Cole­man aims for $4.5b haul

Pilbara News - - News - Peter Williams The reporter trav­elled to Syd­ney cour­tesy of Wood­side Petroleum.

Wood­side Petroleum has laid out a plan to gen­er­ate $US4.5 bil­lion cash in the next four years while ready­ing green­fields oil and gas projects for the longer term.

Chief ex­ec­u­tive Peter Cole­man last week urged in­vestors to no longer con­sider Wood­side’s LNG projects off the North West as high-risk, cap­i­tal­in­ten­sive as­sets. He said over the next two years Wood­side would start de­vel­op­ing a Bur­rup Penin­sula hub by con­nect­ing the North West Shelf and Pluto projects, bring­ing in new re­sources and low­er­ing its ex­po­sure to cap­i­tal in­ten­sity.

The com­pany has set a tar­get of ag­gre­gate free cash­flow of $US4.5 bil­lion for 2017-2021 based on a flat oil price of $US65 a bar­rel.

Re­turn of av­er­age cap­i­tal em­ployed from 2022-26 was fore­cast to ex­ceed 10 per cent.

“Most of what we’re look­ing at now is more around what we call the fam­ily farm sce­nario,” Mr Cole­man said on the side­lines of an in­vestor brief­ing in Syd­ney. “It’s around ag­gre­gat­ing around ex­ist­ing as­sets. The things that are most at­trac­tive, the most in­ter­est­ing to us at this point in time are around our ex­ist­ing as­set base and how you can bring them to mar­ket. Same thing with ex­plo­ration.”

Mr Cole­man un­veiled to in­vestors three “hori­zons” for Wood­side’s op­er­a­tions.

The first two cover four-year pe­ri­ods from this year, while the third is cast be­yond 2027. The first in­cludes the Chevron-op­er­ated Wheat­stone LNG project in pro­duc­tion and ex­pan­sion of the Pluto LNG plant, char­ac­terised as a cash-gen­er­a­tion phase.

The sec­ond hori­zon of 2022-26 en­vis­ages a pe­riod in which value is un­locked from the Browse and Scar­bor­ough LNG projects off the North West and gas fields off Myan­mar. The third in­cludes the Kiti­mat LNG project in Canada and Sun­rise de­vel­op­ment in the Ti­mor Sea.

“These are things that we have com­mit­ted to,” Mr Cole­man said. “These are not as­pi­ra­tions that we don’t think there’s a plan for. Things that we think are achiev­able in the time frames that we’ve set out.”

Wood­side Petroleum chief ex­ec­u­tive Peter Cole­man. Picture: Ross Swan­bor­ough

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