TIDMWDS
RNS Number : 6890A
Woodside Energy Group Ltd
24 January 2024
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
Wednesday, 24 January 2024
FOURTH QUARTER REPORT FOR PERIODED 31 DECEMBER 2023
Reliable production
* Record full-year 2023 production of 187.2 MMboe (513
Mboe/day), at the top end of production guidance of
183 - 188 MMboe.
* Quarterly production of 48.1 MMboe (522 Mboe/day),
with strong reliability of 99.9% maintained on Pluto
(98.2% full year 2023).
* Quarterly revenue of $3,355 million, up 3% from Q3
2023, due to higher realised prices, partly offset by
lower traded LNG volumes and timing of oil and
condensate sales.
* Portfolio average realised price of $66.8/boe.
* Sold 31% of produced LNG at prices linked to gas hub
indices (30% full year 2023).
Executing major projects
* The Scarborough Energy Project received secondary
environmental approvals for Commonwealth waters in
December and commenced all relevant offshore
activities. The project was 55% complete at the end
of the quarter [1] . Subsequent to the quarter, the
first production well was spud and as of 22 January,
approximately 57km out of 433km of pipelay has been
completed.
* The Sangomar Project floating production storage and
offloading (FPSO) facility sailed away from Singapore
in December. The project was 94% complete at the end
of the period, with 17 of 23 wells drilled and
completed.
* The Trion Project continued to award contracts
including for the wellheads and subsea line pipe.
Procurement activities commenced for floating
production unit (FPU) materials and subsea equipment.
Carbon and new energy
* The proposed Woodside Solar Project received planning
approvals and State and Federal environmental
approvals.
* The Angel carbon capture and storage (CCS)
opportunity commenced pre-front end engineering and
design (FEED) studies.
* The proposed US Federal Government tax incentive
criteria are being evaluated to determine
implications for the proposed H2OK Project.
Woodside CEO Meg O'Neill said production in the fourth quarter
remained strong, taking 2023 full-year production to a record 187.2
MMboe.
"Our expanded global portfolio delivered record production in
2023. Fourth quarter production reflected the completion of planned
turnaround and maintenance activities at the North West Shelf and
Shenzi. Pluto LNG also maintained its strong production
performance, again achieving 99.9% reliability during the
period.
"Sales revenue was 3% higher than the third quarter at $3,355
million due to higher realised prices.
"Woodside's growth projects are being delivered as planned. We
have strong momentum on the Scarborough Energy Project following
receipt of regulatory approvals in December for key offshore work
scopes. We've already completed the seismic survey, nearshore
pipelay installation is almost complete and we've commenced pipelay
work in Commonwealth waters. Earlier this month, we spud the first
production well in our drilling program.
"Fabrication of six of the 51 modules for Pluto Train 2 has been
completed and work on another 38 is underway. We remain on track
for targeted first LNG cargo in 2026.
"The Léopold Sédar Senghor floating production storage and
offloading facility departed Singapore at the end of December and
is scheduled to arrive offshore Senegal in the coming weeks.
Seventeen wells have now been completed at Sangomar, with first oil
targeted for mid-2024.
"At Trion in Mexico, contracts have been awarded for the
wellheads, subsea line pipe and coatings, and the shore base.
Procurement for the subsea equipment and floating production unit
commenced during the quarter.
"In the US Gulf of Mexico, following an appraisal well drilled
in the second quarter, a final investment decision (FID) was taken
on the Mad Dog Southwest Extension, which will be a three-well
tieback to the Argos facility.
"In our new energy projects, design optimisation and technical
work continued in support of FID readiness at H2OK in Oklahoma. We
are evaluating the production tax credit guidance provided by the
US Federal Government.
"In Western Australia, planning approvals and State and Federal
environmental approvals were secured for the proposed Woodside
Solar Project near Karratha.
"Woodside is safely executing our significant decommissioning
program. We achieved a milestone with the safe removal of the
Nganhurra riser turret mooring and we have commenced the Stybarrow
and Griffin decommissioning campaigns.
"In Marketing, two term LNG sales and purchase agreements were
signed during the quarter. First, with Mexico Pacific Limited for
the purchase of 1.3 Mtpa of LNG from its proposed third train at
the Saguaro Energia LNG Project on the Mexican Pacific coast.
Second, with Australian mining company Pilgangoora Operations Pty
Ltd for the supply of domestic LNG from the Pluto Truck Loading
Facility, further demonstrating Woodside's commitment to Australian
domestic gas.
"Woodside welcomes the certainty provided by the ministerial
exemption received in January under the domestic gas price cap
legislation. We have consistently provided gas to domestic
customers on reasonable prices and terms, and the exemption
reflects our ongoing commitment to this objective.
"Woodside confirmed in December that it was in discussions
regarding a potential merger with Santos Ltd. The talks are still
at an early stage and there is no certainty that the transaction
will progress. Woodside will be disciplined, conduct thorough due
diligence, and will only pursue a transaction that is
value-accretive for shareholders.
"As we complete our first full reporting year after the merger
with BHP Petroleum, we are pleased with the results of our strong
combined portfolio," she said.
