Australia's Woodside Energy Narrows 2026 Production Guidance to 174–181 Million Barrels of Oil Equivalent

en.Wedoany.com Reported - On October 21, Australia's Woodside Energy adjusted its full-year 2026 production guidance to 174–181 million barrels of oil equivalent, compared with the previous guidance of 174–185 million barrels of oil equivalent. The company said the reduction in the upper limit was mainly due to lower expected output from the Beaumont New Ammonia project in Texas, United States, tighter scheduling for first LNG from the Scarborough project, and lower production from the Okha floating production, storage and offloading (FPSO) vessel.

In the third quarter, Woodside Energy's production of oil, gas and related products was 46.2 million barrels of oil equivalent, down 9% from the same period in 2025 but up 12% from the second quarter of this year. The quarter-on-quarter increase mainly came from the recovery of production at the Pluto LNG project after completion of second-quarter maintenance. During the same period, the company achieved operating revenue of US$4.28 billion, higher than US$3.36 billion in the same period last year and also above the market expectation of US$4.11 billion compiled by Visible Alpha.

In the third quarter, the company's average realized price reached US$84 per barrel of oil equivalent, up 40% year on year, mainly driven by higher natural gas hub prices and optimization of the LNG portfolio. Woodside maintained its 2026 capital expenditure guidance of US$4.0–4.5 billion unchanged.

Production at the Beaumont New Ammonia project in the third quarter was constrained by feedstock supply, with the facility operating at approximately 69% of nameplate capacity. The project was also shut down for about 30 days due to a process safety incident. Woodside has completed a strategic review of the project and will initiate a formal process to seek to reduce the company's investment exposure in the project.

The Scarborough energy project is also one of the main assets involved in this adjustment to the annual production guidance. Woodside had previously planned to achieve first LNG output from Scarborough in the fourth quarter of 2026 and had completed preparations earlier in the year for the floating production unit's arrival at the gas field and offshore hook-up operations; this quarterly report further narrows the timing for first LNG production, thereby reducing the expected production that can be counted toward 2026.