REG - Woodside Energy Grp. - Second Quarter 2024 Report
23/07/2024 07:00
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RNS Number : 4340X Woodside Energy Group Ltd 23 July 2024
SECOND QUARTER REPORT FOR PERIOD ENDED 30 JUNE 2024
ASX: WDS | NYSE: WDS | LSE: WDS
Tuesday, 23 July 2024
Delivering on our growth strategy
Operations
· Quarterly production of 44.4 MMboe (488 Mboe/day), down 1% from
Q1 2024 due to planned maintenance activities, weather impacts at North West
Shelf and unplanned outages at Wheatstone and Julimar, partly offset by higher
seasonal demand at Bass Strait and first oil at Sangomar. Full year production
guidance remains unchanged.
· Quarterly revenue of $3,033 million, up 2% from Q1 2024 primarily
due to timing of Pluto cargoes partially offset by lower realised prices.
· Sold 22% of total equity production in the quarter on prices
linked to gas hub indices. 1 (#_ftn1) Full year gas hub guidance remains
unchanged.
Projects
· The Sangomar Project achieved first oil in June and production
continues to ramp up as planned. Subsequent to the quarter, the first cargo
was loaded for delivery to Europe.
· The Scarborough Energy Project was 67% complete at the end of the
quarter, with first LNG cargo expected in 2026.(( 2 (#_ftn2) ))
· The total estimated cost of the Scarborough Energy Project has
increased by 4% to US$12.5 billion (US$8.2 billion Woodside share),
significantly driven by scope maturation of the Pluto Train 1 modifications
project.(( 3 (#_ftn3) ))
· The Trion Project continued to progress engineering, procurement,
and contracting activities in accordance with the execution plan.
· Secured all primary environmental approvals for the Hydrogen
Refueller @H2Perth and progressed offtake discussions for the H2OK Project.
Other
· Signed a sale and purchase agreement (SPA) with CPC Corporation,
Taiwan (CPC) for the long-term supply of LNG to Taiwan.
· Secured $1 billion funding from Japan Bank for International
Cooperation (JBIC) for the Scarborough Energy Project.
· Subsequent to the quarter, Woodside entered into a definitive
agreement to acquire Tellurian and its US Gulf Coast Driftwood LNG development
opportunity for an all-cash payment of approximately $900 million.
Woodside CEO Meg O'Neill said the company is on track to achieve its full year
production guidance of 185-195 million barrels of oil equivalent (MMboe), with
output for the second quarter of 44.4 MMboe.
"The first oil from our Sangomar project offshore Senegal was a significant
milestone, delivering against our growth strategy. Subsequent to the quarter,
we achieved peak gross rate of 75,000 barrels per day and production ramp-up
continues as planned.
"The addition of Sangomar to Woodside's portfolio will deliver enduring
shareholder value and significant economic benefits for Senegal.
"Work on our other major growth projects continued at pace. The Scarborough
Energy Project in Western Australia is now more than two-thirds complete and
we remain on target for first LNG cargo in 2026.
"We are also progressing our opportunities in new energy, securing all primary
environmental approvals for the Hydrogen Refueller @H2Perth, while continuing
offtake discussions for H2OK in the US.
"We see ongoing demand for Woodside's LNG in Asian markets, as evidenced by
our long-term sale and purchase agreement with CPC Corporation, Taiwan, and
the $1 billion loan agreement executed with JBIC to fund Woodside's
Scarborough Energy Project.
"The recent announcement of an agreement to acquire Tellurian and Driftwood
LNG positions Woodside to be a global LNG powerhouse, adding scalable US LNG
development exposure to our portfolio," she said.