Comparative performance at a glance
Three months ended Year to date
------------ ----------- ---------------------------------------- -------------------------
Dec Sep Change Dec Change Dec Dec Change
2023 2023 % 2022 % 2023 2022 %
[2]
------------ ----------- ------ ------ ------- ------ ------- ------- ------- -------
Production
[3] MMboe 48.1 47.8 - 51.6 (7%) 187.2 157.7 19%
============ ======= ======= =======
Mboe/day 522 520 561 513 432
======================== ====== ====== ======= ====== ======= ======= ======= =======
Sales MMboe 49.5 53.3 (7%) 52.2 (5%) 201.5 168.9 19%
============ ======= ======= =======
Mboe/day 538 579 568 552 463
======================== ====== ====== ======= ====== ======= ======= ======= =======
Revenue $ million 3,355 3,259 3% 5,160 (35%) 14,028 16,851 (17%)
Operational overview
Production
-- Delivered quarterly production of 48.1 MMboe, in line with Q3
2023, following completion of planned turnaround and maintenance
activities on North West Shelf (NWS) and Shenzi in the third
quarter. This was offset by lower production from Bass Strait due
to planned onshore and offshore maintenance works and lower gas
demand during summer.
-- Production at NWS was lower than the corresponding quarter in
2022 primarily due to natural field decline.
-- Achieved 99.9% reliability at Pluto LNG for the quarter.
Other
-- Took FID on the Mad Dog Southwest Extension in the US Gulf of
Mexico (GoM). This will be a three well tie back to the Argos
facility.
-- Ramp up of Mad Dog Phase 2 continued with remediation of the
riser flex joints now completed.
-- Subsequent to the quarter, the NWS project participants took
FID on the Lambert West Project, supporting ongoing production from
NWS.
Project and development activities
Scarborough Energy Project
-- The Scarborough and Pluto Train 2 project was 55% complete at
the end of the period and first LNG cargo is targeted for 2026.
-- Fabrication of the FPU hull and topsides progressed, with the
hull being prepared for drydock departure in Q1 2024.
-- Pluto Train 2 module fabrication and site construction works
continued. Fabrication of six out of 51 modules is complete and
work on another 38 is underway.
-- In December 2023, secondary environment approvals for the
drilling, subsea and trunkline installation activities were
accepted by the regulator. Installation of the trunkline nearshore
component is nearing completion, and pipeline installation in
Commonwealth waters commenced.
-- The offshore seismic survey environmental approval was also
granted, and the activity was completed.
-- Subsequent to the quarter, installation of the first subsea
flowline commenced and the first production well was spud.
Sangomar Field Development Phase 1
-- The project was 94% complete at the end of the period, and
first oil is targeted for mid-2024.
-- The FPSO sailed away from Singapore on 22 December 2023
following completion of topsides integration and pre-commissioning
works.
-- The development drilling program continued with 17 of 23 wells completed.
-- The subsea installation campaign is ongoing, with the overall
subsea work scope 98% complete at the end of the period.
Trion
-- The floating storage and offloading vessel FEED and shipyard engineering continued.
-- Contracts were awarded for the wellheads, subsea line pipe
and coatings, and the Mexico shore base.
-- Detailed engineering by the subsea equipment suppliers and
the FPU engineering, procurement and construction contractor
progressed, enabling the commencement of procurement activities in
the quarter.
Liard
-- Woodside completed a transaction bringing Paramount Resources
Ltd (Paramount) into the Liard field, located onshore British
Columbia Canada. Both parties will have an equal 50% interest in
all the leases and Paramount will assume operatorship.
-- Woodside joined the Rockies LNG Partnership as a potential
natural gas supplier to the Ksi Lisims LNG Project on the west
coast of British Columbia.
Browse
-- In December 2023, the Western Australian Environmental
Protection Authority published Woodside's response to the proposed
Browse to NWS Project's environmental review document.
Calypso
-- Woodside continued pre-FEED engineering studies to mature
both technical definition and cost estimates of the development.
Marketing and commercial discussions to evaluate options to
monetise the resource are ongoing.
Sunrise
-- In November 2023, the Timor-Leste Government announced its
support for the Sunrise Concept Study to proceed. The study will
consider the key issues for developing, processing and marketing
gas via both Timor-Leste and Australia based solutions.
Decommissioning
-- The Nganhurra riser turret mooring was successfully removed
from its location off the North West Cape in Western Australia and
transported to Perth to be cleaned and dismantled in preparation
for recycling and reuse.
-- All 18 Enfield wells have now been plugged and 16 of the 18
xmas trees have been removed. The remaining two trees are expected
to be recovered in the first half of 2024, along with the wellhead
severance program.
-- Environmental approvals were obtained in December to progress
in-field Griffin decommissioning activities.
-- The Endurance drill rig arrived in Dampier and preparations
are underway to commence the Stybarrow well plug and
abandonment.
Marketing and Trading
-- In December 2023, Woodside signed a sale and purchase
agreement (SPA) with Mexico Pacific Limited to purchase 1.3 Mtpa of
LNG, equivalent to approximately 18 cargoes per year, for 20 years.
