REG - Woodside Energy Grp. - Trading Statement
21/07/2022 07:00
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RNS Number : 2247T Woodside Energy Group Ltd 21 July 2022
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
Thursday, 21 July 2022
SECOND QUARTER REPORT FOR PERIOD ENDED 30 JUNE 2022
Performance
· Delivered production of 33.8 MMboe, up 60% from Q1 2022.
· Delivered sales volume of 35.8 MMboe, up 51% from Q1 2022.
· Delivered average realised price of $95 per barrel of oil
equivalent.
· Delivered revenue of $3,438 million, up 44% from Q1 2022.
Highlights
· Completed the merger with BHP's petroleum business on 1 June.
· Changed company name to Woodside Energy Group Ltd.
· Commenced trading on the New York Stock Exchange on 2 June and
the London Stock Exchange on 6 June under the ticker 'WDS'.
Woodside Energy CEO Meg O'Neill said production and revenue in the second
quarter rose 60% and 44% respectively from the first three months of 2022,
helped by the contribution from BHP's petroleum business.
"Production for the period was 33.8 million barrels of oil equivalent, while
revenue climbed to $3,438 million on the back of a 51% increase in sales
volume to 35.8 million barrels of oil equivalent.
"The completion on 1 June of our merger with BHP's petroleum business was the
highlight of the period, transforming Woodside into a top 10 global
independent energy producer by hydrocarbon production, and making us the
largest energy company listed on the Australian Securities Exchange.
"Woodside received a net cash payment from BHP Group of approximately $1.1
billion, which included the cash remaining in the bank accounts of BHP
Petroleum immediately prior to completion.
"The merger was overwhelmingly endorsed by Woodside's shareholders at our
Annual General Meeting in May, and they are now seeing first evidence of the
increased financial and operational strength the transaction will deliver.
"The subsequent listings of Woodside shares on the New York and London stock
exchanges were historic moments for the company, reflecting our more diverse
shareholder base.
"Significant progress was made on our key projects during the quarter. All
major equipment items for Scarborough have been procured and construction has
begun at the Pluto Train 2 site.
"First steel for Scarborough's floating production unit topsides was cut,
pipeline manufacturing is 25% progressed and the subsea trees for initial
start-up of the project are all complete.
"Installation of the mooring system for the floating production, storage and
offloading facility at the Sangomar field has been completed and the second
drillship, the Ocean BlackHawk, commenced drilling in July.
"Following extensive discussions with potential new partners, we have decided
to discontinue the sell-down of equity in Sangomar.
"In Australia, accelerated Pluto gas transported through the Pluto-Karratha
Gas Plant Interconnector has resulted in additional LNG production and sales
of uncontracted cargoes in a high-priced market.
"Lambert Deep, a component of the Greater Western Flank Phase 3 project,
achieved ready for start-up in July," she said.
Comparative performance at a glance
Q2 2022 Q1 2022 Change % Q2 2021 Change %
Production MMboe 33.8 21.1 60.2 22.7 49.1
Sales MMboe 35.8 23.8 50.8 28.1 27.4
Revenue $ million 3,438 2,395 43.6 1,327 159.1
Production was 60.2% higher and sales volume was 50.8% higher than the
previous quarter primarily due to the inclusion from 1 June 2022 of the BHP
petroleum assets, following the completion of the merger.
Reserves and production reporting
· Woodside's production reporting and reserves statement are being
updated to include the assets acquired as part of the BHP Petroleum (BHPP)
merger, and to apply a consistent methodology and conversion factors across
the combined portfolio. The updated reserves statement is expected to be
released on 30 August 2022.
· All gas products for production and reserves will be reported in
barrels of oil equivalent (boe) and calculated from a volumetric basis with a
conversion factor of 5,700 standard cubic feet (scf) per boe. BHPP previously
used 6,000 scf per boe. Woodside's production reporting previously used
product-specific conversion factors on an energy basis.
· Production and sales volumes for Q1 2022 have been restated using
the updated conversion factors. There is no impact on revenue as a result of
the change in conversion factors.
Woodside and BHP Petroleum merger
· The merger of Woodside and BHP's petroleum business completed on
1 June 2022 following Woodside shareholder approval on 19 May 2022.
· On completion, Woodside:
o acquired the entire share capital of BHP Petroleum International Pty Ltd
and issued 914,768,948 new Woodside shares to BHP
o received net cash of approximately $1.1 billion, which included the cash
remaining in BHPP bank accounts immediately prior to completion. All
completion payments are subject to a customary post-completion review which
may result in an adjustment.
