EXPERIENCE THE ENERGY
ABOUT WOODSIDE Woodside is Australia s largest independent oil and gas company with a global presence, recognised for our worldclass 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 supply 1. Our producing assets in Australia include the landmark North West Shelf (NWS) Project, which has been operating since 1984. In 2012, we commenced production from the Pluto LNG Plant and we will add additional volumes from our non-operated Wheatstone LNG interests in mid-2017. We also operate a fleet of floating production storage and offloading (FPSO) facilities. From mid-2019, we will add additional oil production from the Greater Enfield Project via our existing Ngujima-Yin FPSO vessel. 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. 1. Source: WoodMac LNG Tool 1 Woodside Experience Counts
Karratha Gas Plant, North West Shelf, Western Australia
Yangon, Myanmar
THE EXPERTISE TO DELIVER GLOBALLY NEW FRONTIERS IN EXPLORATION Woodside is building a balanced global exploration portfolio and is undertaking a range of high-impact exploration activities to generate future growth opportunities for the company. Our global exploration portfolio includes exploration acreage across three key focus areas: Australia and the Asia-Pacific; Sub-Saharan Africa; and the Atlantic Margins and Latin America. This diverse portfolio reflects the company s global exploration strategy to grow and high grade our portfolio with an emphasis on emerging petroleum provinces characterised by materiality. Across our permit interests, we see an opportunity to leverage our core capabilities, particularly in deepwater exploration, technology and project development and to create value for our shareholders. The survey covered 4,050 km², providing high resolution, multisensory broadband data of the area. It was the first application of IsoMetrix TM technology in Australia. If successful, the survey could extend the production life of the world-class NWS Project. In Myanmar, we have entered a phase of appraisal drilling to accelerate the commercialisation of our recent gas discoveries. Planning is also underway for high-impact exploration drilling across our portfolio to test new plays and prospects. Woodside continues to evaluate new exploration opportunities around the globe that offer a clear line of sight between our core capabilities and future value. We are executing work programs across our portfolio with the aim of finding commercial oil and gas. Our programs include 2D and 3D seismic studies to build a drill-ready prospect inventory and the drilling of high-impact exploration wells. We continue to interpret and evaluate the results of recent seismic studies, including the Fortuna 3D marine seismic survey the largest and most comprehensive ever undertaken by the North West Shelf (NWS) Project. Ramform Titan, Myanmar Woodside Experience Counts 4
WOODSIDE IS COMMITTED TO EXPANDING ITS GLOBAL PORTFOLIO THROUGH PREMIUM DEVELOPMENTS WHEATSTONE PROJECT The Wheatstone Project is a world-class asset delivering nearterm production to Woodside s expanding LNG portfolio. Woodside s 13% non-operated interest in the Wheatstone Project includes the offshore platform, the pipeline to shore and the onshore plant located near Onslow, in Western Australia s Pilbara region, but excludes the Wheatstone and Iago fields and subsea infrastructure. The onshore plant includes a two-train 8.9 mtpa LNG development and a 200 TJ per day domestic gas plant. LNG and condensate will be exported, and domestic gas will be transported via pipeline to the Dampier Bunbury Natural Gas Pipeline. platform. The platform is 225 km from the onshore plant site. The Julimar Project remains on target to be ready for start-up on budget and schedule in 2H 2016. Wheatstone operator is targeting first LNG in mid-2017. With more than 30 years of operational experience, Woodside is supporting the Wheatstone operator with targeted capability as a joint venture participant in the Project. Woodside is operator of the Julimar Project, with a 65% interest in the Julimar and Brunello fields. The Julimar Project is a subsea development that will supply raw gas and condensate from the fields, located approximately 180 km west-north-west of Dampier, to the Wheatstone offshore Wheatstone Project - courtesy of Chevron Australia 5 Woodside Experience Counts
