Woodside flags delays cost blowout at Senegal development

(Sharecast News) - Energy firm Woodside said its Sangomar development project in Senegal would be delayed after a cost blowout. The company on Tuesday said first oil was now expected mid-2024, instead of late this year as initially expected. Total project costs are now expected to be between $4.9 - $5.2bn, up a 7 - 13% increase from the previous cost estimate of $4.6bn.

A cost and schedule review found "unexpected" remedial work was needed on the project's flotation production storage and offloading (FPSO) facility.

"We have taken the prudent decision to have the remedial work conducted while the FPSO remains at the shipyard in Singapore. This minimises the impact to the project schedule as it is safer, more efficient and more cost-effective than undertaking the work offshore Senegal," said chief executive Meg O'Neill.

"This approach ensures we can achieve production start-up in line with the adjusted schedule and ramp up operations as planned. The change in project schedule has no impact on Woodside's production guidance for 2023," she said.

Reporting by Frank Prenesti for Sharecast.com