Woodside Energy reported record production of 577,000 boe/d in third-quarter 2024, up 18% sequentially from 488,000 boe/d in second-quarter 2024. The company’s production was largely aided by the ramp-up of production in Senegal. Woodside also narrowed its production guidance for 2024.
Compared to the same quarter last year, Woodside reported average production of 520,000 boe/d.
The increase in third-quarter 2024 production was primarily driven by the Sangomar project offshore Senegal and “increased uptime across operated assets including 99.9% LNG reliability at Pluto [LNG] and increased seasonal domestic gas demand,” the Australian company said in its Oct. 16 earnings report.
"The strong operational performance was underpinned by the accelerated ramp-up of Sangomar and exceptional performance at Pluto LNG and North West Shelf (NWS), which recorded 99.9% and 99.2% reliability respectively,” Woodside CEO Meg O'Neill said in the release.
Looking forward, Woodside has narrowed its production forecast for 2024, primarily boosting the lower end of its production range. The company now expects production, at the midpoint of guidance, to average 526 boe/d in 2024, a slight 1% increase to previous midpoint guidance of 520.5 boe/d.
Financially, during the quarter, Woodside reported revenue of approximately $3.7 billion, up 21% sequentially and 13% higher compared to the same quarter in 2023. Increased revenue was primarily due to Sangomar cargo sales and higher average LNG prices, the company said. Also, Woodside said it capitalized on increased gas-hub prices by selling 39% of its produced LNG cargoes in third-quarter 2024 on prices linked to gas hub indices.
“These acquisitions expand our diverse, geographically advantaged portfolio and position Woodside to execute our strategy to thrive through the energy transition and deliver long-term value to shareholders,” O'Neill said.
Growth projects on tap
Beyond the new opportunities afforded by the Tellurian acquisition—a 27.6 million tonnes per annum (mtpa) project has been renamed Woodside Louisiana LNG—and OCI, Woodside’s near-term business focus revolves around three growth opportunities.
The projects span the Sangomar deepwater project in Senegal, which is already online, as well as a massive liquefaction project at Pluto Train 2 in Australia and another deepwater project, Trion, in Mexico.
Offshore Senegal, the Sangomar Field development Phase 1 marks that African country’s first offshore oil development. Work on the Sangomar Field development started in early 2020. The field (formerly the SNE Field), is located 100 km south of Dakar and contains both oil and gas.
Woodside drilled and completed the final Phase 1 well in third-quarter 2024, the company said in the release.
"At Sangomar, the 24-well drilling program has been completed and the project has achieved nameplate capacity of 100,000 barrels per day. Commissioning activities continue to progress as planned and start-up of gas and water injection systems is underway,” O'Neill said.
Woodside continues to receive strong interest in Sangomar crude from buyers in Europe as well as Asia.
Scarborough:
Woodside’s Pluto LNG project consists of a gas processing facility in the Pilbara region of Western Australia. The project consists of two phases: Pluto Train 1 and Pluto Train 2. Pluto 1 sources feedgas from the offshore Pluto and Xena gas fields. Gas from the Scarborough Field, which Woodside operates, will supply feedgas to Pluto 2.
Eventually, Scarborough will produce around 8 mtpa, of which 5 mtpa of Scarborough gas will be processed through Pluto Train 2, with up to 3 mtpa processed through the existing Pluto Train 1, according to O’Neill.
"Scarborough … is now 73% complete and remains on target for first LNG cargo in 2026,” O'Neill said. “Installation of the offshore Scarborough gas trunkline was completed in early October.”
Approximately 41 of 51 Pluto Train 2 modules have been delivered to site, with 39 modules set in position at the end of the quarter, Woodside said.
Fabrication of the floating production unit (FPU) hull and topsides continues to progress, with installation of piping, electrical and instrumentation packages continuing on the topsides. The hull has entered a second dry dock in preparation for FPU integration activities in 2025, Woodside said.
The drilling program continued with batch drilling of the development wells ongoing. First steel was cut at the module yard on the Pluto Train 1 modifications project and site preparation works at the Pluto LNG facility has commenced.
Woodside continues to see its first Pluto Train 2 LNG cargo sailing in 2026.
Trion:
Trion, Woodside’s project offshore Mexico, boasts large, high-quality conventional resources. The Trion project was 15% complete at the end of the third-quarter 2024. First oil is slated to come online in 2028.
Production from Trion will be processed through an FPU with a nameplate capacity of 100,000 bbl/d. When Woodside is producing early in the field’s life with no water breakthrough, the FPU can process up to 120,000 bbl/d, according to O’Neill.
Woodside has awarded contracts for the floating, storage and offloading vessel bare boat charter, aviation services and fiber optic trunkline installation, the company said in the release. Additionally, procurement activities continue to advance, including delivery of long lead items to subsea equipment manufacturers.
Also, Woodside said it had completed the FPU hull model review and initiated FPU pre-construction activities.