GREATER ENFIELD PROJECT The Greater Enfield Project was approved for development in June 2016. The Greater Enfield development involves the tieback of the Laverda Canyon (WA-59-L), Norton over Laverda (WA-59-L) and Cimatti (WA-28-L) oil accumulations via a 31 km subsea tieback to the Ngujima-Yin Floating Production Storage and Offloading (FPSO) facility. The project is targeting development of 2P oil reserves of 41 MMbbl from the oil accumulations with initial net oil production rates estimated to exceed 24,000 bbl/d (reserves and production are Woodside share) and is located 50 km off the North West Cape in Western Australia. The Ngujima-Yin FPSO facility is planned to produce oil from the Vincent oil field and the three Greater Enfield oil accumulations concurrently from mid-2019 until 2028. The Greater Enfield Project will build upon Woodside s significant experience and proven abilities in delivering major subsea tiebacks in a safe and environmentallyresponsible manner. Key to commercialising this resource was Woodside s close collaboration with contractors and adoption of the latest technologies. The project benefits from low incremental production costs associated with sharing existing infrastructure. Ngujima-Yiin FPSO vessel BROWSE DEVELOPMENT The Brecknock, Calliance and Torosa fields collectively known as the Browse resources are estimated to contain gross (100%) contingent resources (2C) of 16 trillion cubic feet of dry gas and 466 million barrels of condensate. The Browse resources are located in the Browse Basin, located offshore approximately 425 km north of Broome in Western Australia. The Browse Joint Venture (BJV) participants maintain seven petroleum retention leases under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) (OPGGSA), the Petroleum (Submerged Lands) Act 1982 (WA) and the Petroleum and Geothermal Energy Resources Act 1967 (WA). On 22 March 2016, following the completion of front-end engineering and design (FEED) work, the BJV participants decided not to progress further with the floating LNG development concept selected at FEED entry in June 2015. It is anticipated that a range of concept options will be considered as part of the work program for assess and concept select phase activities. Since 2006, the BJV has invested A$3.4 million through its social investment program with a further A$600,000 allocated in 2016. The BJV has also invested in over two decades of environmental research and studies to better understand the offshore marine environment in the vicinity of the Browse resources. This includes investing more than A$55 million in research and studies. Woodside remains committed to the earliest commercial development of the world-class Browse resources. Woodside Experience Counts 6
KITIMAT LNG PROJECT In early 2015, Woodside acquired a 50% interest in the Kitimat LNG Project, located approximately 640 km north of Vancouver in British Columbia, Canada. Chevron Canada Ltd is the upstream and downstream operator of the Project. The development concept comprises a two-train LNG export facility, the proposed 480 km Pacific Trail Pipeline and an upstream resource in the Liard and Horn River Basins, covering approximately 620,000 acres. Natural gas for the project will be sourced from British Columbia s Western Canadian Sedimentary Basin and delivered to the facility by the proposed Pacific Trail Pipeline from Summit Lake, British Columbia to Kitimat. Benefits agreements have been signed with all 16 First Nations, along the right of way of the natural gas pipeline. All major provincial and federal environmental approvals are in place, including approval from the National Energy Board to export 10 million tonnes per annum (mtpa). Kitimat LNG Project remains one of the most advanced LNG opportunities in Canada, located in a politically stable region and well positioned to supply North American gas with shorter shipping distances to Asian markets. Woodside is continuing to support the operator to drive down costs across the value chain. The joint venture has achieved a 20% reduction in cost of supply since acquisition through innovation and technology. We are continuing to optimise the development concept and pursue top decile liquefaction costs through the potential application of Woodside s NextGen technology that aims to reduce modules, site-hours and LNG train footprint. We will maintain compliance with environmental permits, secure LNG sales agreements, work with First Nations and establish a clear, stable and competitive fiscal framework with government. In progressing Kitimat LNG Project to commercialisation, Woodside is targeting LNG demand in the mid-2020s. Kitimat LNG - courtesy of Chevron Canada
GRASSY POINT LNG Woodside continues to investigate the potential of developing and operating an LNG processing and export facility at Grassy Point, on the north-west coast of British Columbia, Canada. In 2015, Woodside was granted a licence from the National Energy Board to export up to 20 mtpa of natural gas from the Grassy Point site for a period of up to 25 years. In June 2016, the British Columbian Environmental Assessment Office approved our Grassy Point LNG Application Information Requirements, which was the final major obligation under the Sole Proponent Agreement. Any decision to proceed with an LNG development at Grassy Point remains subject to a variety of approvals. We continue to investigate the potential of developing and operating an LNG processing and export facility at Grassy Point. SUNRISE LNG The Sunrise and Troubadour gas and condensate fields, collectively known as the Greater Sunrise fields, are located approximately 150 km south-east of Timor-Leste and 450 km north-west of Darwin, Northern Territory. While Woodside remains committed to the development of Greater Sunrise, it is vital both governments agree on the legal, regulatory and fiscal regime applicable to the resource. Once government alignment is established, we believe there is an opportunity to proceed with a development that benefits all parties. The Sunrise Joint Venture continues its program of meaningful social investment via long-term partnerships with the communities of Timor-Leste. COMMITTED TO EARLIEST COMMERCIALISATION OF OUR GROWTH OPPORTUNITIES Woodside Experience Counts 8
