Delivering reliable production

• Delivered record quarterly production of 51.6 MMboe (561 Mboe/day), up 0.7% from Q3 2022.
• Delivered sales volume of 52.2 MMboe, down 8.5% from Q3 2022, primarily due to reduced third-party trades.
• Delivered revenue of $5,160 million, down 12.0% from Q3 2022, impacted by reduced trading activity and lower realised prices.
• Achieved a portfolio average realised price of $98 per barrel of oil equivalent.
• Sold 29% of produced LNG at prices linked to gas hub indices (23% full year 2022).
• Achieved record full-year 2022 production of 157.7 MMboe, outperforming the production guidance of 153 – 157 MMboe due to strong operational performance in the fourth quarter.

Executing major projects

• The Scarborough and Pluto Train 2 projects in Western Australia are now 25% complete, with manufacturing of the export trunkline 59% complete and the commencement of module construction for Pluto Train 2.
• Development drilling program progressed on Sangomar with seven of 23 wells complete. The Sangomar FPSO was successfully relocated to Singapore to complete topsides integration, precommissioning and commissioning activities.

Investing in growth

• Issued multiple competitive tenders for Trion to support 2023 FID readiness.
• FEED was completed at H2OK and long-lead items were ordered to support 2023 FID readiness.
• Selected as the preferred partner to progress to the next stage of the proposed Southern Green Hydrogen project in New Zealand.

Woodside CEO Meg O’Neill said production in the fourth quarter was a record 51.6 million barrels of oil equivalent (boe).

“The result lifted output for calendar 2022 to 157.7 million boe, surpassing guidance and marking the highest annual production in Woodside’s history.

“Consistent strong operational performance and favourable operating conditions across the combined portfolio was a key driver in achieving record quarterly and full-year production.

“Reliability at our Australian operated assets was exceptional with Pluto LNG and the North West Shelf (NWS) Project both achieving 98.3% reliability for the quarter. During the quarter, Woodside celebrated a milestone at Pluto LNG, passing 50 million tonnes of LNG production since the facility started up in 2012. Internationally, asset performance was boosted by completion of planned turnaround work.

“Woodside contributed 29.4 PJ to the east coast Australian gas market in the quarter. Every molecule produced by Woodside’s east coast gas business went into the domestic market to support Australian households, businesses and manufacturers.

“Revenue for the period was $5,160 million, down 12% from the third quarter on the back of lower international crude oil and LNG prices and reduced trading activity. Woodside’s average realised price was $98/boe, down from $102/boe in the preceding period.

“Ongoing production of Pluto gas through the Pluto-KGP Interconnector continues to deliver additional LNG volumes to a market with strong demand.

“Strong progress was made across our portfolio of growth projects, both in Australia and globally.

“The teams working on Scarborough and Pluto Train 2 have done an outstanding job over the latter part of the year. The combined projects are now one quarter of the way to completion and are on track for targeted first LNG cargo in 2026, bringing essential volumes into a market demanding more LNG.

“Most of the major equipment for the Scarborough floating production unit has been ordered and module
construction of Pluto Train 2 has commenced.

“At Sangomar Field Development Phase 1 in Senegal, subsea installation and development drilling has progressed well, with seven of the planned 23 wells now completed. The floating production storage and offloading facility (FPSO) is currently undergoing topsides integration, pre-commissioning and commissioning activities in Singapore. Overall, the project is 77% complete and is on target to start producing oil in late 2023.

“Progress was also made at the proposed Trion project in Mexico, where we are aiming to be ready for a final investment decision (FID) in 2023. During the quarter competitive tenders were issued for the drilling rig, subsea equipment, and installation scopes for subsea, the floating production unit, and the floating storage and offloading vessel.

“In our new energy portfolio, front-end engineering design (FEED) has now been completed at H2OK and contracts were awarded for key equipment, putting us on target to be ready for FID in 2023.

“In Australia, Woodside entered into an Indigenous land use and modern benefits sharing agreement for the Woodside Solar project and is targeting FID readiness in 2023.

“Elsewhere in new energy, Woodside was selected as the preferred partner to progress to the next stage of the proposed Southern Green Hydrogen project in New Zealand, which would produce ammonia from electrolysis using renewable power.

“Woodside’s production guidance for full-year 2023 remains 180 million to 190 million barrels of oil equivalent,” she said.

