Oil and Gas News

Woodside productions drops 4%

Woodside acting chief executive officer (CEO) Meg O’Neill said higher realised prices in the second quarter of 2021 has helped underpin a 15 per cent rise is sales revenue compared with the first three months of the year.

However, the company recorded lower oil production during the quarter due to scheduled maintenance activities and adverse weather impacts, dropping production to 22.7 MMboe.

Woodside’s drop in production is a 4 per cent decrease from the first quarter of 2021, where production total was 23.7 MMboe.

“Revenue from oil sales during the period was higher than the first quarter supported by an above-market average realised price of $75/barrel, while revenue from LNG sales climbed 14 per cent,” O’Neill said.

“However, lower oil production was partly offset by a strong quarterly performance at Pluto, which achieved 97 per cent reliability.”

O’Neill further highlighted that during the second quarter solid progress was made towards its targeted final investment decision on Scarborough and Pluto Train 2 for the second half of the year.

“We have launched the formal sell-down process for up to 49 per cent of our equity in Pluto Train 2. In parallel we have commenced a process to test the market for value-accretive opportunities to reduce our equity in the Scarborough resource,” she said.

“We are reviewing project cost estimates following extensive engagement with our contractors over recent months in the lead up to the investment decision.”

Woodside reported that the trunkline bends and deepwater buckle arrestors were delivered and five subsea trees are due for delivery to Australia in the third quarter.

Long lead items have been awarded for the floating production unit, with tenders being evaluated for the supply of linepipe for the Scarborough export trunkline.

In addition, the company has also completed the acquisition of FAR’s interest in the RSSD joint venture.

“Work on our Sangomar Field Development Phase 1 offshore Senegal continued on schedule during the quarter and the project is now nearly one-third complete. In July, the first of two drilling vessels arrived in Senegal and the drilling campaign commenced for the project’s 23 wells,” O’Neill said.

“We have commenced a formal process to sell down our equity in the project.”

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