· Trading commenced on 2 June 2022 under the ticker WDS of:
o the new Woodside shares on the Australian Securities Exchange (ASX), and
o Woodside depository shares on the New York Stock Exchange (NYSE).
· Trading commenced on 6 June 2022 of Woodside shares on the Main
Market for listed securities of the London Stock Exchange (LSE), also under
the ticker WDS.
· The merger has created a top 10 global independent energy
producer by hydrocarbon production on a combined 2021 basis and the largest
energy company listed on the ASX. 1
Development activities
Scarborough and Pluto Train 2
· All major equipment items for both the Scarborough floating
production unit (FPU) and Pluto Train 2, including compressors, generators and
turbines, have been procured.
· Construction works for Pluto Train 2 have commenced at the Pluto
LNG site in Western Australia.
· Fabrication of the FPU topsides commenced in June 2022,
manufacturing of the pipeline was 25% progressed and the subsea trees for
initial start-up are all complete.
· Approval was granted in June 2022 under section 45C of the
Environmental Protection Act 1986 (WA) to increase the diameter of the
Scarborough trunkline within State waters from 32 inches to 36 inches.
· Assessment by regulators of secondary environmental approvals
continues for offshore execution activities.
· The sell-down process for equity in the Scarborough Joint Venture
is progressing.
Sangomar Field Development Phase 1
· The Sangomar Field Development Phase 1 was 63% complete at the
end of the period.
· Installation of the mooring system in the Sangomar field for the
floating production storage and offloading (FPSO) facility was successfully
completed in July 2022.
· The development drilling program is progressing and the second
drillship, the Ocean BlackHawk, commenced drilling in July 2022.
· The FPSO is expected to be relocated in October 2022 from the
current shipyard in China to the Keppel Shipyard in Singapore to complete
commissioning.
· The subsea installation campaign is planned to commence in Q3
2022.
· Woodside is ending the current sell-down process for Sangomar.
Mad Dog Phase 2
· Mad Dog Phase 2 includes the installation of a new floating
production facility with production capacity of up to 140,000 gross barrels of
oil equivalent per day (Woodside interest: 23.9%).
· The hook-up and commissioning program of the Argos platform
topsides is proceeding, with a successful wells campaign nearing completion.
· An issue with two of the production flexible joints was detected
during testing. This is being assessed and an update on whether the expected
project start-up in 2022 is impacted will be provided in due course.
Trion
· Trion is a greenfield deepwater oil development located in the
Mexican waters of the western Gulf of Mexico. Front-end engineering design
(FEED) activities are continuing with a focus on optimising the development
and execution plan, cost, and schedule.
· Woodside is targeting a potential final investment decision (FID)
in 2023.
Wildling
· Wildling is a 2-well tieback opportunity to the Shenzi tension
leg platform (TLP) in the central Gulf of Mexico.
· Drilling of appraisal well SJ101 commenced in May 2022 and is now
complete. The well encountered sub-commercial quantities of hydrocarbons and
was plugged and abandoned. Woodside does not plan to pursue any further
Wildling development activities in Blocks GC564 or GC520.
Operational overview
· Woodside achieved a significant increase in production in the
second quarter of 2022 compared to the prior quarter.
· This increased production was in large part due to:
o the addition of the BHPP assets from 1 June 2022, following completion of
the merger. Production volumes more than doubled from May 2022 with the BHPP
assets contributing 53% of total production volumes in June 2022
o a full quarter of accelerated Pluto production processed at North West
Shelf (NWS) through the Pluto-KGP Interconnector following start-up in March
2022
o increased production from the Ngujima-Yin FPSO following maintenance and
weather impacts in the first quarter of 2022.
This was partly offset by lower production at NWS and Wheatstone compared to
the prior quarter due to scheduled turnaround activities.
Pyxis Hub
· The drilling and completions campaign for the Xena field, which
is phase 2 of the Pyxis Hub project, has commenced and ready for start-up
(RFSU) remains on track for H2 2022.
· The Pyxis Hub project was 90% complete at the end of the period.
Greater Western Flank Phase 3 (GWF-3)
· GWF-3 (including Lambert Deep) is a subsea tie-back opportunity
to further commercialise NWS reserves.
· The subsea installation program is complete and the GWF-3 wells
started-up in May 2022.
