Operations
· Record quarterly production of 53.1 MMboe (577 Mboe/day), up 20% from Q2 2024 due to ramp-up of Sangomar, increased uptime across operated assets including 99.9% LNG reliability at Pluto and increased seasonal domestic gas demand. Full-year production guidance has been narrowed to 189-195 MMboe.
· Quarterly revenue of $3,679 million, up 21% from Q2 2024 primarily due to Sangomar cargo sales and higher average LNG prices.
· Achieved nameplate capacity at Sangomar with gross production rates of 100,000 barrels per day.
· Capitalised on increased gas-hub prices by selling 39% of produced LNG cargoes in the quarter on prices linked to gas hub indices.[1] Full year gas hub guidance has been increased to 33-37% of produced LNG.
Projects
· The Scarborough Energy Project was 73% complete at the end of the quarter, with trunkline installation successfully completed in October. The project is on track for first LNG cargo in 2026.[2]
· The Trion Project was 15% complete at the end of the quarter and is targeting first oil in 2028.
· Completed acquisition of OCI's Clean Ammonia Project in Beaumont, Texas for an all-cash consideration of approximately $2,350 million, with 80% paid and the remaining 20% to be paid at project completion. The project is targeting first ammonia production from 2025 and lower carbon ammonia from 2026.[3]
Other
· Completed acquisition of Tellurian and its US Gulf Coast Driftwood LNG development opportunity in October. The project has been renamed Woodside Louisiana LNG.
· Signed a sale and purchase agreement (SPA) with JERA for the supply of approximately 0.4 Mtpa LNG for 10 years.
· Executed 66 PJ of Western Australian gas sales for delivery across 2025 and 2026.
· Successfully completed issuance of $2 billion of senior unsecured bonds to quality debt investors in the US market, with the book peaking at almost four times oversubscribed.
Woodside CEO Meg O'Neill said:
"We would like to acknowledge the tragic death in early October of an employee of one of the construction contractors at our Clean Ammonia Project in Beaumont, Texas.
"Safety is our top priority. We are taking steps to understand the circumstances around what occurred and are working closely with local authorities, OCI and the contractor company.
"Our production for the third quarter was a record 53.1 million barrels of oil equivalent. The strong operational performance was underpinned by the accelerated ramp-up of Sangomar and exceptional performance at Pluto LNG and NWS, which recorded 99.9% and 99.2% reliability respectively.
"Our 39% exposure to LNG gas hub indices allowed us to take advantage of increased LNG spot prices in the market over the period, demonstrating the importance of maintaining a balanced and flexible portfolio.
"At Sangomar the 24-well drilling program has been completed and the project has achieved nameplate capacity of 100,000 barrels per day. Commissioning activities continue to progress as planned and start-up of gas and water injection systems is underway.
"The Scarborough Energy Project in Western Australia is now 73% complete and remains on target for first LNG cargo in 2026. Installation of the offshore Scarborough gas trunkline was completed in early October.
"At the end of September we completed the acquisition of OCI's Clean Ammonia Project in Beaumont, Texas. Subsequent to quarter end, we completed the acquisition of Tellurian and its development opportunity, now named Woodside Louisiana LNG.
"The Clean Ammonia Project is expected to produce first ammonia in 2025 and at Woodside Louisiana LNG we are targeting final investment decision (FID) readiness from the first quarter of 2025. These acquisitions expand our diverse, geographically advantaged portfolio and position Woodside to execute our strategy to thrive through the energy transition and deliver long-term value to shareholders.
"Our sale and purchase agreement with JERA for the long-term supply of LNG from Woodside's global portfolio again evidenced the value Asian customers place on our product.
"Woodside's commitment to the domestic market was also demonstrated by the execution of gas sales of 66 petajoules (PJ) across 2025 and 2026 in Western Australia. In eastern Australia, to date we have executed sales of 63 PJ across 2025 and 2026 under an ongoing Expression of Interest process, with further sales expected to be completed in the fourth quarter."
Operations
Pluto LNG
· Achieved outstanding quarterly LNG reliability of 99.9%.
North West Shelf (NWS) Project
· Achieved outstanding quarterly LNG reliability of 99.2%.
· Successfully completed planned maintenance offshore at North Rankin Complex and an onshore LNG train at Karratha Gas Plant (KGP), and production has recommenced as planned.
· Continued to pursue opportunities for third party onshore gas processing following announcement of the Western Australian Government's updated policy allowing onshore gas exports.
