ASX Announcement

Thursday, 20 October 2016

ASX: WPL OTC: WOPEY

Woodside Petroleum Ltd.

ACN 004 898 962

Woodside Plaza

240 St Georges Terrace Perth WA 6000 Australia

www.woodside.com.au

THIRD QUARTER REPORT FOR PERIOD ENDED 30 SEPTEMBER 2016‌ Operational excellence

  • Record quarterly LNG production at Karratha Gas Plant (KGP), 4% higher than the previous record (Q3 2014).

  • Record quarterly LNG production at Pluto LNG, 1% higher than the previous record (Q3 2015).

  • Reliability exceeded 99% at Pluto and KGP LNG facilities, offshore gas facilities and Nganhurra FPSO (Enfield).

  • No production interruption of Pluto LNG since 26 January 2016.

  • Narrowed 2016 production guidance to 92-95 MMboe.

    Managing risk and volatility

  • Secured approximately US$1.2 billion in funding at competitive rates, further extending our average term to maturity.

    Building near-term value growth

  • Completed Julimar Project construction and commissioning work on schedule and under budget.

  • Agreed to acquire all of ConocoPhillips' interests in Senegal, including a 35% interest in the 560 MMbbl SNE deep water oil discovery.1

  • Agreed to acquire half of BHP Billiton's interests in the Scarborough, Thebe and Jupiter gas fields, which upon completion is expected to increase Woodside's Contingent Resources (2C) by 462 MMboe.2

    Woodside CEO Peter Coleman said the company maintained exceptional operational performance during the quarter.

    "We set a number of production records this quarter driven by excellent LNG capacity and reliability, which contributed to a twenty per cent quarter-on-quarter revenue increase.

    "As part of managing our debt obligations, we secured US$1.2 billion in funding at competitive rates. We have strong support from debt capital markets and gearing remains well within our target range of 10-30%.

    "The agreements to acquire ConocoPhillips' interests in Senegal and half of BHP Billiton's interests in the Scarborough area assets demonstrate Woodside's focus on growth and leverage our deep water capabilities.‌

    "The Julimar Project completed all construction and commissioning work on schedule and under budget in preparation for Wheatstone start-up in mid-2017. Wheatstone is a key component of our near-term growth strategy and will contribute over 13 MMboe of annual production once both trains are fully operational," he said.

    Comparative performance at a glance

    Previous quarter

    Q3 2016

    Q2 2016

    Change %

    Production

    MMboe

    25.2

    22.2

    13.5

    Sales

    MMboe

    25.4

    21.1

    20.4

    Sales Revenue

    $ million

    988

    825

    19.8

    Corresponding quarter, prior year

    Q3 2016

    Q3 2015

    Change %

    Production

    MMboe

    25.2

    25.3

    -0.4

    Sales

    MMboe

    25.4

    24.1

    5.4

    Sales Revenue

    $ million

    988

    1,086

    -9.0

    All dollar amounts are in US dollars unless otherwise stated.

    Production was 13.5% higher than the previous quarter primarily due to:

  • Excellent production performance across operating assets.

  • Recommencement of full production at the NWS facilities following the planned turnaround in Q2 2016 and resulting increase in capacity.

  • Recommencement of production at the Okha FPSO (NWS oil) following facility turnaround.

  1. Refer to ASX announcement dated 14 July 2016, 'Woodside agrees to acquire ConocoPhillips' interests in Senegal'. Woodside net economic interest estimated to be approximately 150 MMbbl. Completion is subject to satisfaction of conditions precedent.

  2. Refer to ASX announcement dated 5 September 2016, 'Woodside agrees to acquire half of BHP Billiton's Scarborough area assets'.

Production Summary

Woodside's share of production and sales for the quarter ended 30 September 2016 with appropriate comparatives:

Q3 2016

Q2 2016

Q3 2015

Year to date

2016

Year to date

2015

NWS

Production (TJ)

20,292

19,912

20,392

60,333

59,795

PIPELINE NATURAL GAS1

Sales (TJ)

20,292

19,912

20,392

60,333

59,795

NWS

Production (t)

752,125

526,488

654,489

1,925,492

1,874,527

LIQUEFIED NATURAL GAS

Sales (t)

738,965

523,457

619,215

1,882,135

1,882,767

(LNG)

Cargoes Delivered2

74

52

63

186

185

NWS

Production (bbl)

