AN OVERVIEW OF WOODSIDE S OIL BUSINESS · supply1. Our producing assets in Australia include the ... (TRIR) 4.13 3.0 1.90 1.71 Ten-year total shareholder return ... community reference

AN OVERVIEW OFWOODSIDE’S OIL BUSINESS

GREATER ENFIELD PROJECT

Located 60 km off Exmouth in Western Australia, the Project will develop the Laverda Canyon, Norton over Laverda and Cimatti oil accumulations. These reserves will be produced via a 31 km subsea tie-back to the Ngujima-Yin floating production storage and offloading (FPSO) facility, located over the Vincent oil field.

Initial net oil production rates are estimated to exceed 24,000 bbl/d (Woodside share).

The project is targeting development of gross (100%) 2P reserves of 69 MMboe (net Woodside share of 41 MMboe) from the oil accumulations.

Key to monetising this resource was Woodside’s close collaboration with contractors, our adoption of the latest technologies, a phased development approach and the use of existing FPSO infrastructure.

The Greater Enfield Project will build upon Woodside’s significant experience and proven abilities in delivering major subsea tiebacks in a safe and environmentally-responsible manner.

Woodside is committed to protecting the environment and has undertaken rigorous environmental management planning for the Greater Enfield Project. An environmental plan will be submitted

to the regulator, NOPSEMA, as part of required environmental approvals.

The Greater Enfield Project is anticipated to make a strong contribution to the Western Australian economy and Woodside is planning for several hundred State-based jobs to be secured as part of its construction, installation, commissioning and operations.

Woodside is targeting first oil production in mid-2019.

The US$1.9 billion Greater Enfield Project was approved for development in June 2016.

OUR OIL DEVELOPMENT TIMELINE

1968

Woodside finds first oil at the Legendre field on the North

West Shelf (NWS).

1973

Woodside discovers the Lambert oil fields

on the NWS.

1994

Woodside discovers the Laminaria oil field in the Timor

Sea.

1995

TheCossack Pioneer floating production

storage and offloading (FPSO) facility begins oil production on the

NWS.

Woodside discovers the Corallina oil field

in the Timor Sea and a year later, the Hermes and Perseus

oil fields on the NWS.

1998

Woodside discovers the Vincent oil

field, north-west of Exmouth in Western

Australia.

2001

Woodside discovers the Chinguetti oil

field off the coast of Mauritania, West

Africa.

Production commences from the

Legendre oil field on the NWS through

the Ocean Legend offshore production platform, later sold

in 2007.

2000

Woodside discovers the Laverda oil

field, north-west of Exmouth in Western

Australia.

1999

The Laminaria field produces first oil

through the Northern Endeavour FPSO

vessel. Woodside discovers the Enfield oil field in Western

Australia.

2008

The Ngujima-Yin FPSO (Vincent)

begins production.

2011

Woodside successfully

completes the NWS Oil Redevelopment

Project, with the Okha FPSO replacing the Cossack Pioneer.

2006

The Nganhurra FPSO (Enfield) begins

production.

2016

Woodside approves the Greater Enfield Project, which will develop the Norton, Laverda and Cimatti oil accumulations

north-west of Exmouth, WA.

Production begins from the Neptune

and Power Play oil fields (non-operated)

in the Gulf of Mexico.

2 3

Peru

New Zealand

Ireland

Republic of Korea

Myanmar

Morocco

Sunrise LNG

Gabon

Australia

Nova Scotia

Perth

Grassy Point LNG

Kitimat LNG

Corpus Christi

Canada

USA

Port Arthur

OUR GLOBAL BUSINESS

Producing assets

1 Karratha Gas Plant NWS

2 Goodwyn A platform NWS

3 North Rankin Complex NWS

4 Okha FPSO NWS oil

5 Angel platform NWS

6 Pluto LNG Plant Pluto LNG

7 Pluto LNG platform Pluto LNG

8 Ngujima-Yin FPSO Vincent oil

9 Nganhurra FPSO Enfield oil

Projects

10 Greater Western Flank Phase 1 NWS11 Greater Western Flank Phase 2 NWS

12 Persephone NWS13 Wheatstone LNG Plant (non-operated) Wheatstone

14 Wheatstone LNG Platform (non-operated) Wheatstone

15 Julimar Julimar, Brunello

16 Greater Enfield Enfield oil

17 Browse Development Browse

Woodside offices and representative offices

1

2 34

5

6

7

89

11 12

1415

16

17

10 Broome

Karratha13

WESTERN AUSTRALIA

Perth (HQ)

