Oil and gas producer Woodside Petroleum (WPL) reported an increase in fourth quarter production and sales revenue, largely due to start up of its most anticipated project, the Stybarrow oil field development.
Production increased by only 2% compared to previous quarter, rising to 18 MMboe. But when compared to the previous corresponding period, fourth quarter 2006 with a production figure of 19 MMboe, it fell by 5%.
Sales revenue on the other hand was up 21% thanks to higher commodity prices, managing to outweigh the adverse AUD/USD exchange rate movement.
Today's figures don't come as a surprise – in September Woodside sold its disappointing oil production and exploration assets in Mauritania and in March it sold the Legendre oil assets off the WA coast.
Regarding outlook for 2008 – the production target remains between 80 and 86 MMboe, which was a downgraded figure announced in November
Asset sales and production problems in the areas off the West Australian coast were blamed.
The figure however, still signifies a 15% increase on 2007 production.
The Stybarrow Oil field development is the company's biggest project, with oil reserves estimated to be in a range of 60-90 MMboe of oil.
Located off the north west Australian coast, and sitting about 825 metres underwater, it is a joint venture with partner BHP Billiton who holds the other 50% interest.
"Increased production is expected to come from a full-year of production at Stybarrow, Q1 ramp-up of Otway plus the start-up of projects at Neptune (late Q1), Vincent (Q3), Angel (Q3) and NWSV LNG Train 5 (Q4)," Woodside said in a statement.
The lower oil price didn't help the energy sector today, with the price of oil (West Texas) sliding down 1.1% to US$90.84 a barrel.
Shares in WPL fell 43 cents to $48.88.