Comparative performance at a glance
Q2 Q1 Change % Q2 Change % YTD YTD Change %
2024 2024 2023 2024 2023
Revenue $ million 3,033 2,969 2% 3,084 (2%) 6,002 7,414 (19%)
Production 4 (#_ftn4) MMboe 44.4 44.9 (1%) 44.5 - 89.3 91.3 (2%)
Gas MMscf/d 1,885 1,929 (2%) 1,905 (1%) 1,907 1,999 (5%)
Liquids Mbbl/d 157 155 1% 155 1% 156 154 1%
Total Mboe/d 488 494 (1%) 489 - 491 504 (3%)
Sales MMboe 48.0 45.9 5% 48.4 (1%) 93.9 98.8 (5%)
Gas MMscf/d 2,103 1,967 7% 2,170 (3%) 2,035 2,268 (10%)
Liquids Mbbl/d 159 159 - 151 5% 159 148 7%
Total Mboe/d 528 504 5% 532 (1%) 516 546 (5%)
Average realised price $/boe 62 63 (2%) 63 (2%) 63 74 (15%)
Capital expenditure 5 (#_ftn5) $ million 1,233 1,179 5% 1,321 (7%) 2,412 2,637 (9%)
Operations
North West Shelf (NWS) Project
· Achieved strong quarterly LNG reliability of 99.7%.
· Successfully completed planned offshore maintenance at Goodwyn
Alpha (GWA).
· Progressed the proposed GWA infill development for potential
final investment decision (FID) in 2025, which would involve tying back
several fields via existing GWA subsea infrastructure.
Pluto LNG
· Achieved quarterly LNG reliability of 97.7%.
· Successfully completed a two-day turnaround at Pluto LNG to
enable integration testing of the produced water handling unit into the Pluto
A platform.
· Increased Pluto domestic gas production through the Pluto-KGP
interconnector at the NWS.
Wheatstone and Julimar-Brunello
· Two separate unplanned outages occurred in the quarter, impacting
the Julimar subsea production system and the Wheatstone facility respectively.
Full production resumed in the quarter.
Bass Strait
· Completed offshore installation of the Kipper Compression
modules, with the project progressing hook-up activities for a planned
start-up in Q3 2024.
· The Gippsland Basin Joint Venture (GBJV) continues to optimise
its facilities through the Gippsland Asset Streamlining project with the
Halibut platform ceasing production as planned following declining oil
production from the facility.
Other
Australia
· Successfully completed the planned five-yearly maintenance
turnaround at the Pyrenees floating production storage and offloading (FPSO)
facility.
· A produced-water leak identified in the subsea system at the
Pyrenees facility in January was rectified and production recommenced,
returning to normal rates this quarter.
Gulf of Mexico
· Achieved quarterly reliability of 98.9% at Shenzi.
· Executed a planned major offshore facility turnaround at
Atlantis.
· Achieved first water injection at the Argos platform in April
2024.
Trinidad & Tobago
· Safely completed a planned facility maintenance turnaround in
June 2024 aimed at proactive risk and integrity management and control system
upgrades.
Marketing
· Signed a long-term LNG SPA with CPC
(https://www.woodside.com/docs/default-source/about-us-documents/woodside-and-cpc-sign-agreement-for-long-term-lng-supply.pdf?sfvrsn=667cd731_1)
for the supply of approximately 6 million tonnes of LNG on a delivered basis
over 10 years, commencing in July 2024. LNG delivered under the SPA will be
sourced from volumes across Woodside's global portfolio.
· Sold 45% of produced LNG at prices linked to gas hub indices in
the quarter (34% year to date). This represents 22% of Woodside's total equity
production (16% year to date). Full year gas hub guidance remains unchanged.
· Took delivery of a new 174,000m(3) long-term charter LNG vessel,
the Woodside Scarlet Ibis, which will support efforts to lower the carbon
intensity of Woodside's LNG deliveries.
· Executed 14 PJ of Western Australian gas sales for delivery from
May to the end of 2024. Woodside continues to support the Western Australian
domestic market by offering additional supply for 2025, 2026 and 2027.
· Achieved record trucked LNG deliveries of 525 TJ during the
quarter to customers in northern Western Australia. Woodside has now delivered
more than 2000 trailers of LNG since commencement of operations at the Pluto
LNG Truck Loading Facility, offering a lower-carbon alternative to
diesel.(( 6 (#_ftn6) ))
Projects
Scarborough Energy Project
· A cost and schedule review was performed for the integrated
Scarborough Energy Project. The schedule remains unchanged, with first LNG
cargo targeted for 2026. The revised total project cost estimate is US$12.5
billion (US$8.2 billion Woodside share), a 4% increase from the previous cost
estimate at FID of US$12 billion. The cost increase is significantly driven by
scope maturation of the Pluto Train 1 modifications project.(( 7 (#_ftn7) ))
· The Scarborough and Pluto Train 2 project was 67% complete at the
end of the quarter.
