Experience the Energy

Transcription

1 Experience the Energy An overview of Woodside s global business

2 Disclaimer and important notice This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All references to dollars, cents or $ in this presentation are to US currency, unless otherwise stated. References to Woodside may be references to Woodside Petroleum Ltd. or its applicable subsidiaries. Experience the Energy - An overview of Woodside s global business 2

3 Notes on Petroleum Resource Estimates 1.Unless otherwise stated, all petroleum resource estimates are quoted as at the balance date (i.e. 31 December) of the Reserves Statement in Woodside s most recent Annual Report released to ASX and available at Media/Announcements, net Woodside share at standard oilfield conditions of psi ( kpa) and 60 degrees Fahrenheit (15.56 deg Celsius). Woodside is not aware of any new information or data that materially affects the information included in the Reserves Statement. All the material assumptions and technical parameters underpinning the estimates in the Reserves Statement continue to apply and have not materially changed. 2.Woodside reports reserves net of the fuel and flare required for production, processing and transportation up to a reference point. For offshore oil projects, the reference point is defined as the outlet of the floating production storage and offloading (FPSO) vessel, while for the onshore gas projects the reference point is defined as the inlet to the downstream (onshore) processing facility. 3.Woodside uses both deterministic and probabilistic methods for estimation of petroleum resources at the field and project levels. Unless otherwise stated, all petroleum estimates reported at the company or region level are aggregated by arithmetic summation by category. Note that the aggregated Proved level may be a very conservative estimate due to the portfolio effects of arithmetic summation. 4. MMboe means millions (10⁶) of barrels of oil equivalent. Dry gas volumes, defined as C4 minus hydrocarbon components and nonhydrocarbon volumes that are present in sales product, are converted to oil equivalent volumes via a constant conversion factor, which for Woodside is 5.7 Bcf of dry gas per 1 MMboe. Volumes of oil and condensate, defined as C5 plus petroleum components, are converted from MMbbl to MMboe on a 1:1 ratio. 5.The estimates of petroleum resources are based on and fairly represent information and supporting documentation prepared by qualified petroleum reserves and resources evaluators. The estimates have been approved by Mr Ian F. Sylvester, Woodside s Vice President Reservoir Management, who is a full-time employee of the company and a member of the Society of Petroleum Engineers. Mr Sylvester s qualifications include a Master of Engineering (Petroleum Engineering) from Imperial College, University of London, England, and more than 20 years of relevant experience. Experience the Energy - An overview of Woodside s global business 3

4 Contents 1. ABOUT WOODSIDE About Woodside The Woodside Compass Our value chain Financial performance Health and safety A history of achievement Our Australian business Our global business 2. EXPLORING Areas of exploration Australia and Asia-Pacific Atlantic Margins and Latin America Sub-Saharan Africa 3. DEVELOPING Wheatstone Project Greater Enfield Project NWS subsea tieback projects Browse Development Kitimat LNG Grassy Point LNG Sunrise LNG Scarborough LNG 4. OPERATING North West Shelf Project Pluto LNG Australia Oil Our operating facilities 5. MARKETING, TRADING and SHIPPING LNG Marketing, trading and shipping 6. CAPABILITIES Environmental performance Science and technology Data science Social performance Security and emergency management Experience the Energy - An overview of Woodside s global business 4

5 About Woodside Woodside is an Australian oil and gas company with a global presence, recognised for its worldclass capabilities as an explorer, a developer, a producer and a supplier. Video: Corporate Overview We are Australia s most experienced LNG operator and largest independent oil and gas company. Our mission is to deliver superior shareholder returns through realising our vision of becoming a global leader in upstream oil and gas. Experience the Energy - An overview of Woodside s global business 5