OUR AUSTRALIAN BUSINESS

Woodside headquartersExploration acreageDevelopments and projectsBusiness opportunitiesProducing assets

Senegal / Guinea-Bissau*

Woodside is Australian’s largest independent oil and gas company with a global presence, recognised for our world-class capabilities – as an explorer, a developer, a producer and a supplier.

Our mission is to deliver superior shareholder returns through realising our vision of becoming a global leader in upstream oil and gas.

Our assets are renowned for their safety, reliability and efficiency and we are Australia’s most experienced liquefied natural gas (LNG) operator. We operate 8% of global LNG supply1.

Our producing assets in Australia include the landmark North West Shelf Project which has been operating since 1984. In 2012, we commenced production from the Pluto LNG Plant and will add additional volumes from the Wheatstone Project in mid-2017.

We also operate a fleet of floating production, storage and offloading (FPSO) vessels. From mid-2019, we will add additional oil production from the Greater Enfield Project via our existing Ngujima-Yin FPSO.

We continue to expand our capabilities in marketing, trading and shipping and have enduring relationships that span more than 25 years with foundation customers throughout the Asia-Pacific region.

Our global exploration portfolio includes emerging and frontier provinces in Australia and the Asia-Pacific region, the Atlantic Margins, Sub-Saharan Africa and Latin America.

We have significant equity interests in high-quality development opportunities in Australia (Browse), Canada (Kitimat) and Myanmar and are pursuing new concepts, technology and contracting strategies to enable the earliest commercialisation of these resources.

We believe that technology and innovation are essential to bringing down costs and unlocking future growth. Today, we are pioneering remote support and the application of artificial intelligence and advanced analytics in our operations.

We recognise that long-term meaningful relationships with communities are fundamental to maintaining our licence to operate and we work to build mutually beneficial relationships

Woodside is characterised by strong safety and environmental performance in all locations where we are active and we are committed to upholding our values of integrity, respect, working sustainably, discipline, excellence and working together.

Our proven track record and distinctive capabilities are underpinned by more than 60 years of experience, making us a partner of choice.

CAPABILITY AND EXPERIENCE

*Subject to government approval

1. Source: WoodMac LNG Tool

4 5

ORGANISATION STRUCTURE

Woodside’s oil business exists within the Australia Operating Unit, which consolidates the activities of the Australia Oil, Pluto and North West Shelf (NWS) business units. The Australia Operating Unit is led by Niall Myles, Senior Vice President (SVP) and reports to Michael Utsler, Chief Operations Officer.

An Asset Manager, who reports to the SVP Australia Operating Unit, is responsible for the management of Woodside’s OneFPSO model. OneFPSO aims to provide one consistent delivery service across our three FPSO assets.

Geoscience Browse

Canada & USA Wheatstone

Sunrise

Engineering

Subsea & Pipelines

Reservoir Management

Australia Operating Unit

Production

Drilling & Completions

Logistics

Health, Safety, Environment &

Quality

Security & Emergency

Management

Planning Performance &

Integrated Activity Planning

Projects

Science

Technology

Development Planning

Information Solutions &

Services

Woodside is the largest operator of oil and gas production in Australia. Woodside’s ordinary shares trade on the Australian Securities Exchange (ASX) under the symbol WPL. As at 9 August 2016, Woodside had a market capitalisation of approximately A$23.3 billion.

The company holds long term credit ratings of BBB+ from Standard and Poor’s and Baa1 from Moody’s Investor Services.

