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