Woodside Energy’s exit from N.L. offshore sector ‘sends chills throughout the oil and gas industry’: Brazil
ST. JOHN’S, N.L. — Progressive Conservative chief David Brazil known as a last-minute information convention Wednesday afternoon responding to information that Woodside Energy is closing its workplaces and exiting the offshore within the province.
Brazil stated the information that the corporate is abandoning its large exploration bid raises critical considerations about the way forward for the trade.
allNewfoundlandLabrador reported Tuesday night that Woodside Power is anticipated to desert two exploration licences within the province’s offshore, valued at $822 million.
The media outlet reported that Woodside stated its Orphan Basin licences have been “not a strategic match” and that the agency determined to not pursue exploration drilling within the area.
“Woodside continues to search for aggressive investments that may be developed at tempo to maximise worth for communities, governments and shareholders,” Woodside instructed allNewfoundlandLabrador in a press release.
“This information sends chills all through the oil and fuel trade, which is regarding for future and present initiatives,” Brazil instructed reporters on Wednesday.
“Regardless of seeing the potential when the exploration bids have been made in 2018, now firms are taking main monetary hits to exit the trade. The oil and fuel trade will stay an financial driver for our province within the many years forward. At present’s information casts doubt on the way forward for our trade.”
Brazil stated it’s an indication the trade is just not supported by the federal government. He known as on Premier Andrew Furey to clarify his imaginative and prescient for the offshore oil and fuel trade.
Furey’s communications director stated the premier wouldn’t be commenting on Wednesday.
Trade, Power and Know-how Minister Andrew Parsons issued an emailed assertion to reporters shortly after Brazil spoke with reporters at Confederation Constructing.
“It’s disappointing to listen to Woodside’s resolution to shut their workplaces and exit the offshore,” Parsons stated within the assertion.
“We perceive it is a enterprise resolution of the newly amalgamated BHP/Woodside entity. We stay optimistic in regards to the oil and fuel trade within the province. There stays important curiosity in our offshore and we sit up for the outcomes of this 12 months’s name for bids.
“ExxonMobil and Equinor have carried out drilling exploration applications this season, and we perceive that ExxonMobil and BP are planning drilling exploration applications for the 2023 season.”
Woodside acquired BHP Billiton’s oil and fuel belongings in June.
