Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Monday, 30 September 2024
WOODSIDE COMPLETES OCI CLEAN AMMONIA
ACQUISITION
Woodside has completed the acquisition of 100%
of OCI Clean Ammonia Holding B.V., which holds its lower carbon
ammonia project in Texas (Project), from OCI N.V. (together with
its affiliates, OCI).[1]
The completion follows Woodside's announcement
on 5 August 2024 that it had entered into an agreement to acquire
OCI's 1.1 Mtpa Clean Ammonia Project. Following start up of carbon
capture and sequestration, the Project will generate ammonia with
less than 35% the lifecycle emissions intensity of unabated
ammonia.[2]
Woodside CEO Meg O'Neill said the transaction
positioned Woodside as an early mover in the growing lower carbon
ammonia market.
"As a global energy provider, Woodside is
focused on lower carbon ammonia and its increasingly important role
in the world's energy mix. The potential applications
are in power generation, marine fuels and as an industrial
feedstock, as it displaces higher-emitting fuels.
"Global ammonia demand is forecast to double by
2050 with lower carbon ammonia making up nearly two-thirds of total
demand. Evolving decarbonisation policies have potential to attract
a premium price for lower carbon ammonia.[3]
"The transaction will generate returns
exceeding our capital allocation framework targets, with
phase 1 of the Project expected to be free cash flow accretive from
2026. It also represents a material step towards
delivering our Scope 3 investment and abatement
targets."[4]
The Project remains under construction and is
targeting production of first ammonia from 2025 and lower carbon
ammonia from 2026.[5] OCI will manage the
construction of the Project through provisional acceptance.
The all-cash consideration of approximately
$2,350 million is inclusive of capital expenditure through
completion of the first phase, with 80% paid and the remaining 20%
to be paid at Project completion.
This announcement was approved and authorised for release by
Woodside's Disclosure Committee.
Definitions
Woodside uses "lower carbon" to
describe the characteristic of having lower levels of associated
potential greenhouse gas (GHG) emissions when compared to
historical and/or current conventions or analogues, for example
relating to an otherwise similar resource, process, production
facility, product or service, or activity.
Forward-looking statements
This announcement contains
forward-looking statements with respect to Woodside's business and
operations, market conditions, results of operations and financial
condition, including, for example, but not limited to, statements
regarding the transaction, the timing of completion of other
transactions, the timing of completion of Woodside's projects and
expectations regarding future expenditures and future results of
projects. All statements, other than statements of historical or
present facts, are forward-looking statements and generally may be
identified by the use of forward-looking words such as 'guidance',
'foresee', 'likely', 'potential', 'anticipate', 'believe', 'aim',
'aspire', 'estimate', 'expect', 'intend', 'may', 'target', 'plan',
'forecast', 'outlook', 'project', 'schedule', 'will', 'should',
'seek' and other similar words or expressions. Similarly,
statements that describe the objectives, plans, goals or
expectations of Woodside are forward-looking statements.
Forward-looking statements in this
announcement are not guidance, forecasts, guarantees or predictions
of future events or performance, but are in
the nature of future expectations that are based on management's
current expectations and assumptions. Those
statements and any assumptions on which they are based are subject
to change without notice and are subject to inherent known and
unknown risks, uncertainties, assumptions and other factors, many
of which are beyond the control of Woodside, its related bodies
corporate and their respective officers, directors, employees,
advisers or representatives. If any of the assumptions on which a
forward-looking statement is based were to change or be found to be
incorrect, this would likely cause outcomes to differ from the
statements made in this announcement.
A detailed summary of the key risks
relating to Woodside and its business can be found in the "Risk"
section of Woodside's most recent Annual Report released to the
Australian Securities Exchange and the London Stock Exchange and in
Woodside's most recent Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission and available on
the Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the
information contained in this announcement.
All information included in this
announcement, including any forward-looking statements,
reflects Woodside's views held as at the
date of this announcement and, except as required by law or
regulation, neither Woodside, its related bodies
corporate, nor any of their respective officers, directors,
employees, advisers or representatives intends to,
undertakes to, or assumes any obligation to, provide any additional
information or update or revise any information or forward-looking
statements in this announcement after the date of this
announcement, either to make them conform to actual results or as a
result of new information, future events, changes in Woodside's
expectations or otherwise.
Investors are strongly cautioned not
to place undue reliance on any forward-looking statements. Actual
results or performance may vary materially from those expressed in,
or implied by, any forward-looking statements.