· 29 Pluto Train 2 modules have been delivered to site, with 25
modules set in position at the end of the quarter and site works continuing to
ramp up.
· Fabrication of the floating production unit (FPU) hull and
topsides progressed. The living quarters module was installed on the topsides,
which has achieved structural completion.
· Trunkline installation has transitioned from the 36" to 32" pipe
and is now more than 50% complete.
· Two development wells have been drilled, with one well completed
and the other planned to be completed in H2 2024. Reservoir quality is aligned
with pre-drill estimates.
· Installation and testing of the three flowlines was completed.
· All major engineering reviews for Pluto Train 1 modifications
have been completed and approximately 80% of materials and equipment have been
ordered. Mobilisation of personnel to both the module yard and Pluto site
commenced.
Sangomar Field Development Phase 1
· Achieved first oil
(https://www.woodside.com/docs/default-source/asx-announcements/2024/woodside-achieves-first-oil-at-sangomar-in-senegal.pdf?sfvrsn=8938bc4_1)
from the Sangomar field in June 2024, marking the delivery of Senegal's first
offshore oil project.
· Finalised sales for initial Sangomar crude cargoes loading in
July 2024, receiving interest from European and Asian refiners. The first
cargo was loaded subsequent to the quarter.
· The project was 98% complete at the end of the quarter.
· The development drilling program continued with 21 of 23 wells
drilled and completed. An additional 24th well approved by the joint venture
in May 2023 was also drilled and completed in the period.
· Commissioning activities and the safe ramp up of production are
expected to continue through 2024.
Trion
· Awarded contracts for the FPU dry transportation, gas gathering
line pipe and drilling equipment and consumables.
· Progressed FPU engineering, procurement and construction
activities with procurement of key equipment and the integration of vendor
data into the design.
· Completed floating, storage and offloading vessel (FSO) front-end
engineering design (FEED).
Decommissioning
· The Griffin, Stybarrow and Enfield decommissioning campaign
continued with ~50km of flexible flowlines and umbilicals recovered in the
quarter.
· The final two of 18 xmas trees were removed from Enfield and
wellhead severance commenced, with four completed at the end of the quarter.
· At Bass Strait, offshore execution of the plug and abandonment of
two subsea wells commenced, utilising the Q7000 light well intervention
vessel.
· The GBJV also progressed FEED of the facility preparation scope
for removal of platforms no longer in use and continued to execute preparatory
decommissioning activities.
Exploration and development
Calypso
· Continued pre-FEED engineering studies to mature the technical
definition and cost estimate for the deepwater infield host.
· Continued fiscal and marketing negotiations with various
counterparties to assess the commercial options to monetise the Calypso
resource.
Browse
· In June 2024, a Declaration of an Identified Greenhouse Gas
Storage Formation was made by the Commonwealth Government over the Calliance
Storage Formation within the G-8-AP Greenhouse Gas Assessment Permit (held by
Woodside as Operator of Browse). This declaration supports the proposed carbon
capture and storage solution incorporated into the Browse design.
Sunrise
· The Sunrise Joint Venture participants continued to work with the
Australian and Timor Leste governments to progress a new Production Sharing
Contract, Petroleum Mining Code and fiscal regime.
Exploration
· In Congo, the Niamou Marine-1 well spud in May 2024 under the
Marine XX joint venture operated by TotalEnergies.
New energy and carbon solutions
H2OK
· Continued to advance discussions with potential offtakers on
pricing and volumes.
· Woodside is awaiting final guidance for the 45V Clean Hydrogen
Production Tax Credit.
Woodside Solar
· Working with the Western Australian Government to progress its
plans to develop common user transmission infrastructure required to support
the proposed project.
· FID readiness and first solar import will be subject to securing
access to this new infrastructure.
Hydrogen Refueller @H2Perth
· Secured primary environmental approvals for the Hydrogen
Refueller @H2Perth.
· Commenced factory acceptance testing for key project equipment
packages.
· Woodside is targeting supply of hydrogen to Western Australian
industrial customers in 2025.
Carbon capture and storage (CCS) opportunities
· Continued to progress engineering and marketing activities and
required approvals for the Angel CCS project.
