Woodside Energy Group Ltd Announces Second Quarter 2023 Report
- Woodside Energy Group delivered quarterly production of 44.5 MMboe, with full-year production guidance remaining unchanged at 180-190 MMboe. They achieved a portfolio average realized price of $63/boe. The Scarborough development is 38% complete, with the Sangomar project 88% complete. Woodside also made final investment decisions on the Trion resource in Mexico and the Julimar-Brunello Phase 3 project. They are aiming for a final investment decision on H2OK in 2023.
- Woodside Energy Group reported a 5% decrease in quarterly production compared to Q1 2023, resulting in a 4% decrease in sales volume. They also experienced a 29% decrease in revenue from Q1 2023 due to lower realized prices and production. The Sangomar project's total cost is expected to increase by 7-13% from the previous estimate.
PERTH, AUSTRALIA / ACCESSWIRE / July 18, 2023 /
Delivering reliable production
· Delivered quarterly production of 44.5 MMboe (489 Mboe/day), down
· Delivered sales volume of 48.4 MMboe, down
· Delivered revenue of
· Achieved a portfolio average realised price of
· Sold
Executing major projects
· Mad Dog Phase 2 successfully achieved first production at the Argos platform in April 2023, increasing production in the US Gulf of Mexico.
· The Scarborough development was
· The Sangomar project was
· The Sangomar project is now targeting first oil in mid-2024 and the total cost of the project is expected to be US
Investing in growth
· Approved a final investment decision to develop the Trion resource in Mexico, with the development remaining subject to regulatory approval of the field development plan (FDP).
· Made a final investment decision on the Julimar-Brunello Phase 3 project.
· Progressed contracting activities for the plant construction scope and schedule-critical packages for H2OK.
Woodside CEO Meg O'Neill said:
"It was an extremely difficult period for everyone at Woodside, given the tragic death in early June of a contractor employee at the North Rankin Complex.
"Western Australian Police and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) are investigating the incident and Woodside is conducting an internal investigation.
"Strong underlying operational performance in the second quarter was impacted by planned turnaround and maintenance activities particularly at the onshore Pluto LNG facility and associated offshore facilities in Western Australia.
"The team delivered a successful turnaround, completing the planned activities at Pluto on schedule.
"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.
"In the US Gulf of Mexico, we commenced production from the Argos offshore facility. 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
"We conducted a cost and schedule review at Sangomar following the identification of remedial work required on the FPSO. We have taken the prudent decision to conduct the remedial work while the FPSO remains at the shipyard in Singapore.
"This minimises the impact to the project schedule as it is safer, more efficient and more cost effective than undertaking the work offshore Senegal. First oil is now targeted for mid-2024.
"We also achieved an important step towards value-accretive investment in future growth, taking a final investment decision to develop the Trion oil field offshore Mexico, subject to the regulator's approval of the field development plan which is expected in the fourth quarter of this year. 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."
Comparative performance at a glance
| Q2 2023 | Q1 2023 | Change % | Q2 2022[1] | Change % | |
Production[2] | MMboe Mboe/day | 44.5 | 46.8 520 | ( | 33.8 | |
Sales | MMboe | 48.4 | 50.4 | ( | 35.8 | |
Revenue | $ million | 3,084 | 4,330 | ( | 3,438 | ( |
[1] Q2 2022 reflects the performance of the interests acquired as part of the merger with BHP's Petroleum business from 1 June 2022.
[2] Q2 2023 includes 0.23 MMboe, Q1 2023 includes 0.31 MMboe and Q2 2022 includes 0.30 MMboe primarily from feed gas purchased from Pluto non-operating participants processed through the Pluto-KGP Interconnector.
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SOURCE: Woodside Energy Group Ltd
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