[4]
-- Woodside has reached agreement with three Australian maritime
unions on the Australian crewing of an LNG vessel. Under the
agreement, the maritime unions will cooperate fully with Woodside
and its contractors in maintaining maritime operations at the NWS
and Pluto LNG Projects. [5]
-- In October 2023, Woodside exported a cargo of US crude to
Europe, utilising access to storage and loading infrastructure
acquired previously. This infrastructure will allow Woodside to
optimise the timing and pricing of sales.
-- Woodside signed an SPA with Pilgangoora Operations Pty Ltd
for the supply of domestic LNG from the Pluto Truck Loading
Facility. Supply under the SPA is contracted to commence in the
fourth quarter of 2024 for a period of five years. [6]
-- Subsequent to the quarter, Woodside was granted an exemption
under the domestic gas price cap legislation applicable to the east
coast of Australia. The exemption is for the expected delivery of
more than 260 PJ (100% share) of additional domestic gas through to
2033.
New energy and carbon solutions
H2OK
-- Woodside signed a water agreement with the City of Ardmore,
Oklahoma to provide wastewater to H2OK and commenced engineering
design work for the water pipeline.
-- Design optimisation and supporting technical work continued in support of FID readiness.
-- Woodside is evaluating the proposed US Federal Government tax
incentive criteria which was released for comment in December
2023.
Woodside Solar
-- Received planning approvals and State and Federal
environmental approvals for the proposed Woodside Solar Project at
the Maitland Industrial Area.
-- In December 2023, Woodside entered into a conditional
agreement under which a third party will develop the proposed solar
facility and supply renewable energy from the facility to
Woodside.
-- Woodside continues to progress commercial agreements,
including for power transmission, to support the proposed
project.
CCS opportunities
-- Commenced pre-FEED studies for the Angel carbon capture and
storage (CCS) opportunity in November 2023.
-- In December 2023, Woodside announced it had entered into a
non-binding memorandum of understanding with four Japanese
companies to enable studies of potential CCS value chains between
Japan and Australia.
Other renewables
-- Completed FEED on the Capella project, a collaboration
between Woodside and Heliogen, in December 2023.
Corporate activities
Hedging
-- As at the end of the period, Woodside hedged approximately
29.3 MMboe of 2024 production at an average price of approximately
$75.7 per barrel.
-- Woodside also has a hedging program for Corpus Christi LNG
volumes designed to protect against downside pricing risk. These
hedges are Henry Hub (HH) and Title Transfer Facility (TTF)
commodity swaps. An average of 63% of 2024 and 17% of 2025 Corpus
Christi volumes have been hedged.
-- The realised value of hedged positions for the year ended 31
December 2023 is a pre-tax expense of approximately $306 million,
with $200 million pre-tax expense related to oil price hedges, $74
million pre-tax expense related to Corpus Christi hedges and $32
million pre-tax expense related to other hedge positions. Hedging
losses will be included in "other expenses" in the full-year
financial statements.
2023 full-year results and teleconference
-- Woodside's Annual Report 2023, Climate Transition Action Plan
2023 and associated investor briefing will be released to the
market on Tuesday, 27 February 2024, and will be available on
Woodside's website at http://www.woodside.com/ .
-- A teleconference providing an overview of the full-year 2023
results and a question and answer session will be hosted by
Woodside CEO and Managing Director, Meg O'Neill, and Chief
Financial Officer, Graham Tiver, on Tuesday, 27 February 2024 at
10:00 AEDT / 07:00 AWST / 17:00 CST (Monday, 26 February 2024).
-- We recommend participants pre-register 5 to 10 minutes prior
to the event with one of the following links:
o https://webcast.openbriefing.com/wds-fyr-2024/ to view the
presentation and listen to a live stream of the question and answer
session
o https://s1.c-conf.com/diamondpass/10035979-fh876t.html to
participate in the question and answer session. Following
pre-registration, participants will receive the teleconference
details and a unique passcode.
Climate Transition Action Plan presentation
-- Woodside will present its Climate Transition Action Plan 2023
to investors on Tuesday, 12 March 2024.
-- A webcast of the event will be available. Further details of
the event including the time and a link to the webcast will be
provided prior to the event.
Annual General Meeting
-- Woodside's Annual General Meeting will be held at 10.00am
(AWST) on Wednesday 24 April 2024 in Perth, Western Australia. The
closing date for receipt of director nominations is 19 February
2024.
2024 full-year guidance
Production
-- Woodside's full-year 2024 production guidance is 185 - 195 MMboe (505 - 533 Mboe/day).
-- The approximate split by product type is:
LNG 45%
Pipeline gas 20%
Crude and condensate 30%
Natural gas liquids 5%
---------------------- -----
Capital expenditure
-- Woodside's full-year 2024 capital expenditure guidance is
US$5.0 - 5.5 billion, assuming no change to current participating
interests.
