for personal use only - asx · mitigation cost estimate $322 million (2011: $282 million, 2012: $40...

Woodside Investor Briefing 28 May 2012

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Disclaimer and important noticeThis 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 instatements 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 marketphysical 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 p ystated.References to “Woodside” may be references to Woodside Petroleum Ltd. or its applicable subsidiaries

Slide 22012 Woodside Investor Briefing28 May 2012 BUILDING VALUEFor

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Evacuation procedure

Auditorium ce

Alert tone(hi h it h d i )Auditorium

Toilets

es T

erra

c

Stre

et

(high pitched siren)Be aware, you mayneed to evacuate.

St G

eorg

e

Hay

S

Evacuation tone(loud whooping) E t thS Evacuate the areavia the exits.

Slide 32012 Woodside Investor Briefing28 May 2012 BUILDING VALUEFor

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Assembly points

28 May 2012 Slide 42012 Woodside Investor BriefingBUILDING VALUEFor

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Agenda: session 1

1. Overview - Peter Coleman2. Strategy - Greg Roder2. Strategy Greg Roder3. Finance - Lawrie Tremaine4. Operations - Vince Santostefano5. Development - Robert Edwardes6. Exploration - Peter Moore7. Q & A - The Team8. Summary - Rob Cole

Slide 528 May 2012 2012 Woodside Investor BriefingBUILDING VALUEFor

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Agenda: session 2

1. Sphere (seismic projection room) - Peter Moore

2 T h l F i l Ah d2. Technology - Feisal Ahmed

3. Browse LNG - Michael Hession

4. LNG marketing - Reinhardt Matisons

ConclusionConclusion

Slide 628 May 2012 2012 Woodside Investor BriefingBUILDING VALUEFor

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OverviewOverviewPeter ColemanChief Executive Officer and Managing Director

BUILDING VALUE Slide 72012 Woodside Investor Briefing28 May 2012For

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Focus on delivering superior shareholder returns

Mission revised: “To deliver superior 25%

Woodside TSR performance

To deliver superior shareholder returns”

15%

20%

Aspiration is top quartile performance

5%

10%

0%1982-1989 1990-1996 1997-2003 2004-2010

Required for historic median performance

28 May 2012 Slide 82012 Woodside Investor Briefing

(*refer to speaker notes)

OverviewFor

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Our depth of capabilities

PARTNER OF CHOICE

Seismic Deepwater Drilling Well Technologies

Geoscience Subsea and Pipelines Offshore Platforms

FPSOs LNG Engineering LNG Operations

Marketing Environment Stakeholder Management

Slide 92012 Woodside Investor Briefing28 May 2012 OverviewFor

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Our strategic direction

Grow our portfolio

Leverage

p

gcapabilities

Maximise our core business

Slide 102012 Woodside Investor Briefing28 May 2012 OverviewFor

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Strategy being put to work

Review of organisation complete; implementing outcomes Creating synergies in operations Delivering early value from g y

Browse and creating new partnerships Broadening our exploration g p

perspective Actively assessing multiple

opportunities Pluto LNG plantopportunities

28 May 2012 Slide 112012 Woodside Investor BriefingOverviewFor

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Pluto is leading Australia’s LNG surge

Seven years from discovery to production Robust and profitable project Production phase ends execution risk Fourth ship now securedFourth ship now secured Continuing to consider expansion

opportunities for further upside

Pluto LNG plant

28 May 2012 Slide 122012 Woodside Investor BriefingOverviewFor

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StrategyStrategyGreg RoderExecutive Vice President Corporate Strategy and Planning


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Our strategy to deliver superior shareholder returns

Grow Portfolio Build exploration portfolio

Leverage Capabilities

Build exploration portfolio Develop basin studies JV partnering to expand capability and opportunities

Maximise Core

Extend core business along the value chain Expand technology capability Capture and management of markets and customers

Valu

e

Maximise Core Optimise producing assets Commercialise discovered volumes

Time

28 May 2012 Slide 142012 Woodside Investor BriefingStrategyFor

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Woodside’s distinct capabilities Core capabilities

– Onshore LNG development and operationsoperations

– Deep water drilling– Offshore engineering and FPSO

operations– Customer relationships– Strength in geosciences

Best practicep– Safety, integrity and reliability– Execution of project delivery– People and organisation


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Woodside’s adjacenciesEnvironmentRecovery factors

Ult D

Tertiary Arctic

Shallow

Deep

Ultra-Deep

Extensional Clastics

Secondary

Primary

Woodside Core

Extensional Clastics

Pre-SaltCarbonates

Compressional Fold/Thrust

1st hand experience

“Frontier” for all

ShaleCSGFast follower

Horiz. drilling

Conv.