· Took FID on the Low-Low Pressure Operation Project at Goodwyn Alpha, aimed at increasing NWS production from the Goodwyn area reservoirs. This project is targeted for start-up in Q2 2027.
· Planning to bring one LNG train offline for retirement in the fourth quarter of 2024.
Bass Strait
· Safely completed the Kipper Compression Project, adding compression facilities on the West Tuna Platform, increasing production potential of existing well stock and enabling development of additional Kipper reserves.
· Continued optimisation of facilities through the Gippsland Asset Streamlining project with closure of the Cobia Platform in September 2024.
· Ethane power generation project successfully started up in September.
Sangomar
· Achieved nameplate capacity of 100,000 barrels per day in July 2024.
· Continued to receive strong interest in Sangomar crude from buyers in Europe and Asia.
· The final Phase 1 well was drilled and completed in the period. The Sangomar drilling campaign is now complete marking the successful drilling and completion of 24 development wells.
· Start-up of gas and water injection systems has commenced and commissioning activities are expected to continue through 2024.
Gulf of Mexico
· Completed a planned shutdown on Shenzi in July 2024 which included integrity inspections and control system improvements.
· Completed a planned three-well intervention campaign on Mad Dog A-Spar.
· In September, Hurricanes Francine and Helene caused deferrals at our operated and non-operated GOM facilities, largely due to availability of third-party infrastructure and planned facility ramp down.
Marketing and Trading
· Signed a long-term LNG SPA with JERA to supply approximately 0.4 million tonnes (six cargoes) of LNG per year over 10 years on a delivered basis, commencing in April 2026. LNG delivered under the SPA will be sourced from volumes across Woodside's global portfolio.
· Sold 39% of produced LNG at prices linked to gas hub indices in the quarter (36% year to date).[7] Full year gas hub guidance has been increased to 33-37% of produced LNG.
· Executed 66 PJ of Western Australian gas sales for delivery across 2025 and 2026. Woodside continues to engage with the Western Australian domestic market on additional supply requirements for 2025, 2026 and 2027.
· Woodside continued its eastern Australian Expression of Interest (EOI) process with executed sales to date already of 63 PJ across 2025 and 2026. The remaining sales under the EOI process are expected to be completed in Q4 2024.
Projects
Scarborough Energy Project
· The Scarborough and Pluto Train 2 project was 73% complete at the end of the quarter.
· 41 of 51 Pluto Train 2 modules have been delivered to site, with 39 modules set in position at the end of the quarter.
· Fabrication of the floating production unit (FPU) hull and topsides progressed, with installation of piping, electrical, and instrumentation packages continuing on the topsides and the hull entering its second dry dock in preparation for FPU integration activities in 2025.
· Trunkline installation was completed subsequent to the quarter.
· The drilling program continued with batch drilling of the development wells ongoing.
· First steel was cut at the module yard on the Pluto Train 1 modifications project and site preparation works at the Pluto LNG facility commenced.
· First LNG cargo is targeted for 2026.
Trion
· The Trion project was 15% complete at the end of the quarter.
· Awarded contracts for the floating, storage and offloading vessel (FSO) bare boat charter, aviation services, and fibre optic trunkline installation.
· Procurement activities continued, including delivery of long lead items to subsea equipment manufacturers.
· Completed the FPU hull 90% model review and initiated FPU pre-construction activities.
Woodside Louisiana LNG (Driftwood LNG)
· Subsequent to the quarter, completed acquisition of Tellurian and its US Gulf Coast Driftwood LNG development opportunity in Calcasieu Parish, Louisiana.
· Woodside acquired all issued and outstanding Tellurian common stock for approximately $900 million cash, or $1.00 per share. The implied enterprise value was approximately $1,200 million.[8]
· Woodside has renamed the Driftwood LNG development opportunity Woodside Louisiana LNG.
· Woodside is targeting FID readiness from the first quarter of 2025.
Decommissioning
· The Griffin, Stybarrow and Enfield decommissioning campaign continued with ~54 km of flexible flowlines and umbilicals recovered in the quarter, and completion of wellhead severance activities at Enfield.
· The well plug and abandonment campaign at the Stybarrow field is 40% complete, with 4 wells plugged and abandoned to date.
· At Mad Dog in US Gulf of Mexico, operator (BP) completed plug and abandonment of well 869-1.
Exploration and development
Calypso
· Pre-front-end engineering design (FEED) engineering studies continued to mature the technical definition and cost estimate for the deepwater infield host.
