Woodside Petroleum's production is being affected by the cost of maintenance related closures and asset sales. The oil and gas company has recorded a drop in its second quarter production levels by 10% compared to the previous year.
Besides a natural decline in oil production at its Enfield and Neptune fields, two of its North West Shelf Trains were shut for work. It also sold its Otway gas project off the Victorian coast. Naturally the production volume fell to 17.5 million barrels of oil as compared to 19.4 million barrels last year in the same quarter.
The bright spot is that despite the decline in output the revenue of Woodside Petroleum rose by almost 50% when compared to the same period last year. This rise in sales revenue is a result of the commodity price rises.
The oil major said its flagship Pluto gas export project remained within market guidance given in June. It has indicated that the company may have ditched a proposed end of year deadline for a final investment decision over the expansion of the Pluto LNG project. The expansion may begin sooner than expected.
Woodside is one of the world's leading producers of liquefied natural gas working North West Shelf for 25 years of natural gas production and 20 years of LNG production.