Woodside clarifies 2022 production guidance
Woodside on July 22 clarified that the cut in the production guidance for the full year 2022 announced in its second quarter report was due to a change in conversion factors and not because of any change in physical product volumes.
“Woodside confirms that there is no change to the physical product volumes underpinning the full-year 2022 production guidance issued by Woodside in January 2022, which did not include BHP Petroleum production,” the company said. “There is also no impact on revenue as a result of the change in conversion factors announced in the second quarter 2022 report.”
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The company on July 21 said that it expects total production in 2022 of between 145mn barrels of oil equivalent (boe) and 153mn boe, higher than a prior forecast of between 92mn boe and 98mn boe. However, after excluding BHP assets, Woodside's output is forecast to be between 88mn boe and 94mn boe, down 4mn from the earlier guidance. Woodside completed the merger with BHP’s oil and gas portfolio on June 1.
Woodside said it now applies a single volumetric conversion factor when calculating boe for gas products. “This consistent methodology applies across the combined portfolio reflecting Woodside’s increased scale and diversified product mix following the merger,” it said.
LNG and pipeline gas for production and reserves will be reported in boe and calculated from a volumetric basis with a conversion factor of 5,700 ft3/boe, it said. BHP previously used 6,000 ft3/boe. NGLs will be reported on a liquid volume basis.
The change resulted in Woodside's full year production guidance for LNG, excluding BHP's assets, dropping from between 71mn boe and 74mn boe to between 67mn boe and 70mn boe.