WE ARE AUSTRALIA S MOS OPERATOR AND LARGEST 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 processes gas from the offshore Pluto and Xena gas fields. Gas is piped through a 180 km trunkline to a single onshore LNG processing train with annual production capacity of 4.9 mtpa, which is 14% higher than the 4.3 mtpa average expected annual production capacity at the time of a financial investment decision in 2007. Woodside s long-standing LNG development and operating experience is backed by growing capability in LNG shipping, with Pluto LNG managing an integrated shipping fleet of four LNG vessels. Pluto LNG is underpinned by 15-year sales agreements with Kansai Electric and Tokyo Gas. Both companies became project participants in January 2008, each acquiring a 5% interest in the foundation project. 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. Cash flows generated by Pluto LNG contribute to our strong balance sheet to enable disciplined growth. Established in 2014, the Pluto Support Centre in Perth provides remote support for Pluto LNG operations, ensuring improved operational efficiency in a competitive LNG market. 9 Woodside Experience Counts
T EXPERIENCED LNG OIL AND GAS COMPANY NORTH WEST SHELF PROJECT The North West Shelf (NWS) Project is Australia s largest producing oil and gas project, and one of the world s premier LNG facilities. The NWS Project contributes about one third of Australia s oil and gas production, and has delivered more than 4000 LNG cargoes to international customers since 1989. The NWS s offshore production facilities include four natural gas platforms and the oil producing Okha floating production storage and offloading (FPSO) vessel. Onshore, the facilities include five LNG processing trains, two domestic gas trains and three liquefied petroleum gas fractionation units. Under Woodside s operation, the NWS Project has maintained a track record for reliable production and delivery. Natural gas has been produced from the NWS for domestic use since 1984, and it is the largest single supplier of pipeline gas in Western Australia. The NWS Project has an annual LNG export capacity of 16.9 million tonnes per year of LNG, which is reliably exported to customers in the Asia Pacific region and beyond. In December 2015, the NWS Project participants approved the US$2.0 billion Greater Western Flank Phase 2 Project, an eight-well subsea tieback to existing offshore infrastructure. The Persephone Project, a two-well subsea tieback, is scheduled for start-up in the second half of 2017. Development of existing NWS Project reserves will ensure this world-class asset continues to generate value for years to come. Woodside Experience Counts 10
Ngujima-Yin FPSO, Vincent oil field, Western Australia
AUSTRALIA OIL Woodside s first oil discovery off North West Cape 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 Floating Production Storage and Offloading (FPSO) started operations from the Enfield oil field. The Ngujima-Yin FPSO commenced oil production from the Vincent oil field in 2008. 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. We continue to pursue opportunities to offset natural field decline at our Australia Oil assets through infill wells, near-field tiebacks and increased production reliability. Additional production will be added from the Greater Enfield Project in mid-2019. Woodside Experience Counts 12
TAKING OUR ENERGY TO THE WORLD Woodside is Australia s largest producer of LNG with more than 25 years experience as an LNG producer and operator. In addition to LNG, Woodside markets crude oil, condensate, LPG and pipeline natural gas. We have been supplying pipeline gas to Western Australian utilities and buyers since 1984. Woodside s marketing and shipping capabilities have long been central to our role as a leading supplier of energy to the Asia- Pacific region. Our strong relationships with customers in major energy markets have been maintained through a track record of reliable delivery and expertise across contracting, marketing and trading. Woodside s expertise also includes offtake management, price reviews and integrated LNG shipping fleet operation. We continue to build a diverse supply portfolio, underpinned by reliable Australian LNG and supplemented by future Canadian and United States sourced volumes to pursue additional long-term sales arrangements. 13 Woodside Experience Counts
OUR CAPABILITIES IN MARKETING, TRADING AND SHIPPING ARE KEY TO THE EXPANSION OF OUR GLOBAL LNG SUPPLY PORTFOLIO Woodside Rogers LNG vessel at the Pluto LNG Plant
Woodside Innovation and Technology Forum CHANGE DEMANDS INNOVATION
