24 Woodside Petroleum Ltd|Annual Report 2018
Woodside’s business model seeks to maximise the value of its portfolio across the value chain. This is
achieved by prioritising competitive growth opportunities; by utilising our operational, development and
drilling capabilities; and by deepening relationships in LNG markets with strong demand growth. We do
this with the objective of generating superior shareholder returns across the three horizons and beyond.
Our operations are characterised by strong safety and environmental performance in remote and
challenging locations. As Australia’s premier LNG operator, our operated assets include the NWS
Project and Pluto LNG. We also operate two FPSO facilities and have a non-operated interest in
Wheatstone LNG. By adopting technology, a continuous improvement mindset and an ecient,
well planned, cost competitive operating model, we have been able to reduce operating costs,
increase production rates and improve safety performance to optimise the value of our assets.
Record LNG production of
72 MMboe.
2018 illustrations
We are building on over 30 years of development expertise from our assets in Western Australia
by investing in opportunities in Australia, Senegal, Myanmar, Canada and Timor-Leste. During
the development phase, we maximise value by selecting the most competitive concept for
extracting, processing and delivering hydrocarbon products to market. Once the value of the
development is confirmed, and approvals are received, a final investment decision is made and
project delivery and construction commence.
Assumed operatorship,
commenced FEED activities
and received approval for
the Environmental and Social
Impact Assessment for the SNE
Field Development Phase 1.
Our marketing and trading strategy is to build a diverse customer portfolio and pursue
additional sales agreements, underpinned by reliable domestic gas and LNG production,
supplemented by globally sourced volumes. Our relationships with customers in Australian and
international energy markets have been maintained through a track record of reliable delivery
and expertise across contracting, marketing and trading. In addition to long-term sales, we
pursue near-term value accretive arrangements through spot and mid-term sales and LNG
shipping transactions.
Several new domestic gas and
LNG agreements executed for
mid- and long-term supply.
Individual assets within our portfolio have a finite life. Decommissioning is integrated into
project planning, from the earliest stages of development through to the end of field life.
At appropriate intervals, we consider opportunities to divest ourselves of assets to maximise
the value of our portfolio. Our decommissioning planning is implemented at the appropriate
time. Through working together with our partners and technical experts, we are able to
identify the most sustainable and beneficial post-closure options that minimise financial,
social and environmental impacts.
Decommissioning of the
Nganhurra FPSO following
cessation of production in
November 2018.
We grow our portfolio through acquisitions and exploration, based on a disciplined
approach to increasing shareholder value and appropriately managing risk. We look for
material positions in world-class assets and basins that are aligned with our capabilities and
existing portfolio. We assess acquisition opportunities that complement our discovered and
undiscovered resource base.
Acquired an additional 50%
interest in WA-1-R, containing
the majority of the Scarborough
gas field.