The Pluto LNG project is proving to be a bit of a worry for Woodside Petroleum (WPL).
The huge project saw a series of cost blow outs and start up delays, now there’s been a temporary interruption that helped cut gas production in the three months to September.
Production in the quarter fell 17% to 21.9 million barrels of oil equivalent from 26.5 million barrels a year in the September quarter of 2012.
The company said production was up 9.2% from the June quarter, but the proper comparison is with the same period of the previous year.
As a result, revenue fell by around 15% to $US1.34 billion, from $US1.83 billion a year earlier.
That near half a billion drop in revenue will make a dent in second half and full year revenue and earnings.
Woodside said total revenue for the year was down to $US4.127 billion, from $US4.455 billion for the first nine months of 2012.
But a sharp fall in capital spending will help offset the revenue fall in the second quarter.
Woodside said capex fell by two thirds in the first nine months of the year to $US443 million from $US1.206 billion in the same period of 2012.
Exploration and evaluation rose to $US258 million from $US183 million.
WPL 1Y – Woodside production, revenue slides
Earlier this year, Woodside was forced to cut its full-year production forecast after an unplanned shutdown at its $1US5 billion Pluto LNG plant.
The company said on July 18 that Pluto had resumed. A delay in restarting its Vincent oil project off the northwest coast of WA, also reduced output.
The company last week announced that the $US5 billion North Rankin Redevelopment Project had achieved start-up and was on budget.
During the quarter the Browse Joint Venture participants agreed to progress work in relation to the Floating development concept to commercialise the Browse gas fields. That approval remains mired in an argument with the WA government.
The Pluto Joint Venture participants also approved the expenditure required for Phase 1 of the tie-in project to connect the Xena gas field.
Production in the quarter fell 17% to 21.9 million barrels of oil equivalent from 26.5 million barrels a year earlier.
Woodside CEO Peter Coleman said the past three months had seen milestones achieved on major projects within Woodside’s base business and growth portfolio.
“These milestones further demonstrate the progress we are making on our growth strategy,” Mr Coleman said.
“At the same time, our production team continues to deliver the results that make it possible for us to take forward value-creating opportunities.”
There was no comment on the revenue fall and the problems involving the Pluto project.
Woodside also said that its Leviathan project, off the Israeli coast, was waiting for the result of the Israeli Supreme Court challenge to the government’s gas policy on October 2.
The company also said that that it has made a total of $25.6 million in payments prior to withdrawing from the Browse native title agreement.
Woodside says it will release 2014 guidance for capital and exploration and production targets on December 10.
Woodside shares fell 1.35% or 52c to $38.00.