TECHNOLOGY AND INNOVATION Innovation and our ability to apply leading-edge science and technology in our operations are important differentiators. By innovating, we have maintained our position as a leader in the Australian oil and gas industry. Our technology strategy is focused on competitive advantage through innovative solutions to business problems which saves time, drives efficiencies and reduces cost. In exploration, we are focused on progressing seismic and drilling technology solutions to reduce costs and improve the timeliness and accuracy of subsurface modelling. Our Full Waveform Inversion (FWI) technology has the potential to reduce cycle time from acquisition to drilling and is being deployed successfully in our 3D seismic surveys. By focusing on scope elimination, we continue to find opportunities to reduce upstream capital and operation costs for drilling developments and projects. Subsea technologies reduce the requirement for large infrastructure such as manned offshore platforms, allowing us to safely and economically develop fields in remote, deep water locations. We are leveraging more than 30 years of development and operational experience, to progress innovative onshore and near shore LNG design solutions to lower the cost of LNG supply. Advanced analytics in our Pluto LNG Plant aim to enhance plant reliability through process and maintenance control. Big data, streaming from over 200,000 sensors on the plant, is being interpreted through advanced statistical analysis to assist in proactive planning and predictive process control. These production enhancement initiatives are designed to increase the value of our base business by enhancing the availability and productivity of our assets. Our cognitive computing system is capturing the vast proprietary database of knowledge on Woodside s major capital projects. By making this information easily accessible to our people, there is potential to enhance decision making across the project life cycle and improve productivity. Woodside FutureLab FutureLab is actively building an ecosystem of scientific and technological innovation through collaborations with research institutions, start-ups, entrepreneurs and adjacent leading industries. FutureLab is designed to deliver collaborative innovation through key partnerships initially under three broad themes: ocean engineering, Plant of the Future and enterprise analytics. Since 2015, we have launched programs to collectively share challenges and develop innovative solutions within the enterprise analytics work stream, including the Cisco Internet of Everything Innovation Centre (CIIC) at Curtin University and the Woodside Innovation Centre at Monash that focuses on our Plant of the Future program. In late 2016, we will add another centre to our FutureLab network by collaborating with the University of Western Australia on ocean engineering. FutureLab is an integral part of our journey, encouraging a collaborative approach to innovation and providing access to capability that will enhance the results of our innovation program. Woodside Experience Counts 16
SOUND RESEARCH AND TRANSPARENCY ARE KEY ELEMENTS OF WOODSIDE S APPROACH TO THE ENVIRONMENT ENVIRONMENTAL PERFORMANCE Woodside s future success depends on our continued capacity to demonstrate strong environmental performance across our global portfolio. As we enter new regions around the world, Woodside brings with it decades of experience as a successful operator in sensitive marine environments. Wherever we operate, we know that our long-term success depends on our ability to understand the environment and mitigate any potential impacts of our activities. We continue to manage environment risk and make decisions based on robust science delivered in part through our partnerships with researchers and stakeholders. We remain focused on environmental excellence wherever we operate, supported by visible leadership in environmental management. In June 2016, Woodside was awarded the Australian Petroleum Production and Exploration Association (APPEA) Environment Excellence Award. This is the first time an operator has received this award in consecutive years. The award recognised Woodside s continued excellence across all facets of environmental performance. Environmental collaboration and transparency are key to our future success. We have been working with some of the world s leading environmental organisations to better 17 Woodside Experience Counts
Marine biodiversity study at Scott Reef, Western Australia understand the global environments where we have interests. This includes formalising relationships with the World Oceans Council and Fauna and Flora International. We accept the Intergovernmental Panel on Climate Change s assessment of climate change science and believe that natural gas has a major role to play in containing global average temperatures. Achieving this requires stable regulatory frameworks capable of achieving current and future emissions reduction targets. In 2016, we will continue to minimise our impacts on land, sea, air and wildlife with a focus on improving energy and flare efficiency to reduce greenhouse gas emissions. We will expand our alliances with leading scientific organisations to collect robust science to support the management of environment risks associated with our activities and position ourselves as a partner of choice across our growing global portfolio. Wherever we operate, we bring our world-class approach to managing our interface with the environment. Woodside Experience Counts 18
