Woodside to Sell Trinidad and Tobago Assets to Perenco for $206 Million

Woodside Petroleum has agreed to sell its Greater Angostura assets in Trinidad and Tobago to Perenco for $206 million. This transaction aims to streamline Woodside’s portfolio and support its investment strategies. The sale will close in the third quarter of 2025, subject to customary approvals, with Perenco taking over operations afterward.

Woodside Petroleum Limited announced a significant move in its portfolio management by agreeing to sell its Trinidad and Tobago assets to Perenco for a substantial $206 million. This deal includes Woodside’s interests in the shallow water Angostura and Ruby offshore oil and gas fields, along with associated production facilities and the onshore terminal. The decision to divest aligns with Woodside’s strategy to streamline operations and enhance financial stability.

The sale is expected to provide immediate cash flow, effectively supporting Woodside’s ongoing investments and shareholder distributions. This transaction builds on the earlier asset swap deal that was revealed last December, which aimed to simplify Woodside’s business profile even further. CEO Meg O’Neill highlighted the contribution of the Greater Angostura field to both Woodside and the local economy.

“The development of Greater Angostura was made possible by the support of the Government of Trinidad and Tobago,” O’Neill stated. She added that the field has generated significant economic benefits over the years, mentioning Woodside has, over two decades, paid more than $2 billion in taxes and invested upwards of $1 billion into the region’s developments.

Woodside’s operations in the Greater Angostura field account for around 12% of Trinidad and Tobago’s overall gas supply, providing essential support to the country’s energy needs. O’Neill expressed pride in the commitment shown by Woodside’s employees in maintaining safe and reliable operations, which, she assured, would continue under Perenco’s ownership.

The sale is projected to wrap up in the third quarter of 2025, with an effective date of January 1, 2025. However, the completion of the deal will depend on fulfilling several customary conditions, including receiving approvals from joint ventures and regulatory bodies. Woodside will manage the assets up until the closing date, after which Perenco will take over operations and responsibility for any future restoration obligations tied to the assets.

Despite this divestment, it is important to note that the agreement does not cover the deeper Calypso field, a key area where Woodside intends to keep working closely with the Government of Trinidad and Tobago and its joint venture partners to explore further opportunities.

In summary, Woodside’s decision to sell its Trinidad and Tobago assets to Perenco is a strategic move reflecting its commitment to portfolio optimization and financial health. This deal not only aims to boost cash flow for shareholder distributions but also underscores the contributions of the Greater Angostura field to the local economy. While Woodside performs its closing duties until 2025, plans for future projects continue in its other endeavors like the Calypso field.

Original Source: worldoil.com