Woodside Energy (ASX:WDS) has reported a robust second quarter, with production reaching 50 million barrels of oil equivalent, a 2 per cent increase. This growth was attributed to high-performing assets and a continued focus on cost management, allowing for a reduction in full-year unit production cost guidance. Among its successful assets, Sangomar stood out, achieving an average gross production of 101,000 barrels per day with near-perfect reliability. The site has marked a year of incident-free operations since its first oil extraction. Woodside Energy is an Australian oil and gas exploration and production company. They are known for their activities in the exploration, development, production, and marketing of resources.
In a significant strategic move, Woodside finalised the sale of a 40 per cent stake in its Louisiana LNG project to Stonepeak for $US5.7 billion. This deal substantially decreases Woodside’s capital exposure, with Stonepeak set to fund 75 per cent of the project’s capital expenditure in 2025 and 2026. The Louisiana LNG project is now considered a key element of Woodside’s broader global gas strategy.
According to Woodside chief executive Meg O’Neill, the final investment decision for the Louisiana LNG Project reinforces Woodside’s position as a major global LNG supplier, complementing its existing Australian LNG business and enabling it to cater to increasing global demand from a wider customer base. Meanwhile, the Scarborough Energy Project has reached 86 per cent completion and remains on track for its first LNG production in the second half of 2026. Construction of the Trion oil project in Mexico is 35 per cent complete, with first oil anticipated in 2028.
Woodside has successfully lowered its unit production cost guidance to a range of $US8 to $US8.5 per barrel of oil equivalent, a decrease from the previous range of $US8.5 to $US9 per barrel. The company has also revised its capital expenditure guidance downward to between $US4 billion and $US4.5 billion, reduced from $US6 billion to $US6.8 billion.
