News: BHP UPDATE 1-Energy giant Woodside flags $1.5 bln asset impairment for 2023

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Feb 15 (Reuters) - Australia's largest energy firm Woodside Energy (WDS) said on Thursday that it expected to recognise non-cash post tax-asset impairments of around $1.5 billion in its fiscal 2023 earnings.

The total charge includes around $1.2 billion post-tax impairment from the Shenzi assets, which Woodside had acquired as part of its merger with BHP Group's (BHP) petroleum assets in 2021.

Shenzi represented around 5% of 2023 production for Woodside.

The company also flagged a reduction in reserves at the Shenzi assets, which offset an improved performance and technical updates at its North West Shelf and Pluto LNG projects.

"The reduction in reserves at Shenzi are mainly associated with the performance of infill sidetracks and performance of the Shenzi North development following start up," Woodside said in a statement.

Woodside said it had also sanctioned reserves additions from deepwater projects in Gulf of Mexico, adding that the boost in performance at North West Shelf and Pluto helped the firm in achieving record production in 2023.