REG - Woodside Energy Grp. - Fourth Quarter 2023 Report
24/01/2024 07:00
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RNS Number : 6890A Woodside Energy Group Ltd 24 January 2024
Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Wednesday, 24 January 2024
FOURTH QUARTER REPORT FOR PERIOD ENDED 31 DECEMBER 2023
Reliable 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
(#_ftn1) . 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.
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 Ltd. 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.
Comparative performance at a glance
Three months ended Year to date
Dec Sep Change % Dec Change % Dec Dec Change %
2023 2023 2022 2023 2022 2 (#_ftn2)
Production 3 (#_ftn3) MMboe 48.1 47.8 - 51.6 (7%) 187.2 157.7 19%
Mboe/day 522 520 561 513 432
Sales MMboe 49.5 53.3 (7%) 52.2 (5%) 201.5 168.9 19%
Mboe/day 538 579 568 552 463
Revenue $ million 3,355 3,259 3% 5,160 (35%) 14,028 16,851 (17%)
Operational overview
Production
· Delivered quarterly production of 48.1 MMboe, in line with Q3
2023, following completion of planned turnaround and maintenance activities on
North West Shelf (NWS) and Shenzi in the third quarter. This was offset by
lower production from Bass Strait due to planned onshore and offshore
maintenance works and lower gas demand during summer.
· Production at NWS was lower than the corresponding quarter in
2022 primarily due to natural field decline.
· Achieved 99.9% reliability at Pluto LNG for the quarter.
Other
· Took FID on the Mad Dog Southwest Extension in the US Gulf of
Mexico (GoM). This will be a three well tie back to the Argos facility.
· Ramp up of Mad Dog Phase 2 continued with remediation of the
riser flex joints now completed.
· Subsequent to the quarter, the NWS project participants took FID
on the Lambert West Project, supporting ongoing production from NWS.
Project and development activities
Scarborough Energy Project
· The Scarborough and Pluto Train 2 project was 55% complete at the
end of the period and first LNG cargo is targeted for 2026.
· Fabrication of the FPU hull and topsides progressed, with the
hull being prepared for drydock departure in Q1 2024.
· Pluto Train 2 module fabrication and site construction works
continued. Fabrication of six out of 51 modules is complete and work on
another 38 is underway.
· In December 2023, secondary environment approvals for the
drilling, subsea and trunkline installation activities were accepted by the
regulator. Installation of the trunkline nearshore component is nearing
completion, and pipeline installation in Commonwealth waters commenced.
· The offshore seismic survey environmental approval was also
granted, and the activity was completed.
· Subsequent to the quarter, installation of the first subsea
flowline commenced and the first production well was spud.
Sangomar Field Development Phase 1
· The project was 94% complete at the end of the period, and first
oil is targeted for mid-2024.
· The FPSO sailed away from Singapore on 22 December 2023 following
completion of topsides integration and pre-commissioning works.
· The development drilling program continued with 17 of 23 wells
completed.
· The subsea installation campaign is ongoing, with the overall
subsea work scope 98% complete at the end of the period.
Trion
· The floating storage and offloading vessel FEED and shipyard
engineering continued.
· Contracts were awarded for the wellheads, subsea line pipe and
coatings, and the Mexico shore base.
· Detailed engineering by the subsea equipment suppliers and the
FPU engineering, procurement and construction contractor progressed, enabling
the commencement of procurement activities in the quarter.
Liard
· Woodside completed a transaction bringing Paramount Resources Ltd
(Paramount) into the Liard field, located onshore British Columbia Canada.
Both parties will have an equal 50% interest in all the leases and Paramount
will assume operatorship.
· Woodside joined the Rockies LNG Partnership as a potential
natural gas supplier to the Ksi Lisims LNG Project on the west coast of
British Columbia.
Browse
· In December 2023, the Western Australian Environmental Protection
Authority published Woodside's response to the proposed Browse to NWS
Project's environmental review document.
Calypso
· Woodside continued pre-FEED engineering studies to mature both
technical definition and cost estimates of the development. Marketing and
commercial discussions to evaluate options to monetise the resource are
ongoing.
Sunrise
· In November 2023, the Timor-Leste Government announced its
support for the Sunrise Concept Study to proceed. The study will consider the
key issues for developing, processing and marketing gas via both Timor-Leste
and Australia based solutions.
