According to the Australian energy company, the cost of phase 1 of the offshore Senegalese oil and gas project has been raised by 7%-13% from the earlier cost estimate of $4.6bn and the remedial work of the FPSO will be undertaken at the shipyard in Singapore
Artist impression of the FPSO to be deployed at the Sangomar field. (Credit: Woodside)
Woodside Energy Group has deferred the planned start-up of the Sangomar field development phase 1 for mid-2024 while increasing the estimated project cost to $4.9bn-$5.2bn.
The project’s cost has been increased by 7%-13% from the earlier cost estimate of $4.6bn.
Woodside Energy’s latest estimations of the start-up date and the project cost come after a cost and schedule review of the project. This was after identifying the necessity of carrying out remedial work on the floating production storage and offloading (FPSO) vessel.
Woodside CEO Meg O’Neill stated that the remedial work was not anticipated, and the highest priority of the project team continues to be the safe execution of all activities.
Meg O’Neill stated: “We have taken the prudent decision to have the remedial work conducted while the FPSO remains at the shipyard in Singapore.
“This minimises the impact to the project schedule as it is safer, more efficient and more cost effective than undertaking the work offshore Senegal. This approach ensures we can achieve production startup in line with the adjusted schedule and ramp up operations as planned.”
In a previous update on the offshore Senegalese oil and gas project in late April 2023, the Australian energy company said that the first oil is expected to be drawn later this year. Woodside Energy said that 82% of the phase 1 of the Sangomar field development project was complete, as of the end of March 2023.
However, by the end of last month, the progress was at 88%. The company said that 76% of the subsea installation is over, while 95% of the subsea work scope has been executed.
According to Woodside Energy, the development drilling campaign is going on with the drilling and completion of 12 of 23 wells.
In July 2023, the Ocean BlackHawk drillship wrapped up its work scope. The remaining drilling work will be carried out by the Ocean BlackRhino vessel, said the Australian oil and gas company.
Woodside Energy has an operating stake of 82% in phase 1 of the Sangomar field. It is partnered with PETROSEN, which holds the remaining stake of 18%.