In its latest quarterly report, Woodside said daily output from the $US700 million ($A930 million) field, which came online almost a year ago at 77,000 barrels per day, has averaged just 23,390bopd over the past three months.

Woodside attributed the production result, which grossed just over 2 million barrels (MMbbl) during the period, to “natural field decline”.

In October, joint venture partner Hardman Resources reiterated earlier comments made by Woodside chief executive Don Voelte that Chinguetti output had stabilised around 30,000bopd and was not expected to drop much further.

A month later, Woodside halved its gross proven and probable (2P) reserve estimate for Chinguetti from 123.1MMbbl to just 53MMbbl.

A record 2006

But it was not all doom and gloom for Woodside last year, with the Perth-based company achieving record annual revenue and production.

The company said revenue rose 38.7% to $3.81 billion in 2006, thanks to higher commodity prices and increased sales volumes.

Meanwhile, Woodside’s annual production reached a record 67.9 million barrels of oil equivalent (MMboe), up 13.8% from 2005, primarily due to the Chinguetti and Enfield oil projects being brought online.

This production result was in line with Woodside’s downgraded forecast of 67- 68MMboe.

The November revision, down from the previous 72MMboe, was the second time Woodside cut its output forecast after revising its initial 76MMboe in June.

The second revision was blamed on delays at its Otway Gas Project joint venture, the deferral of some Gulf of Mexico production and water in a well at the Enfield oil project off Western Australia.

But the company predicts 2007 output will bounce back to between 75MMboe and 80MMboe, and to more than 100Mmboe in 2008.