Oil & Gas

Woodside production guidance lower than expected on delays

Woodside Energy’s (ASX:WDS) latest production guidance for 2023 has fallen short given delays at new oil projects in West Africa and the US, as well as a maintenance shutdown at the Pluto LNG export complex in Australia.

The guidance of between 180 million and 190 million barrels of oil equivalent (boe) for the expanded business, following the acquisition of BHP Petroleum businesses, was lower than forecasts from analysts, that were expecting output to come in between 200 million and 210 million boe.

The forecast does not include any contribution from the $4.6 billion Sangomar oil project being built in West Africa with first oil only expected in late 2023 following delays at the development. Meanwhile, in the US, Mad Dog Phase 2, is undergoing commissioning with a mid-2023 start-up predicted, Woodside said today.

A major turnaround is planned at Pluto LNG in Q2 2023 expected to last for four weeks.

Woodside also said that capital expenditure for 2023 will be between $6 billion and $6.5 billion with Sangomar accounting for 20%, Scarborough 50%, Gulf of Mexico and Caribbean 15%, while Australia, corporate and other, make up the remaining 15%.

Woodside also said today that it will be joining a green hydrogen project in New Zealand.

Woodside holds its yearly investor briefing on Thursday.

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