Legal Challenges Loom Over Woodside’s North West Shelf Extension Approval
Woodside Energy has raised its 2025 production guidance following a 1% increase in quarterly output, while progressing key projects like Scarborough and Beaumont New Ammonia on schedule. The company also secured long-term LNG supply deals and received critical regulatory approvals.
- Quarterly production up 1% to 50.8 million barrels of oil equivalent
- Scarborough Energy Project 91% complete, on track for LNG in H2 2026
- Beaumont New Ammonia Project 97% complete, first ammonia targeted late 2025
- Received final Australian government approval for North West Shelf Project Extension
- Signed long-term LNG supply agreements with PETRONAS and BOTAŞ
Strong Production and Upgraded Guidance
Woodside Energy reported a steady increase in production during the third quarter of 2025, delivering 50.8 million barrels of oil equivalent (MMboe), a 1% rise from the previous quarter. This solid operational performance prompted the company to revise its full-year production guidance upward to a range of 192 to 197 MMboe, reflecting confidence in its asset base and project execution.
Project Progress Driving Future Growth
Key growth projects remain on track, with the Scarborough Energy Project reaching 91% completion. The project is poised for its first LNG shipment in the second half of 2026, bolstered by successful drilling and subsea infrastructure commissioning. Meanwhile, the Beaumont New Ammonia Project is nearing completion at 97%, with commissioning underway and first ammonia production targeted for late 2025. These developments underscore Woodside’s commitment to expanding its energy portfolio beyond traditional hydrocarbons.
Regulatory Milestones and Asset Expansion
Woodside secured final environmental approval from the Australian Government for the North West Shelf Project Extension, enabling operations beyond 2030 and enhancing resource recovery. However, this approval faces legal challenges, introducing some regulatory uncertainty. The company also agreed to take over operatorship of the Bass Strait assets from ExxonMobil, unlocking potential for further gas resource development and strengthening its Australian operations.
Strategic LNG Supply Agreements and Market Position
On the marketing front, Woodside signed a 15-year LNG supply agreement with Malaysia’s PETRONAS for one million tonnes per annum starting in 2028, alongside a heads of agreement with Turkey’s BOTAŞ for approximately 0.5 million tonnes per annum from 2030. These deals secure long-term demand and diversify Woodside’s customer base. Operational reliability remained exceptional, with Pluto LNG achieving 100% uptime and the North West Shelf project at 99.9%, supporting steady revenue generation.
Financial Discipline and New Energy Initiatives
Woodside maintained strong financial discipline, slightly lowering capital expenditure guidance excluding the Louisiana LNG project, while reporting a pre-tax hedging profit of $139 million for the quarter. The company also advanced new energy ventures, signing a memorandum of understanding with Japanese partners to develop a liquid hydrogen supply chain centered on the H2Perth Project, signaling a strategic pivot towards decarbonisation and future energy solutions.
Bottom Line?
Woodside’s operational resilience and project momentum position it well for growth, but upcoming legal challenges and evolving market dynamics warrant close investor attention.
Questions in the middle?
- How will the legal challenges to the North West Shelf Project Extension affect Woodside’s long-term operations?
- What are the financial implications and timelines for Woodside’s assumption of Bass Strait operatorship?
- How will the new LNG supply agreements with PETRONAS and BOTAŞ impact Woodside’s revenue and market exposure?