Multilateral

GeologyInformation Differentiation

Hard Rocks/ Basement PlaysLate entrant

CSG

Tar sands

Fast follower

Drilling & Completion

HPHT

Smart completion

“Factory” drilling

Slide 162012 Woodside Investor Briefing28 May 2012 Strategy

Geologyg p

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Maximising our core business Optimise, grow and commercialise the

core producing assets– North West Shelf train refurbishment– North West Shelf train refurbishment– North Rankin Redevelopment– Greater Western Flank Phase 1– Cimatti and Laverda Commercialise the core development

assets– Pluto expansion– Browse– Sunrise Capture other resource owner gas to

enhance core businessThe bridge link between NRA and NRB

enhance core business


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Leveraging our capabilities

Expand technological capability– New technology organisation

created Development-led opportunities

– Assessing global undevelopedAssessing global undeveloped resource opportunities

Customer, market and product-led activitiesactivities


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Growing our portfolio Build exploration portfolio – mature, emerging, frontier basins

– Global basins studies– Lessons learned through past ventures

Deliver balanced portfolio– Global assessment of new venture opportunities

Establish new mature core areas– Bid on or acquiring new acreage (e.g. Cyprus)– Seek partners with local knowledge


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FinanceFinanceLawrie TremaineExecutive Vice President and Chief Financial Officer


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Pluto funding successfully completed Established profile in capital

markets Cost of debt currently 3 3% on 50

60

100

120

nts)

Cost of debt currently 3.3% on portfolio basis Strong investment grade credit

rating maintained 30

40

60

80

ring

(%)

Shar

e (U

S ce

n

g Capital management discipline

demonstrated– Capital expenditures constrained 10

20

20

40 Gea

r

Div

iden

d Pe

r

– Non-core assets divested Progressive dividend maintained Gearing below 30%

002007 2008 2009 2010 2011

Dividend per Share Gearing

Slide 2128 May 2012 2012 Woodside Investor Briefing

Dividend per Share Gearing

FinanceFor

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Our balance sheet remains strong Current commitments fully funded $1.8 billion in cash and undrawn debt capacity at

April 2012

2,000 Debt maturity profile

April 2012 $7.1 billion of debt capacity in place $250 million refinanced so far in 2012

– Credit margin 0.9% to 1.8% varying with tenor 1,000

1,500

S$ m

illion

$0.8 billion in debt to mature in 2012– $0.25 billion to be refinanced– $0.57 billion capacity no longer required $2 billi i d f th l f

500

US

$2 billion in gross proceeds from the sale of 14.7% Browse equity expected in Q3 2012 -

2012 2013 2014 2015 2016 2017+

Drawn Debt Undrawn Debt

Slide 22

As at 31 March 2012

28 May 2012 2012 Woodside Investor BriefingFinanceFor

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Positive 2012 YTD financial performance Continuing strong sales prices boosting cash from

operations Negative production impacts from cyclone activity

Realised sales prices (US$/barrel of oil equivalent)

April YTD

2011 2012

Oil 107 123Negative production impacts from cyclone activity and the NR2 project are largely behind us

Improved production performance from NWS oil and the Vincent oil facilityP iti Pl t t d t

LNG 58 75

Brent Price 110 119

Positive Pluto ramp up to date– 65% utilisation achieved vs 20% planned for May

2012 production guidance unchanged Capital expenditure consistent with guidance U

Sm

illio

n

Capital expenditure consistent with guidance Pluto provides a significant step up in operating

cash flow*

2007 2008 2009 2010 2011 Pluto Increment

$U

Woodside Pluto Increment

Slide 2328 May 2012 2012 Woodside Investor BriefingFinance

* Typical year post first price review assuming full production and $100/bbl (real 2012) oil price

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Pluto key metricsMetric Amount

Project direct cost (100%) A$15 billion

Proved plus Probable (2P) Reserves (100% Pluto, Xena) 4.8 Tcf

$

Ramp-up period Use production guidance

Shut-down frequency (per year) Biennial major (20-25 days)Intervening minor (2-5 days)

Metric (US$/boe) Initial years Long-term target

DD&A / boe ~$17-18 ~$18-19

Lifting cost / boe ~$6 ~$5

Other Income Statement Impacts (US$ Millions) Amount

Mitigation Cost Estimate $322 Million (2011: $282 million, 2012: $40 million)

