Woodside's 2Q 2015 Sales Revenue Slips 46.5% to $898M on Low Oil Prices

Woodside Petroleum Ltd.'s sales revenue for second quarter 2015 (2Q 2015) dipped 46.5 percent to $898 million, down from $1.679 billion a year ago, with the fall attributed largely to lower oil prices and lower sales, while sales production declined 9.3 percent to 19.5 million barrels of oil equivalent (MMboe) from 21.5 MMboe in the same period, the Australia-based firm said in announcing its quarterly financial results Thursday.

The company's production volume during this period dropped 14.5 percent to 20.1 MMboe, compared to 23.5 MMboe due mainly to lower liquefied natural gas (LNG) output associated with a planned turnaround at Pluto gas project offshore Western Australia.

Turning to development projects, the Browse floating liquefied natural gas (FLNG) joint venture entered into front-end engineering and design (FEED) phase for the proposed development during the quarter, with the partners agreeing to utilize Shell's FLNG technology. Woodside, the operator of Browse FLNG Project, is targeting a final investment decision (FID) in the second half of 2016 (2H 2016).

Elsewhere, the firm reported that the Chevron-operated Wheatstone LNG Project is approximately 60 percent complete, while the Woodside-operated Julimar Development Project which ties into the Wheatstone platform remains on target for start up in the 2H 2016. Woodside's share of Wheatstone LNG production is supplied from the Julimar project.

Meanwhile, concept definition for the Laverda and Cimatti reservoir tie-back to the Ngujima-Yin FPSO (floating production, storage and offloading) continued during the quarter to be in time for a decision to enter into the FEED phase in 3Q 2015.

Over in the North West Shelf, fabrication activities and offshore brownfield work for the Persephone field commenced for the $885.2 million or AUD 1.2 billion (100 percent cost) project, with start up expected in early 2018.

The $1.84 billion or AUD 2.5 billion (100 percent cost) Greater Western Flank Phase 1 Project completed the installation of the vertical riser and continued topside modifications to the Goodwyn A platform. The project remains on budget and on schedule for start up in early 2016. Meanwhile, Woodside said the Greater Western Flank Phase 2 Development Project continued with key design activities ahead of a planned FID in 2H 2015.