Carbon Credits Portfolio
· Subsequent to the quarter, Woodside signed an agreement to fund
the reforestation of 5000 hectares of land in the Chaco region in Paraguay.
The Woodside portion of the project is expected to generate approximately 1.6
million carbon credits over 40 years.
Corporate activities
Hedging
· Woodside hedged approximately 29.3 MMboe of 2024 oil production
at an average price of approximately $75.6 per barrel, with approximately 49%
delivered as of 30 June 2024.
· Woodside additionally hedged approximately 15 MMboe of 2025 oil
production at an average price of approximately $81.2 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.
Approximately 70% of volumes for the remainder of 2024, 48% of 2025 and 9% of
2026 volumes have been hedged.
· The realised value of all hedged positions for the half-year
ended 30 June 2024 is a pre-tax expense of approximately $45 million, with
$111 million related to oil price hedges offset by $65 million profit related
to Corpus Christi hedges and $1 million related to other hedge positions.
Hedging losses will be included in "other expenses" in the full-year financial
statements.
Funding
· In May 2024, Woodside secured a $1 billion, 10-year loan from
JBIC
(https://www.woodside.com/docs/default-source/media-releases/jbic-loan-agreement-to-support-scarborough-energy-project.pdf?sfvrsn=f4d68069_6)
to support the Scarborough Energy Project. This loan was secured at prevailing
market rates associated with Woodside's credit rating.
Climate and sustainability
· Woodside's Annual General Meeting (AGM) took place on 24 April
2024, where all resolutions were passed except for the Climate Transition
Action Plan and 2023 Progress Report (CTAP), which received a vote of 58.36%
against it. Management is reflecting on the results of the CTAP vote.
· Woodside published its 2023 Social Contribution Impact Report
(https://www.woodside.com/docs/default-source/media-releases/media-release---2023-social-contribution-impact-report.pdf?sfvrsn=d9959a9b_5)
in April 2024 and its 2023 Modern Slavery Statement
(https://www.woodside.com/assets/static/pdfs/Woodside-Energy-Group-Ltd-Modern-Slavery-Statement-2023.pdf)
in June 2024.
· Woodside hosted a methane masterclass during the Australian
Energy Producers (AEP) conference as part of its commitment to the
decarbonisation of its activities and to share Woodside's best practices on
methane emissions reduction.
2024 half-year results and teleconference
· Woodside's Half-Year Report 2024 and associated investor briefing
will be released to the market on Tuesday, 27 August 2024. It will also be
available on Woodside's website at http://www.woodside.com/
(http://www.woodside.com/) .
Upcoming events 2024
August 27 Half-Year 2024 report
September 16 US investor event
October 16 Third quarter 2024 report
2024 full-year guidance
Prior Current
Production MMboe 185 - 195 No change
(505 - 533 Mboe/day)
Capital expenditure(( 8 (#_ftn8) )) $ billion 5.0 - 5.5 No change
Gas hub exposure(( 9 (#_ftn9) )) % 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 (mailto:christine.forster@woodside.com) Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T+61 8 9348 4000
www.woodside.com (http://www.woodside.com)
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
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 (mailto:christine.forster@woodside.com) Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com (http://www.woodside.com)
