Woodside Narrows Output Goal, to Seek Buyer for Part of Sangomar Stake

By David Winning

SYDNEY--Woodside Petroleum Ltd. narrowed its annual production target and said it would seek a buyer for part of its stake in the Sangomar oil field development offshore Senegal.

Woodside said it now expects to produce between 99 million and 101 million barrels of oil equivalent this year, tightening an earlier guidance range of 97 million-103 million barrels.

Chief Executive Peter Coleman, in remarks to shareholders attending the company's annual meeting, said the joint venture that owns the Sangomar oil field in Senegal is making good progress and the company "is looking to sell down our equity to the right partner at the right price over the course of 2021."

Earlier on Wednesday, FAR Ltd. said it has agreed to the sale of its entire stake in the venture to a unit of India's ONGC Videsh.

Mr. Coleman said the deferral of a final investment decision on the Scarborough gas field offshore Western Australia in March had allowed the company to target an additional 20% of production capacity at "very modest capex, with virtually no cost impact on the downstream" part of the project.

"In terms of both contractor availability and the external LNG market, we expect the timing to be right for final investment decisions on Scarborough and Pluto Train 2 in the second half of 2021," Chief Executive Peter Coleman said.

A final investment decision on the Browse liquefied natural gas project is unlikely to happen before 2023, he added.

Write to David Winning at [e-mail]

(END) Dow Jones Newswires

11-10-20 1824ET