Sydney, Jan 13, 2026, 17:31 AEDT — Trading after hours.
- Woodside dropped 1.7% following a warning on a crucial Scarborough offshore milestone
- Scarborough’s floating production unit has arrived on site; the first LNG cargo remains scheduled for the second half of 2026
- Traders are eyeing oil prices and Woodside’s Jan. 28 quarterly update to gauge the next move
Woodside Energy Group Ltd shares slipped 1.7% to close at A$23.31 on Tuesday, following news that the floating production unit for its Scarborough gas project reached the offshore field near Western Australia. The stock fluctuated between A$23.96 and A$23.28, with roughly 4.67 million shares trading hands. (Investing)
This update is crucial since Scarborough lies at the heart of Woodside’s upcoming LNG expansion. The market treats each milestone as a gauge of potential schedule delays. LNG projects run on tight delivery schedules; even a minor slip can trigger prolonged disputes over cash flow, dividends, and debt.
The timing coincides with oil prices shifting on geopolitical developments and Woodside running with an acting CEO, leaving investors wary about execution and communication. Tuesday’s close felt more like a “prove it” moment than a celebration.
Woodside announced the roughly 70,000-tonne floating production unit (FPU) has arrived at the Scarborough field, about 375 km (233 miles) off Karratha, after a tow exceeding 4,000 nautical miles from China. The project is now over 91% complete. Acting CEO Liz Westcott said the team’s focus has shifted to hook-up and commissioning, keeping the “first LNG cargo” on track for the second half of 2026. Woodside operates the Scarborough joint venture with a 74.9% stake, alongside JERA at 15.1% and LNG Japan holding 10%.
The FPU handles offshore gas treatment and compression before sending it ashore. Woodside plans for Scarborough gas to flow through a roughly 433-km pipeline to the Pluto LNG plant, currently expanding with a new Train 2. The company forecasts about 5 million tonnes per annum (mtpa) of LNG from Train 2, plus up to 3 mtpa from the existing Train 1 after upgrades. (Woodside)
Oil prices held steady Tuesday, with Brent crude hovering close to a two-month peak. Traders juggled concerns over possible supply disruptions linked to unrest in Iran against expectations of increased output from Venezuela. ING’s commodities strategists flagged risks tied to Iran, while Barclays estimated the geopolitical premium from the unrest added roughly $3-$4 a barrel. (Reuters)
That environment gives Australian energy stocks a slight boost, but Woodside’s action reflects project execution more than daily oil price swings. Traders see Scarborough as a “big unlock” moment: it either hits the mark smoothly or drags on, draining resources.
Woodside is in the midst of a leadership shuffle. BP named Woodside CEO Meg O’Neill as its new head starting April, pushing Westcott into the interim CEO spot at Woodside as the company hunts for a permanent replacement. (Reuters)
The downside scenario is straightforward. Hook-up and commissioning are tricky stages where complex projects often falter. Plus, the LNG market might turn less favorable if Scarborough’s new output depresses prices. “The new CEO will need to manage construction risk,” Joshua Runciman, analyst at the Institute for Energy Economics and Financial Analysis, said in a December note on Woodside’s project lineup. (Reuters)
Woodside’s Fourth Quarter 2025 Report drops on Jan. 28, with the 2025 Annual Report due Feb. 24. Investors will zero in on updates to Scarborough’s timeline, commissioning progress, and hints at capital expenditure and shareholder returns. (Woodside)
Traders in the next session will be tracking if oil’s Iran premium continues to climb — and whether Woodside’s Scarborough milestone sparks actual buying or fades as just another headline until Jan. 28.
