For personal use only - ASX · Mitigation Cost Estimate $322 Million (2011: $282 million, 2012: $40...
Transcript of 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
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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
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OverviewOverviewPeter ColemanChief Executive Officer and Managing Director
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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
BUILDING VALUE Slide 132012 Woodside Investor Briefing28 May 2012For
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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
28 May 2012 Slide 152012 Woodside Investor BriefingStrategyFor
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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
28 May 2012 Slide 172012 Woodside Investor BriefingStrategyFor
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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
28 May 2012 Slide 182012 Woodside Investor BriefingStrategyFor
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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
28 May 2012 Slide 192012 Woodside Investor BriefingStrategyFor
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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
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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
$2 billion in gross proceeds from the sale of 14.7% Browse equity expected in Q3 2012 -
2012 2013 2014 2015 2016 2017+
Drawn Debt Undrawn Debt
Slide 22
As at 31 March 2012
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Positive 2012 YTD financial performance Continuing strong sales prices boosting cash from
operations Negative production impacts from cyclone activity
Realised sales prices (US$/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
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* 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
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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
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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
28 May 2012 Slide 342012 Woodside Investor BriefingDevelopmentFor
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North Rankin B video
Click here to view the video on Woodside’svideo on Woodside’s
website
28 May 2012 Slide 352012 Woodside Investor BriefingDevelopmentFor
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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
28 May 2012 Slide 362012 Woodside Investor BriefingDevelopmentFor
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Pluto construction video
Click here to view the video on Woodside’svideo on Woodside’s
website
28 May 2012 Slide 372012 Woodside Investor BriefingDevelopmentFor
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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
28 May 2012 Slide 382012 Woodside Investor BriefingDevelopmentFor
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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
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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
Slide 4728 May 2012 2012 Woodside Investor Briefing
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
Slide 4828 May 2012 2012 Woodside Investor Briefing
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
Slide 4928 May 2012 2012 Woodside Investor BriefingExplorationFor
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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
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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
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Woodside Investor Briefing 28 May 2012
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The Sphere seismic data projection roomThe Sphere – seismic data projection roomPeter MooreExecutive Vice President Exploration
BUILDING VALUE Slide 552012 Woodside Investor Briefing28 May 2012For
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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.
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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
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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
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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
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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
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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
BUILDING VALUE Slide 702012 Woodside Investor Briefing28 May 2012For
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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
Click here to view the video on Woodside’svideo on Woodside’s
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
Slide 7328 May 2012 2012 Woodside Investor BriefingBrowse LNGFor
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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
28 May 2012 Slide 742012 Woodside Investor BriefingBrowse LNGFor
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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
28 May 2012 Slide 752012 Woodside Investor BriefingBrowse LNGFor
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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
Slide 7628 May 2012 2012 Woodside Investor BriefingBrowse LNGFor
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Next steps
Complete evaluation of the James Price Point development Final Investment Decision
– 1H 2013 Execute Future prospects
Slide 7728 May 2012 2012 Woodside Investor BriefingBrowse LNGFor
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LNG marketingLNG marketingReinhardt MatisonsPresident Marketing
BUILDING VALUE Slide 782012 Woodside Investor Briefing28 May 2012For
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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)
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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
Slide 8428 May 2012 2012 Woodside Investor BriefingMarketingFor
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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
Slide 8728 May 2012 2012 Woodside Investor BriefingMarketingFor
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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.
Slide 8828 May 2012 2012 Woodside Investor BriefingMarketingFor
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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
Slide 8928 May 2012 2012 Woodside Investor BriefingMarketingFor
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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
Industry Experience: 27 years
Joined Woodside: 2006
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
Industry Experience: 25 years
Joined Woodside: 2011
Previous Industry Roles: Head of Infrastructure (AMP Capital Investors) MD
Industry Experience: 26 years
Joined Woodside: 2006
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.
BUILDING VALUE29 May 2012 Slide 922012 Woodside Investor Briefing DayFor
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BiographiesVince SantostefanoChief Operations Officer
Robert EdwardesExecutive Vice President Development
Industry Experience: 33 years
Joined Woodside: 1999
Previous Woodside Roles: Executive VP Production Division, Director Australian Business Unit Australian Business Unit
Industry Experience: 35 years
Joined Woodside: 2012
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).
BUILDING VALUE29 May 2012 Slide 932012 Woodside Investor Briefing DayFor
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BiographiesPeter MooreExecutive Vice President Exploration
Feisal AhmedExecutive Vice President Technology
Industry Experience: 32 years
Joined Woodside: 1998
Previous Woodside Roles: VP Exploration Australia, Exploration Technology Manager Exploration
Industry Experience: 35 years
Joined Woodside: 2007
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.
BUILDING VALUE29 May 2012 Slide 942012 Woodside Investor Briefing DayFor
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BiographiesMichael HessionSenior Vice President Browse
Reinhardt MatisonsPresident Marketing
Industry Experience: 31 years
Industry Experience: 22 years
Joined Woodside: 1998
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).
BUILDING VALUE29 May 2012 Slide 952012 Woodside Investor Briefing DayFor
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BiographiesMike LynnVice President Investor Relations
Industry Experience: 35 years
Joined Woodside: 2002
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).
BUILDING VALUE29 May 2012 Slide 962012 Woodside Investor Briefing DayFor
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