In its September quarterly report, Woodside said first production from the $A1 billion Otway gas project has been pushed back to the end of the first quarter of 2007, due to construction delays at the onshore gas plant, which is being built under a lump-sum contract.

The project, which it holds in partnership with Origin Energy, had originally been flagged to come onstream before the end of this year.

The delays will defer production by about 500,000boe, impacting Woodside’s revenue by about $17 million for the year.

Low gas prices have also prompted Woodside to shut-in almost all its unhedged Gulf of Mexico gas production, which is expected to push back 500,000boe of planned 2006 output.

While the outlook may look grim, Woodside has achieved record production for the September quarter of 19.1MMboe.

It said the result was 22.3% higher than the previous quarter, primarily due to first output from the Enfield oil project and higher condensate production at the Cossack-Pioneer, Laminaria-Collallina, Legendre and North West Shelf facilities.

Sales volumes for the quarter were 25.8% higher than in the previous corresponding period, while revenue for the quarter also reached new highs of $1.15 billion.