Woodside Energy Pursues Oil and Gas Potential in Gulf of Mexico
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Woodside Energy Pursues Oil and Gas Potential in Gulf of Mexico

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Mon, 02/27/2023 - 16:49

Woodside Energy announced it will review potential acquisitions in the Gulf of Mexico after reporting its highest-ever profit. The company said its underlying earnings tripled to US$5.2 billion in 2022 on the back of soaring energy prices and output that jumped more than 70% after the purchase of BHP Group’s energy unit. The result follows a run of bumper profits for global oil and gas producers.

Meg O’Neill, CEO, Woodside Energy, said that the company continues to look for opportunities in the Gulf of Mexico after the acquisition of BHP’s assets increased the company's presence there. Woodside is looking to grow industry investments in oil to meet medium-term demand. Additionally, further liquefied natural gas (LNG) projects are required to ensure there is adequate supply in the late 2020s, so the company will continue to develop this niche.

“Due to the merger, Woodside is the largest energy company listed on the Australian Stock Exchange (ASX). We are now a global company with a truly international footprint and secondary listings on the London Stock Exchange (LSE) and New York Stock Exchange (NYSE). Our larger, more diversified portfolio is expected to deliver significant cash flow to help fund growth, Woodside’s participation in the energy transition and shareholder returns,” said Stephan Drouaud, Trion Project Director in a recent interview with MBN.

The company is working on projects including the Trion oil project in the Gulf of Mexico and a liquid hydrogen project in the US, both set for a final investment decision this year. The company is forecasting its capital expenditure to rise to US$6.5 billion in 2023 as it advances such growth projects. This remains a fraction of the potential annual spending flagged by Shell of between US$23 billion and US$27 billion, as well as BP’s targeted range from US$14 billion to US$18 billion

“Key business priorities include delivering reliable production, executing our commitments on major projects, investing in growth and delivering merger synergies. Our performance from the first full quarter following the merger has demonstrated that the new, expanded Woodside is delivering what we promised: safe, reliable energy from a more diverse portfolio,” added Drouaud.

The Trion project is a large deepwater oil field in the Perdido Fold Belt and has the potential to generate value for Woodside, PEMEX and Mexico. The energy company has demonstrated its capabilities in deepwater developments and is committed to share its international experience with relevant Mexican stakeholders. Woodside expects to be a partner of choice for the right future investment opportunities in Mexico.

In addition, the company is planning to also submit the first Mexican ultra-deepwater Field Development Plan to CNH in 2023. 

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