Woodside Energy Drives Record 2024 Production Amid Strategic Portfolio Shift
Woodside Energy achieved record annual production in 2024, led by the Sangomar project, while advancing key LNG developments and streamlining its asset portfolio through a major swap with Chevron.
- Record full-year production of 194 million barrels of oil equivalent (MMboe) driven by Sangomar
- Scarborough Energy project 78% complete, on track for first LNG cargo in 2026
- Asset swap with Chevron simplifies Australian portfolio, boosting North West Shelf stake to 50%
- Quarterly revenue declined 6% due to seasonal demand and unplanned Pluto shutdown
- 14% reduction in net equity Scope 1 and 2 emissions in 2024, reinforcing sustainability commitments
Strong Operational Performance Anchors Record Production
Woodside Energy closed 2024 with a milestone annual production of 194 million barrels of oil equivalent (MMboe), marking the highest output in its history. This achievement was largely underpinned by the Sangomar field, which delivered an outstanding 75 thousand barrels of oil equivalent per day (Mboe/d) in the fourth quarter, maintaining a 95% reliability rate. The Sangomar project’s ramp-up has been a critical driver, offsetting seasonal declines and operational disruptions elsewhere in the portfolio.
Despite a 3% dip in quarterly production to 51.4 MMboe compared to Q3, primarily due to lower seasonal demand in Bass Strait and an unplanned shutdown at Pluto LNG, Woodside’s diversified asset base cushioned the impact. The company’s Gulf of Mexico operations, including Mad Dog and Argos, also contributed strongly, with Argos production reaching peak rates for the full year.
Progress on Major Growth Projects and Strategic Portfolio Moves
Woodside’s growth trajectory remains robust with the Scarborough Energy project 78% complete and on schedule for first LNG cargo in 2026. The arrival and installation of the final Pluto Train 2 modules in December marked a significant construction milestone. Meanwhile, the Trion project advanced into construction with the floating production unit fabrication underway, targeting first oil in 2028.
In a strategic portfolio reshuffle, Woodside entered an asset swap with Chevron, exchanging its interests in Wheatstone for Chevron’s stakes in the North West Shelf Project and related assets. This move simplifies Woodside’s Australian portfolio and increases its North West Shelf ownership to 50%, enhancing operational control and short-term cash flow generation. The swap also includes a cash payment of up to $400 million from Chevron to Woodside, further strengthening the company’s financial position.
Financials and Market Position
Quarterly revenue declined 6% to $3.47 billion, reflecting the seasonal demand drop and Pluto’s unplanned downtime, partially offset by higher third-party LNG trades. Woodside’s marketing strategy also evolved, with 33.6% of produced LNG sold at gas hub-linked prices, achieving a 31% premium over traditional oil-linked pricing. This shift highlights Woodside’s agility in capitalizing on evolving market dynamics.
Capital expenditure for 2024 stood at $8.13 billion, with significant investments in Scarborough, Trion, and Beaumont New Ammonia projects. The company’s 2025 capex guidance is set between $4.5 billion and $5 billion, excluding Louisiana LNG expenditures, signaling continued commitment to growth and project delivery.
Sustainability and Community Engagement
Woodside reported a 14% reduction in net equity Scope 1 and 2 emissions in 2024, aligning with its decarbonization targets despite an absolute emissions increase driven by Sangomar’s start-up. The company emphasized integrating sustainability into daily operations and advancing carbon capture and storage initiatives, including the Bonaparte CCS appraisal campaign.
Community engagement was also a highlight, with Woodside awarding its largest-ever Traditional Owner construction contract to Winyama Contracting Group for Scarborough civil works, reinforcing its commitment to local partnerships and social license to operate.
Looking Ahead
Woodside’s outlook remains positive, with full-year 2025 production guidance between 186 and 196 MMboe and ongoing progress on key projects. The company’s strategic focus on core LNG assets, portfolio simplification, and sustainability initiatives positions it well to navigate market uncertainties and energy transition challenges.
Bottom Line?
Woodside’s record production and strategic portfolio realignment set the stage for sustained growth amid evolving energy markets.
Questions in the middle?
- How will the asset swap with Chevron impact Woodside’s operational efficiency and cash flow in 2025?
- What are the risks and timelines associated with final investment decisions for Louisiana LNG and Beaumont New Ammonia?
- How will Woodside balance production growth with its emissions reduction commitments in the coming years?