Performance highlights

• Achieved sales revenue of $1,121 million, up 4% from Q1 2020.
• Delivered production of 23.7 MMboe, down 2% from Q1 2020.
• Delivered sales volume of 25.7 MMboe, up 8% from Q1 2020.

Executing a clear plan

• Progressed Sangomar project execution with cutting of first steel for the FPSO topsides and preparation for the drilling campaign in mid-2021.
• Ramped up engineering and procurement activities for Scarborough.
• Delivered our first carbon offset condensate cargo.
• Signed a memorandum of understanding with the Government of Tasmania for the proposed H2TAS renewable hydrogen project.
• Executed a sale and purchase agreement (SPA) with RWE Supply & Trading GmbH (RWE) for the supply of approximately 0.8 Mtpa of LNG.

Woodside Acting CEO Meg O’Neill said sales revenue in the first quarter rose 22% compared with the last three months of 2020 on the back of higher realised prices for all products.

“Production on our oil assets was impacted by heavy weather in the quarter but this was offset by an increase in our average realised price to a level comparable to Q1 2020.

“Woodside achieved record spot LNG prices and its highest price premium for an oil cargo during the period. More importantly, the sustained increase in oil and gas prices reflects the rebound in demand as economic conditions improved across Asia. The swift rebalancing of markets after the disruptions of 2020 further underpins our positive outlook for LNG in the medium term.

“The SPA signed with RWE in February was another demonstration of customer appetite for new LNG supplies around the middle of this decade – a timeframe which supports the development of our world-class Scarborough gas resource.

“Like the SPA for additional volumes signed with Uniper earlier in the quarter, the agreement with RWE includes the opportunity for us to explore the potential for carbon-neutral LNG trading. These agreements reflect our commitment to support the decarbonisation ambitions of customers and their willingness to support ours.

“That spirit of cooperation was further demonstrated during the period when we sold what we believe is the world’s first carbon offset condensate cargo to Trafigura.

“During the first quarter the Senegal team made strong progress on the Sangomar Field Development Phase 1, with commencement of FPSO conversion activities, first steel cut for the FPSO topsides and the ongoing construction of subsea equipment. Planning was also completed for the development drilling program which will get underway in the middle of the year.

“At Scarborough, we ramped up engineering and procurement activity with our key contractors and progressed commercial agreements and regulatory approvals, in support of the targeted final investment decision in H2 2021.

“We’ve also finalised the design concept for modifications to Pluto Train 1 which will enable the processing of up to 3 Mtpa of Scarborough gas. These modifications, combined with the 5 Mtpa capacity of Pluto Train 2, would enable full utilisation of the 8 Mtpa offshore capacity.

“The gas processing agreements for Pluto and Waitsia gas, which will unlock further value from the North West Shelf Project, are in place and we’ve committed to supplying significant additional domestic gas volumes to Western Australia from our equity offtake from 2025.

“The implementation of our new energy strategy took a step forward in January when we signed a memorandum of understanding with the State of Tasmania in support of our proposed H2TAS renewable hydrogen production facility at Bell Bay. H2TAS is the subject of an application under the Australian Renewable Energy Agency funding round expected to be finalised in coming weeks,” she said.

KeyFacts Energy: Woodside Australia country profile