Decommissioning
· The Nganhurra riser turret mooring was successfully removed from
its location off the North West Cape in Western Australia and transported to
Perth to be cleaned and dismantled in preparation for recycling and reuse.
· All 18 Enfield wells have now been plugged and 16 of the 18 xmas
trees have been removed. The remaining two trees are expected to be recovered
in the first half of 2024, along with the wellhead severance program.
· Environmental approvals were obtained in December to
progress in-field Griffin decommissioning activities.
· The Endurance drill rig arrived in Dampier and preparations are
underway to commence the Stybarrow well plug and abandonment.
Marketing and Trading
· In December 2023, Woodside signed a sale and purchase agreement
(SPA) with Mexico Pacific Limited to purchase 1.3 Mtpa of LNG, equivalent to
approximately 18 cargoes per year, for 20 years. 4 (#_ftn4)
· Woodside has reached agreement with three Australian maritime
unions on the Australian crewing of an LNG vessel. Under the agreement, the
maritime unions will cooperate fully with Woodside and its contractors in
maintaining maritime operations at the NWS and Pluto LNG Projects. 5 (#_ftn5)
· In October 2023, Woodside exported a cargo of US crude to Europe,
utilising access to storage and loading infrastructure acquired previously.
This infrastructure will allow Woodside to optimise the timing and pricing of
sales.
· Woodside signed an SPA with Pilgangoora Operations Pty Ltd for
the supply of domestic LNG from the Pluto Truck Loading Facility. Supply under
the SPA is contracted to commence in the fourth quarter of 2024 for a period
of five years. 6 (#_ftn6)
· Subsequent to the quarter, Woodside was granted an exemption
under the domestic gas price cap legislation applicable to the east coast of
Australia. The exemption is for the expected delivery of more than 260 PJ
(100% share) of additional domestic gas through to 2033.
New energy and carbon solutions
H2OK
· Woodside signed a water agreement with the City of Ardmore,
Oklahoma to provide wastewater to H2OK and commenced engineering design work
for the water pipeline.
· Design optimisation and supporting technical work continued in
support of FID readiness.
· Woodside is evaluating the proposed US Federal Government tax
incentive criteria which was released for comment in December 2023.
Woodside Solar
· Received planning approvals and State and Federal environmental
approvals for the proposed Woodside Solar Project at the Maitland Industrial
Area.
· In December 2023, Woodside entered into a conditional agreement
under which a third party will develop the proposed solar facility and supply
renewable energy from the facility to Woodside.
· Woodside continues to progress commercial agreements, including
for power transmission, to support the proposed project.
CCS opportunities
· Commenced pre-FEED studies for the Angel carbon capture and
storage (CCS) opportunity in November 2023.
· In December 2023, Woodside announced it had entered into a
non-binding memorandum of understanding with four Japanese companies to enable
studies of potential CCS value chains between Japan and Australia.
Other renewables
· Completed FEED on the Capella project, a collaboration between
Woodside and Heliogen, in December 2023.
Corporate activities
Hedging
· As at the end of the period, Woodside hedged approximately 29.3
MMboe of 2024 production at an average price of approximately $75.7 per
barrel.
· 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 63% of 2024 and 17% of 2025 Corpus Christi volumes have been hedged.
· The realised value of hedged positions for the year ended 31
December 2023 is a pre-tax expense of approximately $306 million, with
$200 million pre-tax expense related to oil price hedges, $74 million pre-tax
expense related to Corpus Christi hedges and $32 million pre-tax expense
related to other hedge positions. Hedging losses will be included in "other
expenses" in the full-year financial statements.
2023 full-year results and teleconference
· Woodside's Annual Report 2023, Climate Transition Action Plan
2023 and associated investor briefing will be released to the market on
Tuesday, 27 February 2024, and will be available on Woodside's website at
http://www.woodside.com/ (http://www.woodside.com/) .
· A teleconference providing an overview of the full-year 2023
results and a question and answer session will be hosted by Woodside CEO and
Managing Director, Meg O'Neill, and Chief Financial Officer, Graham Tiver, on
Tuesday, 27 February 2024 at 10:00 AEDT / 07:00 AWST / 17:00 CST (Monday, 26
February 2024).
