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Woodside sketches out decade of growth

Shriya Ramakrishnan
Woodside CEO Peter Coleman

Woodside Petroleum has laid out plans to triple its gas and oil reserve base which will come from more than $US36 billion worth of projects over the next seven years.

Key to that growth will be decisions to go ahead with the Sangomar oil project off Senegal by the end of this year, Scarborough gas project off Western Australia in early 2020 and the massive Browse gas project in the first half of 2021.

Those projects all together will help Woodside expand its production by six per cent a year over the next decade, chief executive Peter Coleman said.

"We believe we now have a compelling growth story," Mr Coleman told analysts at a briefing in Sydney.

The Scarborough project took a big step forward this week, with Woodside and its partner BHP Group agreeing on a tolling price for processing gas from the Scarborough field through Woodside's Pluto LNG plant.

To help fund the huge spending plans, Woodside said on Tuesday it would look to sell a 50 per cent stake in the new five million tonnes a year processing unit it will be adding at the Pluto plant.

At the same time Woodside plans to sell down its 75 per cent stake in Scarborough, but chief financial officer Sherry Duhe said the company would not rush into a sale, looking to make sure it gets the best value.

BHP plans to maintain its stake at 25 per cent, having given up an option to increase its stake to 35 per cent, the company said in emailed comments.

Woodside said it remains on track to produce 100 million barrels of oil equivalent in 2020.

Shares in the company were down 0.07 per cent at $34.225 by 1505 AEDT.