· Fiscal and marketing negotiations continued with various counterparties to assess the commercial options to monetise the Calypso resource.
Browse
· Additional information was provided to the WA Environmental Protection Authority to support the final phase of assessment of the Browse to North West Shelf Project environmental referral.
· Engineering studies on Browse to North West Shelf Project continue to optimise the upstream development concept and improve project cost and schedule certainty.
Sunrise
· The Sunrise Joint Venture participants continued negotiations with the Australian and Timor-Leste Governments to progress a new Production Sharing Contract, Petroleum Mining Code and fiscal regime.
· The concept study for the potential development of Greater Sunrise is expected to conclude in Q4 2024.
Exploration
· In Congo, the Niamou Marine-1 (non-operated) well reached total depth in September 2024. The well did not encounter hydrocarbons.
· In September 2024, Woodside was granted Exploration Permit WA-554-P in the Barrow sub-Basin, Western Australia. WA-554-P comprises a total area of 943 km2. Woodside holds a 100% working interest in the permit.
· Subsequent to the period, Woodside acquired a 40% non-operated stake in ENI's Tiba Block in the Nile Delta, Egypt.
New energy and carbon solutions
Beaumont Clean Ammonia Project
· Completed OCI Clean Ammonia acquisition, comprising 100% of OCI Clean Ammonia Holding B.V., which holds its lower carbon ammonia project in Beaumont, Texas.
· The acquisition was for an all-cash consideration of approximately $2,350 million, inclusive of capital expenditure through completion of phase 1 of the project. OCI is continuing to manage the construction of the project under the Construction Management Agreement.
· Woodside is targeting first ammonia production from 2025 and lower carbon ammonia from 2026 following commencement of CCS operations.[9]
H2OK
· Secured non-binding offtake term sheets with several customers and continued to advance pricing and volume discussions with additional offtakers.
· Woodside continues to await final guidance for the 45V Clean Hydrogen Production Tax Credit.
Woodside Solar
· Woodside continued working with the Western Australian Government to progress its process to develop common user transmission infrastructure required to support the proposed Woodside Solar project.
Carbon capture and storage (CCS) opportunities
· Woodside was awarded two greenhouse gas assessment permits to progress CCS evaluation work:
o G-18-AP, offshore Onslow, Western Australia, as part of a joint venture with Chevron Australia New Ventures Pty Ltd; and
o G-19-AP, off the coast of Victoria, as part of the Gippsland Basin Joint Venture (GBJV).
Corporate activities
London Stock Exchange listing
· Subsequent to the period, Woodside announced it will delist from the London Stock Exchange (LSE). The last day of trading of Woodside shares on the LSE will be 19 November 2024.
Funding
· Woodside successfully raised $2 billion in the US market through a multi-tranche SEC registered bond in September 2024, comprising a $1.25 billion 10-year bond and a $0.75 billion 30-year bond.
· Woodside converted and upsized an existing $800 million revolving facility to a new $1.2 billion 7-year syndicated term loan primarily from Asian and European banks.
Hedging
· Woodside hedged approximately 29.3 MMboe of 2024 oil production at an average price of approximately $75.6 per barrel, with approximately 72% delivered as of 30 September 2024.
· As at 30 September, Woodside had hedged approximately 18.6 MMboe of 2025 production. An additional 11.4 MMboe was subsequently added with the total for 2025 now 30 MMboe at an average price of approximately $78.75.
· Woodside also has a hedging program for Corpus Christi LNG volumes designed to protect against downside pricing risk. These hedges are Henry Hub (HH) and Title Transfer Facility (TTF) commodity swaps. Approximately 88% of volumes for the remainder of 2024, 83% of 2025 and 25% of 2026 volumes have been hedged.
· The year-to-date realised value of all hedged positions for as of 30 September 2024 is a pre-tax expense of approximately $70 million, with $195 million related to oil price hedges offset by $88 million profit related to Corpus Christi hedges and $37 million related to other hedge positions. Hedging losses will be included in "other expenses" in the full-year financial statements.
Climate and sustainability
· Woodside released its 2023 Reconciliation Action Plan 2021-2025 (RAP) Report. The report reflects Woodside's progress against the four pillars outlined in the RAP including Respect for Culture and Heritage, Capability and Capacity, Economic Participation, and Stronger Communities.
· Subsequent to the period Woodside signed a memorandum of understanding (MOU) with the Japan Organisation for Metals and Energy Security (JOGMEC) regarding collaboration on methane emissions management.
