Woodside Petroleum halved its forecast spending for 2020 and deferred go-ahead decisions for its two biggest gas projects to ride out the pain of the coronavirus pandemic and plunging oil prices.
The project is Senegal’s first oil development and key to Woodside’s growth plans over the next seven years.
The North Sea between Britain and Norway, home of the Brent crude stream that underpins global oil prices, is one of the world’s oldest and most expensive oil basins.
The company had previously expected the project with estimated reserves of 300 million barrels to start production in 2025.
The oil industry’s first coronavirus case on an offshore installation, reported on March 11, highlighted the challenge of preventing contamination for thousands of workers living in close quarters on rigs and platforms.
Production began on March 7, just three days after BW marked first oil from the DTM-5H well.
Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed. Now, the country has adopted the techniques developed in U.S. fields.
The company said output would reach about 2.2 billion cubic feet per day of sales gas by 2036, with an associated 425 million cubic feet per day of ethane.
Shell also said Amberjack Pipeline Co. has signed a dedication and connection agreement with Chevron's Gulf of Mexico anchor project, which is expected to produce oil in 2024.