Woodside are desperate to locate gas for its Pluto Project, and currently have very little to feed Train 2 and 3
Woodside has embarked on a 20-well exploration program to shore up gas for the second and third LNG production trains (plants) for Pluto, after Chevron twice dashed its plans to feed the plants with third-party gas.
In October last year, Chevron outbid Woodside to secure the Apache-operated Julimar gasfields by offering Apache and its partner, Kuwait's Kufpec, a 25 per cent stake in Wheatstone.
Woodside needs to find a new gas supply for the second train soon or risk being unable to roll over the construction workforce from the first train at Pluto to the second train.
Chevron's plans to develop up to three LNG trains at its planned Wheatstone project closely mirrored Woodside's plans for Pluto. The timing of the first train at Wheatstone and the second train at Pluto would be similar.
The project will compete directly against Woodside's proposed LNG projects for skilled labour/engineering resources and potentially delay the timing of Woodside's projects.
In early January Woodside announced that it had discovered a source of gas at Noblige. If there is a discovery at Noblige, there could be enough gas to underpin (Pluto) train two when combined with Martell
The well is half-owned by US oil company Hess, which also owns 50 per cent of Martell and the next well in Woodside's program, the nearby Larsen-1.
Woodside announced in their last quarterly report that the Ocean America drilling rig will be the second rig to be used in further exploration activity searching for the elusive gas required to feed the Pluto Train 2 and 3 project
The rig is due to arrive late this month.It is rated to drill to a depth of over 9000 meters
Perhaps Woodside will be using this drilling rig for the Caterina prospect
It should not be too long before foreign investment review board approval is given for the Artemis project
It should not be too long before Woodside signs off on the farminee for the Caterina project
You do not have to be an Einstein to appreciate the enormous potential of CUE going forward
CUE Price at posting:
25.5¢ Sentiment: LT Buy Disclosure: Held
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