· We recommend participants pre-register 5 to 10 minutes prior to
the event with one of the following links:
o https://webcast.openbriefing.com/wds-fyr-2024/
(https://webcast.openbriefing.com/wds-fyr-2024/) to view the presentation and
listen to a live stream of the question and answer session
o https://s1.c-conf.com/diamondpass/10035979-fh876t.html
(https://s1.c-conf.com/diamondpass/10035979-fh876t.html) to participate in
the question and answer session. Following pre-registration, participants will
receive the teleconference details and a unique passcode.
Climate Transition Action Plan presentation
· Woodside will present its Climate Transition Action Plan 2023 to
investors on Tuesday, 12 March 2024.
· A webcast of the event will be available. Further details of the
event including the time and a link to the webcast will be provided prior to
the event.
Annual General Meeting
· Woodside's Annual General Meeting will be held at 10.00am (AWST)
on Wednesday 24 April 2024 in Perth, Western Australia. The closing date for
receipt of director nominations is 19 February 2024.
2024 full-year guidance
Production
· Woodside's full-year 2024 production guidance is 185 - 195 MMboe
(505 - 533 Mboe/day).
· The approximate split by product type is:
LNG ~45%
Pipeline gas ~20%
Crude and condensate ~30%
Natural gas liquids ~5%
Capital expenditure
· Woodside's full-year 2024 capital expenditure guidance is US$5.0
- 5.5 billion, assuming no change to current participating interests.
· The approximate split by activity area is:
Sangomar 7 (#_ftn7) ~10%
Scarborough 8 (#_ftn8) ~40%
Trion 9 (#_ftn9) ~15%
Other 10 (#_ftn10) ~35%
Gas hub exposure
· Woodside expects approximately 26 - 33% of its 2024 produced LNG
to be sold at prices linked to gas hub indices. 11 (#_ftn11)
Contacts:
INVESTORS MEDIA
Marcela Louzada Christine Forster
M: +61 456 994 243 M: +61 484 112 469
E: investor@woodside.com (mailto:investor@woodside.com) E: christine.forster@woodside.com
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
Production summary
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022 12 (#_ftn12)
AUSTRALIA
LNG
North West Shelf Mboe 7,798 6,590 9,564 32,807 29,696
Pluto 13 (#_ftn13) Mboe 12,407 12,261 12,124 45,587 46,236
Wheatstone Mboe 2,505 2,610 2,596 10,159 9,205
Total Mboe 22,710 21,461 24,284 88,553 85,137
Pipeline gas
Bass Strait Mboe 3,206 4,591 4,883 15,100 13,717
Other 14 (#_ftn14) Mboe 3,438 3,472 3,470 13,027 9,304
Total Mboe 6,644 8,063 8,353 28,127 23,021
Crude oil and condensate
North West Shelf Mbbl 1,359 1,278 1,711 5,867 5,371
Pluto(13) Mbbl 994 976 982 3,630 3,684
Wheatstone Mbbl 495 477 506 1,805 1,698
Bass Strait Mbbl 704 982 935 3,367 2,605
Macedon & Pyrenees Mbbl 653 688 692 2,731 1,517
Ngujima-Yin Mbbl 1,203 1,140 1,890 3,212 7,027
Okha Mbbl 616 608 598 2,076 2,120
Total Mboe 6,024 6,149 7,314 22,688 24,022
NGL2
North West Shelf Mbbl 275 276 307 1,182 1,040
Pluto(13) Mbbl 58 53 52 206 170
Bass Strait Mbbl 1,026 1,380 1,187 4,320 3,244
Total Mboe 1,359 1,709 1,546 5,708 4,454
Total Australia 15 (#_ftn15) Mboe 36,737 37,382 41,497 145,076 136,634
Mboe/day 399 406 451 397 374
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022 16 (#_ftn16)