· Lambert Deep achieved RFSU in July 2022.
· The project was 98% complete at the end of the period.
NWS Extension
· In June 2022, the Western Australian Environmental Protection
Authority (EPA) released its public report on the NWS Project Extension
proposal.
· The EPA's report recommends that the NWS Project Extension
proposal may be implemented subject to key environmental conditions being met.
The proposal remains subject to approval by the WA Minister for Environment.
· The NWS Project Extension Greenhouse Gas Management Plan
includes emissions reduction targets of 15% reduction by 2025, 30% reduction
by 2030, and net zero emissions by 2050.(( 2 )) These emissions reduction
targets will be achieved by avoiding emissions where possible, reducing
emissions and finally through offsetting emissions.
Bass Strait
· An offshore fuel gas pipeline was redirected in June 2022 to
increase production capacity from
970 terajoules to 1,020 terajoules per day (100%). This enabled Woodside to
supply additional gas into the eastern Australian domestic gas market.
· The Gippsland Basin Joint Venture (GBJV) is progressing a
feasibility study of the potential development of a south-east Australian
carbon capture and storage hub (SEA CCS) to support the decarbonisation goals
of the GBJV participants, other local industry, and the Victorian and
Commonwealth Governments. SEA CCS aims to utilise existing infrastructure to
capture and store up to 2 MtCO(2) per year in the depleted Bream reservoir
located offshore Victoria.
Shenzi North
· Shenzi North is a two-well subsea tieback to the Shenzi TLP, with
production capacity of up to 30,000 gross barrels of oil equivalent per day
(Woodside interest: 72%).
· The Deepwater Invictus drillship is expected to commence drilling
the second development well of the Shenzi North project in 2022.
· The Shenzi North project is targeting first oil in 2024.
Shenzi Subsea Multi-Phase Pump
· The Shenzi subsea multi-phase pump was installed and commissioned
during a planned Shenzi TLP shutdown in April-May 2022 and achieved start-up
ahead of schedule. The pump is expected to improve recovery from existing
producing wells and future infill wells.
New energy
H2Perth
· Woodside has updated the proposed H2Perth development concept to
increase ammonia production in the initial phase from 0.6 Mtpa to 0.84 Mtpa.
· Environmental studies to support H2Perth were progressed which
included flora and fauna, greenhouse gas management, heritage, groundwater
sampling, discharge modelling, air, noise, emissions management, traffic
modelling and visual impact assessment.
· A pre-FEED contract was awarded to McDermott for the proposed
H2Perth project.
H2NZ
· Woodside Energy has been selected as one of two companies to
enter final stage negotiations to become the lead developer of the Southern
Green Hydrogen project in Southland, New Zealand.
· Southern Green Hydrogen is a joint project by Meridian Energy and
Contact Energy, to evaluate the opportunity to produce green hydrogen in
Southland, New Zealand.
Investment in lower-carbon services
· Subsequent to the period, Woodside agreed to invest
US$9.9 million in String Bio Private Limited (String Bio), the developer of a
patented process for recycling greenhouse gases into products such as
livestock feed. The investment is subject to conditions precedent.
· Woodside and String Bio have entered a strategic development
agreement to explore opportunities for the potential commercial scale-up of
String Bio technology.
Technology
· Woodside committed A$10 million in financial and in-kind support
to its innovation partner, Curtin University in Perth, Western Australia,
after it was selected by the Australian Government to be part of the
Trailblazer University Program.
Corporate activities
Half-year results
· Woodside's Half-year Report 2022 and the associated investor
briefing will be released to the market on Tuesday, 30 August 2022. It will
also be available on Woodside's website at www.woodside.com
(http://www.woodside.com) .
· An investor briefing conference call will take place on 30 August
at 07.30 AWST / 09.30 AEST / 18:30 CDT (Monday 29 August). Log-in information
for the conference call will be published on Woodside's website prior to 30
August 2022.
Change of company name and ticker code
· Woodside shareholders approved the change of company name to
Woodside Energy Group Ltd at Woodside's 2022 Annual General Meeting.
· The new company name was registered on 20 May 2022 and the
ticker code on the ASX changed from WPL to WDS on 25 May 2022. In June 2022,
Woodside commenced trading on the LSE and NYSE also under the ticker code WDS.
Financial reporting
· Woodside's net profit after tax for the first half of 2022,
including sales revenue and the associated production and sales volumes, will
incorporate the contribution of the BHPP portfolio from completion of the
merger on 1 June 2022.
