the energy
in our lives
Arrival of a liquefaction module, Woodside is an independent Australian oil and gas
Pluto LNG Project, Western Australia company playing a key role in supplying energy to
our region.
We operate the A$27 billion North West Shelf
Project, which supplies more than 40% of
Australia’s oil and gas production and has the
capacity to produce more than 16 million tonnes a
CONT E NT S
year of LNG.
We pride ourselves as a stable and reliable
supplier with a focus on delivering on our
commitments.
Woodside’s production of LNG continues to grow,
with the first phase of our Pluto project targeted
for start up in the second half of 2011.
We are already planning for an expansion of Pluto,
and are seeking to develop a further two LNG
projects – Browse in Australia’s Kimberley region
and Sunrise off the northern coast.
Woodside also maintains a portfolio of non-
LNG projects. We produce natural gas, liquefied
petroleum gas, condensate and oil for customers
in Australia and elsewhere.
Our Energy | p 2-3 With our large natural gas resource base,
Woodside is a sought-after provider of cleaner
energy. We seek excellence in environmental
North West Shelf Project | p 4-5 performance and ensure that wherever we
operate, the local community benefits from our
presence.
Pluto LNG Project | p 6-7
Australia Business Unit | p 8-9
Browse LNG Development | p 10-11
Sunrise LNG Development | p 12-13
Sustainable Development | p 14-15
Our position in the global energy market is
growing, with an impressive portfolio of oil
Our Energy
and gas developments including our
Pluto liquefied natural gas project.
Woodside is Australia’s largest independent Woodside’s portfolio of assets also includes
oil and gas producer and a major supplier of the Greater Enfield oil developments off the
liquefied natural gas to Asia. North West Cape in WA and the Laminaria
THE ENERGY I N O U R LI VES
and Corallina oil fields in the Timor Sea.
Formed in 1954 as a pioneer oil and gas
explorer, Woodside took its name from Outside Australia, Woodside has interests
the small town of Woodside, Victoria, in in two deepwater developments in the Gulf
Australia’s south east. of Mexico, and has a 15% interest in the
Ohanet Joint Venture in Algeria. Woodside’s
Today, Woodside is based in Perth, Western offshore exploration interests extend to
Australia and employs more than 3500 Korea and Brazil.
people. We operate two of Australia’s
largest resource projects, the A$27 billion The strong and stable cash flow generated
North West Shelf Project near Karratha in by Woodside’s producing assets are helping
Western Australia and the adjacent Pluto the company realise its vision of becoming
liquefied natural gas project, currently under a world class producer of LNG.
construction.
Woodside is focused on delivering LNG
The North West Shelf Project produces from Pluto Train 1 in 2011 and capturing
about 40% of Australia’s oil and gas and growth opportunities for Pluto Train 2
has the capacity to produce more than 16 and 3. We are also progressing new
million tonnes a year of LNG. LNG developments; Browse off Western
Australia’s Kimberley coast and Sunrise in
Woodside will consolidate its position as a the Timor Sea.
global leader in LNG when it produces first
gas from its Pluto project in 2011. Woodside is pursuing its pipeline of LNG
developments as demand for cleaner
With a forecast production capacity of sources of energy continues to grow. LNG
4.3 million tonnes per year, Pluto will lift is a unique source of energy; more energy
Woodside’s annual operated capacity efficient than all other fossil fuels and able
of LNG to more than 20 million tonnes to contribute to the global reduction of
and increase Woodside’s equity share of greenhouse gas emissions.
production to 6.5 million tonnes a year.
2 3
The North West Shelf Project is
Australia’s largest oil and gas
North West Shelf Project
resource development
Representing an investment of A$27 billion, Production from the North West Shelf
the Woodside-operated North West Shelf Project accounts for about 1% of
Karratha Gas Plant.
Project is Australia’s largest oil and gas Australia’s gross domestic product and
ENERGY THAT’ S RELI ABLE
North West Shelf Venture.