Both rating agencies cite stable, predictable financial performance and long life gas reserves with long term take or pay contracts as part of the basis for assigning these ratings.

Below (Table 1) is a high level summary of Woodside’s financial performance in 2012 to 2015.

Finance

Contracting & Procurement

Investor Relations

Commercial

Performance Excellence

Strategy & Planning

Business Development &

Growth

Marketing

Trading

Strategy & Assurance

Legal & Secretariat

Audit

Risk & Compliance

Corporate Affairs

People & Global Capability

Facilities

Peter Coleman

Chief Executive Officer &

Managing Director

Phil Loader

EVP Global Exploration

Robert Edwardes

EVP Development

MIchael Utsler

Chief Operations

Officer

Shaun Gregory

Chief Technology

Officer

Lawrie Tremaine

Chief Financial officer

Michael Abbott

Corporate & Legal

Reinhardt Matisons

Marketing, Trading & Shipping

David McLoughlin

People & Global

Capability

WOODSIDE RESULTS 2013 201520142012

FINANCIAL CAPACITYWOODSIDE’S OIL ORGANISATION

Since commencing oil and condensate (liquids) production, Woodside has maintained a strong liquids marketing capability for our equity volumes. Additionally, we have several joint marketing agreements through which we sell and operate the liquids cargoes on behalf of our joint venture participants.

The majority of our liquids production is sold on the spot market with an emphasis on East of Suez outlets.

At present our liquids production is produced from our Australian operations allowing us to build outstanding relationships with customers in India and North Asia. We have also maintained relationships in North America and Europe and regularly sell equity cargoes when arbitrage opportunities arise.

Woodside prides itself on the depth and breadth of its customer relationships and its reputation for operational excellence in the market. At present Woodside has marketing offices in Perth and Singapore.

OIL MARKETING BUSINESS

Prod

uctio

n (M

Mbo

e)

Production

Australia LPG Australia Condensate Australia OilGOM Algeria Mauritania

Prod

uctio

n (M

Mbo

e)

Production


Prod

uctio

n (M

Mbo

e)

Production


Prod

uctio

n (M

Mbo

e)

Production


2012 2013 2014 2015Reported net profit after tax (US $ million) 2,983 1,749 2,414 26Sales Revenue (US $ million) 6,223 5,776 7,076 4,496Cash Flows from Operating Activities (US $ million) 3,475 3,330 4,785 2,376Net Assets (US $ million) 15,827 15,958 16,659 15,025Reported earnings per share (US cents) 366 213 293 3total recordable injury rate (TRIR) 4.13 3.0 1.90 1.71Ten-year total shareholder return (TSR) (TSR, %) 21.7 14.3 10.6 2.5Production (MMboe) 84.9 87.0 95.1 92.2Proved Reserves (MMboe) 1,231 1,143 1,048 1,150Proved Reserves plus Probable Resrves (MMboe) 1,544 1,437 1,339 1,508Contingent resources (MMboe) 1,745 1,692 1,743 4,398

Woodside Results

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Subsurface

Myanmar

Tax & Treasury

Shipping

Power & Liquids

Business Climate &

Energy Outlook

Woodside’s first oil discovery in the North West Cape region of Western Australia was the Vincent oil field in 1998, followed by the nearby Enfield and Laverda oil fields in 1999 and 2000 respectively.

Oil production began in 2006 when the Nganhurra FPSO started operations from the Enfield oil field. The Ngujima-Yin FPSO commenced oil production from the Vincent oil field in 2008.