· Woodside's reporting in the half-year 2022 financial statements
is expected to be represented under four segments to align with the company's
management and business structure; Australia, International, Marketing and
Corporate/Other.
· Woodside's consolidated statement of financial position as at 30
June 2022 will include the fair value of the former BHPP assets and
liabilities and any associated goodwill after the allocation of the merger
purchase price.
Hedging
· Woodside continues to review its hedging program, subject to
market conditions.
· As at 30 June 2022, Woodside has placed oil price hedges for:
o approximately 17.5 MMboe of 2022 production at an average price of $74.6
per barrel of which approximately 5.8 MMboe has been delivered; and
o approximately 21.8 MMboe of 2023 production at an average price of $74.5
per barrel.
· In addition, a number of hedges have been entered into for Corpus
Christi volumes to protect against downside pricing risk. These hedges are
Henry Hub and Title Transfer Facility (TTF) commodity swaps. As a result of
hedging and term sales, approximately 94% of Corpus Christi volumes in 2022,
approximately 73% in 2023 and approximately 27% of 2024 have reduced pricing
risk. 3
Syndicate facility renewal
· Subsequent to the period, Woodside refinanced and increased an
existing committed undrawn syndicated facility. The total amount of the
undrawn syndicated facilities is $2 billion.
Merger synergies
· The merger is expected to unlock annual pre-tax synergies of more
than $400 million on a 100% basis, which are expected to be fully implemented
by early 2024. Woodside is planning to provide an update on the progress of
synergy identification and capture as part of the half-year 2022 results.
2022 full-year guidance
PRODUCTION 4
LNG MMboe 77 - 79
Pipeline gas MMboe 27 - 29
Crude and condensate MMboe 36 - 40
Natural gas liquids MMboe ~5
Total MMboe 145 - 153
CAPITAL EXPENDITURE 5
Sangomar 6 % ~25%
Scarborough and Pluto Train 2 7 % ~45%
Other growth 8 % ~10%
Base business 9 % ~20%
Total capital expenditure $ million 4,300 - 4,800
EXPLORATION EXPENDITURE(5)
Exploration $ million 400 - 500
2022 GAS HUB EXPOSURE
Portfolio % of produced LNG 20-25%
Half-year 2022 line-item guidance
Comments
Depreciation and amortisation expense
Oil and gas properties $ million 700 - 1,100
Other plant and equipment $ million 10 - 30
Lease assets $ million 40 - 80
Other cost of sales
Movement in onerous contract $ million ~(200) Unwind and derecognition of the provision for
provision benefit Corpus Christi.
Other costs
General, administrative and $ million 500 - 650 Includes merger transaction costs of ~$420 million.
other costs
Taxes
Income tax $ million 800 - 1,100
PRRT $ million 225 - 525
Contacts:
INVESTORS MEDIA
Australia & Europe | Damien Gare Christine Forster
W: +61 8 9348 4421 M: +61 484 112 469
M: +61 417 111 697 E: christine.forster@woodside.com
Americas | Matthew Turnbull
M: +1 (713) 448-0956
E: investor@woodside.com
This ASX announcement was approved and authorised for release by Woodside's
Disclosure Committee.