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 314 350 409 1,343 750
Trinidad & Tobago Mboe 2,779 2,413 1,952 10,151 4,883
Other(17) Mboe - 17 - 47 -
Total Mboe 3,093 2,780 2,361 11,541 5,633
Crude oil and condensate
Atlantis Mbbl 2,763 2,714 3,229 10,965 5,473
Mad Dog Mbbl 2,054 2,188 1,165 6,808 2,414
Shenzi Mbbl 2,712 2,158 2,517 10,065 5,734
Trinidad & Tobago Mbbl 284 201 361 1,076 876
Other 17 (#_ftn17) Mbbl 81 36 81 237 189
Total Mboe 7,894 7,297 7,353 29,151 14,686
NGL4
Gulf of Mexico Mbbl 344 362 390 1,387 753
Other(17) Mbbl - 10 - 27 -
Total Mboe 344 372 390 1,414 753
Total International Mboe 11,331 10,449 10,104 42,106 21,072
Mboe/day 123 114 110 115 58
Total production Mboe 48,068 47,831 51,601 187,182 157,706
Mboe/day 522 520 561 513 432
Product sales
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022 18 (#_ftn18)
AUSTRALIA
LNG
North West Shelf Mboe 7,367 7,639 9,000 34,573 28,069
Pluto5 Mboe 12,130 12,622 12,189 45,654 44,578
Wheatstone 19 (#_ftn19) Mboe 2,473 2,541 2,360 9,676 9,243
Total Mboe 21,970 22,802 23,549 89,903 81,890
Pipeline gas
Bass Strait Mboe 3,341 4,506 4,725 15,042 13,483
Other Mboe 3,684 3,243 3,524 12,906 9,337
Total Mboe 7,025 7,749 8,249 27,948 22,820
Crude oil and condensate
North West Shelf 20 (#_ftn20) Mbbl 514 1,471 1,989 4,669 5,765
Pluto Mbbl 614 1,228 856 3,070 3,994
Wheatstone Mbbl 349 689 684 1,697 1,652
Bass Strait Mbbl 410 1,407 1,115 2,934 2,883
Ngujima-Yin Mbbl 1,352 708 1,753 3,201 7,027
Okha Mbbl 1 1,297 - 1,951 1,917
Macedon & Pyrenees Mbbl 1,054 1 1,142 2,605 1,644
Total Mboe 4,294 6,801 7,539 20,127 24,882
NGL7
North West Shelf Mbbl 253 263 228 941 929
Pluto Mbbl 49 32 - 336 -
Bass Strait Mbbl 1,370 959 672 4,341 2,884
Total Mboe 1,672 1,254 900 5,618 3,813
Total Australia Mboe 34,961 38,606 40,237 143,596 133,405
Three months ended Year to date
Dec Sep Dec Dec Dec 2022 21 (#_ftn21)
2023 2023 2022 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 357 321 343 1,362 684
Trinidad & Tobago Mboe 2,611 2,574 1,969 10,180 4,923
Other 22 (#_ftn22) Mboe 6 7 4 26 16
Total Mboe 2,974 2,902 2,316 11,568 5,623
Crude oil and condensate
Atlantis Mbbl 2,976 2,442 3,091 10,796 5,440
Mad Dog Mbbl 2,209 2,041 1,098 6,819 2,368
Shenzi Mbbl 2,716 2,123 2,245 10,164 5,599
Trinidad & Tobago Mbbl 316 242 130 1,219 777
Other(22) Mbbl 53 61 59 242 164
Total Mboe 8,270 6,909 6,623 29,240 14,348
NGL9
Gulf of Mexico Mbbl 435 379 422 1,519 822
Other(22) Mbbl 2 4 2 13 8
Total Mboe 437 383 424 1,532 830
Total International Mboe 11,681 10,194 9,363 42,340 20,801
MARKETING 23 (#_ftn23)
LNG Mboe 2,209 4,329 2,625 14,553 14,727
Liquids 24 (#_ftn24) Mboe 618 169 - 1,047 -
Total Mboe 2,827 4,498 2,625 15,600 14,727
Total Marketing Mboe 2,827 4,498 2,625 15,600 14,727
Total sales Mboe 49,469 53,298 52,225 201,536 168,933
Revenue (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec 2022 25 (#_ftn25)
2023 2023 2022 2023
AUSTRALIA
North West Shelf 509 575 1,260 3,021 3,500
Pluto 1,011 923 1,666 3,789 5,497
Wheatstone 26 (#_ftn26) 208 246 383 982 1,110
Bass Strait 225 379 363 1,143 1,251
Macedon 54 41 54 199 111
Ngujima-Yin 128 64 164 292 762
Okha - 103 - 159 191
Pyrenees 94 - 118 233 188
INTERNATIONAL
Atlantis 241 209 263 852 506
Mad Dog 178 170 87 532 212