6 The Woodside Compass Experience the Energy - An overview of Woodside s global business 6

7 Our value chain ACQUIRE + EXPLORE DEVELOP OPERATE MARKET By maintaining a disciplined approach to managing risk and increasing shareholder value, we seek to grow our portfolio through global exploration and corporate acquisitions. Once we have proven the presence and value of hydrocarbons, the asset can move into the development phase. We work closely with our customers, joint venture partners, suppliers, governments and communities to realise the opportunities across the development process. Once the value of the resource is confirmed and approvals have been received, the development moves into project delivery and construction. Once construction is complete, the asset moves into its operation phase. We have over 30 years experience in operating some of the world s premier oil and gas facilities, characterised by strong safety and environmental performance. Our valuable long-term customer relationships and our track-record of safe and reliable delivery makes us a leading supplier of energy to the Asia-pacific region and the Australian domestic gas market. We have world-class capabilities across contracting, marketing and trading. Experience the Energy - An overview of Woodside s global business 7

8 Financial performance 2015 Full-Year Against a backdrop of oil price uncertainty, Woodside continues to maintain a strong balance sheet and operating cash flow. Reserves (Proved plus probable) Sales Revenue ,508 MMboe Natural gas 1 87% 88% Oil 4% 3% 4,496 million Natural gas 1 71% 76% Oil 16% 15% Condensate 9% 9% Condensate 13% 9% Production Investment MMboe Natural gas 1 79% 78% Oil 12% 13% Condensate 9% 9% 6,003 million Gas and 50% 89% condensate 2 Oil 2 5% 4% Exploration and other 45% 7% Read more: 2015 Annual Report 1. Includes LNG, LPG and pipelines gas 2. Indicative only as some assets produce oil and gas Experience the Energy - An overview of Woodside s global business 8

9 Health and safety We believe that everyone has a right to go home in the same condition as they started the day. Our aspiration is no-one gets hurt, no incidents Our aspiration is no-one gets hurt, no incidents. Our goal is to deliver health and safety performance that meets global top quartile. Woodside s behaviour framework, Our Safety Culture, helps everyone, including our contractors, understand the role they play in strengthening Woodside s safety culture. Woodside s strong focus on process safety ensures risks are managed at all our facilities, including the design phase, through development and into the production life-cycle. Experience the Energy - An overview of Woodside s global business 9

10 A history of achievement Incorporated as Woodside (Lakes Entrance) Oil Co. NL with capitalisation of 1,000,000. Named after the Victorian town near its oil leases. Woodside granted exploration permits of 367,000km 2 off the geologically uncharted North West Shelf of Western Australia. Woodside makes the first oil discovery offshore Western Australia at the Legendre field on the North West Shelf. Major gas and condensate discoveries at Scott Reef, North Rankin, Angel and Goodwyn. Sunrise and Troubadour gas fields are discovered in the Timor Sea north of Darwin. Construction starts on Karratha Gas Plant, North Rankin A platform and 135km pipeline to shore. First gas is received onshore via the subsea trunkline from the North Rankin platform. First LNG cargo to Japan We are a proud Australian company with a history of achievement. First LNG cargo to China. Pluto LNG Plant begins LNG production and first Pluto LNG cargo is shipped to Japan. The North Rankin Redevelopment is completed. Woodside adds to its global exploration portfolio. Acquisition of interests in Australian Wheatstone Project and Kitimat LNG project in Canada. Acquisition of interests in Australian Scarborough Project and acreage in Senegal. Experience the Energy - An overview of Woodside s global business 10

11 Our Australian business Experience the Energy - An overview of Woodside s global business 11

12 Our global business Experience the Energy - An overview of Woodside s global business 12

13 Exploring Exploration is focused on building a material balanced global portfolio to provide future growth opportunities for the business.

14 Areas of exploration Exploration strategy and culture Grow portfolio depth and optionality Find commercial oil and gas Technical and commercial excellence Video: Pathways to Progress Experience the Energy - An overview of Woodside s global business 14

15 Australia and Asia-Pacific Australian core with regional growth potential Gas discovery at Pyxis-1 off the coast of Western Australia Two gas discoveries in Myanmar (Shwe Yee Htun-1 and Thalin-1A) Myanmar Balanced drilling campaigns to test proven and new plays Build inventory with new seismic studies Innovative application of new seismic imaging technologies Active regional studies and basin analysis Australia Oil prone basin Oil or gas basin Gas prone basin New Zealand Experience the Energy - An overview of Woodside s global business 15

