Woodside Energy Group Ltd has cut the top end of its 2026 production guidance as the window narrows for first LNG from its flagship Scarborough gas project.
The company now expects full-year production of 174 million to 181 million barrels of oil equivalent, down from previous guidance of 174 million to 185 million barrels.
The downgrade came despite September-quarter production rising 12% to 46.2 million barrels of oil equivalent and operating revenue increasing 2% to $4.28 billion.
Woodside said the lower outlook reflected weaker expected volumes from Beaumont New Ammonia, reduced production from the Okha floating production vessel and the shrinking contribution available from Scarborough before year-end.
Scarborough nears first LNG
Scarborough was 99% complete at the end of September and remains on track for its first LNG cargo in the December quarter.
Gas from the field was introduced into the floating production unit during the quarter and exported into the trunkline as commissioning advanced.
Average realised prices for Woodside-produced LNG jumped to US$84 per barrel of oil equivalent from US$66 in the previous quarter, supported by pricing lags and stronger gas hub markets.
Woodside looks to reduce Beaumont exposure
Woodside will begin a formal process to reduce its investment in the Beaumont New Ammonia project, citing the evolving pace of development in the lower-carbon ammonia market.
Its Louisiana LNG development in the United States remained on budget and was 32% complete, with first LNG targeted for 2029.
The company is also assessing four potential development wells in the Bass Strait, with any investment decision dependent on technical work and the implications of the Federal Government’s domestic gas reservation scheme.
Woodside ended September with liquidity of about $7.8 billion and net debt, including lease liabilities, of $8.9 billion.
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