Production

• Record full-year 2023 production of 187.2 MMboe (513 Mboe/day), at the top end of production guidance of 183 – 188 MMboe.
• Quarterly production of 48.1 MMboe (522 Mboe/day), with strong reliability of 99.9% maintained on Pluto (98.2% full year 2023).
• Quarterly revenue of $3,355 million, up 3% from Q3 2023, due to higher realised prices, partly offset by lower traded LNG volumes and timing of oil and condensate sales.
• Portfolio average realised price of $66.8/boe.
• Sold 31% of produced LNG at prices linked to gas hub indices (30% full year 2023). 

Executing major projects

• The Scarborough Energy Project received secondary environmental approvals for Commonwealth waters in December and commenced all relevant offshore activities. The project was 55% complete at the end of the quarter(1). Subsequent to the quarter, the first production well was spud and as of 22 January, approximately 57km out of 433km of pipelay has been completed.
• The Sangomar Project floating production storage and offloading (FPSO) facility sailed away from Singapore in December. The project was 94% complete at the end of the period, with 17 of 23 wells drilled and completed.
• The Trion Project continued to award contracts including for the wellheads and subsea line pipe. Procurement activities commenced for floating production unit (FPU) materials and subsea equipment.

Carbon and new energy

• The proposed Woodside Solar Project received planning approvals and State and Federal environmental approvals.
• The Angel carbon capture and storage (CCS) opportunity commenced pre-front end engineering and design (FEED) studies.
• The proposed US Federal Government tax incentive criteria are being evaluated to determine implications for the proposed H2OK Project. 

(1) The completion % excludes the Pluto Train 1 modifications project. 

Woodside CEO Meg O’Neill said production in the fourth quarter remained strong, taking 2023 full-year production to a record 187.2 MMboe.

“Our expanded global portfolio delivered record production in 2023. Fourth quarter production reflected the completion of planned turnaround and maintenance activities at the North West Shelf and Shenzi. Pluto LNG also maintained its strong production performance, again achieving 99.9% reliability during the period.

“Sales revenue was 3% higher than the third quarter at $3,355 million due to higher realised prices.

“Woodside’s growth projects are being delivered as planned. We have strong momentum on the Scarborough Energy Project following receipt of regulatory approvals in December for key offshore work scopes. We’ve already completed the seismic survey, nearshore pipelay installation is almost complete and we’ve commenced pipelay work in Commonwealth waters. Earlier this month, we spud the first production well in our drilling program.

“Fabrication of six of the 51 modules for Pluto Train 2 has been completed and work on another 38 is underway. We remain on track for targeted first LNG cargo in 2026.

“The Léopold Sédar Senghor floating production storage and offloading facility departed Singapore at the end of December and is scheduled to arrive offshore Senegal in the coming weeks. Seventeen wells have now been completed at Sangomar, with first oil targeted for mid-2024.

“At Trion in Mexico, contracts have been awarded for the wellheads, subsea line pipe and coatings, and the shore base. Procurement for the subsea equipment and floating production unit commenced during the quarter.

“In the US Gulf of Mexico, following an appraisal well drilled in the second quarter, a final investment decision (FID) was taken on the Mad Dog Southwest Extension, which will be a three-well tieback to the Argos facility.

“In our new energy projects, design optimisation and technical work continued in support of FID readiness at H2OK in Oklahoma. We are evaluating the production tax credit guidance provided by the US Federal Government.

“In Western Australia, planning approvals and State and Federal environmental approvals were secured for the proposed Woodside Solar Project near Karratha.

“Woodside is safely executing our significant decommissioning program. We achieved a milestone with the safe removal of the Nganhurra riser turret mooring and we have commenced the Stybarrow and Griffin decommissioning campaigns.

“In Marketing, two term LNG sales and purchase agreements were signed during the quarter. First, with Mexico Pacific Limited for the purchase of 1.3 Mtpa of LNG from its proposed third train at the Saguaro Energia LNG Project on the Mexican Pacific coast. Second, with Australian mining company Pilgangoora Operations Pty Ltd for the supply of domestic LNG from the Pluto Truck Loading Facility, further demonstrating Woodside’s commitment to Australian domestic gas.

“Woodside welcomes the certainty provided by the ministerial exemption received in January under the domestic gas price cap legislation. We have consistently provided gas to domestic customers on reasonable prices and terms, and the exemption reflects our ongoing commitment to this objective.

“Woodside confirmed in December that it was in discussions regarding a potential merger with Santos. The talks are still at an early stage and there is no certainty that the transaction will progress. Woodside will be disciplined, conduct thorough due diligence, and will only pursue a transaction that is value-accretive for shareholders.

“As we complete our first full reporting year after the merger with BHP Petroleum, we are pleased with the results of our strong combined portfolio,” she said. 

Appointment of Mr Ashok Belani

The Woodside Board has announced the appointment of Mr Ashok Belani as a non-executive Director, effective 29 January 2024.

KeyFacts Energy: Woodside Australia country profile