Interest Expense ~$125 million (no longer capitalised post Pluto start up)

Slide 2428 May 2012 2012 Woodside Investor BriefingFinanceFor

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Woodside is well positioned for the next phase of growth

Strong balance sheet position Strong operating performance Continuing support from financial markets Step up in operating cash flows from Pluto Disciplined investment decisions Disciplined investment decisions

– Deliver superior shareholder returns– Selective investment choices– Priority development of our significant discovered, undeveloped

resources – Return of capital to investors an alternative

Slide 2528 May 2012 2012 Woodside Investor BriefingFinanceFor

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OperationsOperationsVince SantostefanoChief Operations Officer


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Woodside operated assets

KGP LNG 4/52004-2008

Northern Endeavour FPSO 1999

Domgas plant1984

Goodwyn A1995

North Rankin A 1984

CossackPioneer FPSO#

1995

KGP LNG 1-31989-1992

FPSO 19991995

NganhurraFPSO2006

Ngujima-Yin FPSO2008

Pluto gas plant2012

Okha FPSO2011

Pluto A2012

Angel2009

Otway gas plant*2007

Slide 27

*Otway gas plant interest divested 2010 #Cossack Pioneer replaced by Okha in 2011

28 May 2012 2012 Woodside Investor BriefingOperationsFor

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Strong operational performance

Woodside has a proven track record of strong operational performance

KGP combined LNG reliability Total recordable cases e

100

(%)

KGP combined LNG reliability

2010 peer group average

able

cas

es

Total recordable cases

ase

freq

uenc

y ra

teou

rs w

orke

d)

4.82 4.95

5.98

4.78

90

95

Rel

iabi

lity

Tota

l rec

orda

Tota

l rec

orda

ble

ca(p

er m

illio

n h

3.82

852008 2009 2010 2011

155 187 229 177 140

2007 2008 2009 2010 2011

T

Slide 2828 May 2012 2012 Woodside Investor BriefingOperationsFor

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Synergies across the way we work Extracting synergies across the way we

operate our business units– Shared vision

7

Unit lifting cost (gas)

Shared vision– Alignment on growth opportunities– Standardising the way we operate

/boe

A$/

02008 2009 2010 2011


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Investing in the future

Developing new people with the right capabilities to support our

h 139 142

Number of training participants

growth

81

10188

104 104

134 139 136 136 142

1528 33

4964

2007 2008 2009 2010 2011

Indigenous pathways Trainees and Apprenticeships Graduates


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Key messages

Deep experience operating upstream oil and gas facilities

Sustainable world-class performance

Consolidation to bring synergies to our operations

Positioning ourselves for the future by developing our people and

capabilitiescapabilities


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DevelopmentDevelopmentRobert EdwardesExecutive Vice President Development


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Development Recent track record of successful project delivery

– Pluto LNG – second cargo sailed– North Rankin B – being commissioned– Okha FPSO – producing– Greater Western Flank Phase 1 – underway for 2016 production Thorough and disciplined planning approach for next round

– North West Shelf – continued optimisation– Browse – flawless pre-FID executionp– Laverda – developing concepts for our latest oil discovery Complex, world class projects – cutting edge technology Woodside’s delivery performance is equal to the majorsWoodside s delivery performance is equal to the majors

28 May 2012 Slide 332012 Woodside Investor BriefingDevelopmentFor

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North Rankin Redevelopment Project

Maximises recovery from North Rankin and Perseus fields Investment approved March 2008, will start up 2013pp , p 5 Tcf 2P gas reserves, 125 metre water depth North Rankin B fixed jacket installed September 2011

C t d t N th R ki A b t 100 t b id F b 2012 Connected to North Rankin A by two 100 metre bridges February 2012 24,250 tonne topsides

– prefabricated by Hyundai Heavy Industries in Republic of Koreap y y y p– installed on jacket April 2012– second heaviest industry float-over Now in hook-up and commissioning phase Now in hook-up and commissioning phase


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North Rankin B video

Click here to view the video on Woodside’svideo on Woodside’s

website


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Pluto LNG

Standalone deep water LNG development Investment approved July 2007, started up 2012 4.8 Tcf 2P gas reserves, currently five wells at 830 metre water depth Fixed jacket riser platform in 85 metre water depth 36 inch 180 kilometre pipeline from platform to shore 36 inch, 180 kilometre pipeline from platform to shore Onshore LNG train with 4.3 Mtpa capacity – modular construction

– 264 units fabricated in Thailand– heaviest weighed 2,000 tonnes World class delivery outcome involving considerable innovation Now producing and shippingNow producing and shipping


