REG - Woodside Energy Grp. - First Quarter 2024 Report
19/04/2024 07:00
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RNS Number : 2534L Woodside Energy Group Ltd 19 April 2024
FIRST QUARTER REPORT FOR PERIOD ENDED 31 MARCH 2024
ASX: WDS | NYSE: WDS | LSE: WDS
Friday, 19 April 2024
Delivering value and executing major projects
Operations highlights
· Delivered quarterly production of 44.9 MMboe (494 Mboe/day), down
7% from Q4 2023 due to lower production at Bass Strait, Pyrenees and Pluto
partially offset by increased production at Mad Dog Phase 2.
· Quarterly revenue of $2,969 million, down 12% from Q4 2023
primarily due to a mix of lower realised prices and lower volumes.
· Sold 13% of total equity production on prices linked to gas hub
indices (23% of produced LNG). 1
Project highlights
· The Scarborough Energy Project commenced drilling of production
wells and the first Pluto Train 2 modules were delivered to site. The project
was 62% complete at the end of the quarter and targeting first LNG cargo in
2026.(( 2 ))
· The Sangomar Project FPSO arrived offshore Senegal and
commissioning activities are underway. The project was 96% complete at the end
of the quarter and targeting first oil in mid-2024.
· The Trion Project continued to progress engineering, procurement,
and contracting activities including the award of the subsea marine
installation contract.
· Continued offtake discussions for the H2OK project and progressed
commercial agreements for the Woodside Solar Project.
Other highlights
· Signed an agreement with JERA, as part of a broader strategic
relationship, for the sale of a 15.1% non-operated participating interest in
the Scarborough Joint Venture (SJV). Estimated total consideration for the
sale is $1,400m.(( 3 ))
· Completed the sale of a 10% non-operated participating interest
in the SJV to LNG Japan for $910 million in March 2024.(( 4 ))
· Signed a sale and purchase agreement (SPA) with Korea Gas
Corporation (KOGAS) for the long-term supply of LNG to Korea.
· Published the Climate Transition Action Plan and 2023 Progress
Report (CTAP) in February and held an investor briefing on climate strategy in
March.
Woodside CEO Meg O'Neill said production in the first quarter totalled 44.9
million barrels of oil equivalent (boe) and guidance for the full year
remained at 185-195 million boe.
"Significant progress was made in the period on our three major growth
projects. Commissioning activities are now underway at the Sangomar project in
Senegal, on track for first oil in the middle of this year. Nineteen of the 23
production wells at Sangomar have now been completed.
"In Western Australia, a milestone was marked with the arrival on site of the
first modules for Pluto Train 2 and 13 modules were in place at the end of the
quarter. Offshore, two flowlines were installed at the Scarborough field and
drilling of the initial wells commenced. Overall, the Scarborough and Pluto
Train 2 projects were 62% complete at the end of the first quarter and we
remain on target for first LNG cargo in 2026.
"During the period we completed the sale of a 10% non-operated interest in the
Scarborough project to LNG Japan and entered into an agreement with JERA for
the sale of a further 15.1% of the Scarborough joint venture.
"We are very pleased to have participants of the calibre of LNG Japan and JERA
in Scarborough. Their support for the project demonstrates the quality of the
asset and the importance of gas to Japan's energy mix.
"We continue to deliver on our strategy to thrive through the energy
transition and we published our Climate Transition Action Plan and 2023
Progress Report in February. As Australia's largest energy company, feedback
arising from our engagement with investors and stakeholders reflects the
challenges and complexities of navigating the energy transition.
"We look forward to further engaging with shareholders at our 2024 Annual
General Meeting.
Comparative performance at a glance
Q1 Q4 Change % Q1 Change % YTD YTD Change %
2024 2023 2023 2024 2023
Revenue $ million 2,969 3,355 (12%) 4,330 (31%) 2,969 4,330 (31%)
Production 5 MMboe 44.9 48.1 (7%) 46.8 (4%) 44.9 46.8 (4%)
Gas Mscf/d 1,929 2,010 (4%) 2,093 (8%) 1,929 2,093 (8%)
Liquids Mbbl/d 155 170 (9%) 153 1% 155 153 1%
Total Mboe/d 494 522 (5%) 520 (5%) 494 520 (5%)
Sales MMboe 45.9 49.5 (7%) 50.4 (9%) 45.9 50.4 (9%)
Gas Mscf/d 1,967 2,118 (7%) 2,367 (17%) 1,967 2,367 (17%)
Liquids Mbbl/d 159 166 (4%) 145 10% 159 145 10%
Total Mboe/d 504 538 (6%) 560 (10%) 504 560 (10%)
Average realised price $/boe 63 67 (5%) 85 (25%) 63 85 (25%)
Capital expenditure 6 $ million 1,179 1,566 (25%) 1,403 (16%) 1,179 1,566 (25%)
Operations
North West Shelf (NWS)
· Achieved 97% LNG production reliability for the quarter.
