REG - Woodside Energy Grp. - Third Quarter 2023 Report
18/10/2023 07:00
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RNS Number : 4509Q Woodside Energy Group Ltd 17 October 2023
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, 18 October 2023
THIRD QUARTER REPORT FOR PERIOD ENDED 30 SEPTEMBER 2023
Delivering reliable production
· Delivered quarterly production of 47.8 MMboe (520 Mboe/day), up
8% from Q2 2023 following completion of planned turnaround and maintenance
activities. Full-year production guidance has been narrowed to 183 - 188
MMboe.
· Delivered sales volume of 53.3 MMboe, up 10% from Q2 2023,
primarily due to higher production.
· Delivered revenue of $3,259 million, up 6% from Q2 2023, due to
higher production offset by lower realised prices.
· Achieved a portfolio average realised price of $60.2/boe.
· Sold 29% of produced LNG at prices linked to gas hub indices.
· Achieved first production at Shenzi North in September 2023,
ahead of the 2024 target.
Executing major projects
· The Scarborough and Pluto Train 2 project was 46% complete at the
end of the period, with fabrication of the floating production unit (FPU) and
Pluto Train 2 modules progressing.
· The Sangomar project was 90% complete at the end of the period,
with 14 of 23 wells drilled and completed. The floating production storage and
offloading (FPSO) topsides integration and pre-commissioning works continued
in Singapore.
· The Trion field development plan (FDP) was approved by the
Mexican regulator, with the project now moving into execution phase.
Carbon and new energy
· The H2OK final investment decision (FID) has been delayed pending
more certainty regarding Government tax incentive qualifications and customer
offtake agreements.
· Substantially completed installation works within Pluto LNG and
progressed commercial agreements including solar farm and battery energy
storage system agreements to support Woodside Solar targeted FID readiness of
2023.
Woodside CEO Meg O'Neill said the quarter-on-quarter increase in output to
47.8 million barrels of oil equivalent was underpinned by strong operating
results at Pluto LNG.
"The 99.9% reliability achieved at Pluto during the third quarter followed the
completion of a maintenance turnaround in June.
"Production from North West Shelf was impacted by planned turnaround and
maintenance activities in the quarter, but the facility's reliability was
still exceptional at 98.9%.
"Woodside's project teams made strong progress over the course of the quarter.
"In September, first production at the Shenzi North tieback in the US Gulf of
Mexico was achieved ahead of the original 2024 schedule. Production at Mad Dog
Phase 2 offshore Louisiana, which started up in April, continued to ramp up
during the quarter.
"Activity at Scarborough and Pluto Train 2 increased as planned and the
project is now 46% complete. Installation of the nearshore component of the
Scarborough trunkline commenced and fabrication of the floating production
unit topsides and hull continued.
"Site construction works for Pluto Train 2 are progressing and we have awarded
the engineering, procurement and construction contract for the Pluto Train 1
modifications that will allow it to process Scarborough gas.
"The Federal Court's 28 September decision that the Commonwealth Environment
Plan for the Scarborough offshore seismic survey is invalid has not impacted
our target for first LNG cargo in 2026. The decision does however highlight
the urgent need for reform of Australia's offshore approvals process.
"Uncertainty over approvals has the potential to add cost and delays to any
offshore activities to be undertaken in Australia. In the case of gas
projects, such uncertainty threatens the delivery of much-needed new supplies
to the Western Australian domestic market, as well as undermining the
confidence of our regional trading partners.
"The importance of Scarborough to regional energy security was demonstrated in
August when LNG Japan agreed to purchase a 10% non-participating interest in
the joint venture.
"As part of a broader strategic relationship, Woodside and LNG Japan, owned by
Sumitomo Corporation and Sojitz Corporation also entered into a non-binding
heads of agreement for the sale and purchase of approximately 0.9 million
tonnes per annum of LNG for 10 years commencing in 2026. In addition, we
entered into non-binding agreements with Sumitomo and Sojitz to collaborate on
new energy opportunities globally.
