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Woodside Energy Group Ltd. has decided to retain its ownership interest in the Macedon and Pyrenees assets after a months-long review.
The Australian integrated energy company said in a news release Thursday that it started a process in the second half of 2023 to consider the potential for divestment of its interests in the assets.
“Macedon continues to be a critical supply source of gas to the Western Australian domestic market and Woodside continues to see strong value in both assets,” the company said.
Both Macedon and Pyrenees will remain within its Australian operations portfolio with a continuing focus on “maintaining their outstanding safety and production performance and contribution to ensuring [the] security and reliability of gas supplies in Western Australia,” Woodside added.
Macedon is an offshore gas field located approximately 46.6 miles (75 kilometers) west of Onslow, Western Australia. Gas is produced from subsea wells and flows through a pipeline to a gas treatment plant located near Onslow, according to the company’s website.
Sales quality gas from Macedon is transported through a dedicated 41.6-mile (67-kilometer) pipeline into the Dampier to Bunbury Natural Gas Pipeline and thereon for onward sale into the Western Australian domestic gas market.
The Pyrenees project consists of six conventional oil fields located approximately 28 miles (45 kilometers) northwest of Exmouth, Western Australia, in the Carnarvon Basin. Crude oil is offloaded from the Pyrenees floating production, storage, and offloading (FPSO) unit directly to tankers for sale to international markets and attracts a premium to Brent given its low sulphur content. Produced formation water is treated at the facility and reinjected for disposal in four subsea water injection wells, according to the company’s website.
Subsea facilities are located within the production licenses WA-42-L and WA-43-L, and in water depths ranging from approximately 590 to 705 feet (180 to 215 meters).
A single well into the Macedon gas field allows for injection or production of natural gas depending on facility requirements. The Pyrenees Phase 4 project has been sanctioned with infill drilling and well intervention for water shut-off.
The Pyrenees FPSO is connected to the adjacent Macedon gas field located approximately 3.7 miles (6 kilometers) southeast of the FPSO. The connection allows gas to be supplied from the Macedon gas field for fuel gas on the FPSO or produced via the Macedon subsea infrastructure to the onshore Macedon gas plant for domestic gas production.
Production license WA-42-L is operated by Woodside with a 71.4 percent stake, while Santos Ltd. owns 28.6 percent. WA-43-L is also operated by Woodside with a 40 percent stake, while Santos and Inpex Corporation own 31.5 percent and 28.5 percent, respectively.
Woodside stated that it “remains disciplined and value-driven when considering any potential merger and acquisition transaction, including divestments”.
In February, a planned merger of Woodside and Santos fell through after the two companies failed to agree on a price. The addition of Santos’ portfolio would have created an Australian gas export giant and positioned Woodside as one of the biggest liquefied natural gas producers in the Asia-Pacific.
To contact the author, email rocky.teodoro@rigzone.com
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