A decline in production numbers has led Woodside Energy (ASX: WDS) to report a 29% drop in revenue to $3,084 million for the June 2023 quarter.
Two significant planned turnaround and maintenance activities at its Western Australian gas operations were the main culprits, leading to the company registering a 5% decline in production to 44.5 million barrels of oil equivalent (MMboe) at an average of 489,000 Mboe per day.
The production fall was primarily linked to work undertaken on Pluto LNG and the Ngujima-Yin FPSO.
This was partly offset by strong seasonal demand from Bass Strait and higher production from the Mad Dog project in the Gulf of Mexico after commencement of production at the Argos facility in April 2023.
Sales volumes impacted by production decline
Thanks to the lower production performance, sales volumes for the quarter of 48.4 MMboe were down four per cent from the previous reporting period.
However, chief executive officer, Meg O’Neill, said the company remains on target to achieve its forecast full-year production guidance of 180 to 190 million barrels of oil equivalent (MMboe).
Ms O’Neill said it was noticeable that the June quarter results were impacted by the activities related to the onshore Pluto LNG facility and associated offshore facilities.
Successful turnaround activities
“The team delivered a successful turnaround, completing the planned activities at Pluto on schedule,” she said.
“Whilst production and sales were lower compared with the first quarter of 2023, they were higher than the corresponding period last year, reflecting Woodside’s expanded operations portfolio.”
Ms O’Neill said the commencement of production from the Argos offshore facility, offshore USA, was a highlight of the quarter.
“This was a significant milestone for the Mad Dog Phase 2 project and production is expected to ramp up through the year.
“The Scarborough and Pluto Train 2 project continued to make good progress and is now 38% complete. Fabrication of both the topsides and hull of the floating production unit has ramped up. The accommodation village in Karratha, which will service the Pluto Train 2 construction workforce, is now complete. Pluto Train 2 module fabrication and foundation site works is progressing well.”
Trion development FID
The Woodside CEO said the company achieved an important step towards value-accretive investment in future growth, taking a final investment decision (FID) to develop the Trion oil field offshore Mexico.
“Trion is expected to deliver shareholder returns which exceed Woodside’s capital allocation framework targets following its forecast start up in 2028.
“A final investment decision was also taken for the Julimar-Brunello Phase 3 project, which will provide a new supply of gas to the non-operated Wheatstone LNG facility in Western Australia.”
“We are progressing contracting activities for the plant construction scope and other schedule-critical packages for H2OK and aiming to be ready for a final investment decision in 2023.”
North Rankin tragedy
Ms O’Neill also confirmed that investigations by the company, Western Australian Police and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) are ongoing into the tragic death in early June of a contractor employee at the North Rankin Complex off the WA coast.