"At Sangomar in Senegal, another two of the 23 planned wells were drilled,
taking the total now completed to 14. Pre-commissioning work at the floating
production storage and offloading vessel continued in Singapore. Overall, the
Sangomar project is 90% complete and we remain on track for targeted first oil
in mid-2024.
"A significant milestone for our deepwater Trion project was passed during the
quarter, with the approval of the field development plan by the Mexican
regulator. Project execution activities at Trion are progressing.
"In new energy, progress was made on contracts for the plant construction
scope and other critical packages at our proposed H2OK facility in Oklahoma.
Technical work to support readiness for a final investment decision at H2OK is
expected to be completed in 2023, although a decision itself has been delayed,
pending clarification of government tax incentives and the finalisation of
offtake agreements.
"During the quarter we signed two non-binding memoranda of understanding with
a total of four Japanese companies to jointly study potential carbon capture
and storage (CCS) value chains between Australia and Japan. We believe that
with collaboration between industry partners and governments CCS could provide
a pathway to help our Japanese customers decarbonise," she said.
Comparative performance at a glance
Three months ended Year to date
Sep Jun Change % Sep Change % Sep Sep Change %
2023 2023 2022 2023 2022 1 (#_ftn1)
Production 2 (#_ftn2) MMboe 47.8 44.5 8% 51.2 (7%) 139.1 106.1 31%
489
520 557
Mboe/day 510 389
Sales MMboe 53.3 48.4 10% 57.1 (7%) 152.1 116.7 30%
Mboe/day 579 532 621 557 428
Revenue $ million 3,259 3,084 6% 5,858 (44%) 10,673 11,691 (9%)
Operational overview
Production
· Production increased compared to the previous quarter to 47.8
MMboe primarily due to:
o higher production from Pluto LNG and Ngujima-Yin following completion of
planned turnaround and maintenance activities
o high LNG reliability at Australian operated assets, with Pluto LNG and the
North West Shelf (NWS) Project achieving 99.9% and 98.9% reliability
respectively for the quarter
o higher production on Mad Dog due to the continued ramp up at the Argos
platform.
This was partly offset by lower NWS production due to planned turnaround and
maintenance activities on the North Rankin Complex, Goodwyn Platform and
Karratha Gas Plant, with production recommencing in September 2023.
· Production from Bass Strait was lower than the corresponding
quarter in 2022 due to lower gas demand following a warmer winter.
Gulf of Mexico
· First production was successfully achieved at Shenzi North in
September 2023 ahead of the 2024 target.
· A maintenance turnaround of the Shenzi facility was completed on
schedule.
· Production continues to ramp up at the Argos platform with seven
wells now online.
Australia Oil
· The Ngujima-Yin FPSO recommenced production in July following
successful completion of the five-yearly maintenance turnaround in a Singapore
drydock.
Greater Angostura
· In July 2023, a valve bolt failure on the Angostura gas export
platform resulted in an unplanned gas release and emergency shutdown to stop
the flow of gas. This incident is classified as a Tier 1 process safety
event. 3 (#_ftn3) Production recommenced in August 2023 following completion
of safety checks and remediation activities.
Decommissioning
· The Enfield plug and abandonment (P&A) campaign continued
with four wells permanently plugged. The plugging of 17 of 18 Enfield wells
and removal of 16 of 18 xmas trees has been completed.
· The Bass Strait P&A operations on Flounder, Bream A, and
Kingfish A platforms continued with six wells plugged in the quarter.
· Subsequent to the quarter, Woodside commenced removing the
Nganhurra riser turret mooring which will be transported for cleaning and
deconstruction in preparation for recycling or reuse.
Project and development activities
Scarborough
· Installation of the trunkline nearshore component commenced and
fabrication of the FPU topsides and hull continued.
· The Pluto Train 2 project continued to ramp up, with both module
fabrication and site construction works progressing.
· In August 2023, Woodside entered into an agreement with LNG Japan
to sell a 10% interest in the Scarborough Joint Venture. 4 (#_ftn4)
· In September 2023, Woodside awarded the engineering, procurement
and construction contract for Pluto Train 1 modifications. Engineering and
procurement of long-lead items are progressing.
