Woodside posts record production but gas weighs on revenue

Woodside earned less revenue in 2013 despite posting a 2.5 per cent production increase.

The company also flagged up to $400 million in write downs due to carrying values of Stybarrow, Enfield, Laminaria and Corallina fields.

However, it will be offset by a benefit of up to $250 million on the petroleum resource rent tax.

Tabling its fourth quarter report on Thursday, the oil and gas giant showed it produced 87 million barrels of oil equivalent (MMboe), a 2.5 per cent increase on the 84.9 MMboe produced in 2012.

Selling 85.7 MMboe in the same period came as a 2.3 per cent increase on the previous year's sales of 83.8 MMboe.

However full year revenue fell, totalling $5.78 billion, or 7.2 per cent lower than the $6.23bn in 2012.

The fall came as the company sold a higher amount of gas than oil resulting in lower average realised prices.

In the December quarter, output dropped 4.5 per cent from a year earlier to 23.2 MMboe, but was almost 6 per cent higher than the September quarter due to increased production from the Pluto facility after the restart of operations following an unexpected shutdown.

Woodside confirmed the restart of oil production in November at its Vincent field off WA after a lengthy shut down for a vessel upgrade.

It also said the basis of design for the Browse floating LNG development concept was continuing, stating the commencement of front-end engineering and design would start in the second half of 2014.

While the company’s $2.5 billion Greater Western Flank project is 63 per cent complete with fabrication and drilling continuing. Woodside says the project is on-time and on budget, with start-up expected in 2016.

A final investment decision on the company’s Persephone gas development is due later this year.

The company set its production target range for 2014 at between 86 and 93 MMboe.


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