Woodside Output Climbs 31 Percent (Australia)

Woodside achieved significant uplift in its full-year 2012 production to a record 84.9 million barrels of oil equivalent (MMboe), an increase of more than 30% compared to 2011.

Woodside CEO Peter Coleman said the record production was a result of outstanding performance of the Pluto LNG Plant since start up in April 2012, together with ongoing reliability of the foundation business.

“Our full-year production levels clearly demonstrate what a game-changer Pluto is for Woodside, with production levels consistently above our expectations,” Mr Coleman said. “It has resulted in a step-change in our annual sales revenues, positioning us to pursue value-adding growth opportunities such as potential LNG developments in Israel and exploration activities in Myanmar.”

Key Points:

• Record annual production of 84.9 MMboe was up 31% compared to 2011.
• Record annual sales revenue of $6.2 billion was up 30% compared to 2011.
• Q4 2012 production volumes were 46% higher compared to the prior corresponding period, largely due to the start up of Pluto LNG in 2012 supported by production increases for North West Shelf LNG and oil. Sales revenue increased by 43%. The average Brent price for the quarter was $110.13/bbl, up from $109.02/bbl in the prior corresponding period.

Production was 8% lower than the previous quarter, predominantly due to scheduled maintenance activities and seasonal factors.

Highlights:

• Pluto LNG: Continued strong production of 1,038,966 tonnes of LNG and 777,703 barrels of condensate (100% project) was achieved during the quarter. Utilisation for the quarter was 90.4%, exceeding the quarterly figure of 83.3% as per the 2012 annual plan. During the quarter Pluto LNG received Australia’s highest honour in engineering, the Sir William Hudson Award. The award was conferred at the 2012 Australian Engineering Excellence Awards. The award acknowledges the project’s integration of engineering with community consultation and consideration for the environment throughout project delivery.
• NWS Project: A major milestone was achieved in October with the loading of the 3,000th LNG cargo from the Karratha Gas Plant for the Japanese market.
• North Rankin Redevelopment Project: Hook-up activities on the North Rankin B Platform are nearing completion and commission activities are progressing. The project remains on budget and on schedule for completion in 2013.
• Greater Western Flank Phase 1 Project: Engineering, procurement and fabrication activities are progressing to plan. Phase 1 drilling activities were completed in Q4 2012. The project remains on budget and on schedule for completion in early 2016.
• Browse LNG: The commercial evaluation of tender bids for offshore and onshore infrastructure continued in Q4 in preparation for the consideration of a final investment decision in the first half of 2013.
• Mutineer Exeter: Woodside signed a sale and purchase agreement with Santos on 21 December 2012 to sell its 8.2% interest in the Santos-operated Mutineer Exeter oil project with effect from 1 July 2012. The agreement is expected to complete in Q1 2013.
• Israel: Woodside reached in-principle agreement to acquire a 30% participating interest in each of the 349/Rachel and 350/Amit petroleum licences which contain the world-class Leviathan gas field in offshore Israel. The acquisition is subject to conditions including execution of fully-termed agreements, completion of due diligence, and necessary government and other approvals.
• Myanmar: During the quarter Woodside’s offers to acquire an interest in Blocks AD-7 (Operator: Daewoo International Corporation) and A-6 (Operator: MPRL E&P Pte Ltd) in Myanmar were accepted. Entry into these Blocks gives Woodside the opportunity to acquire 3D seismic in 2013 and 2014, with options to drill exploration wells in subsequent exploration periods. These acquisitions are subject to conditions including execution of fully-termed agreements, completion of due diligence, and necessary government and other approvals.

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LNG World News Staff, January 17, 2013; Image: Woodside