...November 23, 2021 MELBOURNE (S&P Global Ratings) Nov. 23, 2021--The capital commitment for Woodside Petroleum Ltd.'s (###+/Negative/--) latest combined projects means rating headroom remains tight despite the oil price recovery in 2021, S&P Global Ratings today said. The Australia-based oil and gas operator has announced it will proceed with its US$12.0 billion Pluto Train 2 and Scarborough expansion projects--the first gas production is targeted for 2026. For Woodside, on a stand-alone basis or as a merged entity with BHP Petroleum, we view the expansion projects as critical to sustaining their production profiles and cash flow generation over the next decade. Accordingly, we believe management will need to continue balancing its capital allocation to these projects, its decarbonization strategies and shareholder returns as the energy transition continues. We note final investment decision on these projects has added about 1.3 billion barrels of oil equivalent (on 100% basis of Scarborough)...