· The NWS project participants took a final investment decision
(FID) on the Lambert West Project which will support ongoing production from
NWS.
· An Offshore Project Proposal was submitted to the regulator in
January for a proposed Goodwyn Alpha (GWA) infill development. The development
will infill the Karratha Gas Plant (KGP) with resources from several fields in
proximity to the GWA platform, which will be tied back to existing GWA subsea
infrastructure.
Pluto
· Production was lower than the prior quarter due to reduced
reliability (94.6% for the quarter) following an offshore trip and a separate
electrical fault onshore.
· Successfully commenced start-up of the produced water handling
unit at the Pluto A platform.
· Approvals were granted to extend Pluto gas flows through the
Pluto-KGP Interconnector from ~April 2024 to ~December 2025, enabling
continued acceleration of LNG and domestic gas production. This also supports
the Western Australian market by increasing the allocation of domestic gas
from Pluto gas processed at the NWS from 15% to 30% for the period.
· Took FID on the Xena-3 well to support ongoing production from
the Pluto LNG Project.
Bass Strait
· Production was lower than the prior quarter due to lower seasonal
market demand and offshore maintenance activities.
· Commenced offshore installation of the Kipper Compression
modules. The Kipper Compression Project will support the supply of gas to the
East Coast domestic gas market from H2 2024.
· In March, the Gippsland Basin Joint Venture (GBJV) ceased
production from the West Kingfish platform as planned, due to declining oil
production from the Kingfish field. The GBJV continues to optimise facilities
through the Gas Asset Streamlining Project as production rates from the Bass
Strait decline.
Other
Australia
· The Pyrenees FPSO commenced a planned five-yearly maintenance
turnaround in a Singapore drydock and is expected to return to production in
Q2 2024.
· In January, a produced-water leak was identified subsea at the
Pyrenees facility. This was immediately stopped, reported to the Regulator and
the cause is being rectified.
International
· At Mad Dog Phase 2, Argos continued to safely and systematically
ramp up production following completion of the riser flex joint remediation
and achieved peak production of ~130 kbbl/d.
· At Atlantis, the first horizontal well in the field was
successfully completed, potentially unlocking future infill opportunities for
the asset.
· FID was taken on the Atlantis Drill Centre 1 Expansion (DC1X).
DC1X will be a two well tie back to the Atlantis facility through the existing
DC1 manifold in the southwest of the field.
· Execution of production optimisation projects to maximise field
recovery continued in Trinidad and Tobago with an additional injector to
producer well conversion completed in February.
Marketing
· Sold 23% of produced LNG at prices linked to gas hub indices,
representing 13% of total equity production. Full year guidance remains
unchanged.
· Woodside was granted an exemption under the domestic gas price
cap legislation applicable to the east coast of Australia. The exemption
provides Woodside the opportunity to increase delivery to the domestic market
by more than 260 PJ (100% share) through to 2033 if needed.
· Woodside signed a SPA with KOGAS
(https://www.woodside.com/docs/default-source/media-releases/woodside-and-kogas-sign-agreement-for-long-term-lng-supply.pdf?sfvrsn=dfc9ef5b_9)
in February for the long-term supply of approximately 0.5 mtpa of LNG, from
2026. Woodside expects to continue to layer long-term supply agreements into
its portfolio and continuously monitors its exposure to the various price
markers.
· Woodside achieved record quarterly deliveries of trucked LNG of
327 TJ during the quarter to customers in the North West Australia. Woodside
has now delivered approximately 1,700 trailers of LNG, offering a lower-carbon
alternative to diesel. 7
Projects
Scarborough Energy Project
· The Scarborough and Pluto Train 2 project was 62% complete at the
end of the quarter and first LNG cargo is targeted for 2026.(( 8 ))
· Fabrication of the floating production unit (FPU) hull and
topsides progressed. The hull exited its first drydock and installation of the
flare boom and monoethylene glycol (MEG) module on the FPU topsides structure
was completed.
· The first Pluto Train 2 modules were delivered to site, with 13
modules set in position at the end of the quarter. Site works continued to
ramp up.
· Two flowlines were installed in the Scarborough field, and the
third installed subsequent to the quarter.
· Drilling of the production wells commenced, and the first subsea
tree was successfully installed.
· Trunkline installation was delayed this quarter due to a buckling
incident and weather conditions. Trunkline remediation works from the incident
have been completed and installation has recommenced.
Sangomar Field Development Phase 1
· The project was 96% complete at the end of the quarter, and first
oil is targeted for mid-2024.
· The Léopold Sédar Senghor
(https://www.woodside.com/docs/default-source/media-releases/sangomar-fpso-arrives-in-senegal.pdf?sfvrsn=7824d402_3)
FPSO arrived offshore Senegal in February and was securely moored. Hookup work
was completed and the commissioning program is underway.