Shenzi 217 178 188 794 520
Trinidad & Tobago 27 (#_ftn27) 103 17 112 368 321
Other 28 (#_ftn28) 4 5 6 18 16
Marketing revenue 29 (#_ftn29) 332 298 431 1,453 2,464
Total sales revenue 30 (#_ftn30) 3,304 3,208 5,095 13,835 16,649
Processing revenue 49 50 48 184 175
Shipping and other revenue 2 1 17 9 27
Total revenue 3,355 3,259 5,160 14,028 16,851
Realised prices
Three months ended Three months ended
Units Dec Sep Dec 2022 Units Dec Sep Dec 2022(25)
2023 2023 2023 2023
LNG produced 31 (#_ftn31) $/MMBtu 11.5 10.3 20.3 $/boe 74 65 128
LNG traded 32 (#_ftn32) $/MMBtu 11.9 8.2 24.2 $/boe 76 52 153
Pipeline gas $/boe 37 28 43
Oil and condensate $/bbl 82 82 82 $/boe 82 82 82
NGL $/bbl 24 45 36 $/boe 24 45 36
Liquids traded(32) $/bbl 85 72 - $/boe 85 72 -
Average realised price $/boe 67 60 98
Dated Brent $/bbl 84 87 89
JCC (lagged three months) $/bbl 83 84 113
WTI $/bbl 78 82 83
JKM $/MMBtu 15.0 10.9 38.6
TTF $/MMBtu 13.5 10.3 45.0
· Average realised price for pipeline gas was A$6.8/GJ in Western
Australia, A$13.4/GJ in east coast Australia and $4.4/Mcf for International in
Q4 2023. 33 (#_ftn33)
Expenditure (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022 34 (#_ftn34)
Exploration and evaluation expense
Exploration and evaluation expensed 108 123 239 364 454
Permit amortisation 2 3 3 9 11
Total 110 126 242 373 465
Capital expenditure
Exploration and evaluation capitalised 35 (#_ftn35) (,) 36 (#_ftn36) 43 3 8 175 119
Oil and gas properties 1,449 1,313 1,342 5,270 3,903
Other 37 (#_ftn37) 74 44 6 256 92
Total 1,566 1,360 1,356 5,701 4,114
Trading costs 181 265 260 1,068 1,777
Key project expenditure (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
Capital expenditure
Scarborough 38 (#_ftn38) 826 613 599 2,643 1,841
Sangomar 211 257 290 1,019 1,017
Trion 154 111 - 273 -
Exploration
· In the US Gulf of Mexico (GoM), Woodside was the highest bidder
on 18 leases in Lease Sale 261. The final award of these leases is pending
regulatory approval.
· Completed a transaction with Chevron in which Woodside acquired a
30% working interest in 11 Chevron operated leases in the central GoM. In
exchange, Chevron acquired a 25% working interest in seven Woodside operated
leases in western GoM.
Permits and licences
Key changes to permit and licence holding during the quarter ended 31 December
2023 are noted below.
Region Permits or licence areas Change in interest (%) Current interest (%) Remarks
GoM AT 409, AT 452, AT 453, AT 454, AT 228, AT 273, AT 274, AT 424, AT 425, AT 30% 30% Chevron transaction
469, AT 470
GoM AC 81, AC 82, AC 125, AC 126, AC 39, AC 127, AC 170 (25%) 45% Chevron transaction
GoM AC 39, AC 127, AC 170 (45%) 0% Leases expired
Canada (Liard basin) PNG- 61962, 63597 39 (#_ftn39) , 63686(39), 64444(39), 64446(39), 65569, (50%) 50% Liard transaction
65570, 65572, 65573, 65575, 65576, 65997, 66264, 66265, 66266, 66267, 66268,
66270, 66271, 67385, 67386, 67387, 67388, 67389, 67390, 67391, 67392, 67393
Seismic and geophysical survey activity
Region Field Permits or licence areas Remarks
Northern Carnarvon Basin / Exmouth Plateau Scarborough Petroleum titles WA-61-L and WA-62-L Acquisition completed of 4D seismic baseline survey, 1,648 km(2) Full Fold.
