Why the Woodside share price could leap higher in 20237 Feb 2023 08:55
https://www.fool.com.au/2023/02/07/why-the-woodside-share-price-could-leap-higher-in-2023/
After years of delays, it appears Woodside is closer to developing its joint venture Sunrise gas field.
Sunrise is located some 150 kilometres offshore of Timor-Leste and 450 kilometres from Darwin.
Woodside owns approximately 33% of the $50 billion gas field, with its joint venture (JV) partners Osaka Gas and the Timor-Leste government owning the rest.
Development of the gas field has been on the back burner as the partners debate the merits of constructing an LNG export plant in Timor-Leste. Woodside has opposed that proposal, citing higher costs involved than processing at existing plants in the Northern Territory.
Now, as The Australian reports, Woodside is reconsidering its opposition to that plan, with new modular technology potentially bringing the costs of constructing a plant in Timor-Leste down to a palatable level.
In a move that could offer a boost to the Woodside share price, the oil giant stated it will now conduct a new study alongside its JV partners with a “strong focus on delivery of gas to Timor-Leste”. The company will compare how that plan stacks up against delivering the gas for processing to Australia.
“It is important we continue to look at ways to develop the Greater Sunrise fields using the latest technologies by evaluating, for example, modular LNG, that did not exist in the past,” Woodside CEO Meg O’Neill said.
According to O’Neil:
Against a backdrop of global geopolitical instability and constrained energy supply chains, there is an opportunity for the Sunrise Joint Venture to significantly advance this regionally important project…
The Timorese are very keen to have that development in country and we recognise it is an important national project for them, so we feel like it’s appropriate to reopen the concept evaluation, understand the technologies, understand the technical challenges.
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