Production
Production increased compared to the previous quarter to a record 51.6 MMboe in Q4 2022, due to:

• ongoing strong operational performance
• continued high reliability at Australian operated oil and LNG assets, with Pluto LNG and NWS Project achieving 98.3% reliability for the quarter
• completion of an approximately seven-week planned turnaround at Atlantis.

This was partly offset by lower production from Bass Strait due to planned offshore maintenance activities and a reduction in demand following the seasonal winter peak.

Full-year 2022 production was a record 157.7 MMboe, above upgraded production guidance of 153 – 157 MMboe.

Australian LNG

• The second phase of Pyxis Hub was successfully completed with ready for start up (RFSU) of Xena-2 achieved on schedule and under budget in November 2022.
• Woodside and NWS Project participants signed non-binding agreements with Western Gas for processing 2-3 Mtpa of Equus gas from 2027, initially through the Karratha Gas Plant and then later through Pluto LNG. Discussions continue with other resource owners for processing of additional third-party gas.

Gulf of Mexico

• Drilling of the second development well completed on the Shenzi North project in the Gulf of Mexico and well completion operations commenced. The project was 42% complete at the end of the period.

Australia Oil

• The Pyrenees Phase 4 infill campaign commenced during the period, with final completion of the campaign expected in Q1 2023. The infill campaign is targeting one workover well and one infill well and is expected to increase recovery from the Crosby and Stickle fields.
• The Enfield plugging and abandonment (P&A) campaign continued with four wells permanently plugged and one xmas tree removed in the quarter. In 2022, a total of five wells were permanently plugged and 13 xmas trees were removed.
• The Balnaves P&A campaign consisting of four wells was completed.

Project and development activities

Scarborough

• The Pluto Train 2 site in Western Australia was handed over to Bechtel and LNG train module construction commenced in Indonesia.
• Pipeline manufacturing is 59% complete and 92% of tagged equipment has been ordered for the floating production unit (FPU).
• Engagement with regulators on secondary environmental approvals continued for offshore execution activities, with no impact to critical path.
• FEED activities for Pluto Train 1 modifications were completed and the project was 25% complete at the end of the period, targeting first LNG cargo in 2026.

Sangomar Field Development Phase 1

• The subsea installation campaign progressed with rigid pipeline installation now 69% complete.
• The development drilling program continued with seven of 23 wells completed.
• The construction phase for the FPSO facility was completed in China. The FPSO facility was successfully relocated to Singapore to complete topsides integration and pre-commissioning.
• The project was 77% complete at the end of the period and first oil is targeted in late 2023.

Mad Dog Phase 2

• The operator is working through project commissioning issues and is planning start up in 2023.

Trion

• Competitive tenders were issued for the drilling rig, subsea equipment, long-lead rotating equipment and installation scopes for subsea, the FPU and the floating storage and offloading vessel.
• Woodside received confirmation from the National Hydrocarbons Commission (CNH) in December that
• the “minimum work program” obligation associated with the Trion licence was completed.

Wheatstone

• Concept selection has been completed for Julimar-Brunello Phase 3. The third phase of the JulimarBrunello project will involve the tieback of additional production wells to the Wheatstone platform. Woodside is targeting to be FID ready in 2023.

Sunrise

• The Sunrise Joint Venture and Australian and Timor-Leste Governments held two further Greater Sunrise trilateral meetings for 2022 to progress a new production sharing contract.
• Subsequent to the quarter, retention lease renewals were granted for Australian titles NT/RL2 and NT/RL4.

New energy

H2OK

• Completed FEED activities, which have matured the facility design, cost and schedule.
• Awarded contracts for the engineering and fabrication of electrolysers and liquefaction equipment in support of targeted FID readiness in 2023.

Southern Green Hydrogen (SGH)

• Woodside was selected as the preferred partner to progress to the next stage of the proposed SGH project in New Zealand. The proposed project will target production of 500,000 tonnes per year of ammonia using electrolysis from renewable power. Subject to finalising commercial arrangements, next steps will involve project participants working towards commencing FEED for the project.

Woodside Solar

• Woodside entered into a bilateral Indigenous Land Use Agreement and a modern benefits-sharing and relationship agreement with the Ngarluma Aboriginal Corporation (NAC). NAC holds the native title rights on behalf of the Ngarluma people, in respect to the land on which the proposed Woodside Solar project is planned to be developed. Woodside also executed an option to lease this land and has been progressing North West Interconnected System (NWIS) connection and transmission access arrangements.

KeyFacts Energy: Woodside Australia country profile