Woodside Energy, the biggest Australian oil and gas firm, on Wednesday raised its production guidance and lowered the expected production costs for 2025, citing the continued strong performance of its key producing assets.

Woodside now expects 2025 full-year production in the range 192 – 197 million barrels of oil equivalent (boe), up from 188 million boe – 195 million boe previously anticipated. Unit production cost is seen at between $7.6 and $8.1 per barrel this year, down from the previous guidance of $8.0 - $8.5 a barrel.

The company’s forecast of lower expected production cost and higher overall output was the result of “continued strong performance across assets,” especially the U.S. assets and the Sangomar offshore field, Senegal’s first-ever oil project launched last year.

Following the bullish production and cost guidance in the third-quarter results, Woodside’s shares in Australia jumped by 4% on Wednesday while its NYSE-listed ADRs were up by 3.6% after hours.

Woodside’s revenue fell by 9% on the year to $3.36 billion in the third quarter, as the average realized price per boe dropped by 8% to $60 per boe amid lower oil and gas prices this year compared to 2024.

Year to date to September, revenue rose by 3% and production increased by 5%, Woodside said.

The company’s Scarborough Energy Project is now 91% complete and on track for first LNG in the second half of 2026, CEO Meg O’Neill said.

At the Louisiana LNG project in the U.S., construction is 19% complete, with train 1 at 25% complete and targeting first LNG in 2029.

“Strong support for the project from state and federal governments and the Louisiana community was in evidence at our groundbreaking ceremony in September,” O’Neill said.

The other major Australian oil and gas giant, Santos, last week lowered its production guidance for 2025 as a result of a software issue impacting the ramp-up of the new Barossa LNG project and floods in the Cooper basin that affected output.

By Tsvetana Paraskova for Oilprice.com

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