AN OVERVIEW OF WOODSIDE S OIL BUSINESS

Transcription

1 AN OVERVIEW OF WOODSIDE S OIL BUSINESS

2 OUR OIL DEVELOPMENT TIMELINE Woodside finds first oil at the Legendre field on the North West Shelf (NWS). the Lambert oil fields on the NWS. the Laminaria oil field in the Timor Sea. TheCossack Pioneer floating production storage and offloading (FPSO) facility begins oil production on the NWS. the Corallina oil field in the Timor Sea and a year later, the Hermes and Perseus oil fields on the NWS GREATER ENFIELD PROJECT The US$1.9 billion Greater Enfield Project was approved for development in June the Vincent oil field, north-west of Exmouth in Western The Laminaria field produces first oil through the Northern Endeavour FPSO vessel. Woodside discovers the Enfield oil field in Western the Laverda oil field, north-west of Exmouth in Western. the Chinguetti oil field off the coast of Mauritania, West Africa Production commences from the Legendre oil field on the NWS through the Ocean Legend offshore production platform, later sold in Located 60 km off Exmouth in Western, the Project will develop the Laverda Canyon, Norton over Laverda and Cimatti oil accumulations. These reserves will be produced via a 31 km subsea tie-back to the Ngujima-Yin floating production storage and offloading (FPSO) facility, located over the Vincent oil field. Initial net oil production rates are estimated to exceed 24,000 bbl/d (Woodside share). The project is targeting development of gross (100%) 2P reserves of 69 MMboe (net Woodside share of 41 MMboe) from the oil accumulations. to the regulator, NOPSEMA, as part of required environmental approvals. The Greater Enfield Project is anticipated to make a strong contribution to the Western n economy and Woodside is planning for several hundred State-based jobs to be secured as part of its construction, installation, commissioning and operations. Woodside is targeting first oil production in mid The Nganhurra FPSO (Enfield) begins production. The Ngujima-Yin FPSO (Vincent) begins production. Production begins from the Neptune and Power Play oil fields (non-operated) in the Gulf of Mexico. Woodside successfully completes the NWS Oil Redevelopment Project, with the Okha FPSO replacing the Cossack Pioneer. Woodside approves the Greater Enfield Project, which will develop the Norton, Laverda and Cimatti oil accumulations north-west of Exmouth, WA. Key to monetising this resource was Woodside s close collaboration with contractors, our adoption of the latest technologies, a phased development approach and the use of existing FPSO infrastructure. The Greater Enfield Project will build upon Woodside s significant experience and proven abilities in delivering major subsea tiebacks in a safe and environmentally-responsible manner. Woodside is committed to protecting the environment and has undertaken rigorous environmental management planning for the Greater Enfield Project. An environmental plan will be submitted 2 3

3 OUR AUSTRALIAN BUSINESS Producing assets 1 Karratha Gas Plant NWS 2 Goodwyn A platform NWS 3 North Rankin Complex NWS 4 Okha FPSO NWS oil 5 Angel platform NWS 6 Pluto LNG Plant Pluto LNG 7 Pluto LNG platform Pluto LNG 8 Ngujima-Yin FPSO Vincent oil 9 Nganhurra FPSO Enfield oil 17 Perth (HQ) Projects 10 Greater Western Flank Phase 1 NWS 11 Greater Western Flank Phase 2 NWS 12 Persephone NWS 13 Wheatstone LNG Plant (non-operated) Wheatstone Broome 14 Wheatstone LNG Platform (non-operated) Wheatstone CAPABILITY AND EXPERIENCE 15 Julimar Julimar, Brunello 16 Greater Enfield Enfield oil 17 Browse Development Browse Woodside offices and representative offices Karratha WESTERN AUSTRALIA Woodside is n s largest independent oil and gas company with a global presence, recognised for our worldclass capabilities as an explorer, a developer, a producer and a supplier. Our mission is to deliver superior shareholder returns through realising our vision of becoming a global leader in upstream oil and gas. Our assets are renowned for their safety, reliability and efficiency and we are s most experienced liquefied natural gas (LNG) operator. We operate 8% of global LNG supply 1. Our producing assets in include the landmark North West Shelf Project which has been operating since In 2012, we commenced production from the Pluto LNG Plant and will add additional volumes from the Wheatstone Project in mid We also operate a fleet of floating production, storage and offloading (FPSO) vessels. From mid-2019, we will add additional oil production from the Greater Enfield Project via our existing Ngujima-Yin FPSO. We continue to expand our capabilities in marketing, trading and shipping and have enduring relationships that span more than 25 years with foundation customers throughout the Asia-Pacific region. 