NGANHURRA FPSO

Location 50 km north-west of Exmouth, Western Australia

Fields (discovered) Enfield (1999)

First production 2006

Water depth 390 m

Joint Venture Participants

Woodside (operator) 60%Mitsui E&P Australia 40%

Cumulative oil production to December 2015 (gross MMboe)

76.3 (WEL share: 45.8)

NORTH WEST CAPE OIL OPERATIONS

NGUJIMA-YIN FPSO

Location 50 km north-west of Exmouth, Western Australia

Fields (discovered) Vincent (1998)


Water depth 350 m


Woodside (operator) 60%Mitsui E&P Australia 40%


55.3 (WEL share: 33.2)

While the land and waters of the North West Cape area are recognised as traditionally belonging to the Jingudera (Aboriginal) people, the name Nganhurra comes from the neighbouring Baiyungu language. Nganhurra means “we all”, out of respect for current and past Elders. Ngujima-Yin is a Thalanjyi (Aboriginal) word meaning “to dream”.

Both facilities operate about 50 km north-west of Exmouth and within 30 km north of the Commonwealth boundary of the Ningaloo Marine Park. Exmouth is home to the Ningaloo Coast World Heritage Area.

Woodside recognises the important environmental values of the region and the social impacts that resource development can have. Over the years, we have undertaken many environmental research programs. We established the first community reference group in the region in 2001.

This engagement model was progressively replicated by other oil operators for respective development activities and in May 2014 a joint operators’ meeting was formed with Quadrant

Energy (formerly Apache Energy) and BHP Billiton Petroleum in response to local community feedback about meeting content and frequency.

Our focus has been, and will continue to be, on providing local people from government, industry and community interest groups the opportunity to have a say about our operations and planned activities.

Woodside supports the Exmouth community through social investment funding and local contracting opportunities.

Woodside operates the Nganhurra and Ngujima-Yin FPSOs on behalf of its joint venture participants Mitsui E&P Australia.

Woodside was also a 50% joint venture participant with BHP Billiton in the FPSO Stybarrow Venture MV16 in the Stybarrow field, located approximately 65 km from Exmouth. In mid-2015, the facility ceased operations.

During its field life, almost 57 MMboe (gross) was produced from Stybarrow.

NORTH WEST CAPE COMMUNITY LINKS

Thoughout its history, Woodside and its joint venture participants have safely, reliably and efficiently produced over one billion barrels of oil from producing fields.

Today, Woodside operates three world-class oil facilities offshore Western Australia.

We have developed floating production storage and offloading (FPSO) vessel capabilities that extend across engineering design, operations and maintenance, allowing us to operate in remote marine environments with extreme weather conditions.

Our oil capabilities extend across our value chain: acquire and explore, develop, operate, market, and decommission and divest.

OIL CAPABILITY

Woodside has been an operator or joint venture participant in the following oil developments:

• Greater Enfield Project development, Australia (operator)

• Enfield oil field, Australia (operator)

• Vincent oil field, Australia (operator)

• Laminara and Corallina oil fields, Australia (operator)

• Chinguetti, Mauritania (operator)

• Stybarrow oil development, Australia (joint venture participant)

• Mutineer-Exeter oil fields, Australia (joint venture participant)

• Neptune oil field, Gulf of Mexico, United States (joint venture participant)

• Power Play oil field, Gulf of Mexico, United States (joint venture participant)

OUR OIL PORTFOLIO

Located about 135 km north-west of Karratha, Western Australia, the Lambert oil field was discovered in 1973, and the Cossack, Wanaea and Hermes fields were discovered between 1989 and 1996.

Until March 2011, these fields were produced through the Cossack Pioneer FPSO facility using subsea wells tied back via flowlines.

In September 2011, Woodside successfully completed the North West Shelf Oil Redevelopment Project with production starting from the Okha FPSO.

The Okha FPSO is an oil production facility moored to a riser turret between the Wanaea and Cossack oil fields, 34 kilometres east of the North Rankin Complex.

Crude oil is offloaded from the facility via a flexible line to bulk tankers, while a pipeline exports LPG-rich gas from the Cossack and Wanaea fields to the North Rankin Complex, before being transferred to the Woodside-operated Karratha Gas Plant for processing.

Woodside (60%) operates the Okha FPSO on behalf of its joint venture participants BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, and Japan Australia LNG (MIMI) Pty Ltd.