16 Atlantic Margins and Latin America Building a material position in underexplored emerging plays Ireland Evidence of a working Mesozoic petroleum system Play diversity and multiple trapping geometries Materiality Morocco Partnerships of choice Senegal / Guinea-Bissau Peru Oil prone basin Oil or gas basin Experience the Energy - An overview of Woodside s global business 16

17 Sub-Saharan Africa World-class petroleum systems with significant potential Predominantly oil-prone Petroleum systems driven Underexplored plays Gabon Atlantic margins synergies Oil prone basin Experience the Energy - An overview of Woodside s global business 17

18 Bish Cove, Kitimat LNG site - Image courtesy of Chevron Developing Expanding our LNG portfolio through premium developments and value-adding growth opportunities.

19 Wheatstone Project World-class asset delivering near-term production to our expanding LNG portfolio Diagram for illustration purposes only Wheatstone Project (facilities) 13% non-operated interest in the Wheatstone offshore platform, the pipeline to shore and the gas plant located near Onslow Two-train, 8.9 mtpa LNG development 200 TJ/d domestic gas plant First LNG from Train 1 is expected in mid-2017 and from Train 2 six to eight months later. 1 Wheatstone Brunello Julimar Lago LNG (8.9 mtpa) Julimar Project (Julimar and Brunello fields) Sub-sea development that will supply raw gas and condensate from the Julimar and Brunello fields to the Wheatstone gas plant Trunkline Domgas (200 TJ/day) ~250 MMboe Woodside share (2P) Wheatstone Project Participant Wheatstone equity Julimar-Brunello equity Woodside 13.0% 65.0% 2 KUFPEC 13.4% 35.0% 1. Source: Chevron 2. Operator Chevron 64.1% 2 Note: Figures rounded PE Wheatstone 8% Kyushu 1.5% Experience the Energy - An overview of Woodside s global business 19

20 Greater Enfield Project US$1.9 billion revamped oil development approved Positive final investment decision taken in June Subsea tieback of the Laverda Canyon, Norton over Laverda (WA-59-L) and Cimatti (WA-28-L) oil accumulations via a 31 km flowline to the Ngujima-Yin floating production storage and offloading (FPSO) facility. Located 60 km off Exmouth in Western Australia within Commonwealth waters. Targeting development of gross (100%) 2P oil reserves of 69 MMbbls (41 MMbbls Woodside share) from the oil accumulations. On budget and schedule for first oil in mid Woodside (Operator, 60%) and Mitsui E&P Australia (40%). Committed to earliest commercialisation of our growth opportunities Experience the Energy - An overview of Woodside s global business 20

21 NWS subsea tieback projects Woodside s experience and capabilities enable commercialisation of existing gas reserves in a timely, cost-effective and efficient manner NWS Project has sanctioned a series of subsea tieback projects to maintain offshore supply to the Karratha Gas Plant: Persephone: two-well, 7km subsea tieback from the Persephone field to North Rankin Complex to develop 140 MMboe (100% project). FID in November 2014, on budget and schedule for start-up in Q Greater Western Flank Phase 2: eight well development of 317 MMboe (100% project) from Keast, Dockrell, Sculptor, Rankin, Lady Nora and Pemberton fields using subsea infrastructure and a 35 km, 16" pipeline connecting to Goodwyn A. Initial gas delivery expected in 2H 2019 with further production expected in 1H Experience the Energy - An overview of Woodside s global business 21

22 Scarborough LNG World-class gas resources in the Carnarvon Basin Scarborough area assets include the Scarborough, Thebe and Jupiter fields, estimated to contain gross 8.7 Tcf (2C) Work commenced with the Scarborough Field Joint Venture to progress towards commercialisation. Consistent with retention lease obligations, the development is positioning to support FEED readiness in 2018 and a FID by Leverages our capabilities in deep water production and LNG development and operations. Gas field Woodside interest Operator Gross 2C (Tcf) Net 2C (Tcf) Scarborough 25% ExxonMobil Thebe and Jupiter 50% Woodside Total Experience the Energy - An overview of Woodside s global business 22