· The subsea installation campaign is now complete.
· The development drilling program continued with 19 of 23 wells
drilled and completed.
Trion
· Completed the FPU hull and topsides 30% model reviews and hazards
analysis of the design.
· Awarded the subsea marine installation contract. Received tenders
for the FPU dry transportation, gas gathering line pipe, and drilling and
completion services.
· Commenced manufacturing activities including subsea valves,
umbilical tubing and line pipe.
Decommissioning
· The Griffin, Stybarrow and Enfield decommissioning campaign
continued with 24 subsea structures and facilities recovered in the quarter
and the Commonwealth waters section of the Griffin Gas Export Pipeline
successfully removed.
· The Transocean Endurance drill rig has mobilised to the Stybarrow
field and commenced the ten well plug and abandonment campaign.
· Completed deconstruction of the Nganhurra Riser Turret Mooring at
the Australian Marine Complex, with over 95% of material reused or recycled.
Exploration and development
Calypso
· Progressed pre-FEED engineering studies to mature the technical
definition of the deepwater infield host.
· Progressed marketing and commercial discussions to evaluate
monetisation options.
· Commenced discussions on access to the Atlantic LNG facility
(ALNG) following completion of the ALNG restructuring negotiations between the
Government of Trinidad and Tobago and ALNG equity shareholders in December
2023.
Sunrise
· Subsequent to the quarter, the Sunrise Joint Venture awarded the
Greater Sunrise Concept Study contract
(https://www.woodside.com/docs/default-source/media-releases/progress-continues-on-greater-sunrise-development.pdf?sfvrsn=b4babca2_3)
(the Study). The Study will consider the key issues for developing, processing
and marketing gas either via Timor-Leste or Australia and is targeted to be
completed by no later than Q4 2024.(( 9 (#_ftn9) ))
Exploration
· In the US Gulf of Mexico (GoM), the Corvus well (non-operated)
completed drilling. The well did not encounter commercial hydrocarbons and
analysis of well results is ongoing.
· Woodside was awarded 18 leases in Lease Sale 261 in the central
and western GoM areas within the highly contested Paleogene trends.(( 10 ))
· Woodside completed exit activities of the Carlisle Bay block in
Barbados.
New energy and carbon solutions
H2OK
· In February, Woodside provided comments on the proposed 45V Clean
Hydrogen Production Tax Credit guidelines (45V Tax Credit) issued by the
United States Department of Treasury and the Internal Revenue Service.
Woodside anticipates final guidelines will be issued in the second half of
2024.
· Despite the uncertainty from the 45V Tax Credit, Woodside and
potential offtakers have continued discussions on pricing and volumes.
Woodside Solar
· Woodside continued to progress commercial agreements, including
for power transmission, to support the proposed project.
Refueller@H2Perth
· Woodside awarded the major services contract for the
Refueller@H2Perth in March. This includes detailed engineering, construction,
commissioning and start-up work scopes to enable progression towards ready for
start-up.
· Woodside is targeting supply of hydrogen to Western Australian
industrial and public customers in 2025.
Carbon capture and storage (CCS) opportunities
· The Bonaparte CCS joint venture continues to progress appraisal
activities in the G-7-AP permit, which included the successful acquisition of
the West Peron Marine 3D Seismic Survey.
· Subsequent to the quarter, the Angel CCS joint venture signed a
Memorandum of Understanding
(https://www.woodside.com/docs/default-source/media-releases/angel-ccs-jv-and-yara-collaborate-on-carbon-capture-and-storage.pdf?sfvrsn=6465c43b_17)
(MOU) with Yara Pilbara Fertilisers Pty Ltd to study the feasibility of using
CCS with the decarbonisation of Yara Pilbara's existing operations near
Karratha in Western Australia.
Corporate activities
Hedging
· As at the end of the quarter, Woodside hedged approximately 29.3
MMboe of 2024 production at an average price of approximately $75.7 per
barrel, of which approximately 7.0 MMboe has been delivered.
· Woodside also has a hedging program for Corpus Christi LNG
volumes designed to protect against downside pricing risk. These hedges are
Henry Hub (HH) and Title Transfer Facility (TTF) commodity swaps. An average
of 74% of 2024 and 31% of 2025 Corpus Christi volumes have been hedged.
· The year-to-date realised value of hedged positions for the
quarter ended 31 March 2024 is a pre-tax expense of approximately
$43 million, with $69 million pre-tax expense related to oil price hedges,
$25 million pre-tax profit related to Corpus Christi hedges and $1 million
pre-tax profit related to other hedge positions. Hedging losses will be
included in "other expenses" in the full-year financial statements.
