comparison to sector peers
• Analysis: Woodside Energy: Softer LNG Prices Weigh, Lower Profit Outlook, Rating Downgrade To Hold
• Stock price return: Up 5% YTD, up 10% in the past 12 months

For further details see: