Woodside has initiated an exit from operated license EL1157 (100%) in Newfoundland and Labrador, and operated license EL1158 (100%) in the Orphan basin offshore eastern Canada following a review of its exploration portfolio.
The news comes as part of the company’s third-quarter 2022 report released Oct. 20. The decision is expected to impact 2022 net profit after tax by about $140 million, the company said.
“We took decisive action to initiate an exit from our exploration position in the Orphan basin, offshore Canada, consistent with our exploration focus on clear pathways to commercialization,” said Meg O’Neill, chief executive officer.
The Orphan basin is estimated to comprise an area of over 150,000 sq km. Water depths in the basin range from 200 m on the western side to 3,000 m on the eastern side. BHP previously called the area a frontier opportunity with large oil resource potential (OGJ Online, Sept. 5, 2019).
Woodside's production and revenue increased in the third quarter, reflecting the first full 3 months of contribution from former BHP petroleum assets acquired by Woodside (OGJ Online, Aug. 17, 2021).
Production was 51.2 MMboe, up 52% from second-quarter 2022 and more than twice that of third-quarter 2021.
Strong operational performance across the combined portfolio has led the company to increase its full-year production guidance to 153-157 MMboe, O’Neill said.
Sales volume for the quarter increased 59% from the previous quarter to 57.1 MMboe. Revenue increased 70% to $5.86 billion, reflecting both higher sales volume and average portfolio realized price, she said.