Australian LNG company Woodside Petroleum said its revenues fell in the first quarter by more than 20%, as the coronavirus pandemic and mitigation steps to curtail the epidemic worldwide crippled demand for crude.
Although the production for the first quarter was 12% higher than the corresponding three months of 2019, company CEO Peter Coleman said the current quarter was impacted by reduced trading activity and lower realized prices due to COVID-19 and an unprecedented combination of oversupply and short-term demand destruction.
Consequently, Coleman said the company agreed to reduce its targeted 2020 total expenditure by approximately 50% to ensure the financial integrity of the business.
The company also decided to defer its targeted final investment decision on the company’s Scarborough project in the Carnarvon Basin, west/north-west of the Burrup Peninsula in Western Australia along with the expansion of the Pluto LNG facility to 2021.
By Sibel Morrow