Page 8 - Oil&Gas-AustralAsia-2017-Issue-12
P. 8

Australia reaches a production milestone

                                                                                                                                                                   By Marie RYAN

Production has peaked in Australia. Image courtesy of Woodside Petroleum.

Production among Australia’s            to hit the equivalent of 95.1 million    being built in Western Australia that
largest oil and gas companies has       barrels of oil for 2016, up from the     it bought in 2015 for AU$2.8 billion.
reached milestone.                      equivalent of 92.2 million barrels in    US oil and gas giant Chevron, the
Woodside Petroleum and debt-lad-        2015, in part reflecting a strong year.  operator of Wheatstone, last Octo-
en Adelaide producer Santos are         The company is expected to an-           ber flagged a $US5 billion blowout
scheduled to release their December     nounce its production guidance for       in its cost estimates for the pro-
quarterly production reports this       the year ahead when it releases its      ject and Woodside has previously
month, revealing the health of their    latest numbers on Thursday, and Mr       indicated it could use this week’s
operations after an OPEC-inspired       Wiseman expects Woodside’s output        quarterly to shed more light on how
rally in oil prices towards the end of  to fall from 95.1 million barrels to     Chevron’s new expectations com-
last year.                              just 89.3 million barrels this year.     pared to its own existing outlook for
                                                                                 the project’s final cost.
While that price recovery means         The fall in output expected at           Wheatstone is currently scheduled
Santos and Papua New Guinea             Woodside this year helps explain         to ship its first LNG by the middle
liquefied natural gas producer          the company’s pursuit of a number        of this year, although the ramp-up
Oil Search are expected to report       of acquisitions in recent months.        of large-scale LNG plants can be a
increased revenues for the quarter.     It recently completed its $US440m        slow process.
Goldman Sachs analyst Mark Wise-        acquisition of a stake in two oil dis-   Meanwhile, Santos used its investor
man is tipping a drop in revenue        coveries off Senegal in West Africa      day late last year to issue guidance
from AU$988 million to AU$966           as well as the $US250m purchase          pointing to a fall in its output in
million after an expected decline       of interests in the big but remote       2017. Goldman Sachs is also pre-
in production at Woodside for the       Scarborough gasfields off WA.            dicting a slight drop in Oil Search’s
quarter.                                                                         output. §

Woodside’s output for the year as a Woodside also has a 13 per cent
whole is forecast by Goldman Sachs stake in the Wheatstone LNG plant

   3   4   5   6   7   8   9   10   11   12   13