· The Federal Court has set aside NOPSEMA's acceptance of the
Marine Seismic Survey Environment Plan on the basis that NOPSEMA's decision to
accept the environment plan with conditions relating to consultation was
invalid.
· Engagement continues with NOPSEMA on the outstanding Commonwealth
Environment Plans.
· The Scarborough and Pluto Train 2 project was 46% complete at the
end of the period and first LNG cargo is targeted for 2026.
Sangomar Field Development Phase 1
· FPSO topsides integration and pre-commissioning works continued
in Singapore.
· The development drilling program continued with 14 of 23 wells
completed.
· The subsea installation campaign was 80% complete, with the
overall subsea work scope 96% complete at the end of the period.
· The project was 90% complete at the end of the period and first
oil is targeted for mid-2024.
Trion
· The Mexican regulator, Comisión Nacional de Hidrocarburos,
approved the Trion FDP in August 2023.
· Awarded contracts for the drill rig; FPU and floating storage and
offloading (FSO) installation; subsea trees and control system; subsea
flexible piping and riser terminations.
· Placed equipment orders for umbilical tubing and subsea
manifolds.
· Commenced FSO front-end engineering design activities and
progressed shipyard engineering.
New energy and carbon solutions
H2OK
· The H2OK FID has been delayed pending more certainty regarding
Government tax incentive qualifications and customer offtake agreements.
· Technical work to support FID readiness remains on target to be
complete in 2023.
· Contracting activities for the plant construction scope and other
critical packages continued.
Woodside Solar
· Installation works within the Pluto LNG facility have been
substantially completed in readiness for power import.
· Engagement continues with local, state and commonwealth
authorities on key development and environmental approvals.
· Progressed commercial agreements including for the solar farm and
battery energy storage system infrastructure required for the power
opportunity.
· Woodside Solar is targeting FID readiness in 2023.
Carbon origination
· In August 2023, Woodside entered into an agreement for the
offtake of carbon credits from the restoration of up to 7,000 hectares of
mangroves in the Sine Saloum and Casamance regions of Senegal. Woodside is
expected to receive up to 1.4 million carbon credits from this project over 30
years.
CCS opportunities
· Entered into two non-binding memoranda of understanding with
Japanese companies to enable studies of potential carbon capture and storage
value chains between Japan and Australia.
Corporate activities
Hedging
· Woodside has placed oil price hedges for approximately 21.8 MMboe
of 2023 production at an average price of approximately $74.5 per barrel, of
which approximately 16.5 MMboe has been delivered. 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 and Title Transfer Facility (TTF) commodity swaps. Approximately 77%
of Corpus Christi volumes for the remainder of 2023, approximately 41% of 2024
and approximately 4% of 2025 volumes have reduced pricing risk as a result of
hedging activities.
· The year-to-date pre-tax expense related to hedged positions is
approximately $248 million, with $146 million pre-tax expense related to oil
price hedges, $73 million pre-tax expense related to Corpus Christi hedges
and $29 million pre-tax expense related to other hedge positions.
Investor Briefing Day 2023
· Woodside's Investor Briefing Day 2023 will be held in Sydney,
Australia, on Wednesday, 8 November 2023, commencing at 09.30 AEDT / 06.30
AWST (16.30 CST on Tuesday, 7 November 2023).
· A live webcast of the event will be available at
https://webcast.openbriefing.com/wds-id-2023/
Update to 2023 full-year guidance
Woodside's full-year 2023 production and capex guidance has been updated.
Prior Current
Production MMboe 180 - 190 183 - 188
Capital expenditure $ billion 6.0 - 6.5 5.7 - 6.0
Gas hub exposure % of produced LNG 27 - 33 No change
Contacts:
INVESTORS MEDIA
Matthew Turnbull (Group) Christine Forster
M: +61 410 471 079 M: +61 484 112 469
E: christine.forster@woodside.com
Sarah Peyman (Australia)
M: +61 457 513 249
Rohan Goudge (US)
M: +1 (713) 679-1550
E: investor@woodside.com (mailto:investor@woodside.com)
This announcement was approved and authorised for release by Woodside's
Disclosure Committee.
