Woodside calls for ‘urgent’ reforms amid threat to Scarborough gas

afr.com:

Woodside Energy has called for “urgent” reforms to Australia’s offshore approvals process, citing the threat of delay and increased cost at its $16.5 billion Scarborough LNG project in Western Australia.

The comments by chief executive Meg O’Neill came as Woodside put back a final go-ahead for a hydrogen project in the United States, citing uncertainty over the venture’s ability to qualify for tax incentives and sales agreements with customers.

Woodside CEO Meg O’Neill is facing hurdles on both gas and hydrogen projects. Dominic Lorrimer

Woodside posted a 6 per cent increase in quarterly revenue to $US3.26 billion ($5.1 billion) as higher production more than offset the impact of lower prices.

Production in the September quarter was 47.8 million barrels of oil and gas, up 8 per cent from the June quarter, according to the quarterly update released on Wednesday.

Woodside narrowed its production guidance for the full year of calendar 2023 to between 183 million and 188 million barrels. That compared with previous guidance of between 180 million and 190 million barrels.

Ms O’Neill pointed to “strong” process at projects over the quarter, with the start-up of the Shenzi North venture in the US Gulf of Mexico ahead of the 2024 target date. Production is also continuing to ramp up from the second phase of the Mad Dog oil project – also in the Gulf of Mexico – which started up in April.

Construction of the Scarborough project, which includes the expansion of the Pluto LNG plant, is now 46 per cent complete, but Ms O’Neill pointed to risk to the schedule from a Federal Court ruling in late September that invalidated an approval for seismic testing for the venture, while still holding to the targeted 2026 start-up.

She said the