Australian oil firm's sales fall 8.8 percent


Woodside is one of Australia's leading hydrocarbon products companies

By Jane Searle

PERTH, Australia (CNN) -- Australia's second-largest oil company, Woodside Petroleum, said Thursday its second-quarter sales had fallen 8.8 percent from a year ago.

Sales of oil, gas and liquefied natural gas were down to A$503.7 million ($278 million) in the June quarter, from A$552.3 million ($288 million) last year.

Woodside is seeking new production to offset expected decline at sites from 2003 to 2005. In particular, the company hopes expansion of its Laminaria site -- in the Timor Sea, toward Indonesia -- will offset losses.

"The impact of Phase 2 at Laminaria will certainly skew production and revenues in the second half", Director of Australian Oil Keith Spence told the Australian Stock Exchange.

"Our production target for 2002 is similar to, possibly below, the levels we achieved in 2001," Spence said. "That target is unchanged but the actual result will depend on the performance of Laminaria Phase 2."

Exploration planned

The amount of money Woodside spent on oil exploration was also down to A$31.7 million ($17.5 million) in the June quarter, from A$117.7 million ($64.9 million) last year.

But the company plans to ramp those costs up again on overseas searches.

"Exploration expenditure is planned to be significantly higher in the second half with drilling of wells in Mauritania and the Gulf of Mexico," company secretary Karen Lange told the ASX.

Oil production from Woodside's three major fields -- Laminaria, Cossack and Legendre -- fell 6.7 percent to 6.77 million barrels in the June quarter.

The second-quarter figures mean overall sales for the first half of the year fell.

They dropped 17 percent, to A$963.5 million ($531 million), from A$1.16 billion ($640 million) last year.

Woodside has two new projects under construction, a natural gas project on Australia's North West Shelf, and the Ohanet gas project in Algeria.

The Australian exploration is expected to wrap up by June next year, with the Ohanet site set for September 2003.

Woodside stock rose on the numbers, closing up 1.13 percent on Thursday at A$13.47.