Woodside aiming for 2020 go-ahead on mega projects

Western Australia will know as early as next year if Woodside Petroleum's Scarborough, Pluto and Browse gas projects, worth a combined $A36 billion, will be given the green light, as the business posted a 28 per cent rise in profit today.

Australia’s biggest oil and gas producer reported a net profit of $US1.36 billion for 2018, up from $US1.07 billion in 2017.

The company increased its final dividend by 86 per cent to US91 cents per share, and said it would pay an annual dividend of US144 cents per share, which would be a 47 per cent increase.

The company generated free cash flow of $US1.52 billion, up 83 per cent on 2017.

Woodside chief executive Peter Coleman said the profit rise was partly due to Greater Western Flank phase two coming in $US630 million under budget.

He said the second train at Chevron's Wheatstone plant, where the company holds a 13 per cent stake, achieved better than expected production, another factor in the good performance.

That will also position the company to achieve its targeted output of approximately 100 million barrels of oil equivalent in 2020.

“Our net profit after tax increased 28 per cent year-on-year, driven by robust operational performance throughout 2018 and improved market conditions,” Mr Coleman said.

“During the year we achieved a number of significant milestones in our plans to develop the Scarborough and Browse fields off Western Australia through our world-class facilities on the Burrup Peninsula.”

"Our plans for the Burrup Hub will more than double Woodside’s equity LNG production by 2027," Mr Coleman said.

The company said it plans to make a final investment decision in 2020 on the Scarborough field and the associated construction of a second processing train at its Pluto LNG plant.

FID on the Browse gas field development, which will be processed through the North West Shelf venture's Karratha LNG plant, is targeted for "late 2020".   

The company said it would also make a final investment decision on its SNE development in the West African country of Senegal this year.

Shares in Woodside were up 2.3 per cent to trade at $35.66 at 1.10pm AEDT.