23 Browse Development We remain committed to the earliest commercial development of the world-class Browse resources Three gas fields in the Browse Basin: Torosa (discovered 1971); Brecknock (discovered 1979); Calliance (discovered 2000) Title areas: State: TR/5 and R2 Commonwealth: WA-28-R, WA-29-R, WA-30-R, WA-31-R and WA-32-R Located approximately 425 km offshore north of Broome, Western Australia Browse gross contingent resources (2C) of 16 trillion cubic feet of dry gas and 466 million barrels of condensate Evaluating and narrowing a range of development options, targeting concept select in 2H Participants Equity Woodside 30.60% Shell Australia 27% BP Development Australia 17.33% Japan Australia (MIMI Browse) 14.40% PetroChina International Investment Australia 10.67% Experience the Energy - An overview of Woodside s global business 23

24 Kitimat LNG Ground-floor entry position in one of the most advanced LNG opportunities in Western Canada Yukon Northw est Territories Proposed development concept includes: Downstream infrastructure with initial capacity of up to 10 mtpa 1 Liard Horn River Alberta Proposed 480 km Pacific Trail Pipeline Liard and Horn River Basins, covering approx. 620,000 acres Gas will be transported via the proposed Pacific Trail Pipeline to a liquefaction facility at Bish Cove near Kitimat. British Columbia Existing Pipeline Deliver earliest final investment decision, subject to success in the following areas: Reserves certainty through continued appraisal of the Liard Basin Cost-competitive LNG solution at the Kitimat site First Nation, government and community support Competitive fiscal framework Sufficient LNG sales Kitimat Proposed Pacific Trails Pipeline Participant Kitimat LNG equity Liard and Horn equity Esri, DeLorme, GEBCO,NOAA NGDC etc. Woodside 50% 50% Chevron 2 50% 50% 1. National Energy Board approval for export of 10 mtpa of LNG 2. Operator Experience the Energy - An overview of Woodside s global business 24

25 Grassy Point LNG Investigating the potential of constructing, commissioning and operating an LNG processing and export facility at the Grassy Point site, near Prince Rupert in British Columbia The proposed facility would convert processed natural gas, delivered by a pipeline, from reserves in the Western Canadian Sedimentary Basin, into LNG for export to global markets. In June 2016, the British Columbian Environmental Assessment Office approved Woodside s Grassy Point LNG Application Information Requirements (AIR), which was the final major obligation under the Sole Proponent Agreement. Any decision to proceed with an LNG development at Grassy Point is subject to a variety of internal and external approvals. Experience the Energy - An overview of Woodside s global business 25

26 Sunrise LNG Sunrise fields hold gross (100%) contingent resources (2C) of 5.13 Tcf of gas and million barrels of condensate Title Areas: Production Sharing Contracts (JPDA and JPDA 03-20) and Retention Leases (NT/RL2 and NT/RL4) Woodside supports the joint statement by the Governments of Australia and Timor-Leste and the Conciliation Commission committing to negotiate permanent maritime boundaries between the two countries. Woodside looks forward to an agreement that allows for the earliest commercialisation of the Greater Sunrise fields, which promise great benefits for all parties. The Sunrise Joint Venture is delivering meaningful social investment via long-term partnerships with the communities of Timor-Leste. Experience the Energy - An overview of Woodside s global business 26

27 Woodside-operated Karratha Gas Plant and Pluto LNG Plant, Western Australia Producing As Australia s largest LNG operator, our producing LNG assets in the north-west of Australia are among the world s best facilities.

28 North West Shelf Project - Onshore The North West Shelf Project supplies oil and gas to Australian and international markets from huge offshore gas and condensate fields in the Carnarvon Basin off the north-west coast of Australia. The Karratha Gas Plant (KGP) includes five LNG processing trains, two domestic gas trains, six condensate stabilisation units, three LPG fractionation units as well as storage and loading facilities for LNG, LPG and condensate. Under Woodside s operation the Project has maintained a track record for reliable production and delivery for more than 30 years. As one of the largest integrated systems in the world, the KGP has the capacity to produce: Domestic gas: 12,000 tonnes/day LNG: 52,000 tonnes/day LPG: 4,200 tonnes/day Condensate: 165,000 barrels/day The North West Shelf Project is Australia s largest producing oil and gas project. Experience the Energy - An overview of Woodside s global business 28