Production rates
Average daily production rates (100% project) for the quarter ended 31
December 2023:
Woodside Production rate Remarks
share 40 (#_ftn40)
(100% project, Mboe/d)
Dec Sep
2023 2023
AUSTRALIA
NWS Project
LNG 30.44% 278 238 Production was higher following completion of planned turnaround and
maintenance activities on the North Rankin Complex, Goodwyn Platform and the
Karratha Gas Plant in Q3 2023.
Crude oil and condensate 30.45% 46 46
NGL 30.49% 10 10
Pluto LNG
LNG 90.00% 119 123
Crude oil and condensate 90.00% 11 11
Pluto-KGP Interconnector
LNG 100.00% 28 22
Crude oil and condensate 100.00% 1 1
NGL 100.00% 1 1
Wheatstone 41 (#_ftn41)
LNG 11.77% 231 239
Crude oil and condensate 15.69% 34 31
Bass Strait
Pipeline gas 43.75% 80 105 Production was lower due to planned onshore and offshore maintenance works and
lower market demand during summer.
Crude oil and condensate 42.34% 18 23
NGL 46.04% 24 30
Australia Oil
Ngujima-Yin 60.00% 22 21
Okha 50.00% 13 13
Pyrenees 64.86% 11 12
Other
Pipeline gas25F 42 (#_ftn42) 37 38
Woodside Production rate Remarks
share 43 (#_ftn43)
(100% project, Mboe/d)
Dec 2023 Sep 2023
INTERNATIONAL
Atlantis
Crude oil and condensate 38.50% 78 77
NGL 38.50% 5 5
Pipeline Gas 38.50% 6 6
Mad Dog
Crude oil and condensate 20.86% 107 114
Production was lower due to planned downtime.
NGL 20.86% 4 4
Pipeline Gas 20.86% 2 2
Shenzi
Crude oil and condensate 64.39% 46 36
Production was higher following completion of planned maintenance in Q3 2023.
NGL 64.39% 2 2
Pipeline Gas 64.39% 1 1
Trinidad & Tobago
Crude oil and condensate 75.47% 44 (#_ftn44) 4 5
Pipeline gas 50.41%(44) 60 56
Disclaimer and important notice
Forward looking statements
This announcement 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', 'forecast', '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. The information and
statements in this announcement about Woodside's future strategy and other
forward-looking statements are not guidance, forecasts, guarantees or
predictions of future events or performance, but are in the nature of
aspirational targets that Woodside has set for itself and its management of
the business. 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; 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; approvals; 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, prevailing exchange rates and interest rates and
conditions in financial markets.
Details 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 London Stock Exchange, and in Woodside's
most recent Annual Report on Form 20-F filed with the U.S. 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 announcement.
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 announcement.
All forward-looking statements contained in this announcement reflect
Woodside's views held as at the date of this announcement 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 announcement, 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.
All figures are Woodside share for the quarter ending 31 December 2023, unless
otherwise stated.
All references to dollars, cents or $ in this presentation are to US currency,
unless otherwise stated.
References to "Woodside" may be references to Woodside Energy Group Ltd or its
applicable subsidiaries.
Other conversion factors
Product Unit Conversion factor 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
Natural gas 5,700 scf 1 boe
Condensate 1 bbl 1 boe
Oil 1 bbl 1 boe
Natural gas liquids (NGL) 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.
1 (#_ftnref1) The completion % excludes the Pluto Train 1 modifications
project.
2 (#_ftnref2) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
3 (#_ftnref3) Q4 2023 includes 0.32 MMboe, Q3 2023 includes 0.26 MMboe and
Q4 2022 includes 0.31 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
4 (#_ftnref4) See "Woodside and Mexico Pacific sign LNG supply agreement"
announced 6 December 2023.
5 (#_ftnref5) See "Australian crewing of Woodside LNG vessel" released 13
December 2023.
6 (#_ftnref6) Pilgangoora Operations Pty Ltd is a 100%-owned subsidiary of
Pilbara Minerals. See "Woodside signs domestic LNG supply agreement with
Pilbara Minerals" released 21 December 2023.
