Woodside to develop $2.6bn Greater Enfield

Energy giant Woodside Petroleum will proceed with development of its $US1.9 billion ($A2.6 billion) Greater Enfield oil project in the Carnarvon Basin.

The Greater Enfield project, located off Exmouth, incorporates the Laverda Canyon, North over Laverda and Cimatti oil accumulations, and has a target production of 69 million barrels of oil equivalent.

Woodside will develop the project with 40 per cent joint venture partner Mitsui & Company (via its subsidiary Mitsui E&P Australia), with Woodside as operator.

Development of Greater Enfield will include construction of six subsea production wells and six water injection wells, with reserves to be produced via a 31-kilometre subsea tie-back to the Ngujima-Yin floating production storage and offloading facility in the Vincent oil field.

The project is expected to cost $US1.9 million to bring into production, with Woodside’s share of the cost to cover $US1.1 billion.

First oil is expected in mid-2019.

“We have achieved investment spend at the low end of our guidance range by leveraging the latest technologies and using existing FPSO infrastructure,” Woodside chief executive Peter Coleman said.

“This allows us to accelerate the development of previously stranded resources.

“Greater Enfield is a demonstration of our phased and sustainable approach to growth.”

Mr Coleman said monetising Greater Enfield was made possible by breakthroughs in the development concept, technology and contracting.

Woodside shares were up 0.4 per cent to $25.89 each at 1:30pm.