19-08-04 Woodside is preparing to develop the Tiof oil discovery in the west African nation of Mauritania in parallel with its Chinguetti project in a bid to secure a step change in its production profile. A decision will be made after a four-well appraisal drilling program on Tiof which begins before the end of this year.
Woodside CEO Don Voelte, who joined the company in April, said seismic data indicated Tiof contained a similar volume of oil to Chinguetti, 25 km to the south, which is estimated by Woodside to contain around 120 mm barrels of recoverable oil.

Earlier this year Woodside said the $ 600 mm Chinguetti development would provide about 12 % of its annual revenue and 11 % of its production in the three years from 2006. Mr Voelte, speaking after Woodside reported a 29 % boost to half-year profit of $ 351 mm, said it was too early to indicate what difference an accelerated Tiof would make to the company's earnings.
Woodside has been looking to overseas operations to help reverse two years of falling output and exceed the current plan to lift output from 58 mm boe this year to 80 mm barrels in 2007.

On the basis of Mr Voelte's remarks, Woodside could raise its annual production to more than 100 mm boe if Tiof and the Neptune project in the Gulf of Mexico go ahead. But he remained cagey on what plans Woodside had for the Gulf of Mexico, saying a review of the company's deepwater Gulf activities had been completed.
Mr Voelte left Australia for Houston to discuss the issues with Woodside's local staff. He indicated when he joined Woodside that he had doubts about the value of the Gulf of Mexico to Woodside -- doubts that he did not dispel.

Woodside remains confident it can lift second-half production to meet its target of 58 mm barrels, mainly as a result of a rapid ramp-up in production from the North West Shelf's fourth LNG production train, which is on target to be commissioned next September. Mr Voelte said Woodside was also considering approving up to seven new projects beforethe end of next year, including Perseus before the end of the year and Angel by the third quarter next year.
Mr Voelte disclosed he had just returned from China, where he was promoting the Browse Basin in far north Western Australia as a future LNG project, to become the company's third gas hub following the North West Shelf and Greater Sunrise.

Woodside's net profit was $ 724.6 mm for the six months ended June 30, up from $ 272.2 mm.
But this contained an extraordinary item of $ 373.6 mm, the proceeds of the sale of 40 % of Enfield and Woodside's interests in permit WA-271-P to Mitsui.