...August 24, 2020 SYDNEY (S&P Global Ratings) Aug. 24, 2020--S&P Global Ratings today said that Australia-based integrated oil and gas company Woodside Petroleum Ltd.'s (###+/Negative/--) decision to increase its stake in the Sangomar field, Senegal, raises its financial risk amid cyclically depressed earnings. Woodside has exercised its pre-emptive rights to acquire an additional 36.4% stake in Sangomar for a total of 68.3%. Consequently, we see very limited buffer at the '###+' rating level for Woodside to pursue its future growth strategies. In order to maintain the '###+' rating, Woodside would need to demonstrate a credible capital management plan to preserve and strengthen its financial profile amid the weak market environment. This would include a sustainable funding strategy for Sangomar and any other growth projects sanctioned over the next 12 months. We believe the exercise of pre-emptive rights protects Woodside's economic interests in the project. In addition, Woodside has indicated...