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Pluto construction video


website


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Key messages

Woodside has demonstrated ability to deliver complex mega projects

C t d h d l t l t b tt th Cost and schedule outcomes are equal to or better than peers

Exceptional suite of in-house capabilities – reservoir, drilling and completions subsea and pipelines project execution engineeringcompletions, subsea and pipelines, project execution, engineering and technology

We will continue to streamline and build on lessons learnedWe will continue to streamline and build on lessons learned, strengthen the bench, innovate, leverage capability and technology to minimise future development cost


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ExplorationExplorationPeter MooreExecutive Vice President Exploration


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IntroductionTo ensure that exploration remains a key part of Woodside’s growth, we intend to:

H ld th b t l ti tf li i A t li Hold the best exploration portfolio in Australia

Broaden our approach to include global opportunities

Increase our exploration spend to match our objectives

Build relationships with our peers and become a partner of choice

Build up our capabilities to ensure we can deliver

Slide 40

p p

28 May 2012 2012 Woodside Investor BriefingExplorationFor

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Continuing to grow through exploration Nine exploration wells in 2011 Four were likely commercial successes >115 000 km2 of Australian acreage

Browse Basin

>115,000 km2 of Australian acreageCarnarvon Basin

Outer Canning

Beagle sub-basin

Exmouth sub-basin

Slide 4128 May 2012 2012 Woodside Investor BriefingExplorationFor

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Securing the best Australian acreage

Under-explored Triassic section Large structures

Outer Canning Seismic Data

Drilling in 2013/2014

Undrilled Triassic structure

Outer Canning

Slide 4228 May 2012 2012 Woodside Investor BriefingExploration

Canning

For

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Laverda – commercialising new discoveries Norton-1 oil and gas

discovery

Extends Laverda North-2 oil pool

P id f th t Provides further support for Laverda development

Development studies in p2012 to underpin 2013 concept select


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Long history of leading seismic technology

Proven ability to acquire complex surveys Leader in amplitude supported

drilling In Australia:‐ Pioneer of 3D seismic‐ Pioneer of electro-magnetic

surveys‐ First multi-azimuth seismic‐ First dedicated 4D seismic

28 May 2012 Slide 442012 Woodside Investor BriefingExplorationFor

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Opening new exploration playsDrilled >2km of Triassic sequence Extended gas play to North

Extended gas play to WestDeveloped new plays

Developed new plays

Deepest water wells in Australia

Developed new plays

Deepest water wells in Australia

28 May 2012 Slide 452012 Woodside Investor BriefingExplorationFor

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Grow internationally from our strengths

CanariesEvaluation update

CanariesEvaluation update

Cyprusbid round

submission

Cyprusbid round

submission

South KoreaSouth Korea

USAResume drilling

f I b k 1

USAResume drilling

f I b k 1

Evaluation updateEvaluation update submissionsubmission

South KoreaJujak-1

South KoreaJujak-1

PeruPlanning for 2D

PeruPlanning for 2D

of Innsbruck-1of Innsbruck-1

Australiasix wellsAustraliasix wells

BrazilDevelopment

studies

BrazilDevelopment

studies

gseismic

gseismic


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An increase in exploration spending is planned ...2000

BG Anadarko

W d id1000

1500

US

$M) Apache

BG Anadarko

Repsol

Woodside

500Santos

INPEX

(U

Bain & Co 2012 Solid lines indicate approximate actual exploration spend ranges for the specified companies

2000 2002 2004 2006 2008 20100

PioneerSantos

2012 2014


Bain & Co., 2012. Solid lines indicate approximate actual exploration spend ranges for the specified companies. The Woodside line includes actual expenditure as well as an indicative projection beyond 2011.

ExplorationFor

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... focussed on emerging and frontier basins2015-2017 exploration

spend by basin type (planned)2012-2014 planned exploration spend by basin type (planned)2

2005-2011 exploration spend by basin type1

47%

28%43%

17%

14%

13%

47%

24%41%74%

14%

Mature Frontier Emerging

1 Where historic basin type records were not kept, historic spend for that year has been split by well location.2 F ti d ll hi h i thi 3 i d d t O t C i l ti


2 Frontier spend unusually high in this 3-year period due to Outer Canning exploration.

ExplorationFor

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Key messagesWoodside will expand its exploration efforts over the next few years

Continue to explore in support of our existing business units

Build the best portfolio in AustraliaBuild the best portfolio in Australia

Broaden our approach to develop a global presence

Build our exploration capabilities and partnerships


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QuestionsQuestions


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SummarySummaryRob ColeExecutive Director Commercial


