Woodside Energy’s Post

Woodside’s announcement yesterday of first oil at Sangomar means it’s time for (another) cautionary tale for investors. Sangomar offers a striking example of the problems with Woodside’s fossil fuel expansion strategy. Even though the project is likely to become a significant source of revenue, our analysis shows it has eroded well over $1 billion of shareholder value. How can something generate a lot of revenue and lose money…? - Woodside originally acquired ConocoPhillips’ 35% share of the project in 2016 for US$440 million. - Despite Woodside aiming to farm down its stake, the two non-government partners, Cairn and FAR, both pulled out of the project, forcing Woodside to increase, rather than decrease, its stake. The additional shares of the project cost an extra US$650 million. So in total, Woodside spent over $1 billion purchasing its current 82% stake. - Since a final investment decision (FID) was made in 2020, the project faced repeated cost and schedule slips, with the project eventually costing 18% more than the original budget and first oil being more than a year late. - By our analysis, the expected revenue is no longer sufficient to justify the actual costs of the project and, with the benefit of hindsight, the project had a negative value at the FID date. - The incoming Senegalese government was also elected, in part, on a platform of increasing taxes on its oil and gas resources. This is additional downside risk for the project. Woodside’s latest major FID, for Mexico’s Trion oil project, is another example of a high risk project, with our analysis showing it does not appear to be an attractive investment and partnering with Mexican oil company Pemex brings a constellation of risks to Woodside’s portfolio (https://lnkd.in/gKT5mY9E). So, what’s next for Woodside? With the majority of shareholders (https://lnkd.in/grxFfiDW) calling on the company to fix its climate strategy, it’s time to focus on Woodside’s portfolio of unsanctioned oil and gas projects. Our analysis (https://lnkd.in/gehdCjAB) shows this portfolio does not appear to be a material source of value for shareholders, and that reallocating the capital towards a share buyback offers more value and less risk than delivering them. A strategy that delivers more value and less emissions is hard to argue with! Sangomar and Trion represent sunk capital. But projects like Browse, Sunrise and Calypso are still pre-FID and deserve scrutiny from investors looking to manage climate risk and secure value.

Did you know South-Africa has a coastline of 3 900km with an exclusive economic zone of 1.5 million square km more than the land mass of 1.2 million square km. SA ranks #18 in the world on Superyacht building and #1 producer of large power catamarans. The Blue Economy has a potential to contribute up to R177 billion to the South-African GDP by 2033 and create over one million jobs as well as transformation and greater inclusion and opportunities for SMME’s. Over 30 000 vessels pass South-Africa’s coast on an annual basis with 13 000 docking in our ports. Around 80 oil rigs are estimated to be in range of the Western Cape alone offering significant potential for repairs in our ports. 300 million tonnes of cargo and 1.2 million tonnes of liquid fuel are transported along South-Africa’s coast.

The mission of the trust is to have a sociál impact per country by increasing the standard of living, cleaner environment and job creation thru financing large infrastructure projects in the EAME region - Europe, Africa and Middle East.

Kenya's oil plans in Turkana County have hit a roadblock! The government stopped a deal with Tullow Oil, making the project's future uncertain. Tullow Oil's project promised a big boost to Kenya's oil production and the Turkana economy, but financing problems, partner departures, and delays have plagued the project. The $3.4 billion investment is now shaky. Is this a shift towards clean energy or a strategy for a better oil deal? The government's move could be a strategic play or an effort to find new leadership for the project. Local communities hoping for economic benefits are now unsure. This story is as unpredictable as a Kenyan safari! Click the link below to find out how this energy saga unfolds and what it means for Kenya's future. https://lnkd.in/diCgjJdy #Kenya #Energy #Oil #CleanEnergy #TullowOil

💡 One of the most important guarantees for investment in Jordan is that the Investment Promotion Law treats non-Jordanian investors on par with Jordanian investors. This grants them the right to invest in the Kingdom through ownership, partnership, or participation in any economic project according to the specified proportions in the Non-Jordanians Investment Regulation Law No. (54) of 2000. They have full ownership rights over projects in sectors such as industry, information technology, agriculture, hotels, hospitals, maritime and railway transport, entertainment and tourist resorts, conference and exhibition centers, water, gas, and petroleum extraction, transportation, and distribution services via pipelines, in addition to numerous other economic sectors. https://growvist.com #investmentadvice #investmentopportunity #jordan

#MAURITANIA: OASIS OF PEACE AND STABILITY Interesting report from Business Focus https://lnkd.in/ehfZazzZ TOP 5 REASONS TO INVEST IN MAURITANIA ✅Strategic location between North and sub-Saharan Africa, the US, Europe and the Middle East, with over #450miles of Atlantic coastline ✅A beacon of political, economic and social stability and security in the Sahel region ✅Wealth of resources and potential in hydrocarbons, renewable energies, green hydrogen, mining, agriculture, livestock, fishing and tourism ✅Strong capacity for infrastructure expansion makes it an ideal regional hub for trade, logistics and manufacturing ✅Open to investments, Mauritania has a highly attractive business environment, a revitalized investment code and a one-stop shop for investors.

Exciting to observe Rio Tinto's strategic approach in navigating high-risk environments with intricate governmental structures. Investing in such regions requires foresight, adaptability, and strong partnerships. Kudos to Rio Tinto for embracing the challenge and unlocking opportunities in these dynamic landscapes. #Mining #Investment #GlobalStrategy"

Departure Tenerife from another angle: smooth and controlled!

Nigeria’s Petroleum Industry Act (of 2021) is a game changer. However, it needs good #stewardship to succeed. Through this project, together with the Ford Foundation, we are providing bridges for the various stakeholders to collaborate by sharing information, analyzing issues, and pooling resources together to address pertinent issues, and help set up the community Trusts especially for success. Nigerian Upstream Petroleum Regulatory Commission (NUPRC) #stakeholderengagement #nigerdelta