Woodside upgraded its production target for 2005 to 55 million barrels of oil equivalent (BOE) after reporting strong production levels in the June half with output at 29.9 million boe. In conjunction with higher oil prices, this drove Woodside's first half revenue up 30% to a record $1.23 billion.

Woodside's latest profit result will be lower than the $724.6 million net profit it reported for the first half of 2004, but that result was boosted by the sale of 40% of the Enfield project to Mitsui, which fetched $373.6 million.

But the net profit before one-off items for the last half will be well up on the $351 million result booked for the first half of 2004.

The future looks bright for Woodside with several strong projects in the pipeline.

The first project to come into production will be the Chinguetti oil development in Mauritania, West Africa.

Apprehension over the recent coup has largely subsided, but question marks remain and the market will watch new announcements on the project closely.

Back in Australia, the Otway gas project and Enfield oil development are also due to start next year, but they will not contribute to earnings in the 2005/6 financial year.

Woodside closed 46 cents higher at $33.60 yesterday.