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
Production summary
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
Gas MMscf/d 1,885 1,929 1,905 1,907 1,999
Liquids Mbbl/d 157 155 155 156 154
Total Mboe/d 488 494 489 491 504
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
AUSTRALIA
LNG
North West Shelf Mboe 7,088 8,192 8,746 15,280 18,419
Pluto 10 (#_ftn10) Mboe 11,726 11,754 8,765 23,480 20,919
Wheatstone Mboe 1,959 2,357 2,588 4,316 5,044
Total Mboe 20,773 22,303 20,099 43,076 44,382
Pipeline gas
Bass Strait Mboe 3,410 2,359 4,170 5,769 7,303
Other 11 (#_ftn11) Mboe 3,848 3,278 3,080 7,126 6,117
Total Mboe 7,258 5,637 7,250 12,895 13,420
Crude oil and condensate
North West Shelf Mbbl 1,260 1,412 1,546 2,672 3,230
Pluto(10) Mbbl 933 931 699 1,864 1,660
Wheatstone Mbbl 380 462 425 842 833
Bass Strait Mbbl 503 492 904 995 1,681
Macedon & Pyrenees Mbbl 107 109 759 216 1,390
Ngujima-Yin Mbbl 974 886 - 1,860 869
Okha Mbbl 491 466 421 957 852
Total Mboe 4,648 4,758 4,754 9,406 10,515
NGL
North West Shelf Mbbl 279 290 339 569 631
Pluto(10) Mbbl 59 54 45 113 95
Bass Strait Mbbl 941 832 1,191 1,773 1,914
Total Mboe 1,279 1,176 1,575 2,455 2,640
Total Australia 12 (#_ftn12) Mboe 33,958 33,874 33,678 67,832 70,957
Mboe/d 373 372 370 373 39
2
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 324 360 349 684 679
Trinidad & Tobago Mboe 1,736 2,503 2,723 4,239 4,959
Other 13 (#_ftn13) Mboe - - - - 30
Total Mboe 2,060 2,863 3,072 4,923 5,668
Crude oil and condensate
Atlantis Mbbl 2,019 2,441 2,792 4,460 5,488
Mad Dog Mbbl 2,944 2,765 1,627 5,709 2,566
Shenzi Mbbl 2,333 2,405 2,599 4,738 5,195
Trinidad & Tobago Mbbl 94 126 294 220 591
Sangomar Mbbl 540 - - 540 -
Other(13) Mbbl 81 81 81 162 120
Total Mboe 8,011 7,818 7,393 15,829 13,960
NGL
Gulf of Mexico Mbbl 355 393 350 748 681
Other(13) Mbbl - - - - 17
Total Mboe 355 393 350 748 698
Total International Mboe 10,426 11,074 10,815 21,500 20,326
Mboe/d 115 122 119 118 112
Total production Mboe 44,384 44,948 44,493 89,332 91,283
Mboe/d 488 494 489 491 504
Product sales
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
Gas MMscf/d 2,103 1,967 2,170 2,035 2,268
Liquids Mbbl/d 159 159 151 159 148
Total Mboe/d 528 504 532 516 546
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
AUSTRALIA
LNG
North West Shelf Mboe 7,081 8,008 9,003 15,089 19,567
Pluto5 Mboe 12,749 10,513 9,592 23,262 20,902
Wheatstone 14 (#_ftn14) Mboe 2,264 2,589 2,312 4,853 4,662
Total Mboe 22,094 21,110 20,907 43,204 45,131
Pipeline gas
Bass Strait Mboe 3,508 2,570 4,113 6,078 7,195
Other 15 (#_ftn15) Mboe 3,435 2,894 3,040 6,329 5,979
Total Mboe 6,943 5,464 7,153 12,407 13,174
Crude oil and condensate
North West Shelf 16 (#_ftn16) Mbbl 1,904 1,214 1,595 3,118 2,684
Pluto Mbbl 1,283 640 614 1,923 1,228
Wheatstone Mbbl 666 329 309 995 659
Bass Strait Mbbl 271 597 1,035 868 1,117
Ngujima-Yin Mbbl 1,018 999 - 2,017 1,141
Okha Mbbl 572 618 - 1,190 653
Macedon & Pyrenees Mbbl - 496 1,032 496 1,550
Total Mboe 5,714 4,893 4,585 10,607 9,032
NGL
North West Shelf Mbbl 266 255 255 521 425
Pluto Mbbl 49 55 73 104 255
Bass Strait Mbbl 361 785 903 1,146 2,012
Total Mboe 676 1,095 1,231 1,771 2,692
Total Australia Mboe 35,427 32,562 33,876 67,989 70,029
Mboe/d 389 358 372 374 387
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 336 286 341 622 684
Trinidad & Tobago Mboe 1,606 2,457 2,700 4,063 4,995
Other 17 (#_ftn17) Mboe 5 6 6 11 13