Western Australia resource development. The Project supplies contributes around A$5 billion each year in
more than 40% of Australia’s oil and gas Commonwealth taxes and royalties. More
production and has the capacity to produce than A$800 million a year is injected directly
more than 16 million tonnes a year of LNG. into Australian business through operating
costs, and thousands of jobs are created
The project was established in the early during construction and as part of ongoing
1980s as a key supplier of pipeline gas operations.
to industrial and domestic consumers
in Western Australia. Today, the Project The North West Shelf Project continues
supplies oil and gas to Australian and to invest in infrastructure for the future,
international markets from gas and including the A$5 billion North Rankin
condensate fields in the Carnarvon Basin on Redevelopment, which will recover
Australia’s north-west continental shelf. remaining low pressure gas from the North
Rankin and Perseus fields and the A$1.8
As one of the world’s largest producers billion NWS Oil Redevelopment Project
of LNG, the North West Shelf Project currently underway to extend field life and
transports more than 250 LNG cargoes a meet future supply commitments.
year to customers around the world, and
has delivered more than 3000 LNG cargoes The six participants in the North West
since 1989. The North West Shelf Project Shelf Project’s gas interests are BHP
also produces oil and condensate, a light Billiton Petroleum (North West Shelf) Pty
crude oil, and liquefied petroleum gas. Ltd, BP Developments Australia Pty Ltd,
Chevron Australia Pty Ltd, Japan Australia
The North West Shelf Project has been LNG (MIMI) Pty Ltd, Shell Development
Western Australia’s largest producer of (Australia) Pty Ltd and Woodside Energy
pipeline gas, and currently provides about Ltd, operator of the Project’s facilities. The
65% of the state’s total production. Pipeline China National Offshore Oil Corporation is
gas is processed at the Karratha Gas Plant also part of the Venture but does not have
and transported to customers in the state’s an interest in its infrastructure.
South West via a 1600 kilometre pipeline.
The North West Shelf’s offshore
production facilities include the
North Rankin A, Goodwyn A North Rankin A Angel
platform
and Angel platforms, and the oil platform
Cossack Pioneer
producing Cossack Pioneer floating Goodwyn A FPSO
platform
production storage and offloading
(FPSO) vessel. Hydrocarbons from
these facilities are transported to
the onshore Karratha Gas Plant for Indian Ocean
processing, while oil is processed
offshore.
Indian Ocean
AUSTRALIA
Karratha Gas
Plant
Karratha
50 km
4 5
The Pluto LNG Project, together with
its growth potential, will consolidate
Pluto LNG Project
Woodside’s position as a global LNG leader.
Woodside’s Pluto LNG Project is on track The project has generated more than 5000
to become one of the world’s fastest Australian jobs and is making a significant
Pluto A offshore platform, developed liquefied natural gas projects in contribution to the Western Australian and
ENERGY T HAT’ S BU I LDI N G
Western Australia
the world from discovery of the gas field in Australian economies, as well as providing
2005 to start up in 2011. opportunities for local businesses. Of
the original A$12 billion budget at project
Approved for development in July 2007 the sanction, we expect at project completion
project will process gas from the Pluto and about 55% or A$6.6 billion to have been
Xena gas fields, located about 190km north- invested in Australian contracts.
west of Karratha in Western Australia, into
LNG and condensate. Indigenous employment on the project
peaked at 170 against a target of 150.
The Pluto and Xena gas fields are estimated Throughout 2010 the project recruited and
to contain 4.8 trillion cubic feet (Tcf) of dry trained 29 Indigenous people for jobs in
gas reserves and an additional 0.25 Tcf of the Pluto operations team, in line with our
contingent resources. Reconciliation Action Plan.