Production summary
Three months ended Year to date
Jun Mar Jun Jun Jun
2022
2022 10
2021
2022
2021
AUSTRALIA
LNG
North West Shelf Mboe 5,826 4,612 5,134 10,438 11,033
Pluto 11 Mboe 12,328 9,326 10,235 21,654 19,796
Wheatstone Mboe 1,645 2,408 2,550 4,053 5,435
Total Mboe 19,799 16,346 17,919 36,145 36,264
Pipeline gas
Bass Strait Mboe 2,353 - - 2,353 -
Other 12 Mboe 1,692 753 617 2,445 1,302
Total Mboe 4,045 753 617 4,798 1,302
Crude oil and condensate
North West Shelf Mbbl 1,104 806 824 1,910 1,827
Pluto(11) Mbbl 967 745 779 1,712 1,511
Wheatstone Mbbl 277 421 572 698 1,277
Bass Strait Mbbl 441 - - 441 -
Ngujima-Yin Mbbl 2,275 1,398 1,578 3,673 3,284
Okha Mbbl 444 425 240 869 616
Pyrenees Mbbl 223 - - 223 -
Total Mboe 5,731 3,795 3,993 9,526 8,515
NGL 13
North West Shelf Mbbl 228 181 121 409 252
Pluto(11) Mbbl 60 6 - 66 -
Bass Strait Mbbl 503 - - 503 -
Total Mboe 791 187 121 978 252
Total Australia Mboe 30,366 21,081 22,650 51,447 46,333
Three months ended Year to date
Jun Mar Jun Jun Jun
2022
2022 14
2021
2022
2021
INTERNATIONAL
Pipeline gas
Atlantis Mboe 87 - - 87 -
Mad Dog Mboe 10 - - 10 -
Shenzi Mboe 25 - - 25 -
Trinidad & Tobago Mboe 829 - - 829 -
Total Mboe 951 - - 951 -
Crude oil and condensate
Atlantis Mbbl 987 - - 987 -
Mad Dog Mbbl 411 - - 411 -
Shenzi Mbbl 765 - - 765 -
Trinidad & Tobago Mbbl 150 - - 150 -
Other 15 Mbbl 27 - - 27 -
Total Mboe 2,340 - - 2,340 -
NGL 16
Atlantis Mbbl 66 - - 66 -
Mad Dog Mbbl 16 - - 16 -
Shenzi Mbbl 37 - - 37 -
Total Mboe 119 - - 119 -
Total International Mboe 3,410 - - 3,410 -
Total production Mboe 33,776 21,081 22,650 54,857 46,333
Product sales
Three months ended Year to date
Jun Mar Jun Jun Jun
2022
2022 17
2021
2022
2021
AUSTRALIA
LNG
North West Shelf Mboe 5,616 5,012 5,052 10,628 10,851
Pluto 18 Mboe 11,094 9,433 10,594 20,527 20,128
Wheatstone 19 Mboe 1,464 2,521 2,311 3,985 4,675
Total Mboe 18,174 16,966 17,957 35,140 35,654
Pipeline gas
Bass Strait Mboe 2,194 - - 2,194 -
Other Mboe 1,629 748 602 2,377 1,294
Total Mboe 3,823 748 602 4,571 1,294
Crude oil and condensate
North West Shelf Mbbl 1,018 618 649 1,636 1,331
Pluto(18) Mbbl 1,828 472 585 2,300 1,170
Wheatstone Mbbl 354 289 642 643 1,394
Bass Strait Mbbl 333 - - 333 -
Ngujima-Yin Mbbl 2,436 1,336 1,666 3,772 3,273
Okha Mbbl 619 - 810 619 810
Pyrenees Mbbl - - - - -
Total Mboe 6,588 2,715 4,352 9,303 7,978
NGL 20
North West Shelf Mbbl - - - - 358
Pluto(18) Mbbl - - - - -
Bass Strait Mbbl 213 - - 213 -
Total Mboe 213 - - 213 358
Total Australia Mboe 28,798 20,429 22,911 49,227 45,284
Three months ended Year to date
Jun Mar Jun Jun Jun
2022
2022 21
2021
2022
2021
INTERNATIONAL
Pipeline gas
Atlantis Mboe 95 - - 95 -
Mad Dog Mboe 11 - - 11 -
Shenzi Mboe 21 - - 21 -
Trinidad & Tobago Mboe 836 - - 836 -
Other 22 Mboe 3 - - 3 -
Total Mboe 966 - - 966 -
Crude oil and condensate
Atlantis Mbbl 883 - - 883 -
Mad Dog Mbbl 379 - - 379 -
Shenzi Mbbl 718 - - 718 -
Trinidad & Tobago Mbbl 204 - - 204 -
Other Mbbl 28 - - 28 -
Total Mboe 2,212 - - 2,212 -
NGL 23
Atlantis Mbbl 67 - - 67 -
Mad Dog Mbbl 18 - - 18 -
Shenzi Mbbl 39 - - 39 -
Trinidad & Tobago Mbbl - - - - -
Other(22) Mbbl 2 - - 2
Total Mboe 126 - - 126 -
Total International Mboe 3,304 - - 3,304 -
MARKETING
LNG
Trading 24 Mboe 3,741 3,338 5,227 7,079 8,595
Total Mboe 3,741 3,338 5,227 7,079 8,595
Total Marketing Mboe 3,741 3,338 5,227 7,079 8,595
