Woodside Energy Ltd.

“African Petroleum as an Independent”

9th African Oil and Gas, Trade and Finance Conference and Showcase Maputo, Mozambique

Peter GrantGeneral Manager, UK

2 June 2005

NOT AN OFFICIAL UNCTAD RECORD

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 Australian currency, unless

otherwise stated.

3

2004 Result Highlights • Record reported profit of A$1084M

• NPAT (pre-significant items) A$651M, up 23.6%

• Strong underlying business, EBITDAX A$1526M, up 10%

• Net operating cashflow A$1318M, up 10%

• New reserves bookings exceeded annual production

Peer Group 10 Year Total Shareholder Return (to end Dec 04)

0

5

10

15

20

25

%

Source Data: Bloomberg

TSR: % increase in share price over 10 years, assuming dividends fully reinvested in company. No 10 year data for Pioneer & CNOOC

WPL leads top quartile TSR of peer group

4

February 2005 Production Profile

Existing Business

Committed Projects

Production Opportunities

Exploration

NWSV T1-4 NWSV Oil Laminaria Legendre Ohanet

Mutineer Exeter Otway Enfield Standalone Chinguetti

Production Opportunities

Projection as at Nov 2004

Existing Business Committed Projects

Tiof, Neptune, Train 5, Jahal Kuda Tasi, Blacktip, Stybarrow, Midway, Vincent. Production opportunities may include development options, production enhancement, business development

Exploration

Ohanet production for 2005-2010 derived using flat oil price of US$24/bbl.

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009 2010

MM

Bo

e

Risked potential from exploration spend

5

Development opportunity pipeline

•On track. Hull Steel Cutting commenced

•Project •Status•First

•Production•Investment

Decision•Design

Work

•Stalled •Stalled•Sunrise •Stalled Subject to legal and fiscal certainty

• In progress •Q2 2005 •Q4 2008•Train 5 Design work progressing

•Angel •Q4 2005 •Q4 2008 Design work has commenced

•Neptune (GoM) •In progress •2H 2005 •Late 2007/08 FEED studies underway

•Vincent •Reviewing •Reviewing •Reviewing Concept study underway

Independent project review done•Stybarrow •In progress •Reviewing •Reviewing

•Tiof (Mauritania) •Reviewing •Reviewing Appraisal and studies underway•Reviewing

•Jahal Kuda Tasi •Reviewing •Reviewing Negotiating PSC terms and access •Reviewing

FEED = Front End Engineering Design

FID = Final Investment Decision

•Q2 2005 •Q4 2007•Blacktip FEED studies complete end 2004

Blue = changes since February 2005

6

Pluto – new gas discovery in mature basin (April 2005)

Flowed 46.5MMscfg per day

Woodside permits

North West Shelf permitsGorgon

West Tryal Rocks

Chrysaor

Dionysus

Iago

Urania

Wilcox

SearipplePerseus

Goodwyn

Keast/Dockrell

Echo/Yodel

Dixon

Corvus

Cherring

Hampton

Saffron

Angel

Sage

North Rankin

GoodwynSouth

TidepoleReindeer/Caribou

Stag

Wandoo

Legendre

MutineerHermesExeter

EaglehawkEgret

CossackWanaea

Io/JantzPluto

Wheatstone

Seismic section showing amplitude brightening over crest

N

7

Woodside in Africa

Exploration interestsDevelopments: Existing and plannedWoodside offices

IndianOcean

Africa

AtlanticOcean

8

2004 Highlights – Africa

• Mauritania– Chinguetti project approved, on track for Q1 2006 start-up

– Tevet oil discovery, Tiof appraisal & Chinguetti development continued

– Equity up from 35% to 53.846% . Government exercised right to 12% of Chinguetti. Woodside now 47.383% in Exclusive Exploitation Perimeter

• Algeria – First full year contribution to condensate-LPG revenues from Ohanet

• Sierra Leone– New country entry to prospective deepwater exploration

• Kenya– Interests focused down from 7 to 3 blocks

9

2005 Update: Mauritania• Chinguetti project construction on track for

start-up during Q1 2006

• Drilling costs higher than anticipated due to subsurface conditions

• Tiof appraisal continuing

• Anticipate active offshore drilling program including up to 6 exploration wells in 2H 2005

