By David Winning

SYDNEY--Woodside Energy said it expects to produce between 186 million and 196 million barrels of oil equivalent this year as it continues to advance talks to sell down part of its interest in the Louisiana LNG project in the U.S.

Woodside's annual production guidance represents a 1.5% fall on 2024 output at the midpoint of the range. The Perth-based company produced a record 193.9 million BOE last year, up 4% on 2023, as it ramped up the Sangomar oil project in Senegal.

Sales revenue of $13.15 billion last year was down 6% on 2023, reflecting a 7% drop in the average price fetched for Woodside's oil and natural gas.

Woodside said Sangomar's performance in the October-December period was outstanding. Production from the development averaged 75,000 BOE per day.

"We also saw a strong contribution from Mad Dog in the Gulf of Mexico, with a full year of Argos production at peak rates," Chief Executive Meg O'Neill said.

Woodside is aggressively reshaping its portfolio of energy projects, developing new production hubs while adding opportunities through acquisitions. Late last year, Woodside agreed to an asset swap with Chevron that the Australian company said would support short-term cash generation.

That deal involved Woodside handing Chevron its 13% interest in the Wheatstone liquefied natural gas project in Australia. In return, Woodside is acquiring Chevron's nearly 17% interests in the North West Shelf LNG and oil projects. It will also get Chevron's 20% interest in the proposed Angel carbon capture and storage project in northwest Australia.

On Wednesday, Woodside updated investors on the status of other projects in planning or undergoing construction. It said the Scarborough natural-gas project in Australia is 78% complete and on track for its first cargo of liquefied natural gas in 2026. The Trion project in the Gulf of Mexico is 20% complete.

Woodside made two large acquisitions in 2024, completing the $900 million takeover of U.S.-listed Tellurian and its flagship Driftwood LNG asset on the U.S. Gulf Coast, which was subsequently renamed Woodside Louisiana LNG. Woodside also completed the $2.35 billion acquisition of an ammonia project in Beaumont, Texas.

O'Neill reported strong interest in a stake in Louisiana LNG that Woodside has put up for sale.

"It is encouraging to see the growing level of support for LNG opportunities in the US from capital markets, including the recognition of the potential additional value unlocked by strong marketing capabilities," she added.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

January 21, 2025 17:31 ET (22:31 GMT)

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