Woodside releases 3Q19 report

Performance highlights

• Delivered production of 24.9 million boe, up 44% from the previous quarter.
• Delivered sales revenue of $1,164 million, up 58% from the previous quarter.
• Achieved 99.7% reliability at Pluto LNG with record quarterly production and daily production rates.
• First oil produced from the Greater Enfield Project.
• Executed major integrated turnarounds at the North West Shelf Project.
• Signed mid-term agreements for the supply of approximately 3.5 million tonnes of LNG in the period 2020 to 2026.

Delivering a clear plan across three horizons

• Achieved a positive final investment decision for the Pyxis Hub project.
• Signed a heads of agreement (HOA) with Uniper Global Commodities SE (Uniper) for the sale of LNG for a period of 13 years, commencing in 2021.
• Signed a non-binding letter of agreement with Korea Gas Corporation to determine the feasibility of a green hydrogen pilot project across the value chain.
• Subsequent to the period, signed a HOA with Greening Australia to undertake large-scale, native tree planting projects for carbon offset generation.

Woodside CEO Peter Coleman comments:

“Sales revenue was up 58% to $1.16 billion due to a 44% increase in production from the previous quarter and stronger realised LNG pricing.

“Pluto LNG is performing strongly and demonstrating outstanding reliability following the turnaround. We are also achieving pleasing performance from the Ngujima-Yin FPSO following completion of the Greater Enfield Project, with over 2.5 million barrels of oil (100%) produced from the facility since restart. Pluto LNG and the near term growth delivered by the Greater Enfield Project will be key contributors to our 2020 production target of approximately 100 million boe.

“Our major growth projects are progressing well towards key decision points. For the SNE development in Senegal, we are completing internal technical, cost and schedule reviews ahead of a targeted final investment decision before the end of the year.

“We have taken a final investment decision for the Pyxis Hub Project, comprising the subsea tieback of the Pyxis, Pluto North and Xena 2 infill wells, with key contracts awarded to support design and installation of subsea equipment infrastructure. Development of the Pyxis Hub will support the future operation of Pluto LNG, the Pluto-NWS Interconnector and the broader Burrup Hub vision.

“The technical work for Scarborough continues as planned in support of FID targeted for 1H20. We are progressing the negotiation for the Browse gas processing agreement and the Browse Joint Venture remains aligned on being ready to commence FEED in 4Q19.

“We have signed a HOA with Uniper for the supply of LNG for a period of 13 years from 2021. This HOA is further evidence of customer support for our growth strategy.

“As we actively participate in delivering a lower-carbon future, we are investing in native tree planting projects to generate carbon offsets through our recent HOA with Greening Australia, and are collaborating with Korea Gas Corporation to explore the commercial potential for developing a green hydrogen industry.”

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/17102019/woodside-releases-3q19-report/