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Building value: key themes

Unrelenting focus on delivering superior Unrelenting focus on delivering superior shareholder returns

Depth of capabilities

Proven ability to deliver world class Proven ability to deliver world-class projects

Slide 522 May 2012 2012 Woodside Investor BriefingSummaryFor

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Building value: key themes

Clear disciplined strategy to build value by Clear, disciplined strategy to build value by– maximising our core business

– leveraging our capabilitiesleveraging our capabilities

– growing our portfolio

Strong balance sheet to fund growthg g

2 May 2012 Slide 532012 Woodside Investor BriefingSummaryFor

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Woodside Investor Briefing 28 May 2012

For

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The Sphere seismic data projection roomThe Sphere – seismic data projection roomPeter MooreExecutive Vice President Exploration


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Introduction

Woodside is a leader in utilising advanced seismic techniques e.g. 4D 4D seismic was a planned technology for managing the Enfield reservoirse s c as a p a ed tec o ogy o a ag g t e e d ese o Enfield 4D was Australia’s first dedicated time-lapse survey

– Enfield production relies on injected water to sweep oil to producing wells

– Early field performance (2006) demonstrated poor sweep performance

– 4D monitor seismic survey early in field life (2007) enabled a clear diagnosis

E l dditi f i j ti ll (2007) bl d t t il– Early addition of an injection well (2007) enabled access to unswept oil

Recognised by peers as an outstanding application of this technology

Slide 5628 May 2012 2012 Woodside Investor BriefingThe SphereFor

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Development of new techniques

1950s 1960s 1970s 1980s 1990s 2000s 2010sGRAVITY MAGNETICS

2D SEISMIC

3D SEISMIC

4D SEISMIC

MAZ WAZ RAZ1

BROADBAND

1 MAZ – Multi azimuth; WAZ – Wide azimuth; RAZ – Rich azimuth: Emerging seismic acquisition techniques that acquires data from different directions to improve the sub surface image

Slide 5728 May 2012 2012 Woodside Investor BriefingThe Sphere

from different directions to improve the sub-surface image.

For

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Enfield 4D monitoring plan Water injection and production change the reservoir

pressure and fluid content 4D seismic can detect these changes in pressure and g p

fluid content

28 May 2012 Slide 582012 Woodside Investor BriefingThe Sphere For

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Enfield oil recovery

5 water injectors at the gas-oil contact (south)3 t i j t t th il t t t Oil-Water contact

WATERWater injectors

Oil producers

3 water injectors at the oil-water contact (north) 8 oil producers midway in the reservoir Sweep relies on good injector to producer

OILWater injectors

Sweep relies on good injector to producer communication 4D seismic was part of the reservoir

management plan Gas-Oil GASmanagement plan

0 1.0 2.0 km

Ncontact GAS

Slide 5928 May 2012 2012 Woodside Investor BriefingThe Sphere For

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4D results: unswept areas of field detectedINJECTORINJECTOR Reservoir Pressure Water Saturation

PRODUCER ENA04

NEW OIL PRODUCER

ENE01

F

No Saturation Change

500

NHigh Pressure NEW WATER INJECTOR

ENE01

N

Slide 60

500m500m

28 May 2012 2012 Woodside Investor BriefingThe Sphere For

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4D results: increased oil production ENC01 sidetrack drilled within 7 months of

seismic monitor acquisition N ENB02

Increased production at ENA02 oil producer

6 week payback time for ENC01 sidetrack ENA02

ENC01

ENC01 - STENA01

ENC01 sidetrack commences

injection on 22 September incremental

Blue = Water Yellow = Gas

ENC01pproduction from

ENA02

Blue = Water, Yellow = Gas

28 May 2012 Slide 612012 Woodside Investor BriefingThe Sphere For

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Key messages

Leadership in utilising advanced seismic techniques e.g. 4D Enfield 4D was Australia’s first dedicated time-lapse survey andEnfield 4D was Australia s first dedicated time lapse survey and

continues to provide value– Enabled early diagnosis in order to increase production– Identified unswept areas of the field– Underpinned an infill water injectorG d d t di f th t h l h ll d W d id t t t Good understanding of the technology has allowed Woodside to extract value from 4D seismic

Slide 6228 May 2012 2012 Woodside Investor BriefingThe Sphere For

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TechnologyTechnologyFeisal AhmedExecutive Vice President Technology


