Woodside Energy shares third quarter report for period ended 30 September 2023

“The 99.9% reliability achieved at Pluto during the third quarter followed the completion of a maintenance turnaround in June.”

“Production from North West Shelf was impacted by planned turnaround and maintenance activities in the quarter, but the facility’s reliability was still exceptional at 98.9%.”

“Woodside’s project teams made strong progress over the course of the quarter.”

“In September, first production at the Shenzi North tieback in the US Gulf of Mexico was achieved ahead of the original 2024 schedule. Production at Mad Dog Phase 2 offshore Louisiana, which started up in April, continued to ramp up during the quarter.”

“Activity at Scarborough and Pluto Train 2 increased as planned and the project is now 46% complete. Installation of the nearshore component of the Scarborough trunkline commenced and fabrication of the
floating production unit topsides and hull continued.”

“Site construction works for Pluto Train 2 are progressing and we have awarded the engineering, procurement and construction contract for the Pluto Train 1 modifications that will allow it to process Scarborough gas.”

“The Federal Court’s 28 September decision that the Commonwealth Environment Plan for the Scarborough offshore seismic survey is invalid has not impacted our target for first LNG cargo in 2026. The decision does
however highlight the urgent need for reform of Australia’s offshore approvals process.”

“Uncertainty over approvals has the potential to add cost and delays to any offshore activities to be undertaken in Australia. In the case of gas projects, such uncertainty threatens the delivery of much-needed new supplies to the Western Australian domestic market, as well as undermining the confidence of our regional trading partners.”

“The importance of Scarborough to regional energy security was demonstrated in August when LNG Japan agreed to purchase a 10% non-participating interest in the joint venture.”

“As part of a broader strategic relationship, Woodside and LNG Japan, owned by Sumitomo Corporation and Sojitz Corporation also entered into a non-binding heads of agreement for the sale and purchase of approximately 0.9 million tpy of LNG for 10 years commencing in 2026. In addition, we entered
into non-binding agreements with Sumitomo and Sojitz to collaborate on new energy opportunities globally.”

“At Sangomar in Senegal, another two of the 23 planned wells were drilled, taking the total now completed to 14. Pre-commissioning work at the floating production storage and offloading vessel continued in Singapore.
Overall, the Sangomar project is 90% complete and we remain on track for targeted first oil in mid-2024.”

“A significant milestone for our deepwater Trion project was passed during the quarter, with the approval of the field development plan by the Mexican regulator. Project execution activities at Trion are progressing.”

“In new energy, progress was made on contracts for the plant construction scope and other critical packages at our proposed H2OK facility in Oklahoma. Technical work to support readiness for a final investment decision at H2OK is expected to be completed in 2023, although a decision itself has been delayed, pending clarification of government tax incentives and the finalisation of offtake agreements.”

“During the quarter we signed two non-binding memoranda of understanding with a total of four Japanese companies to jointly study potential carbon capture and storage (CCS) value chains between Australia and Japan. We believe that with collaboration between industry partners and governments CCS could provide a pathway to help our Japanese customers decarbonise,” she said.

Production

• Production increased compared to the previous quarter to 47.8 million boe primarily due to:

– higher production from Pluto LNG and Ngujima-Yin following completion of planned turnaround and maintenance activities.

– high LNG reliability at Australian operated assets, with Pluto LNG and the North West Shelf (NWS) Project achieving 99.9% and 98.9% reliability respectively for the quarter.

– higher production on Mad Dog due to the continued ramp up at the Argos platform. This was partly offset by lower NWS production due to planned turnaround and maintenance activities on the North Rankin Complex, Goodwyn Platform and Karratha Gas Plant, with production recommencing in September 2023.

• Production from Bass Strait was lower than the corresponding quarter in 2022 due to lower gas demand following a warmer winter.

Gulf of Mexico

• First production was successfully achieved at Shenzi North in September 2023 ahead of the 2024 target.
• A maintenance turnaround of the Shenzi facility was completed on schedule.
• Production continues to ramp up at the Argos platform with seven wells now online.

Australia oil

• The Ngujima-Yin FPSO recommenced production in July following successful completion of the fiveyearly maintenance turnaround in a Singapore drydock.
  Greater Angostura.
• In July 2023, a valve bolt failure on the Angostura gas export platform resulted in an unplanned gas release and emergency shutdown to stop the flow of gas.
  This incident is classified as a Tier 1 process safety event. Production recommenced in August 2023 following completion of safety checks and
  remediation activities.

Decommissioning

• The Enfield plug and abandonment (P&A) campaign continued with four wells permanently plugged. The plugging of 17 of 18 Enfield wells and removal of 16 of 18 xmas trees has been completed.
• The Bass Strait P&A operations on Flounder, Bream A, and Kingfish A platforms continued with six wells plugged in the quarter.
• Subsequent to the quarter, Woodside commenced removing the Nganhurra riser turret mooring which will be transported for cleaning and deconstruction in preparation for recycling or reuse.
• Project and development activities

Scarborough

• Installation of the trunkline nearshore component commenced and fabrication of the FPU topsides and hull continued.
• The Pluto Train 2 project continued to ramp up, with both module fabrication and site construction works progressing.
• In August 2023, Woodside entered into an agreement with LNG Japan to sell a 10% interest in the Scarborough Joint Venture.
• In September 2023, Woodside awarded the engineering, procurement and construction contract for Pluto Train 1 modifications. Engineering and procurement of long-lead items are progressing.
• The Federal Court has set aside NOPSEMA’s acceptance of the Marine Seismic Survey Environment Plan on the basis that NOPSEMA’s decision to accept the environment plan with conditions relating to consultation was invalid.
• Engagement continues with NOPSEMA on the outstanding Commonwealth Environment Plans.
• The Scarborough and Pluto Train 2 project was 46% complete at the end of the period and first LNG cargo is targeted for 2026.

Trion

• The Mexican regulator, Comisión Nacional de Hidrocarburos, approved the Trion FDP in August 2023.
• Awarded contracts for the drill rig; FPU and floating storage and offloading (FSO) installation; subsea trees and control system; subsea flexible piping and riser terminations.
• Placed equipment orders for umbilical tubing and subsea manifolds.
• Commenced FSO front-end engineering design activities and progressed shipyard engineering.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/19102023/woodside-energy-shares-third-quarter-report-for-period-ended-30-september-2023/