Total Mboe 1,947 2,749 3,047 4,696 5,692
Crude oil and condensate
Atlantis Mbbl 2,013 2,426 2,710 4,439 5,378
Mad Dog Mbbl 3,043 2,626 1,628 5,669 2,569
Shenzi Mbbl 2,430 2,352 2,652 4,782 5,325
Trinidad & Tobago Mbbl 19 52 248 71 661
Sangomar Mbbl - - - - -
Other(17) Mbbl 59 60 65 119 128
Total Mboe 7,564 7,516 7,303 15,080 14,061
NGL
Gulf of Mexico Mbbl 454 413 363 867 705
Other(17) Mbbl 3 3 3 6 7
Total Mboe 457 416 366 873 712
Total International Mboe 9,968 10,681 10,716 20,649 20,465
Mboe/d 110 117 118 113 113
MARKETING(( 18 (#_ftn18) ))
LNG Mboe 2,593 2,086 3,532 4,679 8,015
Liquids 19 (#_ftn19) Mboe 37 571 260 608 260
Total Mboe 2,630 2,657 3,792 5,287 8,275
Total Marketing Mboe 2,630 2,657 3,792 5,287 8,275
Total sales Mboe 48,025 45,900 48,384 93,925 98,769
Mboe/d 528 504 532 516 546
Revenue
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
AUSTRALIA
North West Shelf 524 592 667 1,116 1,937
Pluto 891 745 724 1,636 1,855
Wheatstone 20 (#_ftn20) 202 223 204 425 528
Bass Strait 247 223 328 470 539
Macedon 48 51 53 99 104
Ngujima-Yin 91 92 - 183 100
Okha 46 50 - 96 56
Pyrenees - 44 89 44 139
INTERNATIONAL
Atlantis 168 196 203 364 402
Mad Dog 249 204 116 453 184
Shenzi 205 190 200 395 399
Trinidad & Tobago 21 (#_ftn21) 38 61 112 99 248
Sangomar - - - - -
Other 22 (#_ftn22) 5 5 4 10 9
Marketing revenue(( 23 (#_ftn23) )) 265 227 344 492 823
Total sales revenue(( 24 (#_ftn24) )) 2,979 2,903 3,044 5,882 7,323
Processing revenue 52 61 38 113 85
Shipping and other revenue 2 5 2 7 6
Total revenue 3,033 2,969 3,084 6,002 7,414
Realised prices
Units Q2 Q1 Q2 Units Q2 Q1 Q2
2024 2024 2023 2024 2024 2023
LNG produced 25 (#_ftn25) $/MMBtu 9.6 10.4 10.9 $/boe 60 67 69
LNG traded 26 (#_ftn26) $/MMBtu 9.1 9.1 11.0 $/boe 58 59 70
Pipeline gas $/boe 38 34 37
Oil and condensate $/bbl 83 79 75 $/boe 83 79 75
NGL $/bbl 44 47 41 $/boe 44 47 41
Liquids traded(26) $/bbl 79 60 70 $/boe 79 60 70
Average realised price for pipeline gas:
Western Australia A$/GJ 6.5 6.4 6.1
East coast Australia A$/GJ 14.3 13.7 12.6
International $/Mcf 3.9 4.6 6.7
Average realised price $/boe 62 63 63
Dated Brent $/bbl 85 83 78
JCC (lagged three months) $/bbl 84 92 87
WTI $/bbl 81 77 74
JKM $/MMBtu 9.6 11.9 12.6
TTF $/MMBtu 9.2 9.8 12.6
Average realised price decreased 2% from the prior quarter reflecting lower
JKM, TTF and JCC.
Capital expenditure (US$ million)
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
Exploration and evaluation capitalised 27 (#_ftn27) (,) 28 (#_ftn28) 38 38 92 76 129
Oil and gas properties 1,135 1,090 1,229 2,225 2,508
Other 29 (#_ftn29) 60 51 51 111 138
Total 1,233 1,179 1,372 2,412 2,775
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
Sangomar 206 210 272 416 551
Scarborough 563 574 578 1,137 1,204
Trion 137 97 - 234 -
Other 327 298 522 625 1,020
Total 1,233 1,179 1,372 2,412 2,775
Other expenditure (US$ million)
Q2 Q1 Q2 YTD YTD
2024 2024 2023 2024 2023
Exploration and evaluation expensed 30 (#_ftn30) 46 54 81 100 133
Permit amortisation 3 3 2 6 4
Total 49 57 83 106 137
Trading costs 128 145 237 273 622
Exploration or appraisal wells drilled
Region Permit Area Well Target Interest (%) Spud Date Water depth (m) Planned well depth (m)(( 31 (#_ftn31) )) Remarks
Congo Marine XX Niamou Marine 1 Oil 22.5% 24 May 2024 2,094 7,015 Drilling
Non-Operator
Permits and licences
Key changes to permit and licence holdings during the quarter ended 30 June
2024 are noted below.
