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Woodside posts record profits

22nd August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia


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PERTH ( – Energy major Woodside has reported a record net profit after tax of $1.74-billion for the first half of the 2023 financial year.

Underlying net profits after tax for the half-year were also up by 4% on the previous corresponding period, to $1.89-billion, reflecting a full period of results from Woodside’s expanded operations portfolio following its deal with major BHP.

“Production for the first half was a record at 91.3-million barrels of oil equivalent. The Pluto liquefied natural gas (LNG) facility delivered an outstanding 99.9% reliability rate in the five months prior to the planned maintenance turnaround, which was completed on schedule,” said Woodside CEO Meg O’Neill.

“First production was achieved at the Argos platform at Mad Dog Phase 2 in the Gulf of Mexico and we expect output from the facility to ramp up over the remainder of the year. During the half, a successful appraisal well was drilled in the south-west portion of the Mad Dog field in the Gulf of Mexico and a multi-well tie-back to Argos is being evaluated.

“In June, Woodside took a final investment decision (FID) on the Trion oil development offshore Mexico. The development leverages our proven expertise in deepwater project execution and is expected to deliver strong returns to Woodside shareholders as well as economic and social benefits to Mexico.

“Following FID, Woodside executed a contract with South Korea’s Hyundai Heavy Industries for the construction of the Trion floating production unit (FPU). We are looking forward to the approval of the Trion field development plan, expected to be announced by the Mexican regulator in the second half of the year.”

The $7.2-billion Trion development, of which Woodside’s share of the capital will amount to $4.8-billion, will target the development of an estimated 479-million barrels of oil equivalent of best estimate (2C) contingent resources of oil and gas, and the resource will be developed through an FPU with an oil production capacity of 100 000 bbl/d. The FPU will be connected to a floating storage and offloading (FSO) vessel with a capacity of 950 000 bbl of oil.

“We also took FID during the period at Julimar-Brunello Phase 3, a new source of gas for the non-operated Wheatstone facility in Western Australia,” O’Neill said on Tuesday.

“Work on the Scarborough and Pluto Train 2 project progressed well during the first half. Following acceptance of the Scarborough Trunkline Installation (State Waters) Environmental Plan in April, shore crossing preparations at Pluto commenced and are now nearing completion.

“Two significant milestones were achieved for Scarborough subsequent to the end of the half, with the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) approving the environmental plan for the marine seismic survey and the announcement of the sale of a 10% interest in the offshore joint venture to LNG Japan.

“The new strategic relationship with LNG Japan also includes the potential for LNG offtake and collaboration on opportunities in new energy,” said O’Neill.

“While identification of the need for remedial work on the Sangomar floating production and offloading facility was disappointing, we are confident that undertaking the rectifications in the shipyard in Singapore will facilitate a safe and efficient startup to allow first oil in mid-2024.”

First oil from Sangomar had initially been planned for late in 2023, but a cost and schedule review resulted in delays to the start as well as cost increases of between 7% and 13% to the $4.6-billion previously estimated.

“Progress has also been made on our proposed new energy projects. Woodside is actively marketing hydrogen offtake from our proposed H2OK liquid hydrogen project in Oklahoma, in support of our target of being ready to take an FID before year-end,” O’Neill said.

“In Australia we are aiming to be ready to take an FID in the second half of 2023 on the Woodside solar project, which is expected to supply around 50 MW of energy to Pluto LNG.

“During the half Woodside demonstrated its commitment to providing energy security to Australia’s domestic gas markets, executing several agreements for the total supply of around 120 PJ of pipeline gas to retailers and industrial users in both the eastern states and Western Australia. Delivery of this gas is expected to take place over the period from end-2023 to 2026,” she said.

Edited by Creamer Media Reporter



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