Woodside released a summary of its second quarter activities today that also included an outline of coming operations.

In a rosy summary of the company’s activities, the only black mark was Blacktip. The gas sales contract for that Northern Territory field was cancelled by Alcan, the only contracted buyer, and the future of the field is now in doubt.

Otherwise, it was all good news. Production in the last quarter was 15.8 million boe, the company’s highest level of quarterly production since Q3 2002.

Sales volume of 15.7 million boe in the last quarter was 9.6% higher than the previous quarter and 16.2% higher compared to the previous corresponding period.

Quarterly sales revenue of A$661.6m was higher than that of the previous quarter by 16% and higher than the previous corresponding period by 40%. A record first-half revenue of A$1,231.9M was 30% higher than the previous corresponding period. These increases were due to increased production and higher commodity prices.

North West Shelf Venture production grew with higher customer demand for domestic gas, increased LNG capacity and improved deliverability, while the Mutineer-Exeter field coming on-line at the end of March contributed over half a million barrels to production for the quarter.

In addition, Woodside’s share of Laminaria-Corallina oil production was boosted, but this was because of increased equity following the company’s purchase of a 16.67% interest in production licence AC/L5 from Shell.

Combined production was higher than the previous quarter at 21,932 bbl per day (Woodside share 14,426 bbl per day) following the successful workover of the Laminaria-5 well in May and reinstatement of Laminaria-8 production on 5 April. Laminaria-2 is expected to be back on-line in early 2006.

An appraisal well was drilled in the Laminaria field during the quarter and its results will be used to assist in the maturation of potential infill well opportunities. But the Petalonia-1 exploration well designed to expand near-field reserves failed to find significant hydrocarbons.

Looking ahead, Woodside said the Chinguetti, Otway and Enfield projects were on track to meet their individual schedules for start-up during 2006.

Otway is on budget due for a mid-2006 start-up.

“Work is progressing on the onshore gas plant with earthworks now complete, civil works are well advanced and erection of structural steel work is underway,” Woodside said.

Enfield Project is also within budget and on schedule to meet a late 2006 start-up.

“The final production well has been perforated and preparation is underway for subsea tree installation,” Woodside said.

“The FPSO vessel ‘Nganhurra’ was successfully launched at Samsung Heavy Industries fabrication yard in Korea on 2 April 2005 and fabrication of topsides process modules is progressing to schedule.”

But Chinguetti costs could be 10% higher than budget. In the next few months, exploration drilling in Mauritania will resume, according to Woodside.

“Good progress has been achieved on the drilling and completions activities with installation of the first subsea equipment scheduled for Q3 2005,” Woodside said.

“Largely due to changes in the scope of drilling operations, the Chinguetti project costs could be in the order of 10% higher than the US$625M budget.”

A final investment decision was also taken for the BHP Billiton-operated Neptune oil-gas field development in the deepwater Gulf of Mexico, USA, with first production planned for late 2007. Woodside has a 20% stake in this project.

Back in Australia, the final investment decision was taken for the North West Shelf Venture Phase V expansion in June. LNG capacity will lift to around 16 million tonnes per annum with first cargoes from Train 5 planned for late 2008.

West of the currently producing NWS fields, a significant new gas discovery – Pluto – was confirmed in April. Pluto established a stabilised gas flow rate of 46.5 million cubic feet per day.

An appraisal well will be drilled on the field during the next few weeks and Woodside as foreshadowed the possibility of using Pluto as the foundation for a sixth NWS train, probably in combination with Chevron’s nearby Wheatstone discovery.

Meanwhile activity in the Woodside-operated Browse Basin permits will increase in the second half of this year, the company said.

“Acquisition of 3D seismic surveys plus the drilling of three appraisal wells will better define the substantial gas resource that is intended for LNG markets,” Woodside told the ASX.