Region Permits or licence areas Change in interest (%) Current interest (%) Remarks
Australia WA-356-P (65%) 0 License exit as part of portfolio optimisation
Gulf of Mexico GC 738 (23.9%) 0 License expiry
Egypt - Herodotus Basin North Sidi Barani Offshore (Block 2) (27%) 0 License expiry
Production rates
Average daily production rates (100% project) for the quarter ended 30 June
2024:
Woodside Production rate Remarks
share(( 32 (#_ftn32) ))
(100% project, Mboe/d)
June Mar
2024 2024
AUSTRALIA
NWS Project
LNG 30.37% 256 293 Production was lower due to weather event impacts and planned offshore
maintenance at Goodwyn Alpha.
Crude oil and condensate 30.21% 46 56
NGL 30.44% 10 10
Pluto LNG
LNG 90.00% 116 112 Production was higher primarily due to improved reliability.
Crude oil and condensate 90.00% 10 10
Pluto-KGP Interconnector
LNG 100.00% 24 29 LNG production lower due to increased domestic gas production.
Crude oil and condensate 100.00% 1 1
NGL 100.00% 1 1
Wheatstone(( 33 (#_ftn33) ))
LNG 10.18% 212 224 Production was lower due to two separate unplanned outages, impacting the
Julimar subsea system and the Wheatstone facility respectively.
Crude oil and condensate 13.85% 30 31
Bass Strait
Pipeline gas 43.70% 86 61 Production was higher due to increased seasonal domestic gas demand.
Crude oil and condensate 46.17% 12 12
NGL 47.13% 23 19
Australia Oil
Ngujima-Yin 60.00% 18 13 Production at Ngujima-Yin and Okha was higher due to less weather downtime.
Production at Pyrenees was low due to a subsea produced-water leak and the
planned turnaround.
Okha 50.00% 11 8
Pyrenees 62.90% 2 2
Other
Pipeline gas25F 34 (#_ftn34) 42 33 Production was higher due to increased pipeline gas deliveries from KGP,
including from Pluto via the Pluto-KGP Interconnector.
Woodside Production rate Remarks
share(( 35 (#_ftn35) ))
(100% project, Mboe/d)
June Mar
2024 2024
INTERNATIONAL
Atlantis
Crude oil and condensate 38.50% 58 70 Production was lower due to the planned turnaround.
NGL 38.50% 4 4
Pipeline Gas 38.50% 5 6
Mad Dog
Crude oil and condensate 20.86% 155 146
NGL 20.86% 5 5
Pipeline Gas 20.86% 3 3
Shenzi
Crude oil and condensate 65.09% 39 41
NGL 65.20% 2 2
Pipeline Gas 65.19% 1 2
Trinidad & Tobago
Crude oil and condensate 58.75%(( 36 (#_ftn36) )) 2 2 Production was lower due to planned maintenance activities.
Pipeline gas 48.90%(36) 39 54
Sangomar
Crude Oil 37 (#_ftn37) 78.74% 8 - Field achieved first oil in June.
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
conflicts in Ukraine and the Middle East) 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 30 June 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
GJ gigajoule
Mbbl thousand barrels
Mbbl/d thousand barrels per day
Mboe thousand barrels of oil equivalent
Mboe/d thousand barrels of oil equivalent per day
Mcf thousand cubic feet of gas
MMboe million barrels of oil equivalent
MMBtu million British thermal units
MMscf/d million standard cubic feet of gas per day
PJ petajoules
scf standard cubic feet of gas
TJ terajoule
1 (#_ftnref1) 45% of produced LNG cargoes in the quarter were sold on prices
linked to gas hub indices.
2 (#_ftnref2) The completion % excludes the Pluto Train 1 modifications
project.
3 (#_ftnref3) The total project cost includes the cost for the Scarborough
project, the Pluto Train 2 project and the Pluto Train 1 modifications
project. Refer to page 3 for additional information.