-- The approximate split by activity area is:
Sangomar [7] 10%
Scarborough [8] 40%
Trion [9] 15%
Other [10] 35%
----------------- -----
Gas hub exposure
-- Woodside expects approximately 26 - 33% of its 2024 produced
LNG to be sold at prices linked to gas hub indices. [11]
Contacts:
INVESTORS MEDIA
Marcela Louzada Christine Forster
M: +61 456 994 243 M: +61 484 112 469
E: investor@woodside.com E: christine.forster@woodside.com
This announcement was approved and authorised for release by
Woodside's Disclosure Committee.
Production summary
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[12]
AUSTRALIA
LNG
North West Shelf Mboe 7,798 6,590 9,564 32,807 29,696
Pluto [13] Mboe 12,407 12,261 12,124 45,587 46,236
Wheatstone Mboe 2,505 2,610 2,596 10,159 9,205
-------------------------- ----------- ------- ------- ------- ----------- ----------
Total Mboe 22,710 21,461 24,284 88,553 85,137
-------------------------- ----------- ------- ------- ------- ----------- ----------
Pipeline gas
Bass Strait Mboe 3,206 4,591 4,883 15,100 13,717
Other [14] Mboe 3,438 3,472 3,470 13,027 9,304
-------------------------- ----------- ------- ------- ------- ----------- ----------
Total Mboe 6,644 8,063 8,353 28,127 23,021
-------------------------- ----------- ------- ------- ------- ----------- ----------
Crude oil and condensate
North West Shelf Mbbl 1,359 1,278 1,711 5,867 5,371
Pluto(13) Mbbl 994 976 982 3,630 3,684
Wheatstone Mbbl 495 477 506 1,805 1,698
Bass Strait Mbbl 704 982 935 3,367 2,605
Macedon & Pyrenees Mbbl 653 688 692 2,731 1,517
Ngujima-Yin Mbbl 1,203 1,140 1,890 3,212 7,027
Okha Mbbl 616 608 598 2,076 2,120
-------------------------- ----------- ------- ------- ------- ----------- ----------
Total Mboe 6,024 6,149 7,314 22,688 24,022
-------------------------- ----------- ------- ------- ------- ----------- ----------
NGL 2
North West Shelf Mbbl 275 276 307 1,182 1,040
Pluto(13) Mbbl 58 53 52 206 170
Bass Strait Mbbl 1,026 1,380 1,187 4,320 3,244
-------------------------- ----------- ------- ------- ------- ----------- ----------
Total Mboe 1,359 1,709 1,546 5,708 4,454
-------------------------- ----------- ------- ------- ------- ----------- ----------
Total Australia [15] Mboe 36,737 37,382 41,497 145,076 136,634
----------- ------- ------- ------- ----------- ----------
Mboe/day 399 406 451 397 374
----------- ------- ------- ------- ----------- ----------
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[16]
-------------------------- ---------- -------- -------- -------- ---------- ----------
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 314 350 409 1,343 750
Trinidad & Tobago Mboe 2,779 2,413 1,952 10,151 4,883
Other(17) Mboe - 17 - 47 -
-------------------------- ---------- -------- -------- -------- ---------- ----------
Total Mboe 3,093 2,780 2,361 11,541 5,633
-------------------------- ---------- -------- -------- -------- ---------- ----------
Crude oil and condensate
Atlantis Mbbl 2,763 2,714 3,229 10,965 5,473
Mad Dog Mbbl 2,054 2,188 1,165 6,808 2,414
Shenzi Mbbl 2,712 2,158 2,517 10,065 5,734
Trinidad & Tobago Mbbl 284 201 361 1,076 876
Other [17] Mbbl 81 36 81 237 189
-------------------------- ---------- -------- -------- -------- ---------- ----------
Total Mboe 7,894 7,297 7,353 29,151 14,686
-------------------------- ---------- -------- -------- -------- ---------- ----------
NGL 4
Gulf of Mexico Mbbl 344 362 390 1,387 753
Other(17) Mbbl - 10 - 27 -
-------------------------- ---------- -------- -------- -------- ---------- ----------
Total Mboe 344 372 390 1,414 753
-------------------------- ---------- -------- -------- -------- ---------- ----------
Total International Mboe 11,331 10,449 10,104 42,106 21,072
---------- -------- -------- -------- ---------- ----------
Mboe/day 123 114 110 115 58
------------------------------------- -------- -------- -------- ---------- ----------
Total production Mboe 48,068 47,831 51,601 187,182 157,706
-------------------------- ---------- -------- -------- -------- ---------- ----------
Mboe/day 52 2 520 561 513 432
------------------------------------- -------- -------- -------- ---------- ----------
Product sales
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[18]
AUSTRALIA
LNG
North West Shelf Mboe 7,367 7,639 9,000 34,573 28,069
Pluto 5 Mboe 12,130 12,622 12,189 45,654 44,578
Wheatstone [19] Mboe 2,473 2,541 2,360 9,676 9,243
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Total Mboe 21,970 22,802 23,549 89,903 81,890
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Pipeline gas