Climate and sustainability
· Woodside published its Climate Transition Action Plan and 2023
Progress Report (CTAP) in February and summarised its approach to material
sustainability topics in the 2023 Annual Report.
· An investor briefing on climate was held in March as part of
Woodside's increased engagement with investors on these topics. Shareholders
will have the opportunity to vote on the CTAP through a non-binding advisory
vote at the 2024 Annual General Meeting.
· Woodside completed the piloting of its Field Leadership Program
that aims to strengthen understanding of our work practices and make
improvements to our health, safety and environment risk controls. The program
commenced in 2023 and will be rolled out across operating facilities through
2024.
· Woodside continued engagement with First Nations communities in
Australia with regards to our current and future regulatory approvals. This
included executive level engagements with two Aboriginal representative
organisations in the Pilbara to further build relationships and discuss
ongoing and future social and economic development opportunities.
Chair of Audit & Risk Committee
· As previously announced, Mr Frank Cooper will retire at
Woodside's Annual General Meeting on 24 April 2024. With effect from 24 April
2024, Mr Ben Wyatt will Chair Woodside's Audit & Risk Committee.
Upcoming events 2024
April 24 Annual General Meeting
July 23 Second quarter 2024 results
August 27 Half-Year 2024 report
October 16 Third quarter 2024 report
2024 full-year guidance
Prior Current
Production MMboe 185 - 195 No change
(505 - 533 Mboe/day)
Capital expenditure(( 11 )) $ billion 5.0 - 5.5 No change
Gas hub exposure(( 12 )) % of produced LNG 26 - 33 No change
Contacts:
INVESTORS MEDIA REGISTERED ADDRESS
Marcela Louzada Christine Forster Woodside Energy Group Ltd.
M: +61 456 994 243 M: +61 484 112 469 ACN 004 898 962
E: investor@woodside.com (mailto:investor@woodside.com) E: christine.forster@woodside.com Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
Production summary
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
Gas Mscf/d 1,929 2,010 2,093 1,929 2,093
Liquids Mbbl/d 155 170 153 155 153
Total Mboe/d 494 522 520 494 520
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
AUSTRALIA
LNG
North West Shelf Mboe 8,192 7,798 9,673 8,192 9,673
Pluto 13 Mboe 11,754 12,407 12,154 11,754 12,154
Wheatstone Mboe 2,357 2,505 2,456 2,357 2,456
Total Mboe 22,303 22,710 24,283 22,303 24,283
Pipeline gas
Bass Strait Mboe 2,359 3,206 3,133 2,359 3,133
Other 14 Mboe 3,278 3,438 3,037 3,278 3,037
Total Mboe 5,637 6,644 6,170 5,637 6,170
Crude oil and condensate
North West Shelf Mbbl 1,412 1,359 1,684 1,412 1,684
Pluto(13) Mbbl 931 994 961 931 961
Wheatstone Mbbl 462 495 408 462 408
Bass Strait Mbbl 492 704 777 492 777
Macedon & Pyrenees Mbbl 109 653 631 109 631
Ngujima-Yin Mbbl 886 1,203 869 886 869
Okha Mbbl 466 616 431 466 431
Total Mboe 4,758 6,024 5,761 4,758 5,761
NGL
North West Shelf Mbbl 290 275 292 290 292
Pluto(13) Mbbl 54 58 50 54 50
Bass Strait Mbbl 832 1,026 723 832 723
Total Mboe 1,176 1,359 1,065 1,176 1,065
Total Australia 15 Mboe 33,874 36,737 37,279 33,874 37,279
Mboe/d 372 399 414 372 41
4
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 360 314 330 360 330
Trinidad & Tobago Mboe 2,503 2,779 2,236 2,503 2,236
Other(16) Mboe - - 30 - 30
Total Mboe 2,863 3,093 2,596 2,863 2,596
Crude oil and condensate
Atlantis Mbbl 2,441 2,763 2,696 2,441 2,696
Mad Dog Mbbl 2,765 2,054 939 2,765 939
Shenzi Mbbl 2,405 2,712 2,596 2,405 2,596
Trinidad & Tobago Mbbl 126 284 297 126 297
Other 16 Mbbl 81 81 39 81 39
Total Mboe 7,818 7,894 6,567 7,818 6,567
NGL
Gulf of Mexico Mbbl 393 344 331 393 331
Other(16) Mbbl - - 17 - 17
Total Mboe 393 344 348 393 348
Total International Mboe 11,074 11,331 9,511 11,074 9,511
Mboe/d 122 123 106 122 106
Total production Mboe 44,948 48,068 46,790 44,948 46,790
Mboe/d 494 522 520 494 520
Product sales
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
Gas Mscf/d 1,967 2,118 2,367 1,967 2,367
Liquids Mbbl/d 159 166 145 159 145
Total Mboe/d 504 538 560 504 560
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
AUSTRALIA
LNG
North West Shelf Mboe 8,008 7,367 10,564 8,008 10,564