Production summary
Three months ended Year to date
Sep Jun Sep Sep Sep
2023 2023 2022 2023 2022 5 (#_ftn5)
AUSTRALIA
LNG
North West Shelf Mboe 6,590 8,746 9,694 25,009 20,132
Pluto 6 (#_ftn6) Mboe 12,261 8,765 12,458 33,180 34,112
Wheatstone Mboe 2,610 2,588 2,556 7,654 6,609
Total Mboe 21,461 20,099 24,708 65,843 60,853
Pipeline gas
Bass Strait Mboe 4,591 4,170 6,481 11,894 8,834
Other 7 (#_ftn7) Mboe 3,472 3,080 3,389 9,589 5,834
Total Mboe 8,063 7,250 9,870 21,483 14,668
Crude oil and condensate
North West Shelf Mbbl 1,278 1,546 1,750 4,508 3,660
Pluto(6) Mbbl 976 699 990 2,636 2,702
Wheatstone Mbbl 477 425 494 1,310 1,192
Bass Strait Mbbl 982 904 1,229 2,663 1,670
Macedon & Pyrenees Mbbl 688 759 602 2,078 825
Ngujima-Yin Mbbl 1,140 - 1,464 2,009 5,137
Okha Mbbl 608 421 653 1,460 1,522
Total Mboe 6,149 4,754 7,182 16,664 16,708
NGL2
North West Shelf Mbbl 276 339 324 907 733
Pluto(6) Mbbl 53 45 52 148 118
Bass Strait Mbbl 1,380 1,191 1,554 3,294 2,057
Total Mboe 1,709 1,575 1,930 4,349 2,908
Total Australia 8 (#_ftn8) Mboe 37,382 33,678 43,690 108,339 95,137
Mboe/day 406 370 475 397 348
Three months ended Year to date
Sep Jun Sep Sep Sep
2023 2023 2022 2023 2022 9 (#_ftn9)
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 350 349 219 1,029 341
Trinidad & Tobago Mboe 2,413 2,723 2,102 7,372 2,931
Other(10) Mboe 17 - - 47 -
Total Mboe 2,780 3,072 2,321 8,448 3,272
Crude oil and condensate
Atlantis Mbbl 2,714 2,792 1,257 8,202 2,244
Mad Dog Mbbl 2,188 1,627 838 4,754 1,249
Shenzi Mbbl 2,158 2,599 2,452 7,353 3,217
Trinidad & Tobago Mbbl 201 294 365 792 515
Other 10 (#_ftn10) Mbbl 36 81 81 156 108
Total Mboe 7,297 7,393 4,993 21,257 7,333
NGL4
Gulf of Mexico Mbbl 362 350 244 1,043 363
Other(10) Mbbl 10 - - 27 -
Total Mboe 372 350 244 1,070 363
Total International Mboe 10,449 10,815 7,558 30,775 10,968
Mboe/day 114 119 82 113 40
Total production Mboe 47,831 44,493 51,248 139,114 106,105
Mboe/day 520 489 557 510 389
Product sales
Three months ended Year to date
Sep Jun Sep Sep Sep
2023 2023 2022 2023 2022 11 (#_ftn11)
AUSTRALIA
LNG
North West Shelf Mboe 7,639 9,003 8,441 27,206 19,069
Pluto5 Mboe 12,622 9,592 11,862 33,524 32,389
Wheatstone 12 (#_ftn12) Mboe 2,541 2,312 2,898 7,203 6,883
Total Mboe 22,802 20,907 23,201 67,933 58,341
Pipeline gas
Bass Strait Mboe 4,506 4,113 6,564 11,701 8,758
Other Mboe 3,243 3,040 3,436 9,222 5,813
Total Mboe 7,749 7,153 10,000 20,923 14,571
Crude oil and condensate
North West Shelf Mbbl 1,640 1,855 2,140 4,584 3,776
Pluto Mbbl 1,228 614 838 2,456 3,138
Wheatstone Mbbl 689 309 325 1,348 968
Bass Strait Mbbl 1,407 1,035 1,435 2,524 1,768
Ngujima-Yin Mbbl 708 - 1,502 1,849 5,274
Okha Mbbl 1,297 - 1,298 1,950 1,917
Macedon & Pyrenees Mbbl 1 1,032 502 1,551 502
Total Mboe 6,970 4,845 8,040 16,262 17,343
NGL7
North West Shelf Mbbl 263 255 701 688 701