Total sales Mboe 35,843 23,767 28,138 59,610 53,879
Revenue (US$ million)
Three months ended Year to date
Jun Mar Jun Jun Jun
2022
2022
2021
2022
2021
AUSTRALIA
North West Shelf 523 636 235 1,159 505
Pluto 1,286 829 509 2,115 931
Wheatstone 25 160 267 150 427 331
Bass Strait 232 - - 232 -
Macedon 16 - - 16 -
Ngujima-Yin 288 148 132 436 247
Okha 67 - 54 67 54
Pyrenees 1 - - 1 -
INTERNATIONAL
Atlantis 109 - - 109 -
Mad Dog 44 - - 44 -
Shenzi 83 - - 83 -
Trinidad & Tobago 66 - - 66 -
Other 26 3 - - 3 -
Marketing (trading) revenue 27 511 479 205 990 338
Total sales revenue 3,389 2,359 1,285 5,748 2,406
Processing revenue 42 35 36 77 70
Shipping and other revenue 7 1 6 8 17
Total revenue 3,438 2,395 1,327 5,833 2,493
Realised prices
Three months ended Three months ended
Units Jun 2022 Mar 2022 Jun 2021 Units Jun 2022 Mar 2022 28 Jun
2021
LNG produced 29 $/MMBtu 13.8 14.6 7.3 $/boe 87 93 41
LNG traded 30 $/MMBtu 21.5 22.6 6.8 $/boe 137 144 43
Pipeline gas $/boe 57 26 17
Condensate $/bbl 125 107 69 $/boe 125 107 69
Oil $/bbl 110 111 75 $/boe 110 111 75
NGL $/bbl 48 - - $/boe 48 - -
Average realised price $/boe 95 100 46
Dated Brent $/bbl 114 101 69
JCC (lagged three months) $/bbl 86 80 56
JKM $/MMBtu 31.3 31.2 7.4
WTI $/bbl 108.4 94.3 66.1
TTF $/MMBtu 31.6 32.6 15.5
Expenditure (US$ million)
Three months ended Year to date
Jun Mar Jun Jun Jun
2022 2022 2021 2022 2021
Exploration and evaluation expense
Exploration and evaluation expensed 31 27 7 19 34 88
Permit amortisation 2 1 1 3 2
Total 29 8 20 37 90
Capital expenditure
Exploration and evaluation capitalised 32 (,) 33 5 5 74 10 124
Oil and gas properties 748 757 261 1,505 596
Total 753 762 335 1,515 720
Key project expenditure (US$ million)
Three months ended Year to date
Jun Mar Jun Jun Jun
2022 2022 2021 2022 2021
Capital expenditure
Scarborough and Pluto Train 2 332 434 72 766 119
Sangomar 207 242 115 449 340
Exploration
Permits and licences
Key changes to permit and licence holding during the quarter ended 30 June
2022 are noted below.
Region Permits or licence areas Change in interest (%) Current interest (%) Remarks
Myanmar A-4 (40) - Permit relinquished
Myanmar AD-2 (45) - Permit relinquished
Gulf of Mexico GB 630, GB 676, GB 677, GB 721, GB 762, GB 805, GB 806, GB 851, GB 852, GB (40) 60 Farm out
895, GB 672, GB 716, GB 760
Gulf of Mexico GB 772 (60) 40 Farm out
Gulf of Mexico GB 640, GB 641, GB 685, GB 555, GB 556, GB 726, GB 770, GB 771, GB 604, GB 40 40 Farm in
605, GB 647, GB 648, GB 649, GB 728, GB 729, GB 773, GB 774, GB 421, GB 464,
GB 465, GB 508, GB 509, GB 736, GB 780, GB 824
Gulf of Mexico GB 719, GB 720, GB 763, GB 807, GB 501, GB 502, GB 545 60 60 Farm in
· The Western Gulf of Mexico Lease Exchange Agreement was executed
on 19 April 2022, resulting in Woodside acquiring a 40% interest in 25 blocks
operated by Shell, Woodside acquiring a 60% interest in 7 blocks previously
operated by Shell, Shell acquiring a 40% interest in 13 blocks operated by
Woodside, and Shell acquiring a 60% interest in one block previously operated
by Woodside.
· A farm-out agreement with a subsidiary of Shell plc. was signed
on 2 March 2022 to assign a 40% interest in two offshore exploration licences
for the Bimshire and Carlisle Bay Blocks in Barbados. The agreement is subject
to customary regulatory approvals and third-party consents and completion is
targeted for
Q3 2022.
