Woodside Expects Lower Production This Year

Woodside Energy Group Ltd’s output in 2025 exceeded guidance and set a company record but it expects a slowdown in 2026 due to downtime from preparations to start up the Scarborough Energy Project.

The Perth-based liquefied natural gas (LNG)-focused producer on Wednesday reported 198.8 million barrels of oil equivalent (MMboe) in production last year, beating the company’s forecast of 192-197 MMboe.

“This performance was driven by sustained plateau production at Sangomar [offshore Senegal] through late October and Pluto LNG operating at 100 percent reliability for the second half of the year”, acting chief executive Liz Westcott said in the company’s quarterly statement of results.

This year Woodside expects to produce 172-186 MMboe. The projected year-on-year drop “reflects planned downtime at Pluto as we prepare the facility to begin processing Scarborough gas and for first LNG cargo in Q4 2026”, Westcott said.

Westcott was referring to the Scarborough Energy Project, which includes the development of the Scarborough field off the coast of Karratha, the construction of a second gas processing train for Pluto LNG with a capacity of five million metric tons per annum (MMtpa) and modifications to Pluto Train 1, according to Woodside.

Woodside expects the project to produce up to eight MMtpa of LNG and supply 225 terajoules per day of gas to the Western Australian market.

In the fourth quarter of 2025 Woodside produced 48.9 MMboe, down four percent from the prior three-month period and five percent against Q4 2024. Q4 2025 production consisted of 1.71 billion cubic feet a day (Bcfd) of natural gas and 232,000 barrels per day (bpd) of liquids.

The decrease was “driven by seasonal weather impacts and lower Australian east-coast demand”, Woodside said. The decline also follows Woodside’s sale of producing oil and gas assets in Greater Angostura in Trinidad and Tobago to Perenco, completed Q3 2025.

In Q4 2025 Australia accounted for 32.78 MMboe of Woodside’s production, down from 34.86 MMboe in Q3 2025. Australian LNG and piped gas production totaled 20.06 MMboe and 7.1 MMboe respectively, both down sequentially. Australian crude and condensate production totaled 4.68 MMboe, also down quarter-on-quarter.

North West Shelf, one of Woodside’s three liquefaction facilities alongside Pluto and Wheatstone, started processing gas from the Waitsia Stage 2 project in Q4 2025. Woodside and its partners also sanctioned Greater Western Flank Phase 4, which targets proven and probable reserves of 100 MMboe, the quarterly report said.

For Pluto LNG, Woodside said it had finalized commercial and government agreements to extend gas flows through the Pluto-KGP Interconnector until 2029. “The extended Interconnector arrangements provide for the processing of approximately 2.8 million tonnes of additional LNG in aggregate and approximately 22.9 PJ [petajoules] of additional gas for the WA domestic gas market”, the quarterly report said.

At the Wheatstone LNG facility, the Julimar Development Phase 3 project is on track to start up this year.

Woodside said its asset swap with Chevron involving North West Shelf and Wheatstone, agreed 2024, is on course for completion in the second half of 2026.

Q4 2025 sales fell five percent quarter-on-quarter and three percent year-on-year to 52.4 MMboe, consisting of 1.92 Bcfd of gas and 232,000 bpd of liquids.

Q4 2025 revenue decreased 10 percent quarter-on-quarter and 13 percent year-on-year to $3.04 billion. Lower realized prices compounded lower production and sales volumes.

Westcott said, “The executive team and I remain focused on safely delivering our operations and projects while maintaining rigorous cost management during the CEO transition period”.

Westcott took over from chief executive Meg O’Neill late last year on a temporary basis following the latter’s appointment as BP PLC CEO. Woodside expects to name a permanent replacement before the quarter ends.

To contact the author, email jov.onsat@rigzone.com