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Technology

Woodside is unique – mid cap E&P with world class capability

Woodside has a strong heritage of successful innovation

Strategic shift – leverage our technical capability for growth

New technology organisation

Slide 6428 May 2012 2012 Woodside Investor BriefingTechnologyFor

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Technology strategy

Cost LeadershipMarket Leadership


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Well Construction Technologies

MultilateralsFewer Wells

Big Bore Gas WellsHigher Rates

Casing DrillingLower Costs

Boat Installed ConductorProduction

Acceleration

Slide 66

Acceleration

28 May 2012 2012 Woodside Investor BriefingTechnologyFor

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Subsea Technologies

O-Tube Test FacilityPipe Stabilisation

AUV SurveysLower Costs

Lightweight Well InterventionLower Costs

Direct ElectricalHeating

Reliable Production


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Next generation LNG

1000

100

nits

Fewer modulesPre-commissioned

>20% cheaper>35% more CO2 efficientOnshore or near-shore

1

10Un

NWS Train 4 NWS Train 5 Pluto Next Generation LNG


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Key messages

Technology will: Lower our costsLower our costs Create differentiated

capabilities Unlock new opportunities

to create value Enable our next phase of p

growth


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Browse LNGBrowse LNGMichael HessionSenior Vice President Browse


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Browse – a world-class resource Australia’s next major offshore gas province Contingent resource

Calliance Brecknock Torosa– Calliance, Brecknock, Torosa– 15.5Tcf dry gas and 417 MMbbl condensate

Development concept – Browse to James Price Point– 3 DTUs, 1 CPF offshore– 3 trains with 12 mtpa capacity

Core value demonstrated through minor equity saleequity sale

Browse retention leases

DTU = Dry Tree UnitCPF = Central Processing Facility

28 May 2012 Slide 712012 Woodside Investor BriefingBrowse LNGFor

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Browse LNG video


website

Slide 7228 May 2012 2012 Woodside Investor BriefingBrowse LNGFor

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Browse – value creation through…

Disciplined approach– drives certainty of cost and scheduledrives certainty of cost and schedule

Contracting strategy– drives competition, innovation and risk sharing

Woodside’s capabilitiesWoodside’s capabilities – delivers best in class technical and

commercial outcomes


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Disciplined approach – independent verification

Basis of design– “Consistent with megaprojects that had good outcomes” – Independent

Project Analysis Front-end engineering and design

– Top decile FEED definitionTop decile FEED definition– “CPF FEED… is considered to be best in class” – Browse JV Reservoir analysis

20% i i b i d d tl ifi d b Mill & L t– 20% increase in resource base – independently verified by Miller & Lents


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Contracting – certainty of cost and schedule

Competitive FEED and tender process

Maximising front-end loading

Optimising lump sum components

Tier one contractors selected on basis of

capability and capacitycapability and capacity


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Leveraging capabilities

Core capabilities and functional excellence– Leverage lessons

learned Joint venture partners Joint venture partners

involved in extensive assurance program Historic Native Title

Agreement


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Next steps

Complete evaluation of the James Price Point development Final Investment Decision

– 1H 2013 Execute Future prospects


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LNG marketingLNG marketingReinhardt MatisonsPresident Marketing


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Building and broadening our premium customer base in Asia

LNG marketing strategy:1. Maximise value of sales and recontracting for NWS, Pluto1. Maximise value of sales and recontracting for NWS, Pluto

production2. Secure long-term sales to support FIDs for greenfield LNG

projectsprojects3. Pursue opportunities, leverage relationships to build LNG

portfolio4. Continue to build trading capabilities and optimise value through

investment in LNG shipping capacity

28 May 2012 Slide 792012 Woodside Investor BriefingMarketingFor

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Market drivers underpin our LNG strategy

The LNG Marketing Strategy is underpinned by:– Growing demand and continuing strong Asian pricing– Woodside’s Australian base; customer relationships; track record; and rich

gas portfolio– MIMI sale and joint marketing

Market issues:– Japan nuclear uncertaintyJapan nuclear uncertainty– Potential for further Qatari diversions– North America LNG supply potential

Slide 8028 May 2012 2012 Woodside Investor BriefingMarketingFor

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Global LNG demand growth is robust

140

160

180 Global LNG Demand (Source: Wood Mackenzie)

100

120

140

mtp

a 2011

40

60

80m 2019 2025

0

20

JKT China & India Emerging Asia Europe Rest of World

(J S h K T i )

Slide 8128 May 2012 2012 Woodside Investor BriefingMarketing

(Japan, South Korea ,Taiwan)

