Coleman aims for $4.5b haul
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.”