4 (#_ftnref4) Q2 2024 includes 0.30 MMboe, Q1 2024 includes 0.29 MMboe and
Q2 2023 includes 0.23 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
5 (#_ftnref5) Includes capital additions on oil and gas properties,
exploration and evaluation capitalised and other corporate spend.
6 (#_ftnref6) Woodside uses this term to describe the characteristic of
having lower levels of associated potential greenhouse gas emissions when
compared to historical and/or current conventions or analogues, for example
relating to an otherwise similar product.
7 (#_ftnref7) The total project cost includes the cost for the Scarborough
project, the Pluto Train 2 project and the Pluto Train 1 modifications
project. Woodside share is based on a participating interest in the
Scarborough Joint Venture (SJV) of 74.9% (compared to 73.5% at FID) and
assumes completion of the sell-down of a 15.1% participating interest in the
SJV to JERA. Woodside share excludes the impact of GIP's additional
contribution to Pluto Train 2 ($0.8 billion).
8 (#_ftnref8) 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 future asset sell-downs, acquisitions or other
changes in equity.
9 (#_ftnref9) Gas hub indices include Japan Korea Marker (JKM), TTF and
National Balancing Point (NBP). It excludes HH.
10 (#_ftnref10) Q2 2024 includes 2.18 MMboe of LNG, 0.10 MMboe of condensate
and 0.06 MMboe of NGL, Q1 2024 includes 2.60 MMboe of LNG, 0.10 MMboe of
condensate and 0.05 MMboe of NGL and Q2 2023 includes 1.96 MMboe of LNG and
0.08 MMboe of condensate and 0.04 MMboe of NGL processed at the Karratha Gas
Plant (KGP) through the Pluto-KGP Interconnector.
11 (#_ftnref11) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
12 (#_ftnref12) Q2 2024 includes 0.30 MMboe, Q1 2024 includes 0.29 MMboe and
Q2 2023 includes 0.23 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
13 (#_ftnref13) Overriding royalty interests held in the GoM for several
producing wells.
14 (#_ftnref14) Includes periodic adjustments reflecting the arrangements
governing Wheatstone LNG sales of 0.19 MMboe in Q2 2024, 0.28 MMboe in Q1 2024
and 0.15 MMboe in Q2 2023.
15 (#_ftnref15) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
16 (#_ftnref16) Includes reclassification of purchased condensate volumes
from NWS JV Participants to Marketing liquids of 0.26 MMboe in Q2 2023.
17 (#_ftnref17) Overriding royalty interests held in the GoM for several
producing wells.
18 (#_ftnref18) Purchased volumes sourced from third parties.
19 (#_ftnref19) Includes reclassification of purchased condensate volumes
from NWS JV Participants of 0.26 MMboe in Q2 2023.
20 (#_ftnref20) Q2 2024 includes -$10 million, Q1 2024 includes $24 million
and Q2 2023 includes $11 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 (#_ftnref21) Includes the impact of periodic adjustments related to the
production sharing contract (PSC).
22 (#_ftnref22) Overriding royalty interests held in the GoM for several
producing wells.
23 (#_ftnref23) 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 (#_ftnref24) Total sales revenue excludes all hedging impacts.
25 (#_ftnref25) Realised prices include the impact of periodic adjustments
reflecting the arrangements governing Wheatstone LNG sales.
26 (#_ftnref26) Excludes any additional benefit attributed to produced
volumes through third-party trading activities.
27 (#_ftnref27) 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 (#_ftnref28) 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 (#_ftnref29) Other primarily incorporates corporate spend including SAP
build costs, carbon costs and other investments.
30 (#_ftnref30) Includes seismic and general permit activities and other
exploration costs.
31 (#_ftnref31) Well depths are referenced to the rig rotary table.
32 (#_ftnref32) Woodside share reflects the net realised interest for the
period.
33 (#_ftnref33) 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.
34 (#_ftnref34) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
35 (#_ftnref35) Woodside share reflects the net realised interest for the
period.
36 (#_ftnref36) Operations governed by production sharing contracts,
Woodside share changes monthly.
37 (#_ftnref37) Sangomar production rate per day reflects total production
in Q2 2024 divided by total number of days in the quarter.
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