For

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Significant opportunities exist in our key markets

120

140Asia Pacific Uncontracted LNG Demand

(Source: Wood Mackenzie)

80

100

tpa

Emerging AsiaChinaIndia

Woodside’s Australian LNG projects are targeting ~75 Mtpa of uncontracted demand in Asia in 2019

40

60

mt India

TaiwanSouth KoreaJapan

0

20

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20252011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

27/05/2012 Slide 822012 Woodside Investor BriefingMarketingFor

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Asia Pacific regasification capacity continues to grow

Country Current Terminals Proposed or Under Construction Potential Capacity by 2020

Japan 28 11 199 mtpa

South Korea 4 3 88 mtpa

Taiwan 2 (expansion plans) 18 mtpa

China 6 18 74 mtpa

India 2 8 41 mtpa

Malaysia 2+ 8 mtpa

Singapore 1 6 mtpa

Thailand 1 (expansion plans) 10 mtpa

Indonesia 4 8 mtpa

Totals: 43 47 451 mtpa

27/05/2012 Slide 832012 Woodside Investor Briefing

Source: Wood Mackenzie

MarketingFor

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More projects are needed to meet growing demand

400

500 Global LNG Supply and Demand Outlook Possible Developments

Probable

300

400

mtp

a

Probable Developments

Under Construction

100

200

m

Operational Projects

Wood Mackenzie Global LNG

0

100

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Demand

FACTS Global Energy Global LNG Demand


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Long-term LNG prices remain strong

30Post March 2011 Asia Pacific Price Outcomes (DES Equivalent)

20

SD /

MM

Btu

0

10$US

50 60 70 80 90 100 110 120 130 140 150

Oil Price $US / bbl

Indicative pricing range based on Woodside market intelligence on the results of some 20 recent price outcomes following buyer and seller price negotiations

Slide 8528 May 2012 2012 Woodside Investor BriefingMarketing

Oil Parity

For

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Our LNG sales are calibrated to the marketeq

uity

LN

G

Q1 2014Between 2011 and 2014, more than 80% of Woodside’s equity LNG volumes will have been subject to some form of price renegotiation Slide 86

Woo

dsid

e e some form of price renegotiation

V l d l bj i i i * W d id i LNG

2011

Volumes under long term contract subject to price renegotiation* Woodside equity LNG output

28 May 2012 2012 Woodside Investor Briefing Slide 86MarketingFor

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Generating value through shipping

Woodside’s preference is Delivered Ex-Ship (DES) LNG sales

WOODSIDE BUYERS

Gas Production

Gas Production LiquefactionLiquefaction ShippingShipping RegasRegas

Transmission and

Distribution

Transmission and

Distribution

WOODSIDE BUYERS

Control of shipping enables:– CAPEX optimisation– Production maximisation– Maximum flexibility and optimal fleet utilisation– Arbitrage capture and increased spot and trading opportunitiesArbitrage capture and increased spot and trading opportunities


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We have added a ship to the Pluto fleet

Woodside currently manages an integrated fleet of three ships for Pluto LNG– Woodside Donaldson; a 165,500 m3 membrane vessel– LNG Ebisu; a 147,545 m3 moss vessel– Energy Horizon; a 177,440 m3 moss vessel

To meet the expected future shipping needs of Pluto LNG, and to take advantage of other potential opportunities, Woodside has chartered an additional LNG ship to be delivered in 2013additional LNG ship, to be delivered in 2013.


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Woodside is well positioned for LNG growth

Fundamental drivers of LNG demand are strong– Asia Pacific is the core regional market and the centre of growth

Woodside’s key strengths include– Existing relationships, in particular with buyers in premium markets

Gas quality that compares favourably to much of the proposed supply– Gas quality that compares favourably to much of the proposed supply– Shipping capability, which we are continuing to build

Woodside is well positioned to support our existing projects and to pursue our j tnew projects


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BiographiesBiographies

BUILDING VALUE28 May 2012 Slide 902012 Woodside Investor BriefingFor

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BiographiesPeter ColemanChief Executive Officer andManaging Director

Robert ColeExecutive Director Commercial

Industry Experience: 27 years

Joined Woodside: 2011

Previous Industry Roles: Vice President ExxonMobil Development Company



Previous Woodside Roles: General Counsel, EVP Commercial and Legal, EVP C t Aff i d S t i bilitExxonMobil Development Company,

Vice President Americas, President and General Manager ExxonMobil Indonesia, Production Operations Manager, Oso Restoration Executive (Mobil Nigeria), Manager Strategic Planning and Business Analysis

EVP Corporate Affairs and Sustainability.