• Onshore Taoudeni Basin farm-in (Ta11, Ta12 exploration blocks) recently approved

Tevét

BandaChinguetti

Tiof

Pelican

Block 7

PSC C6

PSCA

PSCB

PSC C2

6

5

4

3

2

7

ProspectGas Discovery

Salt Structure

3D seismic area

Oil Discovery

Nouakchott

Zouerate

Ta11

Ta12

Nouakchott

Zouerate

Ta11

Ta12

10

2005 Update: Kenya• Original 7 blocks now focussed into

three blocks

• Acquired an additional 3565 km 2D seismic, (2003 7885 km)

• Exploration well planned in 2006

K E N Y A

T A N Z A N I AMombasa

Nairobi

Block L-5

Block L-7

Block L-11

0 100

kilometres

Woodside / Dana JV

5km

11

2005 Update: Sierra Leone & Liberia

14°0'0"W 12°0'0"W 10°0'0"W

6°0'0"N

8°0'0"N

0 50 100

Kilometres

LIBERIA

SIERRA LEONE

Freetown

LB-15

LB-16

LB-17SL-7

SL-6

SL-5

SL-4

SL-3SL-2

SL-1

Monrovia

• Adjoins Blocks 16 and 17 won 100% by Repsol

• Repsol and Woodside each hold a 50% in two blocks immediately west in Sierra Leone (SL-6, SL-7)

• Acquired 3600km2 3D seismic over Blocks 6 and 7 offshore Sierra Leone (Repsol operated)

• Successful bid for offshore exploration Block 15 (100%) in Liberia’s first offshore licensing round. Initial four-year work commitment of geological and geophysical studies, 600km 2D and 1600km2 3D seismic

12

2005 Update: Libya

• Commence drilling exploration wells in late-2005 in EPSA-3 blocks

• Successful bids for 4 EPSA-4 offshore blocks in first open bid-round in Libya’s history

• 2D & 3D seismic starts end-2005 (Offshore)

• Acquiring 8300km 2D and 760 km2 3D seismic over 5 EPSA-3 blocks (awarded late-2003)

• Feasibility studies continue at Atshan Field

13

2005 Exploration Plan (as at Feb’05)Totals 2004

Actual

14Exploration Wells

2005Planned

23

Exploration Wells

Australia 2004Actual

6 13

2005Planned

ExpectedExploration Spend

~ A$ 275M(Feb 2005)

West Africa18%

Australia30%

Gulf of Mexico14%

North Africa16%

International22%

Exploration Wells

GoM 2004Actual

2 2

2005Planned

Exploration Wells

Africa 2004Actual

6 8

2005Planned

14

Africa: A Developing Continent

15

World Proven Oil and Gas Reserves

South andCentral America

North America

Asia Pacific

Africa

Proven oil reserves – 2003 (billion barrels)

Proven gas reserves – 2003 (trillion cubic feet)

Source: BP Statistical Review of World Energy 2004

102

64

47

727

102

106

254

258

476

2533

487

2200

Middle East

Europeand Eurasia

16

The Earth at Night

Source: NASA

17

Regional Comparisons – Economic Indicators

Source: 2005 CIA World Factbook

GDP GrowthInflation

Unemployment

0

5

10

15

20

25

30

35

Sub-Sahara Africa

North Africa

Malaysia

Brunei

Trinidad and Tobago%

18G

abon

Erit

rea

Nig

erLi

beria

Eth

iopi

a

Tan

zani

aC

ongo

, T

he R

epub

lic o

f

Gui

nea

Bis

seau

Som

alia

Sie

rra

Leon

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go,

The

Dem

ocra

tic R

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eria

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gand

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had

Sen

egal

Mau

ritan

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amer

oon

Sud

anZ

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bwe

Ang

ola

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nea

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na Indo

nesi

a

Ven

ezue

la

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ptM

oroc

co Alg

eria

Liby

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unis

iaN

amib

ia Mal

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th A

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Equ

ator

ial G

uine

a

0

0.2

0.4

0.6

0.8

1

1.2

Country

Boe

pe

r ca

pita

per

da

y

0

5000

10000

15000

20000

25000

US

D

Total Production per Capita per Day

GDP per Capita (USD)

Sub-Saharan Africa

North Africa

Other Areas

Hydrocarbon Production and GDP

Sources: 2005 CIA World Factbook, Wood MacKenzieNB: Data not available for all nations