Exploration or appraisal wells drilled
Region Permit area Well Target Interest (%) Spud date Water depth (m) Planned well depth (m) 34 Remarks
Gulf of Mexico GC 564 Wildling SJ101 Oil 100% 1 May 2022 1,276 9,388 Drilling complete
Operator
Gulf of Mexico GC 564 Wildling SJ101 ST01 Oil 100% 1 May 2022 1,276 9,533 Drilling complete
Operator
Gulf of Mexico MC 412 Starman-1 Oil 25% 9 June 2022 457 8,327 Drilling ongoing
Non-operator
Gulf of Mexico GC 826 Mad Dog SP1 exploration tail Oil 23.9% N/A 35 1,513 8,051 Drilling ongoing
Non-operator
Seismic activity
· The 2D Galactic Marine Seismic Survey offshore northern Australia
was completed in May 2022.
· A multi-client 3D seismic survey acquisition in the Egyptian Red
Sea Blocks 3 and 4 is in progress and completion is targeted for H2 2022.
Production rates
Average daily production rates (100% project) for the quarter ended 30 June
2022: 36
Woodside Production rate Remarks
share 37
(100% project, Mboe/d)
Jun Mar
2022 2022 38
AUSTRALIA
NWS Project
LNG 20.58% 311 352 Production was lower in Q2 due to onshore and offshore turnaround activities.
Condensate production increased due to RFSU of GWF-3 in April.
Crude oil and condensate 20.72% 59 56
NGL 20.50% 12 9
Pluto LNG
LNG 90.00% 120 119
Crude oil and condensate 90.00% 11 9
Pluto-KGP Interconnector
LNG 100.00% 28 4 Production was higher in Q2 due to a full quarter of production following
start-up in March.
Crude oil and condensate 100.00% 1 0
NGL 100.00% 1 0
Wheatstone
LNG 11.54% 157 237 Production was lower in Q2 due to onshore and offshore turnaround
activities.
Crude oil and condensate 15.72% 19 31
Bass Strait
Pipeline gas 46.81% 161 - New addition to Woodside portfolio.
Crude oil and condensate 47.49% 29 -
NGL 47.93% 36 -
Australia Oil
Ngujima-Yin 60.00% 42 26 Production was higher in Q2 due to increased reliability.
Okha 39.80% 12 14 Production was lower in Q2 due to decreased reliability.
Pyrenees 63.52% 11 - New addition to Woodside portfolio.
Other
Pipeline gas 39 36 8 Macedon production included from 1 June 2022.
Woodside Production rate Remarks
share 40
(100% project, Mboe/d)
Jun Mar
2022 2022 41
INTERNATIONAL
Atlantis
Crude oil and condensate 38.50% 84 - New addition to Woodside portfolio.
NGL 38.50% 6 -
Pipeline Gas 38.50% 7
Mad Dog
Crude oil and condensate 20.86% 58 - New addition to Woodside portfolio.
NGL 20.86% 2 -
Pipeline Gas 20.86% 1
Shenzi
Crude oil and condensate 64.39% 40 - New addition to Woodside portfolio.
NGL 64.39% 2 -
Pipeline Gas 64.39% 1
Trinidad & Tobago
Crude oil and condensate N/A 7 -
Pipeline gas N/A 56 - New addition to Woodside portfolio.
Forward looking statements and other conversion factors
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 which reflect Woodside's views held as at the date of
this announcement. Forward-looking statements 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. These forward-looking
statements include, but are not limited to, statements about Woodside's future
plans for projects and the timing thereof, the implementation of Woodside's
new energy strategy, Woodside's planned sell-down of interests in certain
projects, and Woodside's expectations and guidance with respect to production
and certain financial results for full year 2022. Forward-looking statements
are not guarantees of future performance 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; the impact of armed conflict and political
instability (such as the ongoing conflict in Ukraine) on economic activity and
oil and gas supply and demand; Woodside's ability to identify purchasers, and
to negotiate acceptable terms, for the sell-down of interests in certain
projects; and the effect of future regulatory or legislative actions on
Woodside or the industries in which it operates, including potential changes
to tax laws. 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
which was released to the Australian Securities Exchange on 17 February 2022
and in Woodside's filings with the U.S. Securities and Exchange Commission.
You should review and have regard to these risks when considering the
information contained in this announcement.
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. All
information included in this announcement, including any forward-looking
statements, speak only as of the date of this announcement and, except as
required by law or regulation, Woodside does not undertake to update or revise
any information or forward-looking statements contained in this announcement,
whether as a result of new information, future events, or otherwise.
