ASX ANNOUNCEMENT

Thursday, 19 June 2008

WOODSIDE PRESENTS AT AUSTRALIAN RESOURCES AND ENERGY CONFERENCE

Today, Woodside's Managing Director and Chief Executive Officer, Don Voelte will present at a UBS Australian Resources and Energy Conference in Sydney. A copy of the presentation is attached and will be available on the Woodside website at http://www.woodside.com.au/. Contacts: MEDIA Roger Martin W: + 61 8 9348 4591 M: + 61 413 018 674 E: roger.martin@woodside.com.au

INVESTORS Chris Bishop W: + 61 8 9348 4691 M: + 61 407 906 147 E: investor@woodside.com.au

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Meeting the challenges of LNGDon Voelte Managing Director and CEO, Woodside Energy Ltd.

19 June 2008

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Disclaimer and important Notice

This presentation may contain 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.

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CompressionNorth Rankin

Echo YodelLow pressure train

PerseusAngel

Goodwyn

20081984 1989 1992 2004Indicative only, Woodside share

LNG Train 3

LNG Train 1, Train 2

Pipeline Natural Gas

LNG Train 4

LNG Train 5

AdditionalTrains ?

Prod

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We have a long history…

North West Shelf growth history

Longevity of assets.

Woodside supplying pipeline gas from the North West Shelf to mines and utilities since 1984.

LNG trains since 1989

Offshore fields like North Rankin still producing 24 years later.

North West Shelf business has grown along with LNG market capacity.

Having reserves in place has always been important.

Woodside has a proved and probable reserves life of around 25 years.

Train 5 is the first modularised LNG train.

When completed, there will be 6 LNG trains in Australia of which Woodside built 5.

Furthermore, the NWSV has space available to build additional trains if extra gas and the markets are available. F

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Woo

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Exxon

Mobil

Total

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nBP BG ENI

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oPhil

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ear 2005

20102015

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Exxon

Mobil

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nBP BG ENI

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ear 2005

20102015

Independent ranking of operated LNG capacity

200520102015

and a bright future

Source: Poten & Partners

Nov IBD 2007

Graphs exclude National Oil Companies

Woodside

Poten & Partners ranked key LNG suppliers in terms of operated capacity.

Woodside is up there with the super-majors in terms of operated capacity, and by 2015 could be a global leader in LNG.

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Multiple products

Japan ChinaKorea

Condensate

Oil

LPG

Cossack PioneerFPSO

North Rankin ‘A’Production Platform

Goodwyn ‘A’Production Platform

LPGStorage

LNGStorage

Jetties

LNGPlant

Pipeline gas plant

Pipeline gas to Pilbara

Pipeline gas toPerth

Condensate Storage

LNG

methaneethanepropanebutane

lean

rich

Woodside’s LNG value chain – as shown on the NWS.NWS fields have over 20 trillion cubic feet of gas reserves after 24 years of production. Gas reservoirs can yield up to 90% recovery.

Woodside is an experienced operator of offshore fields, trunklines, onshore gas processing facilities, liquefaction facilities, storage, loading and LNG shipping. We have safely delivered over 2400 LNG cargoes to customers primarily in South East Asia.

Karratha gas plantThe original three trains were the first air-cooled LNG trains in the world. The plant works 24 hours a day, 7 days a week and delivers around:

• 70% of Woodside’s current equity production • almost half of Australia’s total oil and gas and • about two thirds of Western Australia’s natural gas

Cost around A$25 billion to build. Costs about A$350 million a year to run.F

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LPGFractionation

C3C4

C5+

FEED

LNG

Pilbara

Perth

Pipeline gas plant

LNG Train 2LNG Train 3

LNG Train 5

LNG Train 1

Pipelinegas

Condensate Stabilisation

C5+ Condensate

LPG

LNG integration

LNG Train 4

~ $17

~ $54

~ $105

~ $106

$ figures are indicative revenue per boebased on Q1 2008 ASX report

LNG is a costly and complex business, and benefits from plant integration.

The approximate revenue per boe for NWS products is shown on the right hand side of the slide.

Integrated plant advantages• shared infrastructure and operating costs• additional products such as LPG and condensate are worth almost double the current value of LNG, around $100 per boe • cost effective expansion results in proportionally higher overall margins

Rich gas with high end hydrocarbons can really help the project economics and provide product – and market diversity.

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Liquefaction Cost

Estimated Feedgas Cost

Competitive cost operations

2008 cost information

$/ M

Mbt

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NWS

NWST5

Browse Pluto

Established Under construction, planned & potential

Sunrise

Dominated by NOCs Dominated by IOCsRich gas / straightforward development Leaner gas / difficult development

CERA cost research indicates Woodside is a competitive cost operator. Cost escalation in the industry is clear, with existing facilities to the left and the new projects and developments to the right. The relative cost of liquefaction and feed gas for Woodside’s existing and potential projects are arrowed.To the left of Browse and Sunrise are projects with relatively cheap onshore feedstock gas, such as those in PNG. To the immediate right of Pluto are Gorgon and Ichthys, while at the extreme right, are estimated costs of Gladstone coal seam methane.

PlutoHigher liquefaction costs reflect inclusion of significant pre-investment for Pluto Trains 2 and 3 in costs.In the long run, we expect Pluto unit costs to come down.

Cost of feedstock gas and liquefaction cost is important. Experience, technology and project management in liquefaction are vital.F

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Proximity to markets

Australia is fortunately placed with respect to strong and growing demand in SE Asia.