Bass Strait Mboe 3,341 4,506 4,725 15,042 13,483
Other Mboe 3,684 3,243 3,524 12,906 9,337
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Total Mboe 7,025 7,749 8,249 27,948 22,820
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Crude oil and condensate
North West Shelf [20] Mbbl 514 1,471 1,989 4,669 5,765
Pluto Mbbl 614 1,228 856 3,070 3,994
Wheatstone Mbbl 349 689 684 1,697 1,652
Bass Strait Mbbl 410 1,407 1,115 2,934 2,883
Ngujima-Yin Mbbl 1,352 708 1,753 3,201 7,027
Okha Mbbl 1 1,297 - 1,951 1,917
Macedon & Pyrenees Mbbl 1,054 1 1,142 2,605 1,644
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Total Mboe 4,294 6,801 7,539 20,127 24,882
----------------------------- ---------- -------- ---------- --------- ---------- -----------
NGL 7
North West Shelf Mbbl 253 263 228 941 929
Pluto Mbbl 49 32 - 336 -
Bass Strait Mbbl 1,370 959 672 4,341 2,884
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Total Mboe 1,672 1,254 900 5,618 3,813
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Total Australia Mboe 34,961 38,606 40,237 143,596 133,405
----------------------------- ---------- -------- ---------- --------- ---------- -----------
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[21]
-------------------------- ------- ------- ------- -------- -------- ----------
INTERNATIONAL
Pipeline gas
Gulf of Mexico Mboe 357 321 343 1,362 684
Trinidad & Tobago Mboe 2,611 2,574 1,969 10,180 4,923
Other [22] Mboe 6 7 4 26 16
-------------------------- ------- ------- ------- -------- -------- ----------
Total Mboe 2,974 2,902 2,316 11,568 5,623
-------------------------- ------- ------- ------- -------- -------- ----------
Crude oil and condensate
Atlantis Mbbl 2,976 2,442 3,091 10,796 5,440
Mad Dog Mbbl 2,209 2,041 1,098 6,819 2,368
Shenzi Mbbl 2,716 2,123 2,245 10,164 5,599
Trinidad & Tobago Mbbl 316 242 130 1,219 777
Other (22) Mbbl 53 61 59 242 164
-------------------------- ------- ------- ------- -------- -------- ----------
Total Mboe 8,270 6,909 6,623 29,240 14,348
-------------------------- ------- ------- ------- -------- -------- ----------
NGL 9
Gulf of Mexico Mbbl 435 379 422 1,519 822
Other(22) Mbbl 2 4 2 13 8
-------------------------- ------- ------- ------- -------- -------- ----------
Total Mboe 437 383 424 1,532 830
-------------------------- ------- ------- ------- -------- -------- ----------
Total International Mboe 11,681 10,194 9,363 42,340 20,801
-------------------------- ------- ------- ------- -------- -------- ----------
MARKETING [23]
LNG Mboe 2,209 4,329 2,625 14,553 14,727
Liquids [24] Mboe 618 169 - 1,047 -
-------------------------- ------- ------- ------- -------- -------- ----------
Total Mboe 2,827 4,498 2,625 15,600 14,727
-------------------------- ------- ------- ------- -------- -------- ----------
Total Marketing Mboe 2,827 4,498 2,625 15,600 14,727
-------------------------- ------- ------- ------- -------- -------- ----------
Total sales Mboe 49,469 53,298 52,225 201,536 168,933
-------------------------- ------- ------- ------- -------- -------- ----------
Revenue (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[25]
AUSTRALIA
North West Shelf 509 575 1,260 3,021 3,500
Pluto 1,011 923 1,666 3,789 5,497
Wheatstone [26] 208 246 383 982 1,110
Bass Strait 225 379 363 1,143 1,251
Macedon 54 41 54 199 111
Ngujima-Yin 128 64 164 292 762
Okha - 103 - 159 191
Pyrenees 94 - 118 233 188
INTERNATIONAL
Atlantis 241 209 263 852 506
Mad Dog 178 170 87 532 212
Shenzi 217 178 188 794 520
Trinidad & Tobago [27] 103 17 112 368 321
Other [28] 4 5 6 18 16
Marketing revenue [29] 332 298 431 1,453 2,464
Total sales revenue [30] 3,304 3,208 5,095 13,835 16,649
Processing revenue 49 50 48 184 175
Shipping and other revenue 2 1 17 9 27
Total revenue 3,355 3,259 5,160 14,028 16,851
------------------------------ ------------- ------ ------ ---------- ------------
Realised prices
Three months ended Three months ended
Units Dec Sep Dec Units Dec Sep Dec
2023 2023 2022 2023 2023 2022(25)
-------------------- --------- ------- ------ ------- -------- --------- ------- ------------
LNG produced [31] $/MMBtu 11.5 10.3 20.3 $/boe 74 65 128
LNG traded [32] $/MMBtu 11.9 8.2 24.2 $/boe 76 52 153
Pipeline gas $/boe 37 28 43
Oil and condensate $/bbl 82 82 82 $/boe 82 82 82
NGL $/bbl 24 45 36 $/boe 24 45 36
Liquids traded
(32) $/bbl 85 72 - $/boe 85 72 -
Average realised
price $/boe 67 60 98
Dated Brent $/bbl 84 87 89
JCC (lagged three
months) $/bbl 83 84 113
WTI $/bbl 78 82 83
JKM $/MMBtu 15.0 10.9 38.6
TTF $/MMBtu 13.5 10.3 45.0
-- Average realised price for pipeline gas was A$6.8/GJ in