Pluto5 Mboe 10,513 12,130 11,310 10,513 11,310
Wheatstone 17 Mboe 2,589 2,473 2,350 2,589 2,350
Total Mboe 21,110 21,970 24,224 21,110 24,224
Pipeline gas
Bass Strait Mboe 2,570 3,341 3,082 2,570 3,082
Other Mboe 2,894 3,684 2,939 2,894 2,939
Total Mboe 5,464 7,025 6,021 5,464 6,021
Crude oil and condensate
North West Shelf Mbbl 1,214 514 1,089 1,214 1,089
Pluto Mbbl 640 614 614 640 614
Wheatstone Mbbl 329 349 350 329 350
Bass Strait Mbbl 597 410 82 597 82
Ngujima-Yin Mbbl 999 1,352 1,141 999 1,141
Okha Mbbl 618 1 653 618 653
Macedon & Pyrenees Mbbl 496 1,054 518 496 518
Total Mboe 4,893 4,294 4,447 4,893 4,447
NGL
North West Shelf Mbbl 255 253 170 255 170
Pluto Mbbl 55 49 182 55 182
Bass Strait Mbbl 785 1,370 1,109 785 1,109
Total Mboe 1,095 1,672 1,461 1,095 1,461
Total Australia Mboe 32,562 34,961 36,153 32,562 36,153
Mboe/d 358 380 402 358 402
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 286 357 343 286 343
Trinidad & Tobago Mboe 2,457 2,611 2,295 2,457 2,295
Other 18 Mboe 6 6 7 6 7
Total Mboe 2,749 2,974 2,645 2,749 2,645
Crude oil and condensate
Atlantis Mbbl 2,426 2,976 2,668 2,426 2,668
Mad Dog Mbbl 2,626 2,209 941 2,626 941
Shenzi Mbbl 2,352 2,716 2,673 2,352 2,673
Trinidad & Tobago Mbbl 52 316 413 52 413
Other(18) Mbbl 60 53 63 60 63
Total Mboe 7,516 8,270 6,758 7,516 6,758
NGL
Gulf of Mexico Mbbl 413 435 342 413 342
Other(18) Mbbl 3 2 4 3 4
Total Mboe 416 437 346 416 346
Total International Mboe 10,681 11,681 9,749 10,681 9,749
Mboe/d 117 127 108 117 108
MARKETING(( 19 ))
LNG Mboe 2,086 2,209 4,483 2,086 4,483
Liquids Mboe 571 618 - 571 -
Total Mboe 2,657 2,827 4,483 2,657 4,483
Total Marketing Mboe 2,657 2,827 4,483 2,657 4,483
Total sales Mboe 45,900 49,469 50,385 45,900 50,385
Mboe/d 504 538 560 504 560
Revenue
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
AUSTRALIA
North West Shelf 592 509 1,270 592 1,270
Pluto 745 1,011 1,131 745 1,131
Wheatstone 20 223 208 324 223 324
Bass Strait 223 225 211 223 211
Macedon 51 54 51 51 51
Ngujima-Yin 92 128 100 92 100
Okha 50 - 56 50 56
Pyrenees 44 94 50 44 50
INTERNATIONAL
Atlantis 196 241 199 196 199
Mad Dog 204 178 68 204 68
Shenzi 190 217 199 190 199
Trinidad & Tobago 21 61 103 136 61 136
Other 22 5 4 5 5 5
Marketing revenue(( 23 )) 227 332 479 227 479
Total sales revenue(( 24 )) 2,903 3,304 4,279 2,903 4,279
Processing revenue 61 49 47 61 47
Shipping and other revenue 5 2 4 5 4
Total revenue 2,969 3,355 4,330 2,969 4,330
Realised prices
Units Q1 Q4 Q1 Units Q1 Q4 Q1
2024 2023 2023 2024 2023 2023
LNG produced 25 $/MMBtu 10.4 11.5 16.7 $/boe 67 74 105
LNG traded 26 $/MMBtu 9.1 11.9 16.7 $/boe 59 76 105
Pipeline gas $/boe 34 37 38
Oil and condensate $/bbl 79 82 76 $/boe 79 82 76
NGL $/bbl 47 24 51 $/boe 47 24 51
Liquids traded(26) $/bbl 60 85 - $/boe 60 85 -
Average realised price for pipeline gas:
Western Australia A$/GJ 6.4 6.8 6.9
East coast Australia A$/GJ 13.7 13.4 11.9
International $/Mcf 4.6 4.4 7.2
Average realised price $/boe 63 67 85
Dated Brent $/bbl 83 84 81
JCC (lagged three months) $/bbl 92 83 100
WTI $/bbl 77 78 76
JKM $/MMBtu 11.9 15.0 26.0
TTF $/MMBtu 9.8 13.5 24.7
Capital expenditure (US$ million)
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
Exploration and evaluation capitalised 27 (,) 28 38 43 37 38 37
Oil and gas properties 1,090 1,449 1,279 1,090 1,279
Other 29 51 74 87 51 87
Total 1,179 1,566 1,403 1,179 1,403
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
Sangomar 210 211 279 210 279
Scarborough 574 826 626 574 626
Trion 97 154 - 97 -
Other 298 375 498 298 498
Total 1,179 1,566 1,403 1,179 1,403
Other expenditure (US$ million)
Q1 Q4 Q1 YTD YTD
2024 2023 2023 2024 2023
Exploration and evaluation expense
Exploration and evaluation expensed 30 54 108 52 54 52
Permit amortisation 3 2 2 3 2
Total 57 110 54 57 54
Trading costs 145 181 385 145 385
Exploration or appraisal wells drilled
Region Permit Area Well Target Interest (%) Spud Date Water depth (m) Planned well depth (m)(( 31 )) Remarks
Gulf of Mexico AT 453 Corvus Oil 30% 22 January 2024 1,735 6,858 Drilling complete
Non-operator
Permits and licences
Key changes to permit and licence holdings during the quarter ended 31 March
2024 are noted below.
