Woodside Energy has indicated a non-cash post-tax asset impairment of around $1.2bn (A$1.84bn) from its Shenzi oil and gas field in its 2023 fiscal earnings.  

The Shenzi field, located in the Gulf of Mexico off the coast of Louisiana, was acquired through a deal for BHP’s petroleum assets in 2021. 

In a statement, Woodside said: “The 2023 full-year financial statements are expected to recognise non-cash post-tax asset impairments amounting to approximately $1.5bn, including approximately $1.2bn impairment for the Shenzi asset.  

“This is primarily related to goodwill and a portion of the purchase price assigned to Shenzi on completion of the merger with BHP Petroleum.” 

Shenzi represented around 5% of Woodside’s 2023 production and roughly 2% of year-end proved plus probable reserves.  

Additionally, Woodside disclosed an expected non-cash post-tax impairment of approximately $300m for the Wheatstone project.  

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This Chevron-operated project processes gas from the Wheatstone, Iago, Julimar and Brunello gas fields offshore Australia. 

It includes an offshore platform and an onshore plant with two liquified natural gas trains and a domestic gas plant. 

In its reserves, and financial update, Woodside reported that as of 31 December 2023, its remaining proved (1P) reserves were 2,450.1 million barrels of oil equivalent (mboe), proved plus probable (2P) reserves were 3757.1mboe, and the best estimate (2C) contingent resources were 5,902mboe. 

In 2023, Woodside produced 201mboe in total. 

Woodside CEO Meg O’Neill said: “Woodside has delivered strong operational performance over the past 12 months. We achieved record production in 2023, while progressing a world-class funnel of development opportunities, which have us well positioned for growth and returns.” 

The news follows the recent termination of the company’s $52bn merger discussions with Santos, which reportedly fell through due to valuation disagreements.