29 North West Shelf Project - Offshore Facilities include the North Rankin Complex, Goodwyn A and Angel platforms, and the Okha floating production, storage and offloading (FPSO) vessel. Hydrocarbons from the offshore facilities are transported to the KGP for processing by two subsea pipelines, also known as trunklines. Oil from the Cossack, Wanaea, Lambert and Hermes fields is processed on the Okha FPSO. North Rankin Complex Location Facility type Fields (Discovered) Product First Production Platform Water Depth Subsea & Pipelines 135 km north-west of Karratha, WA Steel jacket fixed platform North Rankin (1971), Perseus (1996) Gas and condensate 1984 (NRA) and 2013 (NRB) 125 m Trunkline 1 and 2 to shore Goodwyn A platform Location Facility type Fields (Discovered) Product First Production Platform Water Depth Subsea & Pipelines 130 km north-west of Karratha, WA Steel jacket fixed platform Goodwyn (1972), Echo (1988), Yodel (1990), Perseus (1996) Gas and condensate m Interfield line to Trunkline 2 Angel platform Location Facility type Fields (Discovered) Product First Production Platform Water Depth Subsea & Pipelines 135 km north-west of Karratha, WA Steel jacket fixed platform Angel (1971) Gas and condensate m Interfield line to Trunkline 1 Okha FPSO Location Facility type Fields (Discovered) Product First Production Water Depth Subsea & Pipelines 135 km north-west of Karratha, WA FPSO Wanaea (1989), Cossack (1990), Lambert (1976), Hermes (1973) Oil and gas m Interfield line to Trunkline 1 Experience the Energy - An overview of Woodside s global business 29

30 Pluto LNG Pluto LNG is a demonstration of Woodside s world-class LNG capabilities and expertise, with Woodside taking the project from discovery in 2005 to first production just seven years later. Pluto LNG has delivered a step change for Woodside s equity production and revenue since start-up in April 2012 and has cemented our place as Australia s largest producer of LNG. Pluto LNG Plant Onshore infrastructure comprises a single LNG processing train. Storage and loading facilities at the plant include two LNG tanks with a combined capacity of 240,000 m³, three smaller condensate tanks and an LNG and condensate export jetty. Location Commissioned Facility Type Product First Production Video: Pluto LNG 1,260 km north of Perth, WA 2012 LNG Train (4.3 mtpa) Onshore gas plant LNG and condensate 2012 Pluto platform Offshore assets comprise a platform in 85 m of water, connected to the Pluto and Xena gas fields. Location Facility Type Fields (discovered) Pluto (2005) Product First Production 2012 Platform Water Depth Subsea & Pipelines 190 km north-west of Karratha, WA Steel jacket fixed platform Gas and Condensate 85 m 1 trunkline to shore Experience the Energy - An overview of Woodside s global business 30

31 Australia Oil Woodside owns and operates two world-class oil developments off North West Cape, Western Australia. We have developed FPSO capabilities that extend across engineering design, operations and maintenance, allowing us to operate in remote marine environments with extreme weather conditions Nganhurra FPSO Ngujima-Yin FPSO Location 50 km north-west of Exmouth WA Location 50 km north-west of Exmouth WA Facility type FPSO Facility type FPSO Fields (Discovered) Enfield (1999) First Production 2006 Fields (Discovered) Vincent (1998) First Production 2008 Water Depth Joint Venture Participants 600 m Woodside (operator) - 60% Mitsui E&P Australia Pty Ltd - 40% Water Depth Joint Venture Participants 350 m Woodside (operator) - 60% Mitsui E&P Australia Pty Ltd - 40% Experience the Energy - An overview of Woodside s global business 31

32 Our operating facilities Video: Turnaround Performance Our facilities are among the world s best. Experience the Energy - An overview of Woodside s global business 32

33 Marketing, Trading and Shipping As the global LNG marketplace changes, Woodside is bolstering its marketing and trading capabilities and building on our reputation as a reliable supplier.

