Woodside Energy Group Ltd (ASX: WDS) shares are falling on Monday morning.

At the time of writing, the energy producer's shares are down slightly to $24.42.

Why are Woodside shares falling?

Investors have been selling the company's shares today after a pullback in oil prices offset the release of an announcement.

On Friday night, the WTI crude oil price was down 1% to US$70.57 a barrel and the Brent crude oil price was down 0.4% to US$74.74 a barrel. Traders were selling oil after a potential Ukraine peace deal eased supply worries.

What did Woodside announce?

This morning, Woodside released an update on its reserves statement and the Sangomar project.

In respect to its reserves, the company announced that at the end of 2024 it had remaining proved (1P) reserves of 1,975.7 MMboe, remaining proved plus probable (2P) reserves of 3,092.2 MMboe, and remaining 2C contingent resources of 5,869.7 MMboe.

Excluding divestments and production, Woodside's proved reserves increased by 54.9 MMboe and proved plus probable reserves increased by 46.2 MMboe. Management notes that this reflects the strong underlying performance of the assets.

Sangomar update

Woodside revealed that its Sangomar project has had a strong start to life.

After successfully achieving first oil at the Sangomar project in 2024, the project ramped up in less than nine weeks and achieved over 94% production reliability in the fourth quarter.

Both water and gas injection systems have been fully commissioned. Sangomar produced 13.3 MMboe of crude in 2024, with 12.9 MMboe of sales generating approximately $950 million in revenue.

Early performance from the S500 reservoirs has demonstrated excellent productivity. This has resulted in proved and proved plus probable reserves additions of 16.2 MMboe and 15.4 MMboe, respectively.

Commenting on the news, Woodside's CEO, Meg O'Neill.

The reserves update underscores Woodside's high-quality assets and disciplined execution. The outstanding early performance at Sangomar again demonstrates Woodside's proven record of delivering large-scale projects that provide sustainable returns over the long term. Sangomar is forecast to continue producing on plateau into the second quarter of 2025 and with continued strong asset performance across the portfolio we are well positioned for another year of delivering value for shareholders.

As Woodside embarks on the next phase of growth, continuing to execute Scarborough and Trion and preparing for a final investment decision on Louisiana LNG, we will maintain our disciplined approach and commitment to safety, reliability and performance.