Woodside Faces Leadership Change and Legal Risks Despite Record Production in 2025

Record Production and Operational Highlights

Woodside Energy closed 2025 with a record full-year production of 198.8 million barrels of oil equivalent (MMboe), comfortably exceeding its initial guidance range of 192 to 197 MMboe. Despite a 4% dip in quarterly production to 48.9 MMboe in Q4, attributed mainly to seasonal weather impacts and softer demand on Australia's east coast, the company maintained strong operational reliability across its key assets. Notably, the Sangomar oil asset achieved 99.2% reliability, Pluto LNG recorded a second consecutive quarter at 100% reliability, and the North West Shelf Project maintained 99.8% reliability.

Project Progress and Strategic Developments

Woodside’s major growth projects advanced steadily throughout the year. The Scarborough Energy Project reached 94% completion and remains on budget, with the floating production unit safely arriving in Australia and hook-up activities underway. First LNG cargo is targeted for Q4 2026. The Beaumont New Ammonia Project marked a significant milestone with first ammonia production in December, supported by long-term supply agreements with global customers. The Trion Project in Mexico is halfway complete, aiming for first oil in 2028, while the Louisiana LNG Project progressed to 22% completion, targeting first LNG in 2029.

In a strategic move, Woodside sold a 10% interest in Louisiana LNG LLC and an 80% interest plus operatorship of Driftwood Pipeline LLC to Williams. This transaction brought a $1.9 billion capital injection and Williams’ commitment to offtake obligations for 10% of Louisiana LNG’s production, underscoring the project’s quality and market confidence.

Market and Financial Performance

Woodside’s average realised price for the quarter declined 5% to $57 per barrel of oil equivalent, reflecting softer oil-linked and gas prices. Capital expenditure remained robust, with $3.78 billion spent excluding Louisiana LNG. The company also extended gas flows through the Pluto-KGP Interconnector until 2029, enabling additional LNG and domestic gas production. Long-term LNG supply agreements were secured with SK Gas International, BOTAŞ, and JERA, reinforcing Woodside’s global marketing strength.

Leadership Transition and Outlook

During the quarter, CEO Meg O’Neill resigned, with Liz Westcott stepping in as Acting CEO. The company plans to announce a permanent CEO appointment in the first quarter of 2026. Westcott emphasised the company’s focus on safely delivering operations and projects while managing costs amid the leadership transition.

Looking ahead, Woodside’s 2026 production guidance is set between 172 and 186 MMboe, factoring in planned downtime at Pluto LNG for facility preparations ahead of Scarborough gas processing and first LNG cargo in Q4 2026. The company continues to face legal challenges related to environmental approvals for the North West Shelf Project extension, which remain ongoing.