Front-end engineering and design started in February, and Woodside is working with Hess on developing the US oiler's crop of gas discoveries.
The scope includes both technical activities and progression of key commercial agreements in order to inform a proposed final investment decision by the NWSV project participants in 2017.
Hess is expected to deliver the gas into the NWSV's offshore infrastructure, and it will be responsible for marketing and delivering its own volumes, with the Karratha gas plant merely processing the gas.
In terms of drilling, Skippy Rocks- and Stokes-1, drilled with the Atwood Eagle, in WA-472-P, were targeting a Triassic oil play. Interest in the Beagle Sub-basin has been amplified by the Phoenix South-1 and Roc-1 discoveries in WA-435-P to north in the Bedout Sub-basin.
Woodside's production was 23.7 million barrels, down 4.8% last quarter, predominantly due to lower oil volumes from the NWS oil asset as a result of planned maintenance, lower oil volumes at Vincent due to field decline and Balnaves which ceased oil production in late March.
This was partially offset by higher pipeline gas volumes from Canada as a result of additional wells starting production during the quarter.
Sales revenue for the quarter was $US982 million ($1.25 billion), 11.1% lower, largely reflecting lower oil sales volumes and low global oil and gas prices.
Compared to the first quarter of 2015 production was up 9% predominantly due to higher production at Pluto LNG, and revenue was down 30.3%, again due to the lower global pricing environment.
Pluto LNG plant exceeded the 4.3 million tonne per annum average expected annual production capacity at the time of FID in 2007, clocking in at 4.8MMtpa.
Production at the NWS and Pluto was lower than the December quarter with high plant reliability slightly offset by lower capacity due to higher ambient temperatures and cyclone activity.
In a statement, Woodside CEO Peter Coleman said the company was progressing well with its low-cost, high-value growth strategy.
"We are taking advantage of market conditions and applying latest technology to reduce life cycle costs further enhancing our position as a low cost operator. This will also improve project concepts to deliver a portfolio of globally competitive decision-ready projects," he said.
The results come after Woodside decided to leave the Browse FLNG project on the shelf until priced improve.
It says plans for the three floating facilities will help inform the next work program for the Browse permits, and the company will look to cut costs further, with the aim being development of Browse FLNG as soon as possible.
The company's Julimar field is expected to start-up in the second half of the year, with first gas from the Wheatstone LNG project expected in mid-2017.
The Persephone development remains on budget and schedule for expected start-up in early 2018, and FID for the Lambert Deep development is on track for later this year.
In Canada, Woodside says it continues to be impressed by the Liard Basin appraisal wells, with the second development scale appraisal well brought into production during the quarter and the early results are above expectations.
The company has also been awarded Licensing Option 16/14 in the south-east Porcupine Basin, Ireland, following a successful bid in the 2015 Atlantic Margin Licensing Round.
The two-year licence requires acquiring and processing 1500sq.km of 2 3D seismic data, together with gravity and magnetic data.
The company has also exited Spanish waters, handing back its nine blocks.
Finally, the Woodside Chaney, a 174,000cu.m LNG carrier commenced its charter to Woodside.
The ship will be used to support trading activities as well as underpinning long-term supply from its global portfolio.
Woodside is expected to announce its new strategy on May 20, and that could see the company making more midstream and downstream investments in Asia.