Region Permits or licence areas Change in interest (%) Current interest (%) Remarks
Barbados Carlisle Bay (60%) 0 License Exit
US GoM(( 32 )) GB 780, GB 824, GB 825, GB 821, GB 866, EB 636, EB 637, EB 550, EB 594, EB 100% 100% Lease Sale 261
638, KC 859, KC 903, KC 904, KC 905, KC 948, KC 949, WR 795,
WR 796
Production rates
Average daily production rates (100% project) for the quarter ended 31 March
2024:
Woodside Production rate Remarks
share(( 33 ))
(100% project, Mboe/d)
Mar Dec
2024 2023
AUSTRALIA
NWS Project
LNG 30.67% 293 278 Production was higher due to improved reliability.
Crude oil and condensate 30.78% 56 46
NGL 30.69% 10 10
Pluto LNG
LNG 90.00% 112 119 Production was lower due to reduced reliability following unplanned downtime.
Production returned to normal within the quarter.
Crude oil and condensate 90.00% 10 11
Pluto-KGP Interconnector
LNG 100.00% 29 28
Crude oil and condensate 100.00% 1 1
NGL 100.00% 1 1
Wheatstone(( 34 ))
LNG 11.52% 224 231
Crude oil and condensate 16.14% 31 34
Bass Strait
Pipeline gas 42.16% 61 80 Production was lower due to reduced market demand during summer and planned
maintenance activities.
Crude oil and condensate 43.49% 12 18
NGL 47.45% 19 24
Australia Oil
Ngujima-Yin 60.00% 13 22 Production at Ngujima-Yin and Okha was lower due to weather downtime.
Okha 50.00% 8 13
Pyrenees 64.27% 2 11 Production at Pyrenees was lower due to a subsea produced-water leak and the
planned turnaround.
Other
Pipeline gas25F 35 33 37
Woodside Production rate Remarks
share(( 36 ))
(100% project, Mboe/d)
Mar 2024 Dec 2023
INTERNATIONAL
Atlantis
Crude oil and condensate 38.50% 70 78
NGL 38.50% 4 5
Pipeline Gas 38.50% 6 6
Mad Dog
Crude oil and condensate 20.86% 146 107 Production was higher following completion of the riser flex joint remediation
in Q4 2023 and continued ramp-up of the field.
NGL 20.86% 5 4
Pipeline Gas 20.86% 3 2
Shenzi
Crude oil and condensate 65.07% 41 46
NGL 65.37% 2 2
Pipeline Gas 65.36% 2 1
Trinidad & Tobago
Crude oil and condensate 60.24%(( 37 )) 2 4
Pipeline gas 50.75%(37) 54 60
Disclaimer and important notice
Forward looking statements
This report contains forward-looking statements with respect to Woodside's
business and operations, market conditions, results of operations and
financial condition, including, for example, but not limited to, statements
regarding development, completion and execution of Woodside's projects,
guidance with respect to production, expectations regarding future capital
commitment, future cash flows, future results of projects, operating
activities, new energy products, accounting decisions including impairments,
commencement dates under supply arrangements, construction and delivery dates,
expectations and plans for renewables production capacity and investments in,
and development of, renewables projects. All statements, other than statements
of historical or present facts, are forward-looking statements and generally
may be identified by the use of forward-looking words such as 'guidance',
'foresee', 'likely', 'potential', 'anticipate', 'believe', 'aim', 'estimate',
'expect', 'intend', 'may', 'target', 'plan', 'strategy', 'forecast',
'outlook', 'project', 'schedule', 'will', 'should', 'seek' and other similar
words or expressions. Similarly, statements that describe the objectives,
plans, goals or expectations of Woodside are forward-looking statements.