Previous Industry Roles: MallesonsStephen Jaques (21 years) – corporate, commercial, projects, energy and resources work based in Perth, London and Melbourne. Three years as Partner g y

(ExxonMobil Production Co).y

in Charge in Western Australia.

BUILDING VALUE29 May 2012 Slide 912012 Woodside Investor Briefing DayFor

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BiographiesGreg RoderExecutive Vice President Corporate Strategy and Planning

Lawrie TremaineExecutive Vice President and Chief Financial Officer



Previous Industry Roles: Head of Infrastructure (AMP Capital Investors) MD



Previous Woodside Roles: Vice President Group Financial Control Vice PresidentInfrastructure (AMP Capital Investors), MD

Social Infrastructure Assets. Global Chief Executive Officer (Energy Developments Ltd), President (CEO) (Energy Developments Inc (USA)), Head of Equities/CEO (Standard Equities Pty Ltd South Africa), Director Global Resources

Group Financial Control, Vice President Treasury and Taxation.

Previous Industry Roles: Alcoa (17 years) -mining, primary processing and down stream manufacturing sectors of the aluminium industry. Five years in Northern Asia,

ti b i d l t d l diSouth Africa), Director Global Resources Group (Macquarie Equities Ltd (Australia)), CEO Australasian Business (P&P Australasia Ltd/Bridge Oil Ltd), Manager New Ventures/Acquisitions and Manager Planning and Budgeting (Esso Australia Ltd).

supporting business development and leading Alcoa’s Asia Pacific finance team.


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BiographiesVince SantostefanoChief Operations Officer

Robert EdwardesExecutive Vice President Development



Previous Woodside Roles: Executive VP Production Division, Director Australian Business Unit Australian Business Unit



Previous Industry Roles: Managing Director (Worley Parsons (ten years) (US and Latin America) Project Director KizombaBusiness Unit, Australian Business Unit

(AusBU), Project Manager - LaminariaPhase 2 Field Expansion, Laminaria Asset Manager, Oil Operations Manager, Team Leader MODU Well Engineering.

Previous Industry Roles: Senior Drilling C &

America) Project Director Kizombadeepwater oil development Angola (Exxon Mobil (25 years)).

Consultant to Woodside, Drilling & Production Engineer and Field Supervisor (Beach Petroleum).


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BiographiesPeter MooreExecutive Vice President Exploration

Feisal AhmedExecutive Vice President Technology



Previous Woodside Roles: VP Exploration Australia, Exploration Technology Manager Exploration



Previous Woodside Roles: Executive Vice President Development, Senior Vice President Middle East & Africa BusinessTechnology Manager, Exploration

Manager (GOM), Head of Evaluation, Manager Geology.

Previous Industry Roles: Eight years as Geologist with Delhi Petroleum prior to joining Esso Australia, four years with

President Middle East & Africa Business Unit.

Previous Industry Roles: ExxonMobil and Consulting (30 years) - Technical, management and executive assignments that spanned oil and gas exploration and

d ti i i k ti dExxonMobil in Houston working on Africa and managing Global Studies.

production, engineering, gas marketing and new business development globally.


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BiographiesMichael HessionSenior Vice President Browse

Reinhardt MatisonsPresident Marketing




Previous Woodside Roles: Business Development opportunities in the United States and North Africa Managed

Joined Woodside: 1996 – 2002, rejoined 2004

Previous Woodside Roles: LNG Marketing Manager, Opportunity Manager Train 5, General Marketing Manager, Director

States and North Africa, Managed Woodside’s operations in Libya.

Previous Industry Roles: 10 years in a variety of roles with BP, in a range of locations including Indonesia, the United States, Vietnam, Norway and the former S

Marketing.

Previous Industry Roles: Lead NWS Domestic Gas contract disaggregation negotiator, Manager Strategic Planning and Manager Gas Purchasing (Alinta Gas, Western Power) Senior Consultant (Poten

Soviet Union.) (

and Partners New York).


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BiographiesMike LynnVice President Investor Relations



Previous Woodside Roles: Investor Relations Manager, Group Manager Investor Relations.

Previous Industry Roles: Energy research analyst (Prudential Bache & BNP Paribas)analyst (Prudential Bache & BNP Paribas), Technical advisor (Petroleum Securities), Geotechnical consultant to oil and gas industry, various geophysical and management roles (Esso Australia Ltd, Pancontinental Petroleum Ltd and Auspet).


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