WOODSIDE IN THE COMMUNITY Woodside s social licence to operate relies on establishing and maintaining effective relationships with our communities and stakeholders. We seek to build longterm and meaningful relationships with the communities in which we are active. We do this by understanding and managing our impacts and by developing and implementing programs that deliver meaningful benefits. We are focused on creating sustained value by developing and maintaining relationships that support positive outcomes for all stakeholders. We have been part of the Australian community for more than 60 years and have a particularly strong relationship with Western Australia s Pilbara region, home to the Woodside-operated North West Shelf Project and Pluto LNG. Internationally, we are progressing a combined approach to environmental and social performance to support early activities such as exploration, seismic and drilling. In 2016, we began implementing our new social investment strategy which is based around three themes: create opportunities; build resilience; and improve knowledge. While we understand each community is unique, we focus our social investment on creating and building capacity and capability development to ensure alignment with stakeholder interests, and allow delivery of longterm community benefits across the broad spread of our business activities. Via the Woodside Development Fund, we are committed to contributing A$20 million over ten years to support programs 19 Woodside Experience Counts
and organisations that focus on early childhood development. Woodside is working collaboratively with industry, governments and community organisations to achieve the aim of creating positive, long-term impacts in communities in Australia and around the world. In 2015, we made our first international contribution through the Fund to the Myanmar Education Consortium, which is supporting the delivery of parenting and early childhood education programs for around 700 children aged zero to eight in ten villages in south-west Myanmar. Our total direct social investment in 2015 was A$13.9 million*. Our social investment is complemented by our employee engagement and corporate volunteering program. We became one of the first companies in Australia to formally introduce paid volunteering leave over ten years ago. Our people volunteer through team-based activities in the community and through skilled volunteering initiatives within not-for-profit organisations. Employees also participate in community events and support community organisations through workplace giving. We are recognised as a pioneer of corporate volunteering in Australia and a strong advocate for the volunteering movement, its benefits in the workplace and to the community. Between 2010 and 2015, Woodside employees volunteered over 31,500 hours valued at A$4.9 million and generated an additional A$1.1 million through workplace giving in the same period. We work closely with Indigenous peoples to share knowledge and respect heritage and cultural values. *Includes cash value, in-kind and voluntary hours (Woodside share) Woodside Experience Counts 20
PROTECTING OUR PEOPLE We focus on health and safety because we believe that everyone has a right to go home in the same condition as they started the day. Our goal is to deliver health and safety performance that meets global top quartile as measured against our peers in the International Oil and Gas Producers Association. To achieve our goal, we expect all our employees and contractors to give paramount importance to their own health and safety, and that of others, so as to keep each other safe. We see our health and safety performance as fundamental to our aspiration to be a global leader in oil and gas. 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. This involves making the safety of our people inherent in the design phase, through development and into the production life-cycle. A healthy and productive workforce remains an important factor in Woodside s continuing success as we aspire to lead the way with effective, informative and enjoyable health and wellbeing initiatives. We are making solid progress towards delivering on our aspiration of global top-quartile health and safety performance in 2017. 21 Woodside Experience Counts
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Head Office: Woodside Energy Ltd 240 St Georges Terrace Perth WA 6000 Australia Postal Address: GPO Box D188 Perth WA 6840 Australia T: +61 8 9348 4000 F: +61 8 9214 2777 E: companyinfo@woodside.com.au September 2016 woodside.com.au canvas.woodside.com.au Follow us