The Woodside Petroleum Limited (ASX: WPL) share price is tumbling lower on Thursday.
In morning trade the energy producer's shares are down over 1% to $35.73.
Woodside's shares are being dragged lower by a decline in oil prices after the easing of tensions in the Middle East sent prices crashing lower overnight.
Not even the release of a positive announcement has been able to offset this decline.
What did Woodside announce?
This morning Woodside announced that the Government of Senegal has approved the Rufisque Offshore, Sangomar Offshore, and Sangomar Deep Offshore (RSSD) joint venture Exploitation Plan.
It has also granted the Exploitation Authorisation for the Sangomar Field Development, bringing it a step closer to reality.
The commencement of the execute phase of the Sangomar Field Development Phase 1 remains subject to the final execution of the host government agreement with the Government of Senegal and the approval and award of key contracts.
What is the Sangomar Field Development?
The Sangomar Development concept is a stand-alone floating production storage and offloading facility with 23 subsea wells and supporting subsea infrastructure.
The floating production storage and offloading facility is expected to have a production capacity of 100,000 bbl/day. It will process the oil before it is exported to market via tankers.
The floating production storage and offloading facility will also allow for the integration of potential future development phases. This includes gas export to shore and future subsea tie-backs.
Woodside is targeting first oil by early in 2023.
Elsewhere in the industry on Thursday the decline in oil prices is weighing on the shares of both Santos Ltd (ASX: STO) and Oil Search Limited (ASX: OSH). Both energy producers are down by around 1.5% at the time of writing.
