Woodside Energy Group Ltd (ASX:WDS, LSE:WDS, OTC:WOPEF) has called for changes in how offshore drilling licences are granted to eliminate the loopholes that environmentalists are currently exploiting to obstruct new projects.
The appeal coincides with the company reporting an 8% hike in quarterly production.
Woodside chief executive Meg O’Neill emphasised the urgent necessity for policy reform, stating that the current legal environment could exacerbate already tight global supplies. In September, a federal court said Woodside could not begin seismic work at its $16.5 billion Scarborough project after a legal challenge by an Indigenous woman. Although the ruling is not expected to affect Woodside’s 2026 target for its first liquefied natural gas (LNG) cargo, O’Neill highlighted its adverse impact on the industry.
"Uncertainty over approvals can add cost and delays to any offshore activities in Australia," O'Neill said. "For gas projects, this threatens the delivery of much-needed supplies to Western Australia's domestic market and undermines the confidence of our regional trading partners."
The Perth-based company revealed that production in the quarter ending September 30 reached 47.8 million barrels of oil and gas, an 8% increase from the June quarter. Despite a dip in average prices, Woodside posted a 6% increase in quarterly revenues, totalling US$3.26 billion (A$5.1 billion).
The firm also adjusted its annual production forecast for 2023 to between 183 million and 188 million barrels, from a previous estimate of 180 million to 190 million barrels.
Meanwhile, Woodside has postponed the final investment decision for its H2OK hydrogen project in Oklahoma, awaiting further clarification on government tax incentives and offtake agreements.