Woodside Investor Briefing Day 2023

Woodside held its Investor Briefing Day, providing a perspective into its available decarbonisation levers and reinforcing the company’s strategy to focus on continued growth and expansion of oil and gas assets globally. 

Its transition plan is materially reliant on CCS and offsets under its “New Energy” business.

Some quantification of abatement levers

01 Guiding to CCS storage potential of >3 Mtpa CO2 by FY30 in Australia, based on CCS opportunities under consideration including Angel, Bonaparte and SE Australia CCS.

02 Average portfolio of 0.74 Mt pa in carbon credits expected to be delivered or generated by FY50 (20 MtCO2 cumulative).

It is unclear what role these credits will play in offsetting Woodside’s own emissions. This is in line with the 0.75 Mt of offsets that were used in FY22.

03 Indicating LNG will account for 90% of Scope 1 and 2 emissions by FY50 (~75% in FY23). 7 out of 10 LNG decarbonisation levers are either wholly or in part reliant on CCS/offsets.

04 Design/operational levers contributing ~1 Mt pa scope 1 and 2 emissions (~28 MtCO2e cumulative by FY50).

Woodside’s strategy remains unchanged

01 No announced changes to targets, for both emissions and capital expenditure (target to allocate ~$5bn to its New Energy business by FY30).

02 Confirming continued growth in oil and gas production. Growth is projected until FY27, with LNG dominating production. 

03 Growth underpinned by 3 major oil and gas projects: Sangomar, Scarborough and Trion are expected to deliver a combined gross capacity of ~420 kboed/d by FY28.

The total estimated capex in these projects is ~$24 billion, almost 5-times the Woodside’s cumulative ~$5bn New Energy capex target by FY30.

04 Reiterated capital expenditure to decline YoY to below $2bn by FY28. ~50% of allocation to major projects: Sangomar, Scarborough, Trion.