The company also said its 2006 drill activity is up 90% to reach about 40 exploration wells, and exploration spending will reach A$500 million. It is aiming at significant ‘big hit’ targets in the Gulf of Mexico, offshore Libya and Kenya.

There are many good prospects in the pipeline and the production outlook for the next few years is strong, Woodside said.

Although rig rates and service contractor rates have risen, project cost blowouts have been more than offset by strong oil and gas prices, the company said.

The Chinguetti, Enfield, and Otway projects are on schedule and within their combined budget, according to Woodside.

Chinguetti, located in deep water off Mauritania, West Africa, is now three to four months from delivery, the company said.

However, the last eight wells drilled in the offshore Mauritanian campaign have failed to find commercial hydrocarbons, and the future of the Tiof field is under review as the geology has turned out to be much more complex than anticipated.

If Tiof does not go ahead, or is downgraded, or proves very expensive to develop, this will be a major disappointment for Woodside and its partners.

In Australia, the company is pursuing tie-back opportunities and developing new hubs. The Demeter 3D seismic in the NWS region has delivered infill and near-field prospects and plays, while wells will be drilled in 2006 to develop tie-back volumes to the Laminaria, Thylacine and Enfield facilities.

Woodside also aims to develop new hubs in the outer Carnarvon, Great Australian Bight and Otway basins.

At the North West Shelf, which is operated by Woodside, front-end engineering and design work has started on the $1 billion Angel project with first production due by the fourth quarter of 2008.

Angel will add a third production platform to the North West Shelf project, capable of producing 800 million cubic feet of gas and 50,000 barrels of condensate per day.

Approval for FEED work at the $1 billion Stybarrow project off Exmouth, Western Australia is likely before the end of the year with it partner BHP Billiton holding a board meeting next week ahead of the company’s annual meeting in Perth. The partners are targeting a potential 2008 start-up, Woodside said.

Woodside is also aiming to fast-track development at its wholly owned Pluto gas field, which was discovered in March. The $5 billion project is intended to be a five million tonnes per year stand-alone LNG development. It should be in production by late 2010.

“Negotiations for gas sales are well advanced with North Asian customers for base volumes,” the company told the briefing.

Similarly, a more concrete schedule is expected to be outlined for the company’s planned Browse Basin LNG hub which is expected to come into production around 2011 or 2012.

“2006 is to be a big year with concept facilities selection studies, marketing and further drilling,” Woodside said.