Australian energy giant Woodside has recorded half-year profit of US$507 million, 49% higher than 1H 2016, thanks to higher oil prices and lower production costs.
In the six month to July, sales revenue dipped about 4% to $1.76 billion due to lower output of 42.2 MMboe.
Chief executive Peter Coleman said the company continued to deliver on the long-term plan and was in a strong position heading into the second half of 2017.
“Our free cash flow is up 170% from 1H 2016 to $445 million and our break-even oil price for the half was $34/bbl,” he said.
Unit production costs in 1H 2017 were down 6% to $4.9/boe, and capital expenditure was $651 million, down from 1H 2016 expenditure of $754 million.
Approximately 70% was invested in sanctioned projects, including Wheatstone LNG, the Greater Enfield project and the North West Shelf (NWS) subsea tieback projects, which are expected to contribute to production growth of approximately 15% from 2017-20.
Woodside said the Chevron-operated Wheatstone LNG project, in which the Perth-based company has 13% stake, has made significant progress, with LNG Train 1 close to first production. Wheatstone is expected to provide Woodside more than 13 MMboe of annual production once fully operational.
Elsewhere in Myanmar, Woodside completed the appraisal of the Thalin-1B and Thalin-2 wells in 1H 2017, just before making a third gas discovery in the Pyi Thit-1 well in August. Development concepts currently under consideration include a new Northern or Southern Rakhine basin hub for broader gas aggregation and export or development as a tieback to existing infrastructure.
“[Additionally], we are progressing concept definition on Pluto LNG expansion; the North West Shelf project participants have agreed on a tolling proposal and started discussions with third party resource owners, and the Browse joint venture participants have agreed on Browse to NWS as the reference development concept for technical studies,” Coleman said.
“We also executed a long-term sales agreement with Pertamina that will see Woodside become a significant supplier of LNG to Indonesia,” he added.
Image: Woodside CEO Peter Coleman / Woodside
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