Traditional LNG buyers are in Japan, Korea and Taiwan. They tend to have:• existing import facilities • firm LNG requirements• acknowledged the strategic importance of Australian LNG in their portfolios • a preference for low risk sellers with strong reputations for safe and reliable supply, such as Woodside

Composition of gas can play a part in LNG attraction. • proportion of ethane, propane and butane drives heating value of LNG• NWS LNG an average heating value of ~1130 Btu/scf• Current customers in Japan tend to have minimum heating specifications around 1070 Btu/scf• US markets will often have heating requirements as low as 970 Btu/scf

While shipping times are important, meeting LNG product quality specifications should not be overlooked.

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New LNG pricing paradigm

JCC oil price US$/bbl

LNG price US$/mmbtu

above oil parity

‘S’ curve

‘J’ curve

New contracts

Price Out of the

RangePOR

Range of oil pricesspecified in contract

Pricing formula increasingly leveraged to oil priceWider or unspecified JCC price rangeOften exceeds oil parity at low JCC prices

LNG market continues to be buoyant.

• demand still growing, supply projects continue to be delayed.

• Pluto is one of only 3 LNG projects in the world to achieve sanction in last 3 years.

• indications are that the LNG market will stay tight to 2015 and possibly beyond.

LNG contracts

• price formula curves have tilted to give sellers access to higher prices

• long term LNG contract prices approaching oil parity.

• with imposition of carbon taxes, LNG could trade at a premium.

• basic market fundamentals have not changed.

• long term relationships, reliability and safety are still important to customers.

Cost of supply continues to rise

• regulatory environment can potentially impact schedules and costs.

• Woodside manages costs through contract management, long term relationships and multiple projects.

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Operational scale

Scale of Woodside’s operations. Picture illustrates the size of recently approved NRB platform and a typical 3D seismic array compared to Sydney Harbour.

NRB will stand 265 metres tall from the seabed to the tip of the flare and is shown here as if it were in approximately 30 metres of water. On location at the North West Shelf, it will stand in 125 metres of water. For comparision, the top of Sydney Harbour bridge stands 134 metres above the water.

The seismic array is approximately 6620m long from the bow of the vessel to the end of the streamers, and is 1360m wide. In contrast, Sydney Harbour bridge span is just over 500 metres.

Big bore well technology• Woodside pioneered big bore wells in a subsea environment on Echo Yodel development• also applied it on the Angel field• our ‘standard’ offshore wells produce around 100 million cubic feet of gas perday• big bore wells produce around 300 million cubic feet of gas per day • reduces the number of wells needed, the costs and our environmental footprint• e.g. Pluto development of ~ 5Tcf gas will require 5 or 6 wells

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Novel technology

Reward

Risk

Old technology

New technology

FastFollower

Novelapplication

Woodside understands that technology and innovative thinking can give us an edge, but we also understand the risks involved

So we make careful choices.

Last year we invested over $180 million in technological innovation to make our operations safer, more efficient, effective or environmentally friendly.

What we look for is novel application… new ways and different places.

Examples – big bore wells, rigless well intervention, our intelligent field management system, CSEM and modular LNG

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New approaches

The world’s first pre-fabricated LNG train – on schedule for first cargo Q4 2008

Train 5, the world’s first pre-fabricated LNG train is almost built.

Three years ago ( FID on Train 5) it was clear that:

• the market for LNG was improving

• schedules and competition for labour could be an issue

Hence, Woodside and the NWSV recognised that the solution was modular LNG.

Train 5 had ~75 modules.Pluto – will take modularisation a step further.Pluto Train 1 will have around 270 modules. They are being built in Thailand.

We see further scope for modularisation that we can apply to Pluto Train 2 and beyond.F

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What counts: getting it right

Angel jacket launch October 2007

Topsides sail away from Malaysia March 2008

Jacket on location

Topsides in place May 2008

1 2

3 4

There is no room for error when billions of dollars are at stake.

This example shows the Angel platform being placed on location on the North West Shelf 29 months after we made our Final Investment Decision.

In the top left picture, the jacket (7,500 tonnes) is launched.In the bottom left you can see the topsides as they sail away from Malaysia. Bottom right, the successful float over of the 7,000 tonne topsides.

The Angel project due for first gas in Q3 2008 cost approximately A$1.6 billion.

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Experience matters

Experience matters:Evident by the fact that the LNG tanks for Pluto are essentially the same tried and tested technology as those at NWS, with improvements learned through experience.

We know, for example, how best to place the heating elements in the floor to prevent permafrost and cracking.

NWS tanks • are ~60m in diameter and ~24m high • hold about 65,000 cubic metres of LNG• it takes ~2 tanks to fill the average 125,000cu m LNG ship

Pluto’s tanks, will be about twice the size (~120,000 cu m each).

Tanks used to be on critical path. Understanding this, we started tank construction early such that they are no longer a critical issue for the current schedule.F

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Building the future

The story so far…

NWS T5

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NWSV T1 – 5

Pluto T1 – greenfield

Pluto T2 - expansion

Browse (T1&T2)

Sunrise – T1

2008 2011 Time

Order, timing and size of future trains after Pluto T1 yet to be determined

orPluto – T3

+/or

with much more to come

The beginning of the presentation showed the story so far.

The five trains we have constructed to date fit into the pink wedge at the bottom of this chart.

We see at least another 5 trains waiting for us to build them.

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Here’s one we built earlier

…watch this space

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