The Perth-based energy giant produced 17 million barrels of oil equivalent during the three-month period, compared with 18MMboe in the previous quarter.

Woodside blamed the lower production result on the sale of its Legendre oil project, in northwest Australia, in the first quarter, and a further drop in production at Chinguetti in Mauritania.

But production was higher than the June quarter 2006 result of 15.6MMboe. Woodside attributed this to the start-up of its Enfield oil project and strong production from the Cossack-Pioneer oil field.

Revenue was higher at $A970 million, compared to $899 million in the March quarter, as a result of higher sales and production volumes.

“Liquefied natural gas volumes were also good, with North West Shelf Venture delivering 53 cargoes (495 kilo tonnes) in the second quarter, compared to 49 (455kt) in the first quarter,” Woodside said.

Looking ahead, Woodside said it expected the start-up of the Otway gas project, in the Bass Strait, to supplement production during the second half of the year, with the potential production from Neptune in the Gulf of Mexico and Stybarrow in northwest Australia late in the fourth quarter.