Woodside expects 2023 production at 180-190mn boe
Australia’s biggest gas producer Woodside on November 29 said it expects production of 180-190mn barrels of oil equivalent (boe) in 2023. This would be the first full year of contribution from the former BHP petroleum business. Woodside completed the merger with BHP’s oil and gas portfolio in June this year.
The 2023 production guidance is higher than the 2022 full year production guidance of 153-157mn boe. However, the company during the latest July-September quarter (Q3 2022) produced 51.2mn boe, which on annualised basis comes to 204.8mn boe. The 2023 estimate does not include any production from the Sangomar project in Senegal.
This guidance split comprises LNG production of 83-85mn boe, pipeline gas production of 40-42mn boe, crude and condensate production of 50-55mn boe and natural gas liquids production of 7-8mn boe.
In July this year, Woodside updated its methodology for calculating the boe for its products, applying a single volumetric conversion factor across the entire post-merger portfolio. Natural gas liquids are reported on a liquid volume basis. All gas products are calculated on a volumetric basis with a conversion factor of 5,700 ft3/boe. Woodside previously used product-specific conversion factors on an energy basis. BHP Petroleum previously used 6,000 ft3/boe.
Woodside’s full-year 2023 capital expenditure guidance is $6-6.5bn, assuming no change to current participating interests. About 20% of this will go towards Sangomar, about 50% to Scarborough project, approximately 15% towards Gulf of Mexico and Caribbean and the rest is dedicated to Australia and corporate.