Forward-looking statements in this report are not guidance, forecasts,
guarantees or predictions of future events or performance, but are in the
nature of future expectations that are based on management's current
expectations and assumptions. Those statements and any assumptions on which
they are based are only opinions and are subject to change without notice and
are subject to inherent known and unknown risks, uncertainties, assumptions
and other factors, many of which are beyond the control of Woodside, its
related bodies corporate and their respective officers, directors, employees,
advisers or representatives. Important factors that could cause actual results
to differ materially from those in the forward-looking statements include, but
are not limited to, fluctuations in commodity prices, actual demand, currency
fluctuations, geotechnical factors, drilling and production results, gas
commercialisation, development progress, operating results, engineering
estimates, reserve and resource estimates, loss of market, industry
competition, environmental risks, climate related risks, physical risks,
legislative, fiscal and regulatory developments, changes in accounting
standards, economic and financial markets conditions in various countries and
regions, political risks, project delay or advancement, regulatory approvals,
the impact of armed conflict and political instability (such as the ongoing
conflict in Ukraine) on economic activity and oil and gas supply and demand,
cost estimates, the effect of future regulatory or legislative actions on
Woodside or the industries in which it operates, including potential changes
to tax laws, and the impact of general economic conditions, inflationary
conditions, prevailing exchange rates and interest rates and conditions in
financial markets.
A more detailed summary of the key risks relating to Woodside and its business
can be found in the "Risk" section of Woodside's most recent Annual Report
released to the Australian Securities Exchange and the London Stock Exchange
and in Woodside's most recent Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission and available on the Woodside
website at https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the information
contained in this report.
If any of the assumptions on which a forward-looking statement is based were
to change or be found to be incorrect, this would likely cause outcomes to
differ from the statements made in this report.
All forward-looking statements contained in this report reflect Woodside's
views held as at the date of this report and, except as required by applicable
law, Woodside does not intend to, undertake to, or assume any obligation to,
provide any additional information or update or revise any of these statements
after the date of this report, either to make them conform to actual results
or as a result of new information, future events, changes in Woodside's
expectations or otherwise.
Investors are strongly cautioned not to place undue reliance on any
forward-looking statements. Actual results or performance may vary materially
from those expressed in, or implied by, any forward-looking statements. None
of Woodside nor any of its related bodies corporate, nor any of their
respective officers, directors, employees, advisers or representatives, nor
any person named in this report or involved in the preparation of the
information in this report, makes any representation, assurance, guarantee or
warranty (either express or implied) as to the accuracy or likelihood of
fulfilment of any forward-looking statement, or any outcomes, events or
results expressed or implied in any forward-looking statement in this report.
Past performance (including historical financial and operational information)
is given for illustrative purposes only. It should not be relied on as, and is
not necessarily, a reliable indicator of future performance, including future
security prices.
Other important information
All figures are Woodside share for the quarter ending 31 March 2024, unless
otherwise stated.
All references to dollars, cents or $ in this report are to US currency,
unless otherwise stated.
References to "Woodside" may be references to Woodside Energy Group Ltd and/or
its applicable subsidiaries (as the context requires).
Units of measure and conversion factors
Product Unit Conversion factor
Natural gas 5,700 scf 1 boe
Condensate 1 bbl 1 boe
Oil 1 bbl 1 boe
Natural gas liquids 1 bbl 1 boe
Facility Unit LNG conversion factor
Karratha Gas Plant 1 tonne 8.08 boe
Pluto Gas Plant 1 tonne 8.34 boe
Wheatstone 1 tonne 8.27 boe
The LNG conversion factor from tonne to boe is specific to volumes produced at
each facility and is based on gas composition which may change over time.
Term Definition
bbl barrel
bcf billion cubic feet of gas
boe barrel of oil equivalent
Mbbl thousand barrels
Mboe thousand barrels of oil equivalent
Mcf thousand cubic feet of gas
MMboe million barrels of oil equivalent
MMBtu million British thermal units
MMscf million standard cubic feet of gas
scf standard cubic feet of gas
1 Total equity production sales reflect the sale of produced gas and
liquids.
2 The completion % excludes the Pluto Train 1 modifications project.
3 The SPA is with JERA Scarborough Pty Ltd which is a wholly owned
subsidiary of JERA Co., Inc. Subject to completion of the transaction,
targeted for the second half of 2024. See "Woodside to sell 15.1% Scarborough
interest to JERA", announced 23 February 2024.
4 LJ Scarborough Pty Ltd (LNG Japan) is a jointly owned subsidiary of LNG
Japan Corporation (which is a 50:50 joint venture between Sumitomo Corporation
and Sojitz Corporation) and Japan Organization for Metals and Energy Security
(JOGMEC). JOGMEC has a 49.9% interest in LJ Scarborough Pty Ltd. The sale
proceeds remain subject to adjustments. See "Woodside completes sale of 10%
Scarborough interest", announced 26 March 2024.
