38 Woodside Petroleum Ltd|Annual Report 2018

NEARTERM

GROWTH

With our focus on project excellence and innovation, we are well positioned to deliver our near-term

growth target of approximately 100 MMboe of production in 2020.

Wheatstone LNG

Wheatstone LNG produced above expectations in 2018,

demonstrating it is a world-class asset that will make a

signiﬁcant contribution to Woodside’s ongoing production.

Wheatstone LNG processes gas from the oshore

Wheatstone, Iago, Julimar and Brunello gas ﬁelds, located

220 km from Onslow, Western Australia. The Wheatstone

onshore facilities comprise two LNG trains with a combined

capacity of 8.9 Mtpa and a domestic gas plant with a

capacity of 200 TJ/day. Woodside acquired a 13% interest

in Wheatstone LNG in 2015.

Wheatstone LNG diversiﬁes Woodside’s production portfolio

and delivers material cash ﬂow.

Building on reliable production performance from Wheatstone

LNG train 1 throughout the year, LNG train 2 achieved start-

up in June 2018 and produced at rates above plan due to a

quicker than expected ramp up. Woodside’s share of annual

production from Wheatstone was 9.1 MMboe in 2018.

Woodside’s share of Wheatstone production will grow in

2019 with ﬁrst domestic gas deliveries expected in Q1 2019.

At the end of 2018, construction of the domestic gas plant

was complete.

Further development of Wheatstone reserves will be achieved

through phase 2 of the Woodside-operated Julimar-Brunello

Project. Woodside holds a 65% equity interest in the Julimar

and Brunello ﬁelds, which contribute 20% of Wheatstone LNG’s

foundation production. Phase 1 of the Julimar-Brunello Project

involved the tie-in of the Brunello ﬁeld in 2016 as part of the

foundation project.

Phase 2, which will tie back the Julimar ﬁeld to the existing

Brunello subsea infrastructure connected to the Wheatstone

oshore platform, entered FEED phase in 2018. The project is

targeting FID in Q2 2019 and RFSU in 2022.

Once fully operational for both LNG and pipeline gas,

Wheatstone will contribute more than 13 MMboe to

Woodside’s annual equity production.

Wheatstone LNG Woodside interest: 13%

Julimar-Brunello Project Woodside interest: 65%

CASE STUDY

Woodside developed and implemented its non-operating

joint venture (NOJV) strategy for Wheatstone LNG in 2016.

The key focus was to support Operator to achieve a safe and

ﬂawless start-up of LNG trains 1 and 2.

We provided 25 Woodside employees to support both the

oshore and onshore components of the development. We

shared recent knowledge and experience in the areas of

completions, commissioning and start-up at both Pluto LNG

and KGP, utilising our 30 years’ experience of LNG operations.

A key to success was the excellent collaborative relationship

with Operator, which was the foundation for Woodside to

provide value-adding support to the project. From the outset,

we were determined to focus on areas where we could add

value through constructive engagement with the Operator

and other participants.

Opportunities were identiﬁed to simplify work processes,

and a structured execution model was implemented for the

completion of construction, commissioning, start-up and

ﬁnal handover to operations.

We were supportive of Operator’s drive to deliver the project

eciently. We shared site productivity lessons that we learned

on a KGP maintenance program. Operator’s personnel visited

KGP and Woodside employees visited the Wheatstone LNG

site at Onslow to identify opportunities for improvement.

The ﬁrst LNG cargo was successfully delivered from train 1

in October 2017 and from train 2 in June 2018. Both trains

have exceeded performance and reliability expectations,

with train 1 start-up lessons implemented on train 2,

reducing the start-up duration by approximately 75%.

Lessons from the start-up of Wheatstone LNG continue to

be shared between both parties, and have created a solid

platform for future opportunities to reduce operating costs

and identify potential synergies.

As Woodside prepares to realise the Burrup Hub vision,

collaboration between operators and partners is paramount

to successful project execution. The collaborative approach

achieved on the Wheatstone Project will set the benchmark

for future LNG growth projects.