Woodside has initiated an exit from operated license EL1157 (100%) in Newfoundland and Labrador and 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 on October 20. The decision is expected to impact 2022 after-tax net income of about $140 million, the company said.
“We have taken 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 km2. The water depths in the basin vary from 200 m on the west side to 3,000 m on the east side. BHP has previously called the region a frontier opportunity with great potential for oil resources (OGJ online, September 5, 2019).
The company’s production and revenue increased in the third quarter, reflecting the first 3 full months of contribution from the former BHP oil assets acquired by Woodside (OGJ online, August 17, 2021).
Production was 51.2 MMboe, up 52% from the second quarter of 2022 and more than double that of the third quarter of 2021.
Strong operational performance across the combined portfolio led the company to raise 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 Mboe. Revenue rose 70% to $5.86 billion, reflecting both higher sales volume and the portfolio’s average realized price, she said.