PERTH (miningweekly.com) – Australian oil and gas major Woodside has reported record 2014 production and sales, but warned on Thursday that it would be cutting expenditures in 2015 in light of weaker commodity prices.

During 2014, Woodside produced a record 95.1-million barrels of oil equivalent, a 9.3% increase on the 2013 production figures. The increased production resulted in record sales during the full year, with Woodside generating $7-billion in sales revenue, up 11% on the previous record set in 2012.

Despite the higher full-year production, Woodside noted that production volumes in the quarter ended December were down by 7.1% on the previous quarter, owing to lower liquefied natural gas (LNG) and condensate volumes associated with the planned shutdown of the North West Shelf Train 1.

The decrease in production was partially offset by increased oil volumes, reflecting the company’s focus on reliability, Woodside said.

Sales volumes for the December quarter declined by 1.6%, owing to the lower production, resulting in a 10.1% decrease in sales revenue for the quarter. The declining sales revenue reflected lower LNG sales volumes, as well as the lower oil prices.

In light of the current market conditions, in which the price of crude oil had plunged from over $100/bl in September to around $55/bl, Woodside said it was assessing the impact on near-term profitability and future cash flows, and would be revising its investment expenditure accordingly.

An estimated investment expenditure for 2015 would be provided during the company’s full-year results.

Meanwhile, Woodside has predicted that it would produce between 84-million and 91-million barrels of oil equivalent during 2015, with some 38% of production coming from the Pluto LNG project, a further 26% from the North West Shelf LNG project, 15% from the North West Shelf domestic gas unit and a further 21% from condensate, oil and liquefied petroleum gas.