Woodside Petroleum has fine-tuned its project portfolio as it deals with the impact of weak oil prices, selling one of its mature assets, deferring a new oil field development but proceeding with evaluation of another new development.
Woodside Petroleum has fine-tuned its project portfolio as it deals with the impact of weak oil prices, selling one of its mature assets, deferring a new oil field development but proceeding with evaluation of another new development.
The impact of low oil prices was highlighted by a sharp fall in revenue for the three months to September 30 to $US1.08 billion ($A1.49 billion), down 44.6 per cent on the prior corresponding period.
"Sales revenue for the quarter was lower reflecting lower realised prices across the portfolio," Woodside said.
In comparison with the June quarter, Woodside actually achieved a 20.9 per cent increase in sales revenue, as higher LNG and condensate sales volumes and higher oil volumes offset the effect of lower oil prices.
Woodside narrowed its full-year production target range to between 88 million barrels and 93mmboe (from 86mmboe to 94mmboe) due to strong performances at its Pluto LNG and Vincent projects.
The company declined to address speculation about a potential increased offer for takeover target Oil Search, but said it would continue to maintain a disciplined approach to business development opportunities.
Last month, it announced an $11.6 billion all-scrip bid for Papua New Guinea-focused Oil Search, which rejected the proposal.
On the development front, Woodside has entered the front-end engineering and design (FEED) phase for the Greater Enfield development in the Carnarvon Basin off northern Western Australia.
The FEED contract has been awarded to OneSubsea, jointly owned by US companies Cameron and Schlumberger, which are in the midst of a $15 billion merger.
The FEED study will be conducted by OneSubsea’s team in Perth, and will include the design of a subsea production system for the Laverda and Cimatti oil fields, which will be tied-back to the existing Ngujima-Yin FPSO through a 31km flowline.
Woodside is targeting a final investment decision on Greater Enfield in the second half of 2016.
It is one of four projects heading toward FID in the next 15 months, along with the Browse LNG development, the Greater Western Flank phase2 project, and the Lambert Deep subsea tie-back.
Woodside and its joint venture partners had also been planning to reach FID this year on the Cossack North oil field, which was a single well tie-back to the Okha FPSO.
However, Woodside said Cossack North has been deferred after a review of portfolio-wide capital expenditure.
The company has also entered a conditional agreement to sell its interest in the Laminaria-Collarina oil joint venture, including the Northern Endeavour FPSO.
Woodside said the expected impact on 2015 profit will be advised in the December quarter report.
Its joint venture partner is Canadian company Talisman, which sought last year to sell its interest.
Woodside shares were 28 cents higher at $31.14 today.