Pluto Mbbl 32 73 - 287 -
Bass Strait Mbbl 959 903 1,999 2,971 2,212
Total Mboe 1,254 1,231 2,700 3,946 2,913
Total Australia Mboe 38,775 34,136 43,941 109,064 93,168
Three months ended Year to date
Sep Jun Sep Sep Sep 2022 13 (#_ftn13)
2023 2023 2022 2023
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 321 341 214 1,005 341
Trinidad & Tobago Mboe 2,574 2,700 2,118 7,569 2,954
Other 14 (#_ftn14) Mboe 7 6 9 20 12
Total Mboe 2,902 3,047 2,341 8,594 3,307
Crude oil and condensate
Atlantis Mbbl 2,442 2,710 1,466 7,820 2,349
Mad Dog Mbbl 2,041 1,628 891 4,610 1,270
Shenzi Mbbl 2,123 2,652 2,636 7,448 3,354
Trinidad & Tobago Mbbl 242 248 443 903 647
Other(14) Mbbl 61 65 77 189 105
Total Mboe 6,909 7,303 5,513 20,970 7,725
NGL9
Gulf of Mexico Mbbl 379 363 276 1,084 400
Other(14) Mbbl 4 3 4 11 6
Total Mboe 383 366 280 1,095 406
Total International Mboe 10,194 10,716 8,134 30,659 11,438
MARKETING
LNG 15 (#_ftn15) Mboe 4,329 3,532 5,023 12,344 12,102
Total Mboe 4,329 3,532 5,023 12,344 12,102
Total Marketing Mboe 4,329 3,532 5,023 12,344 12,102
Total sales Mboe 53,298 48,384 57,098 152,067 116,708
Revenue (US$ million)
Three months ended Year to date
Sep Jun Sep Sep Sep 2022 16 (#_ftn16)
2023 2023 2022 2023
AUSTRALIA
North West Shelf 575 667 1,081 2,512 2,240
Pluto 923 724 1,716 2,778 3,831
Wheatstone 17 (#_ftn17) 246 204 300 774 727
Bass Strait 379 328 656 918 888
Macedon 41 53 41 145 57
Ngujima-Yin 64 - 162 164 598
Okha 103 - 124 159 191
Pyrenees - 89 69 139 70
INTERNATIONAL
Atlantis 209 203 134 611 243
Mad Dog 170 116 81 354 125
Shenzi 178 200 249 577 332
Trinidad & Tobago 18 (#_ftn18) 17 112 143 265 209
Other 19 (#_ftn19) 5 4 7 14 10
Marketing revenue 20 (#_ftn20) 298 344 1,043 1,121 2,033
Total sales revenue 21 (#_ftn21) 3,208 3,044 5,806 10,531 11,554
Processing revenue 50 38 50 135 127
Shipping and other revenue 1 2 2 7 10
Total revenue 3,259 3,084 5,858 10,673 11,691
Realised prices
Three months ended Three months ended
Units Sep Jun Sep 2022 Units Sep Jun Sep 2022(16)
2023
2023
2023 2023
LNG produced 22 (#_ftn22) $/MMBtu 10.3 10.9 19.1 $/boe 65 69 117
LNG traded 23 (#_ftn23) $/MMBtu 8.2 11.0 32.7 $/boe 52 70 207
Pipeline gas $/boe 28 37 49
Oil and condensate $/bbl 82 75 95 $/boe 82 75 95
NGL $/bbl 45 41 48 $/boe 45 41 48
Average realised price $/boe 60 63 102
Dated Brent $/bbl 87 78 101
JCC (lagged three months) $/bbl 84 87 111
WTI $/bbl 82 74 92
JKM $/MMBtu 10.9 12.6 36.0
TTF $/MMBtu 10.3 12.6 50.9
· Average realised price for pipeline gas was A$6.1/GJ in Western
Australia, A$12.3/GJ in east coast Australia and $3.75/Mcf for International
in Q3 2023. 24 (#_ftn24)
Expenditure (US$ million)
Three months ended Year to date
Sep Jun Sep Sep Sep
2023 2023 2022 2023 2022 25 (#_ftn25)
Exploration and evaluation expense
Exploration and evaluation expensed 123 81 181 256 215