OKHA FPSO

Location 135 km north-west of Karratha, Western Australia

Fields (discovered)

Hermes (1973), Lambert (1976), Wanaea (1989), Cossack (1990)


Water depth 80 m


Woodside (operator) 33.33% BHP Billiton Petroleum (North West Shelf) Pty Ltd. 16.67%BP Developments Australia Pty Ltd 16.67%Chevron Australia Pty Ltd 16.67%Japan Australia LNG (MIMI) Pty Ltd 16.67%.


465 (WEL share: 155)

NORTH WEST SHELF OIL OPERATIONS

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In April 2015, Woodside finalised a transaction with Apache Corporation to acquire its 65% interest in the Balnaves oil project with immediate production.

In March 2016, operations ceased at the Balnaves oil field located in Commonwealth waters off the north-west coast of Western Australia. The Armada Claire FPSO (owned by Armada Balnaves Pte Ltd) permanently departed in April 2016.

Environmental approval to undertake decommissioning activities to support the cessation of operations at the Balnaves oil field was granted in July 2016 by the Commonwealth oil and gas regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).

DECOMMISSIONED

ARMADA CLAIRE FPSO

Location 80 km north-west of Dampier, Western Australia

Fields (discovered) Balnaves (2009)


Water depth 135 m


Woodside (operator) 65%Kuwait Foreign Petroleum Exploration Company (KUFPEC) 35%


7.2 (WEL share: 4.7)

NORTHERN ENDEAVOUR FPSO

Location 550 km north-west of Darwin, Northern Territory

Fields (discovered) Laminaria (1994), Corallina (1995)


Water depth 394 m

Owner Northern Oil and Gas Australia


205.4 (WEL share: 131.4)

NEPTUNE OIL PROJECT

Location Atwater Valley, 220 km offshore Louisiana, USA

Fields (discovered) Neptune (1995)


Water depth ~2000 m

Operator BHP Billiton


27.9 (WEL share: 4.9)

EXECUTIVE BIOGRAPHIES

Peter ColemanBEng, MBA, FATSE

Chief Executive Officer and Managing Director

Peter was appointed as Chief Executive Officer and Managing Director in May 2011, and has over 30 years’ experience in the global oil and gas industry.

In 2015, Peter was appointed Chair of the Advisory Group on Australia-Africa Relations.

Peter is the Chairman of the Australian-Korea Foundation, a Fellow of the Australian Academy of Technological Sciences and Engineering and has been awarded the honorary title of Adjunct Professor in Corporate Strategy by the University of Western Australia. In 2013, he received the Distinguished Alumni Lifetime Achievement Award from Monash University.

Peter began his career at Esso Australia (later becoming part of the ExxonMobil group) and stayed with ExxonMobil until joining Woodside.

Lawrie TremaineBBus, FCPA

Executive Vice President Finance and Commercial and Chief Financial Officer

Lawrie was appointed as Chief Financial Officer in 2010.

He joined Woodside in 2006 and has over 30 years of finance leadership experience, predominantly in the resource and minerals processing industry.

Lawrie is responsible for a range of functions including finance, investor relations, commercial, contracting and procurement, strategic planning, performance excellence and business development and growth.

Prior to joining Woodside, Lawrie worked for Alcoa for 17 years. He is a National Executive Member of the Group of 100.

Michael Utsler BSc (Petroleum Engineering)

Chief Operations Officer

Michael was appointed as Chief Operations Officer in 2013, following an extensive career in upstream oil and gas spanning more than 35 years.

He is responsible for Woodside’s producing facilities, subsea and pipelines, global logistics, global drilling and completions; and stewardship of programs in health, safety, environment, quality and reservoir management.

Prior to joining Woodside, Michael held the position of President for the BP-Gulf Coast restoration organisation, leading the Deepwater Horizon response effort.

Phil LoaderBSc (Geology), MBA, MSc, DIC

Executive Vice President Global Exploration

Phil was appointed as Executive Vice President Global Exploration in 2013, following an extensive career in the upstream sector spanning over 30 years.

Phil is responsible for the company’s global exploration activities.