All figures are Woodside share for the quarter ending 30 June 2022, 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.
Product Unit Conversion bbl barrel
factor boe barrel of oil equivalent
Mbbl thousand barrels
Mboe thousand barrels of oil equivalent
MMboe million barrels of oil equivalent
Bcf billion cubic feet of gas
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
1 Woodside analysis of independent energy companies excludes
government-backed national oil companies, companies with free float less than
60%, major integrated oil and gas companies and Canadian oil sands companies.
2 The emission reductions in the NWS Project Extension Greenhouse Gas
Management Plan are determined off a baseline of 7.7 Mtpa CO(2)-e, as per
existing State approvals for Karratha Gas Plant.
3 As at 30 June 2022.
4 Woodside's previous production range was 92-98 MMboe. Woodside's
production range, excluding the former BHPP assets and updated for the new
conversion factors, would result in a range of 88-94 MMboe.
5 Capital and exploration expenditure related to former BHPP assets included
from 1 June 2022.
6 Sangomar represents 82% participating interest.
7 Scarborough represents 100% participating interest (from 1 June 2022).
Pluto Train 2 represents 51% participating interest. Excludes the benefit of
Global Infrastructure Partners' additional contribution of approximately $800
million for Pluto Train 2.
8 Other growth includes primarily Shenzi North, Mad Dog Phase 2, Trion, New
Energy and Browse.
9 Base business includes Pluto LNG, NWS, Gulf of Mexico (Atlantis, Shenzi,
Mad Dog), Bass Strait, Wheatstone, Macedon, Pyrenees, Ngujima-Yin, Okha,
Trinidad & Tobago and Corporate.
10 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
11 Q2 2022 includes 2.51 MMboe of LNG, 0.10 MMboe of condensate and 0.04
MMboe of LPG and Q1 2022 includes 0.35 MMboe of LNG and 0.01 MMboe of
condensate processed at the Karratha Gas Plant (KGP) through the Pluto-KGP
Interconnector.
12 Includes the aggregate Woodside equity domestic gas production from all
Western Australian projects.
13 Natural gas liquids (NGL) includes LPG, ethane, propane and butane.
14 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
15 Overriding royalty interests held in the Gulf of Mexico (GOM) for several
producing wells.
16 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
17 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
18 Processing of volumes commenced at the Karratha Gas Plant via the
Pluto-KGP Interconnector in 2022.
19 Includes periodic adjustments reflecting the arrangements governing
Wheatstone LNG sales of 0.06 MMboe in Q2 2022, -0.18 MMboe in Q1 2022 and
-0.11 MMboe in Q2 2021.
20 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
21 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
22 Overriding royalty interests held in the GOM for several producing wells.
23 Natural gas liquids (NGL) include LPG, ethane, propane and butane.
24 Purchased LNG volumes sourced from third parties.
25 Q2 2022 includes $5 million, Q1 2022 includes -$20 million, Q2 YTD 2022
includes -$15 million, Q2 2021 includes -$7 million and Q2 YTD 2021 includes
-$11 million, recognised in relation to periodic adjustments reflecting the
arrangements governing Wheatstone LNG sales. Q2 2022 includes $38 million
relating to Pluto volumes delivered into a Wheatstone sales commitment. These
amounts will be included within other income/(expenses) in the financial
statements rather than operating revenue.
26 Overriding royalty interests held in GOM for several producing wells.
27 Values include cargoes from Corpus Christi, third party trades and the
joint venture partners' share of Pluto upside cargoes under the transitional
marketing arrangements agreement (TMAA).
28 Realised price has been restated to incorporate the updated boe
conversion factors.
29 Realised prices include the impact of periodic adjustments reflecting the
arrangements governing Wheatstone LNG sales.
30 Excludes any additional benefit attributed to produced LNG through
third-party trading activities.
31 Exploration expense includes the reclassification of well results during
the period.
32 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.
33 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.
34 Well depths are referenced to the rig rotary table.
35 Drilling of exploration tail in existing Mad Dog SP1 well commenced 11
July 2022.
36 Standalone former BHPP assets represented at 100% rates over the month of
June only.
37 Woodside share reflects the net realised interest for the period.
38 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
39 Includes the aggregate Woodside equity domestic gas production from all
Western Australian projects.
40 Woodside share reflects the net realised interest for the period.
41 Production and sales volumes in boe for Q1 2022 have been restated using
updated conversion factors, referenced on page 18.
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