Permit amortisation 3 2 5 7 8
Total 126 83 186 263 223
Capital expenditure
Exploration and evaluation capitalised 26 (#_ftn26) (,) 27 (#_ftn27) 3 92 101 132 111
Oil and gas properties 1,313 1,229 1,056 3,821 2,561
Total 1,316 1,321 1,157 3,953 2,672
Trading costs 265 237 727 887 1,517
Key project expenditure (US$ million)
Three months ended Year to date
Sep Jun Sep Sep Sep
2023 2023 2022 2023 2022
Capital expenditure
Scarborough 28 (#_ftn28) 613 578 442 1,817 1,242
Sangomar 257 272 278 808 727
Trion 111 8 - 119 -
Exploration
· In the US Gulf of Mexico, the Spinel well (non-operated)
completed drilling in August 2023. The well did not encounter hydrocarbons.
· Woodside drilled the Gemtree well in Australia. The well was
unsuccessful, encountering minor gas shows in the primary target.
Exploration or appraisal wells drilled
Region Permit area Well Target Interest (%) Spud date Water depth (m) Planned well depth (m)20 29 (#_ftn29) Remarks
Gulf of Mexico GC 436 Spinel Oil 44% 7 June 2023 1,258 7,042 Drilling complete
Non-operator
Australia WA49-L Gemtree Gas 65% 25 August 202m 3,554 Drilling complete
Operator 2023
Permits and licences
Key changes to permit and licence holding during the quarter ended 30
September 2023 are noted below.
Region Permits or licence areas Change in interest (%) Current interest (%) Remarks
Gulf of Mexico GC 520, GC 564 (100%) 0%
Production rates
Average daily production rates (100% project) for the quarter ended 30
September 2023:
Woodside Production rate Remarks
share 30 (#_ftn30)
(100% project, Mboe/d)
Sep Jun
2023
2023
AUSTRALIA
NWS Project
LNG 29.91% 238 321 Production was lower due to planned turnaround and maintenance activities on
the North Rankin Complex, Goodwyn Platform and the Karratha Gas Plant.
Crude oil and condensate 29.88% 46 57
NGL 33.27% 10 11
Pluto LNG
LNG 90.00% 123 83 Production was higher following completion of planned maintenance and
turnaround in Q2 2023.
Crude oil and condensate 90.00% 11 8
Pluto-KGP Interconnector
LNG 100.00% 22 22
Crude oil and condensate 100.00% 1 1
NGL 100.00% 1 0
Wheatstone 31 (#_ftn31)
LNG 11.86% 239 240
Crude oil and condensate 14.90% 31 31
Bass Strait
Pipeline gas 43.75% 105 105
Crude oil and condensate 45.96% 23 22
NGL 45.83% 30 29
Australia Oil
Ngujima-Yin 60.00% 21 0 Production was higher following completion of planned maintenance, with
production recommencing in July.
Okha 50.00% 13 9
Pyrenees 64.97% 12 13
Other
Pipeline gas25F 32 (#_ftn32) 38 34
Woodside Production rate Remarks
share 33 (#_ftn33)
(100% project, Mboe/d)
Sep 2023 Jun
2023
INTERNATIONAL
Atlantis
Crude oil and condensate 38.50% 77 80
NGL 38.50% 5 5
Pipeline Gas 38.50% 6 7
Mad Dog
Crude oil and condensate 20.86% 114 86 Production was higher due to the continuation of ramp-up activities for Mad
Dog Phase 2.
