Woodside’s Sangomar project remains on track for first oil in 2023
- Business & Finance
Responding to media reports that Senegal has been forced to delay its first oil and gas projects by up to two years due to the coronavirus pandemic, Australian energy giant Woodside has said that its Sangomar project remains on track for first oil in 2023.
Woodside reiterated on Tuesday that first oil from the Sangomar Field Development Phase 1 remains on track for 2023, in line with previous guidance.
Woodside and its joint venture partners took an unconditional final investment decision for the Sangomar Field Development Phase 1 and started execution phase activities in January 2020.
Since then, Woodside said it has taken early action to proactively manage the emerging impacts of COVID-19 on the supply chain and project schedule.
Phase 1 of the development will target estimated 2P recoverable oil reserves of 231 mmbbls (gross). Over the life of the field, total recoverable oil resources are estimated to be approximately 500 mmbbls with the development also planning gas export to shore.
“We are working with project contractors, the Government of the Republic of Senegal and our joint venture partners to optimise near-term spend whilst protecting the overall value of the investment and deliver first oil in 2023”, Woodside concluded.
Back in late March, Woodside said it was working to explore and evaluate all options to preserve and enhance the value of this world-class development in the current oil price and economic environment.
The Sangomar Development concept is a stand-alone floating production storage and offloading (FPSO) facility with 23 subsea wells and supporting subsea infrastructure.
The key contracts were awarded to MODEC, Subsea Integration Alliance, and Diamond Offshore.
MODEC was awarded a contract for the FPSO with an oil processing capacity of approximately 100,000 barrels per day.
Subsea Integration Alliance, a non-incorporated alliance between Subsea 7 and OneSubsea, won a contract for the construction and installation of the integrated subsea production systems and subsea umbilicals, risers and flowlines.
Diamond Offshore received a contract award for two well-based contracts for the drill rigs Ocean BlackRhino and Ocean BlackHawk.