“Compared to Q2 2005, the September quarter production [14.9 million barrels] was 5.5% lower due to reduced contributions from the North West Shelf Venture and decreased oil production due to natural decline at Legendre and the continued shut-in of two Wanaea wells,” Woodside said.
“Sales volume of 14.8 million barrels of oil equivalent was 5.8% lower than Q2 2005. This was partially offset by the benefits of new production from Gryphon and a full quarter of Mutineer-Exeter production.”
Despite this setback, the company remains on an upward arc, with production and sales volumes higher that the equivalent quarter last year. Compared to the third quarter of 2004, production and sales were both up 3.2%.
Higher petroleum prices also meant that revenue was up despite production hiccups.
“Record quarterly sales revenue of A$741.2 million was 24% higher than that of the previous corresponding period and 12% higher than Q2 2005,” Woodside said.
“The year-to-date revenue of A$1,973.1m was 27.6% higher than the previous corresponding nine months and represents a record first nine-month revenue.”
For the first time, Woodside included Gulf of Mexico production in its figures with the Gryphon Exploration assets, acquired August 31 being included in the quarterly report for the first time.
Woodside’s activity in the Gulf of Mexico has also increased – eight exploration wells are being drilled or planned before year-end – and in July, the company and joint venture partners took the final investment decision for the Neptune oil and gas field development, which is expected to start production in late 2007.
Other major projects were also progressing, Woodside said.
“The Chinguetti, Otway and Enfield projects are on track to meet their individual schedules for startup during 2006 and, in aggregate, remain on budget,” the company said.
The ‘in aggregate’ comment is interesting as Chinguetti’s budget has been revised upwards several times.
In north-western Australia, the Pluto-2 appraisal well was successfully drilled on the 100%-owned Pluto gas field during the quarter and a second appraisal well is planned before year-end. The Western Australian Government has reserved land in the Burrup Industrial Estate for a potential LNG plant supported by Pluto gas.
Brecknock-2, the first of three appraisal wells in the Woodside-operated Browse Basin titles, was also successful with results inline with pre-drill expectations.
