Woodside 2011 Sales Revenue at USD 4.8 Billion (Australia)

Woodside today released its fourth quarter report, showing higher than anticipated production for the period, driven mainly by the strong performance of the company’s oil assets.

Woodside CEO Peter Coleman said he was pleased the company had delivered a solid production result, which exceeded Woodside’s June guidance.

“The sizeable sales revenue of US$4.8 billion also highlights the company’s underlying strength,” Mr Coleman said.

“The North West Shelf Project continues to be an outstanding performer, posting a record annual revenue for Woodside of nearly US$3 billion in 2011.

“The ongoing contribution from Woodside’s North West Shelf and oil interests continues to provide a platform for growth.

One of our significant growth projects will come to fruition in 2012 with the start-up of the Pluto LNG Project, providing a substantial boost to our already strong production base.”

Key points:

– Production volumes 3% higher than Q3 2011, but revenue 6% lower due to timing of cargoes.

– Production volumes 6% lower than Q4 2010, but sales revenues up 17% due to higher realised prices.

– 2011 full-year production of 64.6 MMboe was above guidance due to lower than expected cyclone activity in December and better than forecast facility reliability. Although 11% lower than last year’s production, less than one-third of this change was due to natural field decline from Woodside operated fields. The remainder was due to one-off occurrences such as divestments, contract expiry, shut-ins during project redevelopments and higher year-on-year planned maintenance and weather related occurrences.

– 2011 full-year sales revenue up 15% with the average realised oil price of US$113.80/bbl up 41%.

Achievements:

– The Okha floating production storage and offloading (FPSO) vessel commenced production in September (ahead of June guidance for October), lifting Q4 production. First cargo offtake was successfully achieved in November.

– Two Vincent infill wells came online in September, boosting Q4 production. The Vincent joint venture participants purchased the Ngujima-Yin FPSO in December.

– Pluto LNG Foundation Project commissioning is progressing and no material change is anticipated to the previously advised first cargo target date.

– North Rankin Redevelopment Project remains on budget and on schedule with the platform jacket successfully launched and piling operations continuing. Fabrication of the topsides was completed.

– A final investment decision was taken on the NWS Greater Western Flank Phase 1 Project and major contracts have been awarded.

– For Browse LNG, invitations to tender were issued for major construction and installation contracts. A Field Development Plan was submitted and a Draft Upstream Environmental Impact Statement was issued on schedule. The Joint Authority and the WA Minister for Mines and Petroleum were approached seeking amendments for Browse Basin retention leases, including a request to vary the condition relating to readiness for a final investment decision to first-half 2013.

– Woodside’s 2012 production target range is unchanged at 73 to 81 MMboe (includes 56 to 60 MMboe from the underlying business and 17 to 21 MMboe from the Pluto LNG Foundation Project).

[mappress]

LNG World News Staff, January 19, 2012