1,703,540

1,396,775

1,460,950

4,554,564

4,179,057

CONDENSATE

Sales (bbl)

1,730,481

1,227,364

1,325,315

4,450,379

4,198,301

NWS

Production (bbl)

364,398

-

632,947

536,014

1,866,310

OIL

Sales (bbl)

206,644

-

745,316

464,515

1,950,861

NWS LIQUEFIED PETROLEUM GAS (LPG)

Production (t)

25,068

21,264

19,540

68,776

59,251

Sales (t)

27,338

21,017

18,299

70,028

61,758

PLUTO

Production (t)

1,162,124

1,130,650

1,146,415

3,385,516

2,796,292

LIQUEFIED NATURAL GAS

Sales Delivered (t)

1,158,643

1,093,867

1,022,233

3,374,961

2,803,645

(LNG)

Cargoes Delivered2

18

17

19

53

47

PLUTO

Production (bbl)

792,003

782,052

806,362

2,329,924

1,981,290

CONDENSATE

Sales (bbl)

1,170,813

271,544

827,046

2,407,678

1,764,750

LAMINARIA- CORALLINA3

Production (bbl)

-

46,219

186,389

216,686

634,734

OIL

Sales (bbl)

-

-

-

365,593

603,152

ENFIELD

Production (bbl)

273,428

262,256

356,038

835,096

846,180

OIL

Sales (bbl)

320,996

327,157

378,978

748,852

912,004

STYBARROW4

Production (bbl)

-

-

-

-

280,841

OIL

Sales (bbl)

-

-

214,657

-

489,993

VINCENT

Production (bbl)

1,124,815

1,050,922

1,630,757

3,235,241

4,053,437

OIL

Sales (bbl)

1,176,107

1,018,953

1,934,041

3,205,388

4,292,006

BALNAVES5

Production (bbl)

-

-

704,889

291,131

1,532,137

OIL

Sales (bbl)

-

8,798

584,728

557,349

1,253,059

CANADA PIPELINE

Production (TJ)

2,270

2,783

173

8,149

352

NATURAL GAS

Sales (TJ)

2,269

2,783

173

8,148

352

Total

Production (boe)6

25,201,918

22,182,870

25,342,156

71,062,596

67,298,094

Sales (boe)6

25,419,001

21,141,876

24,143,708

70,793,675

67,547,624

  1. Woodside's equity share of NWS jointly marketed contracts is 50% of the first 414 TJ per day (contract flexibilities allow Woodside to receive 50% up to 517.5 TJ per day) and 16.67% for all gas produced above this amount. Commencing July 2016, Woodside has also entered into independent pipeline gas sales.

  2. Cargoes delivered are total venture cargoes, not Woodside share.

  3. Woodside completed the sale of its interests in the Laminaria-Corallina asset on 29 April 2016. Woodside has recognised its share of production (bbl) and sales (bbl) up to, and including, 29 April 2016.

  4. Production ceased June 2015. The final cargo was shipped in August 2015.

  5. Production ceased 20 March 2016.

  6. Conversion factors are identified on page 8.

Sales Revenue and Expenditure

Woodside's share of sales revenue and exploration, evaluation and capital expenditure for the quarter ended 30 September 2016 with appropriate comparatives:

Amounts in US$ million

Q3 2016

Q2 2016

Q3 2015

Year to date

Year to date

2016

2015

Sales Revenue

Pipeline Natural Gas

78.6

73.4

71.1

224.3

216.7

LNG

203.8

152.8

230.5

568.0

773.6

NWS

Condensate

77.3

62.7

68.4

194.4

223.6

Oil1

10.0

(1.1)

41.2

18.2

112.3

LPG

8.9

8.6

5.8

24.8

25.8

LNG

482.8

449.0

482.5

1,447.9

1,540.5

Pluto

91.8

52.6

102.9

Condensate

13.5

43.4

Laminaria-Corallina2

Oil

-

-

(1.0)