The initial phase of the Pluto LNG Project Commissioning will continue throughout
comprises five subsea wells on the 2011 in preparation for targeted start up in
Pluto gas field connected to an offshore August 2011.
processing platform in 85 m of water. Gas
will be piped about 180 km to the onshore Front-end engineering and design (FEED) for
plant in a 36-inch pipeline. the next two onshore trains was completed
in 2010 and Woodside plans to order long-
Onshore facilities at the Pluto LNG Park lead items (LLIs) in 2011 to maintain the
include a single LNG processing train with earliest start up for an expansion train.
forecast production capacity of 4.3 million
tonnes a year, in addition to storage facilities The exploration campaign to support Pluto
and an export jetty. equity gas expansion will continue into
2011. During the current Carnarvon Basin
The Pluto LNG Project is underpinned by campaign Woodside has drilled seven gas
15 year sales contracts for up to 3.75 mtpa discoveries to date.
with foundation customers and partners
Kansai Electric and Tokyo Gas, which each Discussions will continue with third
hold a 5% equity interest in the foundation parties regarding the potential to process
project. Carnarvon Basin gas through additional
trains at Pluto.
Pluto is one of
Australia’s largest
Pluto
resources projects.
Indian Ocean
Pluto
LNG Park
AUSTRALIA Karratha
50 km
6 7
Woodside’s oil developments in
the Greater Enfield Area and the
Australia Business Unit
Timor Sea contribute significant
cash flow to our business
In addition to the North West Shelf Project, the north-east of Enfield. The field has been
Woodside maintains an enviable portfolio of developed through a stand-alone FPSO,
Nganhurra floating production storage and producing assets off the coasts of Western the Maersk Ngujima-Yin. In 2011 Woodside
ENERGY THAT’ S AU STRALI AN
offloading vessel, Enfield oil project, Western Australia Australia and the Northern Territory which is pursuing infill drilling, targeting unswept
provide strong and stable cash flow, and parts of the reservoir. At the end of 2010,
substantial exposure to oil price upsides. Vincent had produced a total of 18.5 million
barrels of oil, with 2010 production of 8.5
Located off the north-west cape of Western
million barrels.
Australia are the Enfield, Stybarrow, Vincent
and Laverda fields. Woodside is also actively pursing the
The Enfield oil field, which Woodside is Laverda opportunity located within close
operator of and has a 60% interest, has proximity to the Vincent, Enfield and
produced 57 million barrels of oil through
.4 Stybarrow fields. Exploration and appraisal
the Nganhurra FPSO since production work is taking place in 2011, with a number
began in 2006. In 2010, Enfield produced of possible development options being
9.6 million barrels of oil. investigated. This opportunity has the
potential to further consolidate the Greater
In late 2010, Woodside drilled the Cimatti-1 Enfield Area as one of Australia’s key oil
exploration well within the Enfield region provinces.
which successfully intersected a gross
oil column of 15 metres. This was further In the Timor Sea, north-west of the Northern
appraised by the Cimatti-2 sidetrack well. Territory, Woodside operates the Laminaria
The option to develop Cimatti through a and Corallina oil fields (59.90% and 66.67%
tieback to Enfield could result in first oil as interest respectively). These fields have
early as mid-2013. produced 195 million barrels of oil since
production began in 1999. In 2010 the fields
The neighbouring Stybarrow development,
produced 3.6 million barrels through the
operated by BHP Billiton, has been
producing since November 2007 Woodside
. highly reliable Northern Endeavour FPSO.
has a 50% interest in Stybarrow which has
Woodside also has an 8.2% stake in the
produced 42.8 million barrels of oil since
Mutineer-Exeter oil fields about 150 km
start up, and in 2010 produced 4.2 million
north of Dampier in Western Australia. Since
barrels.
start up in early 2005 Mutineer–Exeter has
The Vincent field, which Woodside operates produced 53.7 million barrels of oil and in
and has a 60% interest, is about 10 km to 2010 produced 1.7 million barrels.
