Fairfax has reported this morning that despite public statements from Woodside boss Peter Coleman stressing his reluctance to increase the bid, sources have told it the company is mulling a modest price increase in its $11.6 billion approach for Oil Search, in an effort to at least get its target to the negotiating table.

Woodside investors reportedly feel the existing one-for-four scrip offer is fully priced, while Oil Search says its shareholders have told it the offer is cheap and brings nothing to the table.

At the same time, reports out of Papua New Guinea have highlighted the sovereign and indigenous risks facing both PNG LNG and Papua LNG.

Some investors and analysts have told Woodside it should focus on assets being sold by Santos, such as Darwin LNG, or return cash to shareholders.

Woodside's offer price was $7.65 while the PNG government bought in at $8.20 per share, however the government is believed to require $8.55 just to break even and cover its financing costs.

Away from PNG, today's quarterly report revealed that the 4.3 million tonne per annum Pluto LNG plant continues to exceed expectations, exceeding the nameplate capacity by 3%.

Overall company production was up almost 26% on the second quarter, predominantly due to the higher LNG and associated condensate volumes at Pluto, following the completion of a major turnaround earlier this year and higher oil volumes from Vincent, following a full quarter of production from the Phase IV in-fill well.

Sales volumes increased 23.6%, offset by the timing of shipments.

Revenue was 20.9% higher reflecting higher LNG and condensate sales volumes and higher oil sales volumes, partially offset by lower realised oil prices.

Production volumes increased 0.4% predominantly due to oil production from the Balnaves oil field, acquired from Apache Energy in April, although lower LNG and associated condensate production at NWS due to a planned Train 5 maintenance program reduced overall output.

Despite that, the North West Shelf project has recorded uptime of 123 days. The NWS Venture produced some 654,000 tonnes of gas for export and 20,400 terajoules of pipeline gas, while Pluto notched up 1.14MMt of LNG for export.

Woodside says its Browse LNG FEED and approvals process are progressing and development of the Chevron-operated Wheatstone LNG project and Woodside's Julimar and Brunello fields are on track for start-up in 2016.

The company also continues to progress FEED for the proposed 70 million barrel oil equivalent Greater Enfield development and modifications on the North Rankin facilities for the Persephone development.

A final investment decision on the Greater Western Flank Phase 2 development is imminent, to be followed by approval for the one-well Lambert Deep tie-back to the existing Angel platform in the first half of next year.

However, Woodside has also revealed that the Cossack North oil development has been deferred.

In Canada, drilling of the first development scale appraisal well should help confirm deliverability and ultimate recovery of the Liard Basin, supporting the proposed Kitimat LNG project. The Grassy Point export project also continues to be advanced.

Sadly, the Cheetah-1 exploration well in Cameroon encountered only sub-commercial hydrocarbons.

In South Korea the Hongge-1 well in Block 8 was spudded in late September.

Elsewhere the company has confirmed rumours it has entered into a conditional agreement to sell our interests in the Laminaria-Corallina Joint Venture, including the Northern Endeavour FPSO to an undisclosed party.

The project, the core of the $1.3 billion project's development 16 years ago, was placed on the market earlier this year.

Repsol and Talisman Energy have been trying to sell their minority stake for some time.

Sources say a sale could value Laminaria-Corallina at between $100 million and $300 million, including the FPSO.

Woodside's production target range for 2015 has been revised up to 88-93 MMboe from 86-94 MMboe, with 1MMboe extra from Pluto and 1.3MMboe addition due to top of range performance from the Vincent Phase IV in-fill well, offset by a 1.25MMboe reduction for Canadian pipeline gas not produced due to the delayed completion of two Liard wells.