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Woodside Petroleum share price lower despite Sangomar update

James Mickleboro
Oil & Gas stocks

The Woodside Petroleum Limited (ASX: WPL) share price is tumbling lower on Thursday.

In morning trade the energy producer’s shares are down over 1% to $35.73.

Woodside’s shares are being dragged lower by a decline in oil prices after the easing of tensions in the Middle East sent prices crashing lower overnight.

Not even the release of a positive announcement has been able to offset this decline.

What did Woodside announce?

This morning Woodside announced that the Government of Senegal has approved the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture Exploitation Plan.

It has also granted the Exploitation Authorisation for the Sangomar Field Development, bringing it a step closer to reality.

The commencement of the execute phase of the Sangomar Field Development Phase 1 remains subject to the final execution of the host government agreement with the Government of Senegal and the approval and award of key contracts.

What is the Sangomar Field Development?

The Sangomar Development concept is a stand-alone floating production storage and offloading facility with 23 subsea wells and supporting subsea infrastructure.

The floating production storage and offloading facility is expected to have a production capacity of 100,000 bbl/day. It will process the oil before it is exported to market via tankers.

The floating production storage and offloading facility will also allow for the integration of potential future development phases. This includes gas export to shore and future subsea tie-backs.

Woodside is targeting first oil by early in 2023.

Elsewhere in the industry on Thursday the decline in oil prices is weighing on the shares of both Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH). Both energy producers are down by around 1.5% at the time of writing.

The post Woodside Petroleum share price lower despite Sangomar update appeared first on Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020