Oz Woodside's 1Q Revenue Up
Australian Woodside’s revenue during the three months to March 31 (1Q2019) grew 4% year-on-year thanks to higher average realised oil and gas price, it said April 18.
Company’s 1Q revenue was $1.22bn compared with $1.17bn in the same quarter of previous year. Total production in 1Q was 21.7mn barrels of oil equivalent, down from 22.2mn boe a year earlier, it said. The average realised price for 1Q rose to $56/boe from $51/boe in the corresponding period a year ago.
Woodside CEO Peter Coleman said there had been significant progress on plans to develop the Burrup Hub, including a heads of agreement with China’s ENN Group that “further demonstrated market support for the development of the Scarborough gas resource through an expansion of Pluto LNG.”
Woodside is proposing a brownfield expansion of the Pluto LNG facility, including construction of a second LNG train with a targeted capacity of 5mn mt/yr, to facilitate development of the 7.3 trillion ft3 Scarborough gas resource. Woodside said in March 2018 it plans to develop the Scarborough gasfield, which it now operates, through its Pluto LNG onshore facility.
“The ten-year HoA signed in Shanghai with ENN Group is expected to start in 2025 and is evidence of global demand for long-term LNG supply from our proposed Burrup Hub. This HoA with a growing Chinese gas distributor and retailer is in addition to the 20-year sale and purchase agreement for domestic gas supply we signed with Perdaman Chemicals and Fertilisers Pty Ltd in November last year.
“We are pioneering the development of new domestic markets for LNG in Western Australia. Our new truck loading facility at Pluto LNG was completed in March and will supply LNG for use in remote power generation and transport in the Pilbara and beyond, reducing regional emissions through the replacement of diesel fuel. We also reached a significant milestone in March with the start of domestic gas production at Wheatstone,” he said.