Middle East

Woodside clarifies oil and gas production outlook after falling stock prices

July 22, 2022

Credit: Woodside (file photo)

Woodside Energy Group said on Friday that the reduction in production outlook that upset investors on Thursday was due to changes in the conversion factor and did not reflect changes in physical product volumes.

Woodside shares fell 4% on Thursday after announcing full-year production of 88-94 million barrels, excluding assets inherited from BHP. oil Equivalent (mmboe), 4mmboe decrease from the previous forecast due to the “new conversion factor”.

On Friday, it said the reported reserves in barrels of LNG and pipeline gas for production. oil The equivalent (boe) was calculated on a volume basis with a conversion factor of 5,700 standard cubic feet (scf) per boe.

Previously, it was converted based on the product-specific energy transformation factor of the gas.

This change reduced Woodside’s year-round production guidance for liquefied natural gas (LNG), excluding BHP’s assets, from 71mmboe to 74mmboe to 67mmboe to 70mmboe.

“Woodside has confirmed that there is no change in the physical volume of products that underpin the 2022 full-year production guidance issued by Woodside in January 2022, which is the production of BHP Oil (BHPP). It’s not included, “the company said.

“The change in conversion factor announced in the second quarter 2022 report will not affect revenue.”

Woodside also noted that BHP Group, which acquired oil assets in June, previously used a conversion factor of 6,000 (scf) per boe.

(Reuters-Report by Sonari Paul, edited by Richard Purin)

https://www.oedigital.com/news/498224-woodside-clarifies-oil-and-gas-output-outlook-after-share-price-drop Woodside clarifies oil and gas production outlook after falling stock prices

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