Woodside Output In Range Of Target
The Age
Friday October 17, 2003
Strong September-quarter production has put Woodside Petroleum within comfortable reach of its ``stretch" production target for (calender) 2003 of 58 million barrels of oil equivalent (boe).
The achievement came in a period marked by the exit at the end of August of Woodside's chief executive of seven years, John Akehurst, after the board terminated his contract in April.
Mr Akehurst has yet to be replaced permanently, increasing pressure on the board to accept that his interim replacement, Woodside director of oil operations Keith Spence, is the best bet for the permanent job.
The delay in finding a permanent replacement from outside the company reflects the difficulty in attracting quality US and European oil men to work in Perth for a company 34 per cent owned by Shell, with the Anglo/Dutch company tipped to one day return with a takeover bid.
Woodside's production for the quarter, released yesterday, contained no news on the global search for a permanent CEO. But it did show that operating with an interim replacement was not impeding production targets.
Group output for the quarter was 15.25 million boe, taking the total for the nine months to the end of September to 45.14 million barrels. As forecast, both figures are down from 17.61 million boe and 48.48 million boe in previous corresponding periods.
However, the market took heart from confirmation that the full-year forecast of 58 million boe is clearly achievable. The figure was a ``stretch" target nominated by Woodside in August. It was up from the previous 2003 forecast of 54 million boe.
Woodside gained 4 to $14 a share. The stock last traded at that level in August last year.
Aiding the price has been the continued strength in oil prices and growing investor interest in the forecast boom in Asian demand for liquefied natural gas.
© 2003 The Age