Second Quarter Report for Period Ended 30 June 2021

Source Press Release
Company Woodside Petroleum LimitedFAR LimitedMarubeni Corporation 
Tags Hydrogen, Renewable Energy, Power, Chemicals Activities, LNG & Gas Storage/Processing, Production/Development, Upstream Activities, Strategy - Upstream, Environment, Strategy - Corporate
Date July 15, 2021

Performance highlights

  • Achieved sales revenue of $1,285 million, up 15% from Q1 2021.
  • Delivered production of 22.7 MMboe, down 4% from Q1 2021.
  • Delivered sales volume of 28.1 MMboe, up 9% from Q1 2021.

Executing a clear plan

  • Launched sell-down processes for Scarborough and Pluto Train 2, timed to align with the targeted final investment decision (FID) in H2 2021.
  • Commenced the drilling campaign for Sangomar Field Development Phase 1 in July 2021.
  • Completed acquisition of FAR’s interest in the Rufisque Offshore, Sangomar Offshore and Sangomar Deep Offshore (RSSD) joint venture in July 2021 and launched a sell-down process.
  • Executed three sale and purchase agreements (SPA) for the supply of domestic LNG from the Pluto LNG truck loading facility.

Signed a heads of agreement (HOA) with IHI Corporation and Marubeni Corporation to investigate the production and export of green ammonia from renewable hydroelectric power in Tasmania.

Woodside Acting CEO Meg O’Neill said higher realised prices in the second quarter of 2021 helped underpin a 15% rise in sales revenue compared with the first three months of the year.

“Revenue from oil sales during the period was higher than the first quarter supported by an above-market average realised price of $75/barrel, while revenue from LNG sales climbed 14%.

“Lower oil production due to scheduled maintenance activities and adverse weather impacts was partly offset by a strong quarterly performance at Pluto, which achieved 97% reliability.

“Work on our Sangomar Field Development Phase 1 offshore Senegal continued on schedule during the quarter and the project is now nearly one-third complete. In July, the first of two drilling vessels arrived in Senegal and the drilling campaign commenced for the project’s 23 wells.

“Following completion last week of our acquisition of FAR’s interest in the RSSD joint venture, we have commenced a formal process to sell down our equity in the project.

“Solid progress has been made towards our targeted final investment decision on Scarborough and Pluto Train 2 in the second half of this year.

“We have launched the formal sell-down process for up to 49% of our equity in Pluto Train 2. In parallel we have commenced a process to test the market for value-accretive opportunities to reduce our equity in the Scarborough resource.

“We are reviewing project cost estimates following extensive engagement with our contractors over recent months in the lead up to the investment decision.

“Further progress has been made in the implementation of our new energy strategy. We are investigating the supply of approximately 50 MW of solar energy to Pluto LNG from the proposed Woodside Power concept which has the potential to supply another 50 MW to Perdaman’s planned urea plant on the Burrup Peninsula.

“We also signed a heads of agreement with Japan’s IHI Corporation and Marubeni Corporation to investigate the production and export of green ammonia from renewable hydroelectric power at our proposed H2TAS facility. Initially, green ammonia would be produced at a small-scale hydrogen electrolysis plant which could then be scaled up to produce export volumes,” she said.

Source: EvaluateEnergy® ©2021 EvaluateEnergy Ltd