Prior to joining Woodside, Phil’s roles included Senior Vice President Exploration at Mubadala Petroleum in the United Arab Emirates and Vice President Exploration at Anadarko Petroleum, and he was also a non-executive chairman of Chariot Oil and Gas.

Located in the Timor Sea, the Northern Endeavour FPSO began oil production from the Laminaria-Corallina oil fields in 1999.

Woodside continues to operate the FPSO on behalf of Northern Oil and Gas Australia, who acquired our interest in the Laminaria-Corallina Joint Venture in April 2016.

DIVESTED

Dr Robert EdwardesBSc (Eng), PhD

Executive Vice President Development

Robert was appointed as Executive Vice President Development in 2012. He has over 35 years of resources industry experience, spanning the full breadth of operations and projects.

In his current role, he is accountable for front-end planning and execution of onshore and offshore capital projects and engineering.

Prior to joining Woodside, Robert’s roles included Managing Director of Worley Parsons (US and Latin America) and Project Director of the Kizomba deepwater oil development in Angola with ExxonMobil.

Michael AbbottBJuris, LLB, BA, MBA

Senior Vice President Corporate and Legal and General Counsel

Michael was appointed as Senior Vice President Corporate and Legal in 2014. He has over 25 years of legal experience, with more than ten years of senior leadership experience in the oil and gas industry.

Michael is accountable for audit, legal, company secretariat, risk and compliance, corporate affairs, business climate and energy outlook and security and emergency management.

Michael joined Woodside in 2005 and has held a variety of roles including Mergers and Acquisitions lawyer, head of the Procurement Legal Team and Vice President Legal and General Counsel.

David McLoughlinBA (Psychology), FAHR

Senior Vice President People and Global Capability

David was appointed Senior Vice President People and Global Capability in January 2016. He joined Woodside in 2014 and has over 20 years’ experience in mining, minerals and engineering in Australia, South-East Asia and the Americas.

David is accountable for building executive leadership, maximising employee performance and managing change within the organisation.

Prior to Woodside, David held various senior roles with MMG, GlencoreXstrata, Xstrata Copper, Thiess and Rio Tinto.

Shaun GregoryBSc (Hons), MBT

Senior Vice President and Chief Technology Officer

Shaun was appointed as Senior Vice President and Chief Technology Officer in January 2016, and has worked in the oil and gas industry for over 25 years.

Shaun leads the company’s efforts in advancing science, technology and developing concepts for commercialising resources. He joined Woodside in 1996 and has held a variety of roles in areas including geophysics, mergers and acquisitions, corporate strategy, exploration, and new ventures.

Reinhardt MatisonsBEng, MBA, MIE Aust, CPEng, CPA

Executive Vice President Marketing, Trading and Shipping

Reinhardt was appointed as Executive Vice President Marketing, Trading and Shipping in 2014. He has over 30 years’ experience in the energy industry.

In his current position, he is accountable for the marketing, trading and shipping function. Reinhardt joined Woodside in 1996 and has held various marketing and commercial roles.

Prior to this, he held senior leadership roles with Poten & Partners, Alinta Gas, Western Power and the State Energy Commission of Western Australia.

Until 2014, Woodside held a working interest in the deepwater Neptune oil field, located in the Gulf of Mexico.

Neptune is a multi-well subsea development tieback to a stand-alone tension leg platform. The divestment of Neptune reflected Woodside’s decision in 2013 to scale back its presence in the Gulf of Mexico following a strategic review of areas of future growth and focus.

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Visit us at

woodside.com.au

Head Office:Woodside Petroleum Ltd 240 St Georges TerracePerth WA 6000 Australia

Postal Address:GPO Box D188Perth WA 6840 Australia

t: +61 8 9348 4000f: +61 8 9214 2777e: [email protected]

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AN OVERVIEW OF WOODSIDE S OIL BUSINESS · supply1. Our producing assets in Australia include the ... (TRIR) 4.13 3.0 1.90 1.71 Ten-year total shareholder return ... community reference