Shutdowns spur drop in major’s revenue

shutdownAN outage at one of Woodside Petroluem’s major oil fields contributed to a 6.9 per cent fall in revenue for the June quarter, the company’s most recent quarterly report revealed.
Woodside made about $1.35 billion for the three months to June, compared to $1.45 billion in the first quarter and $1.43 billion for the same period last year.
The Vincent floating production storage and offtake (FPSO) facility went offline for planned shipyard maintenance, which lowered oil volumes and resulted in lower average realised prices for the period, Woodside stated.
June quarter production fell 8.6 per cent to 20 million barrels of oil equivalent, down from the first quarter’s 21.9mmboe, due to planned maintenance on the North West Shelf and Pluto projects and an unplanned Pluto LNG outage.
Towards the beginning of July, Woodside announced that its production target was downgraded to between 85 and 89mmboe, from between 88 and 94mmboe, due to the unplanned shutdown of the Pluto LNG processing train and the refurbishment of the Vincent FPSO, which was expected to reach completion in October.
Woodside stated that the “impairment cost for half-year 2013 is anticipated to be in the range of $120 million to $140 million” due to abandoning the Cimatti-Enfield tieback concept, FEED work on its Pluto expansion and a charge from its Neptune field in the Gulf of Mexico.
On the upside, Woodside revealed a 23 per cent increase in production during the first six months of 2013, compared to the same period last year, boosted by the full half-year of production at Pluto.