Western Australia, A$13.4/GJ in east coast Australia and $4.4/Mcf
for International in Q4 2023. [33]
Expenditure (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
[34]
Exploration and evaluation
expense
Exploration and evaluation
expensed 108 123 239 364 454
Permit amortisation 2 3 3 9 11
------------------------------ ------ ------ ------ --------- -----------
Total 110 126 242 373 465
------------------------------ ------ ------ ------ --------- -----------
Capital expenditure
Exploration and evaluation
capitalised [35] (,) [36] 43 3 8 175 119
Oil and gas properties 1,449 1,313 1,342 5,270 3,903
Other [37] 74 44 6 256 92
------------------------------ ------ ------ ------ --------- -----------
Total 1,566 1,360 1,356 5,701 4,114
------------------------------ ------ ------ ------ --------- -----------
Trading costs 181 265 260 1,068 1,777
------------------------------ ------ ------ ------ --------- -----------
Key project expenditure (US$ million)
Three months ended Year to date
Dec Sep Dec Dec Dec
2023 2023 2022 2023 2022
Capital expenditure
Scarborough [38] 826 613 599 2,643 1,841
Sangomar 211 257 290 1,019 1,017
Trion 154 111 - 273 -
--------------------- ------- ------ ------ ------- ------
Exploration
-- In the US Gulf of Mexico (GoM), Woodside was the highest
bidder on 18 leases in Lease Sale 261. The final award of these
leases is pending regulatory approval.
-- Completed a transaction with Chevron in which Woodside
acquired a 30% working interest in 11 Chevron operated leases in
the central GoM. In exchange, Chevron acquired a 25% working
interest in seven Woodside operated leases in western GoM.
Permits and licences
Key changes to permit and licence holding during the quarter
ended 31 December 2023 are noted below.
Region Permits or licence Change Current Remarks
areas in interest interest
(%) (%)
--------------- -------------------------- ------------- ---------- --------------------
AT 409, AT 452,
AT 453, AT 454,
AT 228, AT 273,
AT 274, AT 424,
AT 425, AT 469,
GoM AT 470 30% 30% Chevron transaction
--------------- -------------------------- ------------- ---------- --------------------
AC 81, AC 82, AC
125, AC 126, AC
39, AC 127, AC
GoM 170 (25%) 45% Chevron transaction
--------------- -------------------------- ------------- ---------- --------------------
AC 39, AC 127,
GoM AC 170 (45%) 0% Leases expired
--------------- -------------------------- ------------- ---------- --------------------
PNG- 61962, 63597
[39] , 63686(39)
, 64444(39) , 64446(39)
, 65569, 65570,
65572, 65573, 65575,
65576, 65997, 66264,
66265, 66266, 66267,
66268, 66270, 66271,
67385, 67386, 67387,
Canada (Liard 67388, 67389, 67390,
basin) 67391, 67392, 67393 (50%) 50% Liard transaction
--------------- -------------------------- ------------- ---------- --------------------
Seismic and geophysical survey activity
Region Field Permits or licence Remarks
areas
------------------- ------------ ------------------------- ----------------------
Northern Carnarvon Scarborough Petroleum titles WA-61-L Acquisition completed
Basin / Exmouth and WA-62-L of 4D seismic
Plateau baseline survey,
1,648 km(2) Full
Fold.
------------------- ------------ ------------------------- ----------------------
Production rates
Average daily production rates (100% project) for the quarter
ended 31 December 2023:
Woodside Production Remarks
share rate
[40] (100% project,
Mboe/d)
Dec Sep
2023 2023
AUSTRALIA
NWS Project
------------------------- -------- ------- -------- -------------------------------------
Production was higher following
completion of planned turnaround
and maintenance activities
on the North Rankin Complex,
Goodwyn Platform and the
Karratha Gas Plant in Q3
LNG 30.44% 278 238 2023.
Crude oil and condensate 30.45% 46 46
NGL 30.49% 10 10
Pluto LNG
------------------------- -------- ------- -------- -------------------------------------
LNG 90.00% 119 123
Crude oil and condensate 90.00% 11 11
Pluto-KGP Interconnector
----------------------------------- ------- -------- -------------------------------------
LNG 100.00% 28 22
Crude oil and condensate 100.00% 1 1
NGL 100.00% 1 1
Wheatstone [41]
------------------------- -------- ------- -------- -------------------------------------
LNG 11.77% 231 239
Crude oil and condensate 15.69% 34 31
Bass Strait
------------------------- -------- ------- -------- -------------------------------------
Production was lower due
to planned onshore and offshore
maintenance works and lower
Pipeline gas 43.75% 80 105 market demand during summer.