1. Source: WoodMac LNG Tool Our global exploration portfolio includes emerging and frontier provinces in and the Asia-Pacific region, the Atlantic Margins, Sub-Saharan Africa and Latin America. We have significant equity interests in high-quality development opportunities in (Browse), Canada (Kitimat) and Myanmar and are pursuing new concepts, technology and contracting strategies to enable the earliest commercialisation of these resources. We believe that technology and innovation are essential to bringing down costs and unlocking future growth. Today, we are pioneering remote support and the application of artificial intelligence and advanced analytics in our operations. We recognise that long-term meaningful relationships with communities are fundamental to maintaining our licence to operate and we work to build mutually beneficial relationships Woodside is characterised by strong safety and environmental performance in all locations where we are active and we are committed to upholding our values of integrity, respect, working sustainably, discipline, excellence and working together. Our proven track record and distinctive capabilities are underpinned by more than 60 years of experience, making us a partner of choice. OUR GLOBAL BUSINESS Ireland Morocco Senegal / Guinea-Bissau* Gabon Woodside headquarters Exploration acreage Developments and projects Business opportunities Producing assets Myanmar Perth Republic of Korea Sunrise LNG New Zealand Grassy Point LNG Kitimat LNG Canada USA Corpus Christi Peru Port Arthur Nova Scotia *Subject to government approval 4 5

4 FINANCIAL CAPACITY ORGANISATION STRUCTURE Woodside is the largest operator of oil and gas production in. Woodside s ordinary shares trade on the n Securities Exchange (ASX) under the symbol WPL. As at 9 August 2016, Woodside had a market capitalisation of approximately A$23.3 billion. The company holds long term credit ratings of BBB+ from Standard and Poor s and Baa1 from Moody s Investor Services. Both rating agencies cite stable, predictable financial performance and long life gas reserves with long term take or pay contracts as part of the basis for assigning these ratings. Below (Table 1) is a high level summary of Woodside s financial performance in 2012 to WOODSIDE S OIL ORGANISATION Woodside s oil business exists within the Operating Unit, which consolidates the activities of the Oil, Pluto and North West Shelf (NWS) business units. The Operating Unit is led by Niall Myles, Senior Vice President (SVP) and reports to Michael Utsler, Chief Operations Officer. An Asset Manager, who reports to the SVP Operating Unit, is responsible for the management of Woodside s OneFPSO model. OneFPSO aims to provide one consistent delivery service across our three FPSO assets. WOODSIDE RESULTS Reported net profit after tax (US $ million) 2,983 1,749 2, Sales Revenue (US $ million) 6,223 5,776 7,076 4,496 Cash Flows from Operating Activities (US $ million) 3,475 3,330 4,785 2,376 Net Assets (US $ million) 15,827 15,958 16,659 15,025 Reported earnings per share (US cents) total recordable injury rate (TRIR) Ten-year total shareholder return (TSR) (TSR, %) Production (MMboe) Proved Reserves (MMboe) 1,231 1,143 1,048 1,150 Proved Reserves plus Probable Resrves (MMboe) 1,544 1,437 1,339 1,508 Contingent resources (MMboe) 1,745 1,692 1,743 4,398 Peter Coleman Chief Executive Officer & Managing Director OIL MARKETING BUSINESS Since commencing oil and condensate (liquids) production, Woodside has maintained a strong liquids marketing capability for our equity volumes. Additionally, we have several joint marketing agreements through which we sell and operate the liquids cargoes on behalf of our joint venture participants. The majority of our liquids production is sold on the spot market with an emphasis on East of Suez outlets. At present our liquids production is produced from our n operations allowing us to build outstanding relationships with customers in India and North Asia. We have also maintained relationships in North America and Europe and regularly sell equity cargoes when arbitrage opportunities arise. Woodside prides itself on the depth and breadth of its customer relationships and its reputation for operational excellence in the market. At present Woodside has marketing offices in Perth and Singapore. Phil Loader EVP Global Exploration Geoscience Myanmar Robert Edwardes