13.6

30.6

Enfield

Oil

15.2

16.0

17.9

35.3

51.7

Stybarrow

Oil

-

-

9.4

-

27.2

Vincent

Oil

55.2

46.3

88.2

136.3

227.6

Balnaves

Oil

-

0.5

28.1

20.3

68.9

Canada

Pipeline Natural Gas

3.1

2.9

0.1

8.5

0.5

Total Sales Revenue

987.5

824.6

1,085.6

2,794.5

3,390.8

LNG Processing Revenue

51.8

50.5

50.9

151.2

130.1

Gross Trading Revenue

18.4

29.9

85.0

49.9

257.0

Total Operating Revenue

1,057.7

905.0

1,221.5

2,995.6

3,777.9

Exploration and Evaluation Expense

Exploration Expensed

17.8

49.5

84.4

188.8

259.9

Permit Amortisation

4.0

12.7

5.6

22.5

16.1

Evaluation Expensed

1.9

0.6

2.7

3.8

1.5

Total

23.7

62.8

92.7

215.1

277.5

Capital Expenditure

Exploration Capitalised3,4

(2.0)

1.2

(2.7)

35.5

95.9

Evaluation Capitalised4

31.4

39.2

109.4

151.7

1,102.9

Oil and Gas Properties4

326.6

300.3

465.8

953.5

3,830.4

Other Property, Plant and Equipment

4.0

3.3

7.7

8.9

16.4

Total

360.0

344.0

580.2

1,149.6

5,045.6

  1. NWS oil is sold on an entitlement basis. The negative revenue in Q2 2016 reflects the revaluation of oil entitlements during the period.

  2. Woodside completed the sale of its interests in the Laminaria-Corallina asset on 29 April 2016. Woodside has recognised its share of sales (bbl) and revenue (US$ million) up to, and including, 29 April 2016.

  3. Exploration capitalised represents expenditure on successful and pending wells, plus permit acquisition costs during the period and is net of well costs reclassified to expense on finalisation of well results.

  4. Project final investment decisions result in amounts of previously capitalised exploration and evaluation expense (from current and prior years) being transferred to oil and gas properties. The table above does not reflect the impact of such transfers.

Production Activities

Woodside share

100% project

Q3 2016

Q2 2016

Q3 2016

Q2 2016

Remarks

Australia NWS - Average daily production

Pipeline gas (TJ)

221

219

495

485

Production was per customer demand.

LNG (t)

8,175

5,786

51,958

37,285

Production was the highest achieved on a quarterly basis.

Production was higher primarily due to recommencement of full production following the major turnaround in the previous quarter, system enhancements made during the turnaround and higher reliability.

The annualised loadable LNG production rate was 19.0 mtpa (100% project).

Condensate (bbl)

18,517

15,349

92,684

72,415

Production was higher in line with LNG production.

Oil (bbl)

3,961

-

11,883

-

Production recommenced mid-July following planned facility turnaround. At the end of the quarter, production was approximately 18,500 bbl/d (100% project).

LPG (t)

272

234

1,717

1,486

Production was higher in line with LNG production.

Australia Pluto - Average daily production

LNG (t)

12,632

12,425

14,035

13,805

Production was the highest achieved on a quarterly basis.

Production was higher due to high reliability and capacity during the cooler winter months.

The annualised loadable LNG production rate was 5.1 mtpa (100% project).

Condensate (bbl)

8,609

8,594

9,565

9,549

Production was higher in line with LNG production.

Other Australia - Average daily production

Laminaria-Corallina Oil (bbl)1

-

508

-

786

Completed the operational handover of the facility to the new operator on 12 September 2016.

Enfield Oil (bbl)

2,972

2,882

4,953

4,803

Production was higher primarily due to the facility achieving 100% reliability for the quarter.

Vincent Oil (bbl)

12,226

11,549

20,377

19,248

Production was higher due to increased facility utilisation offsetting natural reservoir decline. A planned 10-day turnaround is scheduled to commence in October 2016.

Balnaves Oil (bbl)

-

-

-

-

Production ceased on 20 March 2016.

Canada - Average daily production

Pipeline gas (TJ)

25

31

49

61

Production was lower primarily due to natural reservoir decline and lower facility utilisation.

1 Woodside completed the sale of its interests in the Laminaria-Corallina asset on 29 April 2016. Woodside has recognised its share of production (bbl) up to, and including, 29 April 2016.

Woodside Petroleum Ltd. published this content on 19 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 20 October 2016 03:33:06 UTC.

Original documenthttp://www.woodside.com.au/Investors-Media/announcements/Documents/20.10.2016 Third Quarter 2016 Report.pdf

Public permalinkhttp://www.publicnow.com/view/10D9283EC55488CDAD7018658932EEC7B46393D0