Corallina Outside of the North West Shelf
Laminaria
Project, Woodside continues to
develop its strategic oil
assets off the coast of
Mutineer
Vincent Exeter Western Australia.
Enfield
Stybarrow
AUSTRALIA
8 9
Browse is a world class LNG
development that will establish an LNG
Browse LNG Development
processing facility in the Kimberley
region of Western Australia.
Woodside is the major equity holder and In early 2011 the Browse Joint Venture
operator of the Browse LNG Development, appointed contractors to execute the FEED
Browse Heads of Agreement which is an important part of Woodside’s phase of Browse.
ENERGY THAT’ S DEVELO PI N G
signing ceremony, Western Australia LNG production growth plans.
Woodside is working closely with Traditional
Browse also represents substantial Owners and the Western Australian
opportunities for economic and social Government to negotiate an agreement
development in the Kimberley region of which will secure land access for the
Western Australia. Development at James Price Point.
The Browse LNG Development concept An agreement would include a significant
is to commercialise the Browse Joint benefits package for Kimberley Indigenous
Venture’s three gas and condensate fields, people, which provides training and
Brecknock, Calliance and Torosa, 400km off employment opportunities on the
the Kimberley coast. Gas and liquids from development, and opportunities for local
these fields will be brought to an onshore Indigenous businesses.
LNG plant at the Western Australian
Government’s Browse LNG Precinct, 60 km By the end of 2011 Woodside expects that
north of Broome. primary environmental approvals will have
been obtained, a land access agreement
In 2010 the Browse LNG Development secured, and FEED completed.
reached a number of significant milestones,
and invested approximately A$350 million By achieving these milestones, the Browse
in engineering, environmental and social Joint Venture will be in a position to make a
impact studies. final investment decision by mid-2012, and
process first gas from Browse by 2017 .
Basis of Design studies were completed in
November 2010, on schedule and to budget.
The Browse fields
contain an estimated
13.3 Tcf of gas.
Torosa
Brecknock
Calliance
Indian Ocean
AUSTRALIA
Broome
200 km
10 11
Floating LNG maximises the total revenue
to resource owners Timor-Leste and
Sunrise LNG Development
Australia whilst providing sustainable
benefits to the people of Timor-Leste.
The robust economics of the Sunrise LNG These studies determined Floating LNG has
Development presents Woodside with a the lowest capital cost, lowest operating
unique opportunity to deliver on its core cost, lowest environmental footprint and
ENERGY THAT’ S DEVELO PI N G
LNG growth strategy with Floating LNG generates the greatest long-term revenue
technology. for Australia and Timor-Leste as resource
owners. The studies concluded Timor-
Floating LNG was unanimously selected by Leste LNG has the highest capital cost,
the Sunrise Joint Venture in 2010 to develop approximately US$5 billion dollars more
the Greater Sunrise gas and condensate than Floating LNG.
fields. The fields, Sunrise and Troubadour,
contain a total contingent resource of The Floating LNG facility will be
5.13 Tcf of dry gas and 226 MMstb of approximately 480m in length by 75m wide
condensate, which has been independently and designed to produce approximately
certified. 4 million tonnes per annum of LNG and
approximately 10.3 million barrels per
More than US$300 million has been annum of condensate for export.
invested by the Joint Venture since the
Greater Sunrise fields were discovered in Woodside and its Joint Venture participants
1974, about 450 km north-west of Darwin, are continuing to drive towards a final
Northern Territory and 150 km south of investment decision and progress the
Timor-Leste. development of Greater Sunrise with the
Australian and Timor-Leste governments in
Approximately 80% of the Greater Sunrise accordance with the international treaties.
fields is attributed to Australia with the
remaining 20% attributed to the Joint The Sunrise Joint Venture is committed to
Petroleum Development Area (JPDA), which contributing to social development in Timor-
is jointly administered by the governments Leste. The development of Sunrise Floating
of Australia and Timor-Leste. LNG offers the people of Timor-Leste long-
term sustainable benefits in the areas of
The Sunrise Joint Venture has unanimously employment, training, education, health and
selected Floating LNG as the preferred local industry participation.
development concept as it best meets
the requirement of a key treaty, the The Sunrise LNG Development gives both
International Unitisation Agreement, to Australia and Timor-Leste a significant
develop the fields to the best commercial opportunity to meet growing worldwide
advantage consistent with good oilfield demand for cleaner energy and deliver
practice. sustainable benefits to both resource
owners.