EVP Development Browse Canada & USA Sunrise MIchael Utsler Chief Operations Officer Operating Unit Wheatstone Production Shaun Gregory Chief Technology Officer Science Technology Development Planning Lawrie Tremaine Chief Financial officer Finance Contracting & Procurement Investor Relations Reinhardt Matisons Marketing, Trading & Shipping Marketing Trading Shipping Michael Abbott Corporate & Legal Legal & Secretariat Audit Risk & Compliance David McLoughlin People & Global Capability People & Global Capability Facilities Production (MMboe) LPG GOM Condensate Algeria Oil Mauritania Projects Engineering Drilling & Completions Logistics Health, Safety, Environment & Quality Planning Performance & Integrated Activity Planning Subsea & Pipelines Information Solutions & Services Subsurface Commercial Performance Excellence Strategy & Planning Business Development & Growth Tax & Treasury Strategy & Assurance Power & Liquids Corporate Affairs Security & Emergency Management Business Climate & Energy Outlook Reservoir Management 6 7

5 OUR OIL PORTFOLIO Thoughout its history, Woodside and its joint venture participants have safely, reliably and efficiently produced over one billion barrels of oil from producing fields. Today, Woodside operates three world-class oil facilities offshore Western. We have developed floating production storage and offloading (FPSO) vessel capabilities that extend across engineering design, operations and maintenance, allowing us to operate in remote marine environments with extreme weather conditions. Our oil capabilities extend across our value chain: acquire and explore, develop, operate, market, and decommission and divest. OIL CAPABILITY Woodside has been an operator or joint venture participant in the following oil developments: NORTH WEST SHELF OIL OPERATIONS Located about 135 km north-west of Karratha, Western, the Lambert oil field was discovered in 1973, and the Cossack, Wanaea and Hermes fields were discovered between 1989 and Until March 2011, these fields were produced through the Cossack Pioneer FPSO facility using subsea wells tied back via flowlines. In September 2011, Woodside successfully completed the North West Shelf Oil Redevelopment Project with production starting from the Okha FPSO. Greater Enfield Project development, (operator) Enfield oil field, (operator) Vincent oil field, (operator) Laminara and Corallina oil fields, (operator) Chinguetti, Mauritania (operator) Stybarrow oil development, (joint venture participant) Mutineer-Exeter oil fields, (joint venture participant) Neptune oil field, Gulf of Mexico, United States (joint venture participant) Power Play oil field, Gulf of Mexico, United States (joint venture participant) The Okha FPSO is an oil production facility moored to a riser turret between the Wanaea and Cossack oil fields, 34 kilometres east of the North Rankin Complex. Crude oil is offloaded from the facility via a flexible line to bulk tankers, while a pipeline exports LPG-rich gas from the Cossack and Wanaea fields to the North Rankin Complex, before being transferred to the Woodside-operated Karratha Gas Plant for processing. Woodside (60%) operates the Okha FPSO on behalf of its joint venture participants BHP Billiton Petroleum (North West Shelf) Pty Ltd, BP Developments Pty Ltd, Chevron Pty Ltd, and Japan LNG (MIMI) Pty Ltd. NORTH WEST CAPE OIL OPERATIONS Woodside s first oil discovery in the North West Cape region of Western was the Vincent oil field in 1998, followed by the nearby Enfield and Laverda oil fields in 1999 and 2000 respectively. NGANHURRA FPSO Fields (discovered) Enfield (1999) First production km north-west of Exmouth, Western 390 m Woodside (operator) 60% Mitsui E&P 40% 76.3 (WEL share: 45.8) NORTH WEST CAPE COMMUNITY LINKS Oil production began in 2006 when the Nganhurra FPSO started operations from the Enfield oil field. The Ngujima-Yin FPSO commenced oil production from the Vincent oil field in NGUJIMA-YIN FPSO Fields (discovered) Vincent (1998) First production km north-west of Exmouth, Western 350 m Woodside (operator) 60% Mitsui E&P 40% 55.3 (WEL share: 33.2) OKHA FPSO Fields (discovered) First production km north-west of Karratha, Western Hermes (1973), Lambert (1976), Wanaea (1989), Cossack (1990) 80 m Woodside (operator) 33.33% BHP Billiton Petroleum (North West Shelf) Pty Ltd % BP Developments Pty Ltd 16.67% Chevron Pty Ltd 16.67% Japan LNG (MIMI) Pty Ltd 16.67%. 