Woodside releases 1Q20 report

Performance highlights

• Delivered production of 24.2 million boe, up 12% from 1Q19.
• Successfully mitigated impacts of Tropical Cyclone Damien.
• Realised pricing down 20% from 1Q19.
• Implemented appropriate responses to combined impact of COVID-19 and lower commodity prices.

Executing a clear plan

• Reduced targeted 2020 total expenditure by approximately 50%.
• Hedged 13.35 million barrels of oil in the period April to December 2020.
• Achieved FID on Sangomar Field Development Phase 1.
• Achieved FID on Greater Western Flank Phase 3.
• Subsequent to the period, received Commonwealth regulator approval for the Scarborough Offshore Project Proposal.

CEO comments

Woodside CEO Peter Coleman said production for the first quarter was 12% higher than the corresponding three months of last year at 24.2 million boe, although both periods were impacted by cyclone activity.

“Tropical Cyclone Damien, which crossed the Western Australian coast in February, was the most significant weather event ever to pass over Woodside’s production facilities on the Burrup Peninsula. Despite the severity of the storm, the team put in an outstanding effort to ensure the safety of our people and our assets and restore normal operations in a matter of days.

“Nevertheless, revenue for the quarter was impacted by reduced trading activity and lower realised prices due to COVID-19 and an unprecedented combination of oversupply and short-term demand destruction.

“Of course, most of the quarter was overshadowed by the growing threat of the COVID-19 pandemic, which has required us to take swift and decisive action to protect our workforce, communities and operations. I’m proud of how Woodside’s people have responded to these uniquely challenging circumstances and remained focused on maintaining the safe and reliable operations which have ensured gas supplies to Western Australia and our overseas customers have not been impacted.

“We’ve also had to make tough but prudent decisions to ensure the financial integrity of our business, and these mean our spending in 2020 will be reduced by 50% and a targeted final investment decision (FID) on our Scarborough and Pluto Train 2 developments has been deferred from this year to next. Still, we are progressing with commercial agreements and regulatory approvals for these world-class developments to ensure they are ready for FID when investment conditions improve.

“We made solid progress on our near-term growth projects during the quarter, taking FID on Sangomar Field Development Phase 1 in Senegal and the North West Shelf’s Greater Western Flank Phase 3, as well as making significant execution progress on Pyxis Hub and Julimar-Brunello Phase 2,” he said.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17042020/woodside-releases-1q20-report/