Record 3Q Production for Woodside (Australia)

Woodside, an Australian oil and gas company, announced that record production and sales revenue were achieved in the third quarter, with production volumes of 26.5 million barrels of oil equivalent (MMboe) and sales revenue of US$1,828 million.

Woodside recorded a 32% increase in production compared to the prior quarter, largely due to the continued high reliability of Pluto LNG since its start up in March, coupled with the ongoing strong performance of the foundation business.

The higher production numbers have resulted in a further increase in Woodside’s 2012 production target, which has been amended to a range between 83 and 86 MMboe.

“The record quarter production and sales revenue were underpinned by our operations team continuing to deliver in a safe and reliable manner,”  Peter Coleman, Woodside CEO said.

“With strong cash flows and the completion of the US$2 billion sale of a minority portion of Woodside’s interest in the proposed Browse LNG Development, Woodside’s balance sheet continues to strengthen.”

Production for 2013

Woodside’s production target range for 2013 is 88 to 94 MMboe, comprising 47% from NWS gas facility, 41% from Pluto LNG and 12% from other assets. Oil production in 2013 will be impacted by the Ngujima-Yin FPSO five month shutdown (2 to 3 MMboe) and field decline of between 3 and 4 MMboe. It is expected that the decline will be mitigated in 2014 through infill drilling.

2013 capital and exploration expenditure

Woodside’s total estimated investment expenditure (exploration and capital) for 2013 is expected to be approximately $1.4 billion. This is 27% lower than the current 2012 estimate of $1.9 billion. Eight exploration wells are currently planned for 2013 to support Woodside’s future growth options.

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Source: Woodside, October 18, 2012