Wheatstone LNG Lifts Woodside Q1 Revenue

By Glenn Dyer | More Articles by Glenn Dyer

The surge in global oil and gas prices in the first quarter saw Woodside Petroleum’s first quarter revenue jump 30% from a year earlier, helped by higher production.

The country’s largest independent oil and gas producer said revenue rose to $US1.169 billion for the quarter ended March 31, compared with $US902.4 million a year ago.

Woodside said in its March quarter report, out Wednesday that output increased to 22.2 million barrels of oil equivalent (mmboe) from 21.4 mmboe in the March quarter last year, helped by a ramp-up in production at the Wheatstone LNG project in Western Australia.

The company said that the three month period saw the company raise $US2.5 billion in a issue which financed the acquisition of an additional 50% interest in Scarborough (which has been completed)

Woodside said that the Wheatstone’s project Train 2 with first LNG expected in this quarter, it found oil in two exploration wells offshore Gabon in West Africa; released invitation to tender packages to pre-qualified contractors for the FPSO facility, supporting subsea infrastructure and drill rig for the SNE Field Development–Phase 1, offshore Senegal and did deals to sell up to 12 additional cargoes of LNG.

Woodside CEO Peter Coleman said in the statement the first quarter was highlighted by Train 1 at Wheatstone LNG achieving steady production and demonstrating production rates above nameplate capacity.

“Output from Wheatstone underpinned an increase in LNG production in the first three months of this year, while revenue climbed 18% quarter-on-quarter to $1,169 million.

“Train 2 at Wheatstone is close to completion and is expected to start producing LNG this quarter. Once both LNG trains and the domestic gas facility are fully operational, Wheatstone will contribute more than 13 MMboe of annual production.

“During the quarter we announced and completed the acquisition of an additional interest in the Scarborough gas field. We also completed our successful A$2.5 billion entitlement offer, which will provide equity funding support to deliver Scarborough and SNE-Phase 1, and Browse to targeted Final Investment Decision.

“We now operate both the Scarborough offshore gas resource and Pluto LNG onshore processing facility. It is our plan to accelerate the development of Scarborough through an expansion of Pluto LNG. Concept selections for both the offshore and onshore components of the project are targeted by the end of this year,” he said.

Woodside shares were up 1.1% at $30.72.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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