Woodside reports increased revenue

In its first quarter (Q1) results for the period ended 31 March 2014, Woodside has announced that its sales revenue is up 15.9% to US$ 1.675 million.

Production and sales

Woodside’s production volumes were down 0.9% on the previous quarter due to lower LNG volumes produced at Pluto LNG, although sales volumes were up 0.9% as a result of a draw-down of inventory volumes on hand at the end of the previous quarter.

Australian activity

Browse Basin

Woodside continued basis of design (BOD) activities for the floating LNG (FLNG) development concept during Q1. The BOD phase involves studies and work required by the Browse Joint Venture participants to be in a position to consider entering front-end engineering and design (FEED) in 2H 2014.

In January 2014, Woodside was advised by the Commonwealth Department of Environment that the proposed Browse FLNG development will be assessed by an Environmental Impact Statement (EIS).

In March 2014, Woodside issued a notice of withdrawal from the Browse LNG Precinct Regional Benefits Agreement (RBA).

North West Shelf

The Persephone development continued FEED activities with a Final Investment Decision planned for 2H 2014.

Persephone is the next major gas development for the North West Shelf Project and involves a subsea tieback to the North Rankin Complex (North Rankin A and North Rankin B).

The AU$ 2.5 billion Greater Western Flank Phase 1 project continued fabrication, subsea and pipeline installation activities. The project remains on budget and on schedule for start-up in early 2016.

International activity (highlights)

Sunrise LNG

During Q1 the Timor-Leste and Australian Governments remained engaged in a dispute relating to the Treaty on Certain Maritime Arrangements in the Timor Sea in accordance with the dispute resolution procedure in the Timor Sea Treaty. Woodside remains committed to developing Greater Sunrise once government alignment is achieved.

Canada

Woodside also signed a Sole Proponent Agreement with the Government of British Columbia during Q1 to access land at Grassy Point to undertake feasibility studies for a potential LNG development.

The agreement is for three years and is subject to Woodside meeting milestones, including making annual payments, obtaining an export license and commencing environmental approvals processes.

Corporate activities

During the quarter, Woodside signed two sale and purchase agreements (SPA) with Korea Gas and Chubu Electric.

An SPA for three years and up to six cargoes was also executed with Kansai Electric in March 2014.

These deals are illustrative of strong market conditions and allow for LNG to be supplied from Pluto LNG and other sources, providing commercial flexibilities to Woodside.

Other notable achievements during the quarter included the award of four new exploration blocks in Myanmar and Pluto LNG loading its 100^th LNG cargo since the start of LNG production in April 2012.

Adapted from press release by Callum O'Reilly

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