Woodside’s revenue bumped by higher prices

Australia’s Woodside Petroleum on Thursday reported a 4 percent jump in revenue in the first quarter of the year on the back of higher realized oil and gas prices.

Sales revenue reached $1.22 billion for the quarter which compares to $1.17 billion in the corresponding quarter in 2018. The average realized price reached $56/boe in the quarter under review, compared to $51/boe in the corresponding quarter.

Woodside’s production, impacted by cyclone activity, reached 21.7 million boe, 9.9 percent down from the previous quarter and 2 percent when compared to the corresponding quarter of 2018.

Woodside CEO Peter Coleman said the cyclone activity had minimal impact on production.

He pointed out that the company has made progress on its “plans to develop the Burrup Hub, including a heads of agreement (HOA) with ENN Group that further demonstrated market support for the development of the Scarborough gas resource through an expansion of Pluto LNG.”

The company said that the development of the Pyxis and Pluto North infill wells has commenced front-end engineering design (FEED). A final investment decision (FID) is targeted for late 2019.

Construction of the Pluto LNG truck loading facility was completed in March 2019 and commissioning activities commenced subsequent to the quarter. The facility is a component of Woodside’s strategy to develop domestic LNG use in remote power generation and road and marine transport in the Pilbara region.

Negotiations are proceeding over tolling deals that are targeted for completion in the second half of the year.