Page 10 - NorthAmOil Week 29 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Woodside outlines plans for Gulf development

GULF OF MEXICO AUSTRALIA’S Woodside Energy this week Shenzi North is a two-well development, located
provided updates on global operations, high- in the Green Canyon protraction area off the
lighting plans for the development of offshore coast of Louisiana, that will be tied back to the
assets in the US Gulf of Mexico. The com- Shenzi tension leg platform (TLP). The Shenzi
pany said that several significant projects are subsea multi-phase pump was installed and
expected to make progress over the next year commissioned during a planned shutdown at the
following its recent acquisition of BHP’s hydro- TLP. Shenzi North will have a production capac-
carbon assets. ity of up to 30,000 barrels of oil equivalent per
The furthest along is the second phase of day (boepd) and is expected to come on stream
Woodside has a the BP-operated Mad Dog oilfield in which in 2024.
23.9% stake in the Woodside holds a 23.9% stake. The company The company said that it has decided not to
BP-operated Mad Dog said that work is progressing on the hook-up proceed with further development activities at
2 project. and commissioning of topsides for the floating blocks GC564 and GC520, following the plug-
the Argos production platform, which will have ging and abandonment of the unsuccessful S/101
a capacity of 140,000 barrels of oil equivalent per appraisal well. Together, these were seen form-
day (boepd). However, during testing, an issue ing the ‘Wildling’ tie-back opportunity for the
with a joint was identified and assessments are Shenzi TLP.
ongoing, and it remains unclear whether this will Further down the pipeline is the Trion oilfield
affect plans to launch the expansion phase by the project, for which Woodside expects to take a
end of the year. final investment decision (FID) during 2023.
Woodside also expects to begin drilling its The company is currently carrying out front-end
second development well at Shenzi North using engineering and design (FEED) work focused on
the Deepwater Invictus drillship later in 2022. optimising project plans, costs and timings.™

Cheniere signs long-term

LNG deal with PetroChina

US-CHINA THE US’ largest LNG exporter this week said
it had signed an agreement with a subsidiary of
state-owned PetroChina for the supply of gas
until 2050, the firm’s longest such deal.
In a press release on July 20, Cheniere said
that the sale and purchase agreement (SPA) cov-
ered flows of up to 1.8mn tonnes per year (tpy)
of LNG, delivered by Cheniere Marketing on a
free-on-board (FOB) basis to PetroChina Inter- President and CEO Jack Fusco said the SPA
national (PCI). “increases Cheniere’s long-term sales to Pet-
Deliveries will begin in 2026, reaching the roChina to approximately 3mn tpy, and we are
1.8mn tpy level in 2028 and run at that rate until proud to support China’s progress toward a low-
2050 with the LNG price indexed to Henry Hub er-carbon future with our reliable, cleaner burn-
plus a fixed fee for liquefaction. ing LNG.”
The US firm said that “half of the total vol- Meanwhile, PCI executive chairman, Tian
ume, or approximately 0.9mn tpy, is subject to Jinghui noted that his company was “pleased to
Cheniere making a positive final investment further expand our cooperation with Cheniere
decision to construct additional liquefaction in delivering LNG, one of the cleanest fuel
capacity at the Corpus Christi LNG Terminal choices to our millions of customers for many
beyond the [existing and planned] seven-train years to come.”
Corpus Christi Stage 3 Project.” Chinese firms have been snapping up
This follows the company’s approval in June increased LNG exporters from the world’s larg-
of a $8bn expansion of the plant and said that est exporters, illustrating the country’s pragma-
more expansions could be forthcoming. Capac- tism in its approach to energy supply security
ity at Corpus Christi is expected to rise to 25mn as new liquefaction capacity comes on-stream
tpy following the latest addition. throughout the world.™

P10 www. NEWSBASE .com Week 29 21•July•2022