5 Q1 2024 includes 0.29 MMboe, Q4 2023 includes 0.32 MMboe and Q1 2023
includes 0.31 MMboe primarily from feed gas purchased from Pluto non-operating
participants processed through the Pluto-KGP Interconnector.
6 Includes capital additions on oil and gas properties, exploration and
evaluation capitalised and other corporate spend.
7 Woodside uses this term to describe the characteristic of having lower
levels of associated potential GHG emissions when compared to historical
and/or current conventions or analogues, for example relating to an otherwise
similar product.
8 The completion % excludes the Pluto Train 1 modifications project.
9 The Greater Sunrise Concept Study contract was executed on 4 April 2024.
10 The leases are awaiting final execution by the regulator.
11 Capital expenditure includes the following participating interests;
Sangomar (82%); Scarborough (90% following completion of the transaction with
LNG Japan in March 2024 and 74.9% following completion of the transaction with
JERA, expected in the second half of 2024), Pluto Train 2 (51%) and Trion
(60%). Trion capital expenditure includes Pemex carry. This guidance assumes
no change to these participating interests in 2024. This excludes the impact
of any subsequent asset sell-downs, acquisitions or other changes in equity.
12 Gas hub indices include Japan Korea Marker (JKM), TTF and National
Balancing Point (NBP). It excludes HH.
13 Q1 2024 includes 2.60 MMboe of LNG, 0.10 MMboe of condensate and 0.05
MMboe of NGL, Q4 2023 includes 2.56 MMboe of LNG, 0.10 MMboe of condensate and
0.06 MMboe of NGL and Q1 2023 includes 2.70 MMboe of LNG and 0.11 MMboe of
condensate and 0.05 MMboe of NGL processed at the Karratha Gas Plant (KGP)
through the Pluto-KGP Interconnector.
14 Includes the aggregate Woodside equity domestic gas production from all
Western Australian projects.
15 Q1 2024 includes 0.29 MMboe, Q4 2023 includes 0.32 MMboe and Q1 2023
includes 0.31 MMboe primarily from feed gas purchased from Pluto non-operating
participants processed through the Pluto-KGP Interconnector.
16 Overriding royalty interests held in the Gulf of Mexico (GoM) for several
producing wells.
17 Includes periodic adjustments reflecting the arrangements governing
Wheatstone LNG sales of 0.28 MMboe in Q1 2024, 0.10 MMboe in Q4 2023 and 0.06
MMboe in Q1 2023.
18 Overriding royalty interests held in the GoM for several producing wells.
19 Purchased volumes sourced from third parties.
20 Q1 2024 includes $24 million, Q4 2023 includes $9 million and Q1 2023
includes $3 million recognised in relation to periodic adjustments reflecting
the arrangements governing Wheatstone LNG sales. These amounts will be
included within other income/(expenses) in the financial statements rather
than operating revenue.
21 Includes the impact of periodic adjustments related to the production
sharing contract (PSC).
22 Overriding royalty interests held in the GoM for several producing wells.
23 Values include revenue generated from purchased LNG and Liquids volumes,
as well as the marketing margin on the sale of Woodside's produced LNG and
liquids portfolio. Marketing revenue excludes hedging impacts and cargo swaps
where a Woodside produced cargo is sold and repurchased from the same
counterparty to optimise the portfolio. The margin for these cargo swaps is
recognised net in other income.
24 Total sales revenue excludes all hedging impacts.
25 Realised prices include the impact of periodic adjustments reflecting the
arrangements governing Wheatstone LNG sales.
26 Excludes any additional benefit attributed to produced volumes through
third-party trading activities.
27 Exploration capitalised represents expenditure on successful and pending
wells, plus permit acquisition costs during the period and is net of well
costs reclassified to expense on finalisation of well results.
28 Project final investment decisions result in amounts of previously
capitalised exploration and evaluation expense (from current and prior years)
being transferred to oil and gas properties. This table does not reflect the
impact of such transfers.
29 Other primarily incorporates corporate spend including SAP build costs,
carbon costs and other investments.
30 Includes seismic and general permit activities and other exploration
costs.
31 Well depths are referenced to the rig rotary table.
32 The leases are awaiting final execution by the regulator.
33 Woodside share reflects the net realised interest for the period.
34 The Wheatstone asset processes gas from several offshore gas fields,
including the Julimar and Brunello fields, for which Woodside has 65%
participating interest and is the operator.
35 Includes the aggregate Woodside equity domestic gas production from all
Western Australian projects.
36 Woodside share reflects the net realised interest for the period.
37 Operations governed by production sharing contracts, Woodside share
changes monthly.
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