Crude oil and condensate 42.34% 18 23
NGL 46.04% 24 30
Australia Oil
------------------------- -------- ------- -------- -------------------------------------
Ngujima-Yin 60.00% 22 21
Okha 50.00% 13 13
Pyrenees 64.86% 11 12
Other
------------------------- -------- ------- -------- -------------------------------------
Pipeline gas 25F [42] 37 38
Woodside Production Remarks
share rate
[43] (100% project,
Mboe/d)
Dec Sep
2023 2023
INTERNATIONAL
Atlantis
-------------------------- ----------- -------- ------- -----------------------------------
Crude oil and condensate 38.50% 78 77
NGL 38.50% 5 5
Pipeline Gas 38.50% 6 6
Mad Dog
-------------------------- ----------- -------- ------- -----------------------------------
Crude oil and condensate 20.86% 107 114
NGL 20.86% 4 4
Production was lower due
Pipeline Gas 20.86% 2 2 to planned downtime.
Shenzi
-------------------------- ----------- -------- ------- -----------------------------------
Crude oil and condensate 64.39% 46 36
Production was higher following
completion of planned maintenance
NGL 64.39% 2 2 in Q3 2023.
Pipeline Gas 64.39% 1 1
Trinidad & Tobago
-------------------------- ----------- -------- ------- -----------------------------------
75.47%
Crude oil and condensate [44] 4 5
Pipeline gas 50.41%(44) 60 56
Disclaimer and important notice
Forward looking statements
This announcement contains forward-looking statements with
respect to Woodside's business and operations, market conditions,
results of operations and financial condition, including, for
example, but not limited to, statements regarding development,
completion and execution of Woodside's projects, guidance with
respect to production, expectations regarding future capital
commitment, future cash flows, future results of projects,
operating activities, new energy products, accounting decisions
including impairments, commencement dates under supply
arrangements, construction and delivery dates, expectations and
plans for renewables production capacity and investments in, and
development of, renewables projects. All statements, other than
statements of historical or present facts, are forward-looking
statements and 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. Similarly, statements that describe the objectives,
plans, goals or expectations of Woodside are forward-looking
statements. The information and statements in this announcement
about Woodside's future strategy and other forward-looking
statements are not guidance, forecasts, guarantees or predictions
of future events or performance, but are in the nature of
aspirational targets that Woodside has set for itself and its
management of the business. Those statements and any assumptions on
which they are based are only opinions and are subject to change
without notice 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;
actual demand; currency fluctuations; geotechnical factors;
drilling and production results; gas commercialisation; development
progress; operating results; engineering estimates; reserve and
resource estimates; loss of market; industry competition;
environmental risks; physical risks; legislative, fiscal and
regulatory developments; changes in accounting standards; economic
and financial markets conditions in various countries and regions;
political risks; project delay or advancement; approvals; cost
estimates; the effect of future regulatory or legislative actions
on Woodside or the
industries in which it operates, including potential changes to
tax laws; and the impact of general economic conditions, prevailing
exchange rates and interest rates and conditions in financial
markets.
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 released to the Australian Securities Exchange and London
Stock Exchange, and in Woodside's most recent Annual Report on Form
20-F filed with the U.S. Securities and Exchange Commission and
available on the Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the
information contained in this announcement.
If any of the assumptions on which a forward-looking statement
is based were to change or be found to be incorrect, this would
likely cause outcomes to differ from the statements made in this
announcement.
All forward-looking statements contained in this announcement
reflect Woodside's views held as at the date of this announcement
and, except as required by applicable law, Woodside does not intend
to, undertake to, or assume any obligation to, provide any
additional information or update or revise any of these statements
after the date of this announcement, either to make them conform to
actual results or as a result of new information, future events,
changes in Woodside's expectations or otherwise.
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. None of Woodside nor any of its related
bodies corporate, nor any of their respective officers, directors,
employees, advisers or representatives , nor any person named in
this report or involved in the preparation of the information in
this report, makes any representation, assurance, guarantee or
warranty (either express or implied) as to the accuracy or
likelihood of fulfilment of any forward-looking statement , or any
outcomes, events or results expressed or implied in any
forward-looking statement in this report.
Past performance (including historical financial and operational
information) is given for illustrative purposes only. It should not
be relied on as, and is not necessarily, a reliable indicator of
future performance, including future security prices.
All figures are Woodside share for the quarter ending 31
December 2023, 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.
Other conversion factors
Product Unit Conversion factor bbl barrel
bcf billion cubic feet
boe of gas
Mbbl barrel of oil equivalent
Mboe thousand barrels
Mcf thousand barrels of
MMboe oil equivalent
MMBtu thousand cubic feet
MMscf of gas
scf million barrels of
oil equivalent
million British thermal
units
million standard cubic
feet of gas
standard cubic feet
of gas
-------------------- -------- ------------------
Natural gas 5,700 1 boe
scf
Condensate 1 bbl 1 boe
Oil 1 bbl 1 boe
Natural gas liquids 1 bbl 1 boe
(NGL)
Facility Unit LNG conversion
factor
-------------------- -------- ------------------
Karratha Gas 1 tonne 8.08 boe
Plant
Pluto Gas Plant 1 tonne 8.34 boe
Wheatstone 1 tonne 8.27 boe
The LNG conversion factor from tonne to boe is specific to
volumes produced
at each facility and is based on gas composition which may
change over time.