34 LNG marketing, trading and shipping Woodside is building LNG trading capability and adding value through LNG cargo trades. We are transitioning to a portfolio based seller. Our strong relationship with Asian customers is built on a track record of reliable delivery. In 2013, Woodside established a trading group Singapore to support its growing LNG marketing, trading and shipping capabilities. Experience the Energy - An overview of Woodside s global business 34

35 Distinctive capabilities We are part of a team working together to achieve great results. We believe that by doing what s right, we can perform to our very best. We are here for the long term, and that means looking after each other, our communities and the environment.

36 Environmental performance Strong partnerships, sound research and transparency are the key elements of Woodside s approach to the environment. We minimise our footprint by integrating world-class environmental management into our exploration activities and the design, construction and operation of our facilities. Understanding the biodiversity of environments is key to environmental management. Our strong capability in environmental studies enables the acquisition of robust scientific data critical to inform our impact assessments and decision making. Our experience and expertise make us a partner of choice for joint venture participants, customers, governments and communities. Video: Journeys of Discovery Experience the Energy - An overview of Woodside s global business 36

37 Science and technology Innovative solutions to business problems and lowering our cost of supply are critical to near-term growth and our broader strategy Our activities focus on four strategic areas: Subsurface technology Upstream technology Downstream technology Disruptive technology and innovation We are embedding cost-saving concepts including the application of full-waveform inversion to reduce exploration cycle time and improve success rates. Our data analytics program is reducing lifting cost and protecting high reliability. Our 3D printing program aims to reduce operating costs through providing spares on demand, and our cognitive computing capabilities save time, drive efficiency and reduce cost. Near Shore LNG Float-in LNG facility Video: Harnessing Disruption Suitable for areas with restricted land access Integrates process, storage and offloading facilities Shipyard construction provides cost and schedule certainty ~25% cost saving over a conventional onshore LNG plant Subsea Subsea compression Lower cost to build, operate and maintain Increased hydrocarbon recovery Inherently safe Long subsea tie-backs Targeting 300 km for gas, 70 km for oil Monetises stranded resources Unlock any current and future discoveries Experience the Energy - An overview of Woodside s global business 37

38 Data science Our data science strategy is focusing on maintaining our competitive advantage through innovation to generate value and grow our business. We have deployed IBM s Watson data science systems into various technical and commercial areas of our business. Focusing on high-value projects, we will leverage our extensive experience and data in LNG and offshore operations. We are deploying cognitive computing, advanced analytics, artificial intelligence and in the future, real-time optimisation for improved decisionmaking supported by facts and data. Along with increased production efficiency, we believe there is potential for these developments to help us meet our safety and risk management goals. Video: IBM Watson Video: Fiona Wood Foundation DataHack Experience the Energy - An overview of Woodside s global business 38

39 Woodside FutureLab We re growing a community of exceptional thinkers and innovators that can work shoulder to shoulder with us to accelerate growth for a better future. By collaborating with researchers, entrepreneurs, subject matter experts and parallel leading industries, we aim to leverage our capabilities and maintain our leading position as a partner of choice. This dynamic network is expected to create a world-class legacy of technological excellence in Western Australia. We believe collaborative innovation is the key to future growth. And that s the premise of Woodside FutureLab. Video: Woodside FutureLab Experience the Energy - An overview of Woodside s global business 39

40 Social performance Building positive relationships and outcomes in our host communities. Video: Our Contribution to WA We understand that every community is unique and respond to local community issues, aspirations and expectations We support the economic and social development of local communities We invest in programs that contribute to the health and well being of our host communities Experience the Energy - An overview of Woodside s global business 40

41 Security and emergency management Protecting people, environment, assets, reputation and livelihood through continually improving our robust security and emergency response capabilities. We operate under an all-hazards emergency framework enabling a global interoperable response. We have effective security, risk management and controls in place across our business. We are prepared and capable to respond to a hydrocarbon spill event. We provide leadership in the prevention and detection of, and response to, fraud and corruption. Experience the Energy - An overview of Woodside s global business 41

42 Follow Us Online woodside.com.au canvas.woodside.com.au Experience the Energy - An overview of Woodside s global business 42