Australian LNG player Woodside said its first-quarter sales revenue dropped 30 percent to US$982 million due to plummeting oil and gas prices.
However, Woodside’s production volumes rose 8.7 percent in the first quarter as compared to the same period last year. This was predominantly due to higher production at the company’s Pluto LNG project, Woodside said on Wednesday.
Capital spending in the first quarter more than doubled to $446 million from $195 million a year before.
Woodside CEO Peter Coleman said the company was “progressing well with its low-cost, high-value growth strategy”.
“We are taking advantage of market conditions and applying latest technology to reduce life cycle costs further enhancing our position as a low cost operator. This will also improve project concepts to deliver a portfolio of globally competitive decision-ready projects,” he said.
In March this year, Woodside and its partners had decided not to move ahead with the multi-billion Browse FLNG project.
Following completion of FEED work, the Browse JV participants said they would not progress with the reference case for a three FLNG facility development due to the current economic and market environment.
However, Woodside said on Wednesday it is working with the Browse JV participants on a new work program and budget to progress development activities.
It is anticipated that during the next phase, the additional time will be used to pursue “further capital efficiencies for the development”, Woodside said.
“Woodside remains committed to the earliest commercial development of the world-class Browse resources and to FLNG as the preferred solution, but the economic environment is not supportive of a major LNG investment at this time,” the company added.
Kitimat LNG project progressing
The proposed Kitimat LNG project in Canada, a co-venture between Chevron and Woodside, is moving forward, according to the Australian company.
The proposed export facility at Bish Cove near Kitimat will liquefy natural gas found in shale and tight rock formations in the Liard and Horn River Basins in northeastern B.C.
According to Woodside, appraisal work on the Liard basin continued to underpin reservoir potential.
“The second development scale appraisal well (B-B03-K/94-O-12) was brought into production during the quarter and the early results are above expectations,” Woodside said.
The LNG project is continuing to progress through the concept select phase, it added.
LNG World News Staff