BAKU, Azerbaijan, November 5. Woodside Energy has raised its target for structural cost reductions to $400 million per year from 2028, compared with a 2025 baseline, according to the company's Capital Markets Day 2026 presentation.
According to the presentation, $100 million of the savings will come from portfolio optimization, including exits from Calypso and Sunrise and from Bonaparte CCS. Another $130 million will come from streamlined processes and $170 million from external spending. The original target was based on $50 million in portfolio savings.
About 65 percent of the recurring savings will come from operating expenditure, about 30 percent from capital (including sustaining capital) and about 5 percent from general and administrative costs. The cost base excludes contractor spending on major capital projects.
"Our priority now is to extract more value from our portfolio. We are targeting $400 million of annual structural cost reductions from 2028, improving operational efficiency and productivity," CEO Liz Westcott said.
Woodside Energy, headquartered in Perth, is Australia's largest independent oil and gas company and is listed on the Australian Securities Exchange and the New York Stock Exchange. Calypso is a deep-water gas project offshore Trinidad and Tobago, Sunrise is a gas field in the Timor Sea, and Bonaparte CCS is a carbon capture and storage project offshore northern Australia. Woodside also divested its Greater Angostura assets in Trinidad and Tobago in July 2025. Woodside held its Capital Markets Day 2026 in Sydney on November 5 and will hold a second event in New York on November 12. At last year's Capital Markets Day, in November 2025, the company set out its growth plans to 2032.