7 (#_ftnref7) Sangomar at 82% participating interest.
8 (#_ftnref8) Scarborough at 90% participating interest; Pluto Train 2 at
51% participating interest.
9 (#_ftnref9) Trion at 60% participating interest. Capital expenditure
includes Pemex carry.
10 (#_ftnref10) Other includes expenditure for new energy.
11 (#_ftnref11) Gas hub indices include Japan Korea Marker (JKM), TTF and
National Balancing Point (NBP). It excludes HH.
12 (#_ftnref12) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
13 (#_ftnref13) Q4 2023 includes 2.56 MMboe of LNG, 0.1 MMboe of condensate
and 0.06 MMboe of NGL, Q3 2023 includes 2.07 MMboe of LNG, 0.08 MMboe of
condensate and 0.05 MMboe of NGL and Q4 2022 includes 2.39 MMboe of LNG and
0.10 MMboe of condensate and 0.05 MMboe of NGL processed at the Karratha Gas
Plant (KGP) through the Pluto-KGP Interconnector.
14 (#_ftnref14) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
15 (#_ftnref15) Q4 2023 includes 0.32 MMboe, Q3 2023 includes 0.26 MMboe and
Q4 2022 includes 0.31 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
16 (#_ftnref16) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
17 (#_ftnref17) Overriding royalty interests held in the Gulf of Mexico
(GoM) for several producing wells.
18 (#_ftnref18) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
19 (#_ftnref19) Includes periodic adjustments reflecting the arrangements
governing Wheatstone LNG sales of 0.10 MMboe in Q4 2023, 0.16 MMboe in Q3 2023
and 0.03 MMboe in Q4 2022.
20 (#_ftnref20) Includes reclassification of purchased condensate volumes
from NWS JV Participants to Marketing liquids of 16.9 MMboe in Q3 2023 and 26
MMboe in Q2 2023.
21 (#_ftnref21) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
22 (#_ftnref22) Overriding royalty interests held in the GoM for several
producing wells.
23 (#_ftnref23) Purchased volumes sourced from third parties.
24 (#_ftnref24) Includes reclassification of purchased condensate volumes
from NWS JV Participants of 16.9 MMboe in Q3 2023 and 26 MMboe in Q2 2023.
25 (#_ftnref25) December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
26 (#_ftnref26) Q4 2023 includes $9 million, Q3 2023 includes $11 million
and Q4 2022 includes $2 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.
27 (#_ftnref27) Includes the impact of periodic adjustments related to the
production sharing contract (PSC).
28 (#_ftnref28) Overriding royalty interests held in the GoM for several
producing wells.
29 (#_ftnref29) 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. Hedging impacts are excluded.
30 (#_ftnref30) Total sales revenue excludes all hedging impacts.
31 (#_ftnref31) Realised prices include the impact of periodic adjustments
reflecting the arrangements governing Wheatstone LNG sales.
32 (#_ftnref32) Excludes any additional benefit attributed to produced
volumes through third-party trading activities.
33 (#_ftnref33) Average realised price for International excludes the impact
of periodic adjustments related to the PSC in Trinidad.
34 (#_ftnref34) December 2022 reflects the expenditure relating to interests
acquired as part of the merger with BHP's petroleum business
from 1 June 2022.
35 (#_ftnref35) 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.
36 (#_ftnref36) 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.
37 (#_ftnref37) Other primarily incorporates corporate spend including SAP
build costs, carbon costs and other investments.
38 (#_ftnref38) Scarborough key project expenditure includes Scarborough
offshore, Pluto Train 2, Pluto Train 1 modifications and Train 2 tie-in spend.
Prior period comparatives have been restated to include Pluto Train 1
modifications and Train 2 tie-in spend of $20 million in Q4 2022 and
$72 million in YTD Q4 2022.
39 (#_ftnref39) Pending title transfer
40 (#_ftnref40) Woodside share reflects the net realised interest for the
period.
41 (#_ftnref41) 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.
42 (#_ftnref42) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
43 (#_ftnref43) Woodside share reflects the net realised interest for the
period.
44 (#_ftnref44) Operations governed by production sharing contracts,
Woodside share changes monthly.
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