465 (WEL share: 155) While the land and waters of the North West Cape area are recognised as traditionally belonging to the Jingudera (Aboriginal) people, the name Nganhurra comes from the neighbouring Baiyungu language. Nganhurra means we all, out of respect for current and past Elders. Ngujima-Yin is a Thalanjyi (Aboriginal) word meaning to dream. Both facilities operate about 50 km north-west of Exmouth and within 30 km north of the Commonwealth boundary of the Ningaloo Marine Park. Exmouth is home to the Ningaloo Coast World Heritage Area. Woodside recognises the important environmental values of the region and the social impacts that resource development can have. Over the years, we have undertaken many environmental research programs. We established the first community reference group in the region in This engagement model was progressively replicated by other oil operators for respective development activities and in May 2014 a joint operators meeting was formed with Quadrant Energy (formerly Apache Energy) and BHP Billiton Petroleum in response to local community feedback about meeting content and frequency. Our focus has been, and will continue to be, on providing local people from government, industry and community interest groups the opportunity to have a say about our operations and planned activities. Woodside supports the Exmouth community through social investment funding and local contracting opportunities. Woodside operates the Nganhurra and Ngujima-Yin FPSOs on behalf of its joint venture participants Mitsui E&P. Woodside was also a 50% joint venture participant with BHP Billiton in the FPSO Stybarrow Venture MV16 in the Stybarrow field, located approximately 65 km from Exmouth. In mid-2015, the facility ceased operations. During its field life, almost 57 MMboe (gross) was produced from Stybarrow. 8 9

6 DECOMMISSIONED EXECUTIVE BIOGRAPHIES In April 2015, Woodside finalised a transaction with Apache Corporation to acquire its 65% interest in the Balnaves oil project with immediate production. In March 2016, operations ceased at the Balnaves oil field located in Commonwealth waters off the north-west coast of Western. The Armada Claire FPSO (owned by Armada Balnaves Pte Ltd) permanently departed in April Environmental approval to undertake decommissioning activities to support the cessation of operations at the Balnaves oil field was granted in July 2016 by the Commonwealth oil and gas regulator, the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA). DIVESTED ARMADA CLAIRE FPSO Fields (discovered) Balnaves (2009) First production km north-west of Dampier, Western 135 m Woodside (operator) 65% Kuwait Foreign Petroleum Exploration Company (KUFPEC) 35% 7.2 (WEL share: 4.7) Peter Coleman BEng, MBA, FATSE Chief Executive Officer and Managing Director Peter was appointed as Chief Executive Officer and Managing Director in May 2011, and has over 30 years experience in the global oil and gas industry. In 2015, Peter was appointed Chair of the Advisory Group on - Africa Relations. Peter is the Chairman of the n-korea Foundation, a Fellow of the n Academy of Technological Sciences and Engineering and has been awarded the honorary title of Adjunct Professor in Corporate Strategy by the University of Western. In 2013, he received the Distinguished Alumni Lifetime Achievement Award from Monash University. Peter began his career at Esso (later becoming part of the ExxonMobil group) and stayed with ExxonMobil until joining Woodside. Lawrie Tremaine BBus, FCPA Executive Vice President Finance and Commercial and Chief Financial Officer Lawrie was appointed as Chief Financial Officer in He joined Woodside in 2006 and has over 30 years of finance leadership experience, predominantly in the resource and minerals processing industry. Lawrie is responsible for a range of functions including finance, investor relations, commercial, contracting and procurement, strategic planning, performance excellence and business development and growth. Prior to joining Woodside, Lawrie worked for Alcoa for 17 years. He is a National Executive Member of the Group of 100. Michael Utsler BSc (Petroleum Engineering) Chief Operations Officer Michael was appointed as Chief Operations Officer in 2013, following an extensive career in upstream oil and gas spanning more than 35 years. He is responsible for Woodside s producing facilities, subsea and pipelines, global logistics, global drilling and completions; and stewardship of programs in health, safety, environment, quality and reservoir management. Prior to joining Woodside, Michael held the position of President for the BP-Gulf Coast restoration organisation, leading the Deepwater Horizon response effort. Phil Loader BSc (Geology), MBA, MSc, DIC