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

HORIZON III

GROWTH

Kitimat LNG

In 2018, we focused on developing a globally

competitive project which will be aligned with

LNG market demand growth.

The Kitimat LNG Development is a 50/50 joint venture

between Woodside Energy International (Canada) Limited

and Chevron Canada Limited (Operator).

The project is targeting a globally competitive cost of supply,

with signiﬁcant reductions in Kitimat LNG unit cost already

achieved since Woodside’s investment in the project in 2015.

Key activities in 2018 have included progressing value

enhancement opportunities in the Kitimat LNG design to ensure

necessary project cost competitiveness is achieved; advocating

for a clear, stable and competitive ﬁscal framework with

governments; continuing the appraisal of the Liard upstream

natural gas resource and maintaining engagement and support

for the project with First Nations and local communities.

In 2019, the joint venture is focusing eorts on activities to

drive down costs across the full value chain, advocating with

governments and maintaining engagement with key stakeholders.

Woodside interest: 50%

Community garden in Timor-Leste, supported by the Sunrise Joint Venture in partnership with HIAM Health

Sunrise

Australia and Timor-Leste signed a new treaty on

6 March 2018 to establish their permanent

maritime boundaries in the Timor Sea.

The new treaty provides a pathway to the development

of Greater Sunrise, provided the underlying arrangements,

including the new Greater Sunrise PSC and agreed ﬁscal

regime, are on terms and conditions equivalent to the existing

regime and give the Sunrise Joint Venture the ﬁscal and

regulatory certainty necessary for a commercial development

to proceed.

Negotiations between the two Governments and the Sunrise

Joint Venture on the new Greater Sunrise PSC commenced in

November 2018.

While the new PSC arrangements are being negotiated, the

Sunrise Joint Venture will meet its obligations under existing

PSCs (JPDA 03-19 and JPDA 03-20) and Retention Leases (NT/

RL2 and NT/RL4), continue ongoing social investment activities

in Timor-Leste and maintain an oce in Dili.

Woodside interest: 33.44%