Sub-Saharan North African

Energy Production and GDP (per capita)

19

Case Example: Nigeria

Sources: World Bank, Wood Mackenzie

Population vs GDP

0

20000

40000

60000

19

65

19

70

19

75

19

80

19

85

19

90

19

95

20

00Year

GD

P (

mil

lio

n U

SD

)

0

20

40

60

80

100

120

140

160

Po

pu

lati

on

(m

illi

on

s)

GDP (current US$)

Population, total

Liquids Production

0

500

1000

1500

2000

2500

19

65

19

70

19

75

19

80

19

85

19

90

19

95

20

00

Year

bb

ls/d

ay

(00

0s)

20

Hydrocarbon Production and Currency Reserves

Sub-Saharan

Sources: 2005 CIA World Factbook, Wood MacKenzieNB: Data not available for all nations

Total Energy Production and Foreign ReservesS

ao T

ome

Erit

rea

Con

go,

The

Rep

ublic

of

Gui

nea

Rw

anda Equ

ator

ial G

uine

aG

abon

Gui

nea

Bis

seau

Zam

bia

Nam

ibia

Cha

dC

amer

oon

Ang

ola

Sen

egal

Ben

inE

thio

pia

Nig

eria

Sie

rra

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omal

iaC

ongo

, T

he D

emoc

ratic

Rep

ublic

of

Libe

riaN

iger

Uga

nda

Mau

ritan

iaS

udan

Moz

ambi

que

Gha

naK

enya

Cot

e d'

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reT

anza

nia

Bru

nei

Mal

aysi

aA

lger

iaIn

done

sia

Ven

ezue

la

Liby

aM

oroc

co

Egy

ptS

outh

Afr

ica

Tun

isiaT

rinid

ad a

nd T

obag

o

Zim

babw

e

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Country

mm

bb

ls/d

ay

0

10000

20000

30000

40000

50000

60000

US

D

Foreign Reserves Data Unavailable

Total Production (mmboe)

Foreign Exchange and Gold Reserves (million USD)

Sub-Saharan Africa

North Africa

Other Areas

North African

21

Regional Comparisons

19

75

19

80

19

85

19

90

19

95

20

00

0

200

400

600

800

1000

1200

1400

kw

h

Year

Electricity/Capita

Sub-Saharan Africa

North Africa

1975

1980

1985

1990

1995

2000

0

1000

2000

3000

4000

5000

6000

US

D P

PP

Cur

rent

Year

GDP/Capita

Sub-Saharan Africa

North Africa

Source: World Bank

19

75

19

80

19

85

19

90

19

95

20

00

0

200

400

600

800

1000

1200

1400

kw

h

Year

Electricity/Capita

Sub-Saharan Africa

North Africa

22

Regional Comparisons

Source: World Bank

19

75

19

80

19

85

19

90

19

95

20

00

0

0.0005

0.001

0.0015

0.002

0.0025

0.003

kto

e

Year

Energy Production/Capita

Sub-Saharan Africa

North Africa

23

The Earth at Night

Source: NASA

24

Summary

• Sub-Sahara Africa lags North Africa in key economic indicators

• North Africa also lags most other developing nations (with hydrocarbon production)

• Why? What are the key challenges?

• How can oil and gas improve economic prosperity?

25

Issues for Emerging Producing Nations

• Technical competencies

• Appropriate regulatory framework

• Infrastructure capacity

• Strategy for investment of revenues

• Building capacity to foster local content

26

Expectation Management

• For many, oil means:

– Rapid economic development

– Freedom from poverty

• In reality, they are often disappointed. Why?

– Inadequate economic planning

– Exploration equals risk

– Unrealistic expectations

– Revenue transparency

27

Localisation and local content

• What it is about:

– Building local capacity and capability

– Timely investment in people

– Companies embracing the concept

• What it is not about:

– Short-term profits

28

Transparency

•Natural resources and revenues are domain of sovereign governments

•Public oversight of revenue management

•Industry and government share responsibility

•Woodside committed (EITI participant)

“Because we believe it’s the right thing to do and we believe it makes sound business sense”

Woodside CEO Don Voelte

29

To Our Partners In Africa

Thank You

LiberiaSierra LeoneMauritania

LibyaKenyaAlgeria