The selection was made following more
than 300,000 hours of rigorous technical The Greater Sunrise Joint Venture
and commercial evaluation of three participants are Woodside (Operator,
development concepts; Darwin LNG 33.4%), ConocoPhillips (30%), Shell
(onshore ‘brownfield’), Timor-Leste LNG (26.6%) and Osaka Gas (10%)
(onshore ‘greenfield’) and Floating LNG
(offshore).
12 13
For Woodside, sustainability is about delivering
shareholder wealth through our existing business and
Sustainable Development
developing opportunities in an economically, socially
and environmentally responsible way.
Sustainability at Woodside is reported Our health and safety aspiration is ‘no-one
across three dimensions – economic gets hurt, no incidents’ and we seek to
Surf Life Saving, performance, environmental excellence and be recognised as an industry leader in the
ENERGY FO R THE FU TU RE
supported by Woodside social contribution. management of health and safety. This
includes ensuring the integrity of our assets
Solid performance in these areas gives throughout their lifecycle so that they
Woodside a licence to operate and enables
operate without jeopardising our people’s
us to pursue our LNG growth strategy.
health and safety and our asset’s value.
Economic Performance People
Woodside’s economic contribution is
Woodside’s ability to create sustainable
twofold. Firstly, it’s about delivering superior,
shareholder wealth depends on our ability
sustainable returns to our shareholders.
to attract and retain an engaged, capable
Secondly, it’s about delivering broad societal and highly motivated workforce.
benefits by employing people, investing
Woodside is committed to treating
in the skills of our people, paying taxes
to governments, purchasing goods and its people with care and respect. This
services and producing products that satisfy commitment forms part of our core values,
the needs of our customers. and in turn, ensures that we provide a
climate where all employees, irrespective
of their background, can perform to their full
Environmental Excellence potential.
Woodside understands that leadership in
sustainable environmental performance Community
today enables our growth in value for a
cleaner energy future through LNG. Woodside recognises that long-term
and meaningful relationships with the
Woodside’s environmental strategic communities where we operate are
imperatives are to: fundamental to maintaining our licence to
operate.
1. Maximise resource efficiency
2. Design to minimise lifecycle costs We seek to achieve these relationships
3. Maintain compliance and integrity by understanding and managing the
4. Control environmental impacts impacts we may have on our communities
5. Facilitate effective approvals and through the development and
6. Work with stakeholders implementation of programs that deliver
mutual benefits.
Social Contribution
Indigenous
At Woodside, we categorise social
sustainability into the areas of health, Woodside is committed to assisting
safety and security; people; community and Indigenous Australians by building respect
Indigenous. through our approach to cultural heritage
management and land access, building
Health, Safety and Security relationships through our approach to
stakeholder management and creating
Woodside believes that the health, safety opportunities through employment,
and security of our people comes first in all business participation and social
our decisions and actions. investments.
14 15
With our large natural gas resource base,
Woodside is a sought-after provider of
cleaner energy.
We seek excellence in
environmental performance,
and strive to ensure that wherever we operate,
the local community
benefits from our presence.
Woodside Energy Ltd
240 St Georges Terrace
Perth WA 6000 Australia
Postal Address:
GPO Box D188
Perth WA 6840 Australia
t: +61 8 9348 4000
f: +61 8 9214 2777
e: companyinfo@woodside.com.au
April 2011
www.woodside.com.au