Executive Vice President Global Exploration Phil was appointed as Executive Vice President Global Exploration in 2013, following an extensive career in the upstream sector spanning over 30 years. Phil is responsible for the company s global exploration activities. Prior to joining Woodside, Phil s roles included Senior Vice President Exploration at Mubadala Petroleum in the United Arab Emirates and Vice President Exploration at Anadarko Petroleum, and he was also a non-executive chairman of Chariot Oil and Gas. Reinhardt Matisons BEng, MBA, MIE Aust, CPEng, CPA Executive Vice President Marketing, Trading and Shipping Reinhardt was appointed as Executive Vice President Marketing, Trading and Shipping in He has over 30 years experience in the energy industry. In his current position, he is accountable for the marketing, trading and shipping function. Reinhardt joined Woodside in 1996 and has held various marketing and commercial roles. Prior to this, he held senior leadership roles with Poten & Partners, Alinta Gas, Western Power and the State Energy Commission of Western. Located in the Timor Sea, the Northern Endeavour FPSO began oil production from the Laminaria-Corallina oil fields in Until 2014, Woodside held a working interest in the deepwater Neptune oil field, located in the Gulf of Mexico. Woodside continues to operate the FPSO on behalf of Northern Oil and Gas, who acquired our interest in the Laminaria-Corallina in April Neptune is a multi-well subsea development tieback to a stand-alone tension leg platform. The divestment of Neptune reflected Woodside s decision in 2013 to scale back its presence in the Gulf of Mexico following a strategic review of areas of future growth and focus. NORTHERN ENDEAVOUR FPSO NEPTUNE OIL PROJECT 550 km north-west of Darwin, Northern Territory Fields (discovered) Laminaria (1994), Corallina (1995) First production m Owner Northern Oil and Gas (WEL share: 131.4) Fields (discovered) Neptune (1995) First production 2008 ~2000 m Operator Atwater Valley, 220 km offshore Louisiana, USA BHP Billiton 27.9 (WEL share: 4.9) Dr Robert Edwardes BSc (Eng), PhD Executive Vice President Development Robert was appointed as Executive Vice President Development in He has over 35 years of resources industry experience, spanning the full breadth of operations and projects. In his current role, he is accountable for front-end planning and execution of onshore and offshore capital projects and engineering. Prior to joining Woodside, Robert s roles included Managing Director of Worley Parsons (US and Latin America) and Project Director of the Kizomba deepwater oil development in Angola with ExxonMobil. Michael Abbott BJuris, LLB, BA, MBA Senior Vice President Corporate and Legal and General Counsel Michael was appointed as Senior Vice President Corporate and Legal in He has over 25 years of legal experience, with more than ten years of senior leadership experience in the oil and gas industry. Michael is accountable for audit, legal, company secretariat, risk and compliance, corporate affairs, business climate and energy outlook and security and emergency management. Michael joined Woodside in 2005 and has held a variety of roles including Mergers and Acquisitions lawyer, head of the Procurement Legal Team and Vice President Legal and General Counsel. David McLoughlin BA (Psychology), FAHR Senior Vice President People and Global Capability David was appointed Senior Vice President People and Global Capability in January He joined Woodside in 2014 and has over 20 years experience in mining, minerals and engineering in, South- East Asia and the Americas. David is accountable for building executive leadership, maximising employee performance and managing change within the organisation. Prior to Woodside, David held various senior roles with MMG, GlencoreXstrata, Xstrata Copper, Thiess and Rio Tinto. Shaun Gregory BSc (Hons), MBT Senior Vice President and Chief Technology Officer Shaun was appointed as Senior Vice President and Chief Technology Officer in January 2016, and has worked in the oil and gas industry for over 25 years. Shaun leads the company s efforts in advancing science, technology and developing concepts for commercialising resources. He joined Woodside in 1996 and has held a variety of roles in areas including geophysics, mergers and acquisitions, corporate strategy, exploration, and new ventures

7 Head Office: Woodside Petroleum Ltd 240 St Georges Terrace Perth WA 6000 Postal Address: GPO Box D188 Perth WA 6840 t: f: e: companyinfo@woodside.com.au Visit us at woodside.com.au Follow us online