Woodside has announced its second quarter report for period ended 30 June 2025
Louisiana LNG FID unlocks future value
Operational highlights
- Quarterly production of 50.1 MMboe (550 Mboe/d), up 2% from Q1 2025.
- Maintained exceptional performance from Sangomar, with 101 Mbbl/d produced (100% basis, 81 Mbbl/d Woodside share), contributing $510 million revenue for the quarter.
- Achieved a strong realised quarterly price of $62/boe for produced LNG, benefiting from diversified pricing and optimisation.
- Sold 23.1% of produced LNG at prices linked to gas hub indices in the quarter (9.1% of total equity production).
- Entered into two sale and purchase agreements with Uniper for the long-term supply of LNG.
Project highlights
- The Scarborough Energy Project was 86% complete, and remains on track for first LNG cargo in the second half of 2026.
- The Trion Project was 35% complete, and remains on track for first oil in 2028.
- The Beaumont New Ammonia Project was 95% complete, with Phase 1 of the project targeting first ammonia production from late 2025.
Portfolio highlights
- Outstanding production performance with full-year production guidance updated to 188-195 MMboe, incorporating Greater Angostura divestment.
- Reduced full-year unit production cost range to $8.0-$8.5 per boe following strong production and cost performance in H1 2025.
- Unlocked long-term future value through the final investment decision to develop the Louisiana LNG Project.
- Completed the Greater Angostura assets divestment for $259 million subsequent to the period.(1)
Capital discipline
- Completed the sell-down of a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak, receiving approximately $1,900 million, reflecting Stonepeak’s 75% share of capital expenditure since the effective date of 1 January 2025.
- Issued $3,500 million of senior unsecured bonds in the US market, with the book heavily oversubscribed.
- Delivered strong liquidity of approximately $8,400 million at the end of the quarter.
Woodside CEO Meg O’Neill said the company continued to demonstrate operational excellence and world-class project execution over the second quarter, with a focus on driving future growth and value.
'We delivered strong production of 50 million barrels of oil equivalent for the quarter from our diverse portfolio of high-quality assets. At the same time, ongoing focus on cost control has enabled us to lower our unit production cost guidance for 2025.
'As we marked the anniversary in June of first oil from Sangomar, the project’s exceptional performance continued to make a strong contribution to quarterly results, with gross production reaching 101 thousand barrels per day at close to 100% reliability. Our outstanding safety record at Sangomar continued, with no recordable injuries during the project’s first year of operations.
'Our announcement in April of a final investment decision to develop the Louisiana LNG Project positions Woodside as a global LNG powerhouse, complementing our established Australian LNG business and enabling us to meet growing global demand from a broader range of customers.
'Louisiana LNG’s strategic advantages and value-generating potential were demonstrated by key infrastructure, offtake and gas supply agreements entered into during the quarter.
'In June, we completed the sell-down of a 40% interest in Louisiana LNG Infrastructure LLC to Stonepeak for $5.7 billion, with Stonepeak to contribute 75% of the project capital expenditure in both 2025 and 2026.
'We continue to receive strong interest from high-quality potential partners as we explore further sell-downs. With both the final investment decision and capital expenditure risk reduced through our transaction with Stonepeak, we will evaluate the most value-accretive opportunities and remain disciplined in our selection of strategic partners.
'Our collaboration agreement with Aramco signed in May also includes potential acquisition of an equity interest in, and LNG offtake from, Louisiana LNG. The agreement includes exploring potential collaboration opportunities in lower-carbon ammonia from our Beaumont New Ammonia Project.
'We remain focused on delivering our Scarborough and Trion projects on schedule and budget. In May, we connected the floating production unit hull and topsides for our Scarborough Energy Project, which is now 86% complete and on track for first LNG cargo in the second half of 2026.
'Our Trion Project offshore Mexico is now 35% complete and targeting first oil in 2028. Construction of the floating production unit is progressing well, and we are preparing for construction of the floating storage and offloading vessel to commence in the second half of 2025.
'This demonstrates that Woodside continues to deliver on our commitments, executing multiple major projects with strong safety performance and cost control.
'We are maintaining financial discipline during our current phase of capital expenditure and proactively managing our balance sheet. We issued $3.5 billion of unsecured bonds in the US market in an offering that was heavily oversubscribed, reaffirming the debt market’s view of Woodside.
'The $1.9 billion closing payment received from Stonepeak in June, plus proceeds from the divestment of our Greater Angostura assets in Trinidad and Tobago, further de-risks our balance sheet and strengthens our ability to both fund our growth projects and provide shareholder returns. We have made the decision to exit the H2OK Project, demonstrating our disciplined approach to portfolio management.
'We are also executing multiple, complex decommissioning activities offshore Australia. We successfully completed the plugging of the Minerva and Stybarrow wells. Removal of other equipment at the legacy Minerva, Stybarrow and Griffin assets has been impacted by unexpected challenges, with further engineering and alternative solutions required. Whilst this has had some cost impacts, we are applying learnings to improve planning and execution.
'We are pleased to have received the Australian Government’s proposed decision to grant environmental approval for the North West Shelf Project Extension. We are continuing constructive consultation with the Government.
'Conducting our business sustainably remains core to Woodside’s success and we remain firmly on track to meet our target of reducing net equity Scope 1 and 2 greenhouse gas emissions by 15% by 2025.'
Click here for full announcement
Source: Woodside Energy