NGL 20.86% 4 2
Pipeline Gas 20.86% 2 2
Shenzi
Crude oil and condensate 64.39% 36 44 Completed turnaround for Shenzi North tie-ins and maintenance
NGL 64.39% 2 2
Pipeline Gas 64.39% 1 1
Trinidad & Tobago
Crude oil and condensate 41.72% 34 (#_ftn34) 5 5
Pipeline gas 46.58%(34) 56 57
Forward looking statements
Disclaimer and important notice
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 results of projects, operating activities, new
energy products, 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 30 September 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) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
2 (#_ftnref2) Q3 2023 includes 0.26 MMboe, Q2 2023 includes 0.23 MMboe and
Q3 2022 includes 0.30 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
3 (#_ftnref3) A typical Tier 1 process safety event is loss of containment
of hydrocarbons greater than 500 kg (in any one-hour period).
4 (#_ftnref4) See "Woodside to sell 10% Scarborough interest to LNG Japan",
announced 8 August 2023.
5 (#_ftnref5) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
6 (#_ftnref6) Q3 2023 includes 2.07 MMboe of LNG, 0.08 MMboe of condensate
and 0.05 MMboe of NGL, Q2 2023 includes 1.96 MMboe of LNG, 0.08 MMboe of
condensate and 0.05 MMboe of NGL and Q3 2022 includes 2.35 MMboe of LNG and
0.09 MMboe of condensate and 0.05 MMboe of NGL processed at the Karratha Gas
Plant (KGP) through the Pluto-KGP Interconnector.
7 (#_ftnref7) Includes the aggregate Woodside equity domestic gas production
from all Western Australian projects.
8 (#_ftnref8) Q3 2023 includes 0.26 MMboe, Q2 2023 includes 0.23 MMboe and
Q3 2022 includes 0.30 MMboe primarily from feed gas purchased from Pluto
non-operating participants processed through the Pluto-KGP Interconnector.
9 (#_ftnref9) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
10 (#_ftnref10) Overriding royalty interests held in the Gulf of Mexico
(GoM) for several producing wells.
11 (#_ftnref11) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
12 (#_ftnref12) Includes periodic adjustments reflecting the arrangements
governing Wheatstone LNG sales of 0.16 MMboe in Q3 2023, 0.15 MMboe in Q2 2023
and 0.09 MMboe in Q3 2022.
13 (#_ftnref13) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
14 (#_ftnref14) Overriding royalty interests held in the GoM for several
producing wells.
15 (#_ftnref15) Purchased LNG volumes sourced from third parties.
16 (#_ftnref16) September 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1 June 2022.
17 (#_ftnref17) Q3 2023 includes $11 million, Q2 2023 includes $11 million
and Q3 2022 includes $10 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.
18 (#_ftnref18) Includes the impact of periodic adjustments related to the
production sharing contract (PSC).
19 (#_ftnref19) Overriding royalty interests held in the GoM for several
producing wells.
20 (#_ftnref20) Values include revenue generated from purchased LNG volumes,
as well as the marketing margin on the sale of Woodside's produced liquids
portfolio. Hedging impacts are excluded.
21 (#_ftnref21) Total sales revenue excludes all hedging impacts.
22 (#_ftnref22) Realised prices include the impact of periodic adjustments
reflecting the arrangements governing Wheatstone LNG sales.
23 (#_ftnref23) Excludes any additional benefit attributed to produced LNG
through third-party trading activities.
24 (#_ftnref24) Average realised price for International excludes the impact
of periodic adjustments related to the PSC in Trinidad.
25 (#_ftnref25) September 2022 reflects the expenditure relating to
interests acquired as part of the merger with BHP's petroleum business from
1 June 2022.
26 (#_ftnref26) 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.
27 (#_ftnref27) 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.
28 (#_ftnref28) 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 $18 million in Q3 2022 and
$52 million in YTD Q3 2022.
29 (#_ftnref29) Well depths are referenced to the rig rotary table.
30 (#_ftnref30) Woodside share reflects the net realised interest for the
period.
31 (#_ftnref31) 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.
32 (#_ftnref32) Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
33 (#_ftnref33) Woodside share reflects the net realised interest for the
period.
34 (#_ftnref34) Operations governed by production sharing contracts,
Woodside share changes monthly.
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