Australia’s second-largest oil and gas producer said higher oil prices were the reason behind its increased net income of $A524.3 million from $437.4 million in the year-ago period.

Revenue rose 26% to a record $A1.57 billion, while production was unchanged at 29.9 million barrels of oil equivalent.

But Woodside expects production in the second half to increase 40%, thanks to the start-up of the Enfield project in July and first gas from the Otway gas project, due in the fourth quarter.

Production is also expected to benefit from reduced down-time at the North West Shelf, in addition to well repairs and interventions at the Cossack Pioneer, Laminaria-Corallina, Legendre and Mutineer-Exeter oil assets.

Exploration expenditure during the first six months of this year was sharply up 156.3% at $338.6 million, due to increased activity in the Gulf of Mexico and higher rig and seismic vessel rates.

Exploration spending in the second half will be lower than the first half, the company said, as less drilling is planned and a higher proportion of this expenditure is on lower-cost onshore wells.

Woodside also expects complete a review of its Chinguetti oil reserves in the current half year, which was undertaken in response to declining production at the Mauritanian development.