[1] The completion % excludes the Pluto Train 1 modifications
project.
[2] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[3] Q4 2023 includes 0.32 MMboe, Q3 2023 includes 0.26 MMboe and
Q4 2022 includes 0.31 MMboe primarily from feed gas purchased from
Pluto non-operating participants processed through the Pluto-KGP
Interconnector.
[4] See "Woodside and Mexico Pacific sign LNG supply agreement"
announced 6 December 2023.
[5] See "Australian crewing of Woodside LNG vessel" released 13
December 2023.
[6] Pilgangoora Operations Pty Ltd is a 100%-owned subsidiary of
Pilbara Minerals. See "Woodside signs domestic LNG supply agreement
with Pilbara Minerals" released 21 December 2023.
[7] Sangomar at 82% participating interest.
[8] Scarborough at 90% participating interest; Pluto Train 2 at
51% participating interest.
[9] Trion at 60% participating interest. Capital expenditure
includes Pemex carry.
[10] Other includes expenditure for new energy.
[11] Gas hub indices include Japan Korea Marker (JKM), TTF and
National Balancing Point (NBP). It excludes HH.
[12] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[13] Q4 2023 includes 2.56 MMboe of LNG, 0.1 MMboe of condensate
and 0.06 MMboe of NGL, Q3 2023 includes 2.07 MMboe of LNG, 0.08
MMboe of condensate and 0.05 MMboe of NGL and Q4 2022 includes 2.39
MMboe of LNG and 0.10 MMboe of condensate and 0.05 MMboe of NGL
processed at the Karratha Gas Plant (KGP) through the Pluto-KGP
Interconnector.
[14] Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
[15] Q4 2023 includes 0.32 MMboe, Q3 2023 includes 0.26 MMboe
and Q4 2022 includes 0.31 MMboe primarily from feed gas purchased
from Pluto non-operating participants processed through the
Pluto-KGP Interconnector.
[16] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[17] Overriding royalty interests held in the Gulf of Mexico
(GoM) for several producing wells.
[18] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[19] Includes periodic adjustments reflecting the arrangements
governing Wheatstone LNG sales of 0.10 MMboe in Q4 2023, 0.16 MMboe
in Q3 2023 and 0.03 MMboe in Q4 2022.
[20] Includes reclassification of purchased condensate volumes
from NWS JV Participants to Marketing liquids of 16.9 MMboe in Q3
2023 and 26 MMboe in Q2 2023.
[21] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[22] Overriding royalty interests held in the GoM for several
producing wells.
[23] Purchased volumes sourced from third parties.
[24] Includes reclassification of purchased condensate volumes
from NWS JV Participants of 16.9 MMboe in Q3 2023 and 26 MMboe in
Q2 2023.
[25] December 2022 reflects the performance of the interests
acquired as part of the merger with BHP's petroleum business from 1
June 2022.
[26] Q4 2023 includes $9 million, Q3 2023 includes $11 million
and Q4 2022 includes $2 million recognised in relation to periodic
adjustments reflecting the arrangements governing Wheatstone LNG
sales. These amounts will be included within other
income/(expenses) in the financial statements rather than operating
revenue.
[27] Includes the impact of periodic adjustments related to the
production sharing contract (PSC).
[28] Overriding royalty interests held in the GoM for several
producing wells.
[29] Values include revenue generated from purchased LNG and
Liquids volumes, as well as the marketing margin on the sale of
Woodside's produced LNG and liquids portfolio. Hedging impacts are
excluded.
[30] Total sales revenue excludes all hedging impacts.
[31] Realised prices include the impact of periodic adjustments
reflecting the arrangements governing Wheatstone LNG sales.
[32] Excludes any additional benefit attributed to produced
volumes through third-party trading activities.
[33] Average realised price for International excludes the
impact of periodic adjustments related to the PSC in Trinidad.
[34] December 2022 reflects the expenditure relating to
interests acquired as part of the merger with BHP's
petroleum business from 1 June 2022.
[35] 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.
[36] 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.
[37] Other primarily incorporates corporate spend including SAP
build costs, carbon costs and other investments.
[38] Scarborough key project expenditure includes Scarborough
offshore, Pluto Train 2, Pluto Train 1 modifications and Train 2
tie-in spend. Prior period comparatives have been restated to
include Pluto Train 1 modifications and Train 2 tie-in spend of $20
million in Q4 2022 and
$72 million in YTD Q4 2022.
[39] Pending title transfer
[40] Woodside share reflects the net realised interest for the
period.
[41] The Wheatstone asset processes gas from several offshore
gas fields, including the Julimar and Brunello fields, for which
Woodside has 65% participating interest and is the operator.
[42] Includes the aggregate Woodside equity domestic gas
production from all Western Australian projects.
[43] Woodside share reflects the net realised interest for the
period.
[44] Operations governed by production sharing contracts,
Woodside share changes monthly.
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END
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