Woodside Petroleum : Fourth Quarter 2021 Report

For personal use only

ASX Announcement	Woodside Petroleum Ltd.
ACN 004 898 962
	Mia Yellagonga
Thursday, 20 January 2022	11 Mount Street
	Perth WA 6000
ASX: WPL	Australia
OTC: WOPEY	T [phone]
	www.woodside.com.au

FOURTH QUARTER REPORT FOR PERIOD ENDED 31 DECEMBER 2021

Performance

• Delivered sales revenue of $2,852 million, up 86% from Q3 2021.
• Average realised price increased to $90 per barrel of oil equivalent, up 53% from Q3 2021.
• Delivered production of 22.6 MMboe, up 2% from Q3 2021.
• Delivered sales volume of 31.8 MMboe, up 22% from Q3 2021.

Highlights

• Signed a binding share sale agreement with BHP Group for the merger of BHP's oil and gas portfolio with Woodside.
• Approved final investment decisions for the Scarborough and Pluto Train 2 projects.
• Entered into a sale and purchase agreement with Global Infrastructure Partners for the sale of a 49% non-operating participating interest in the Pluto Train 2 Joint Venture.
• Announced a $5 billion investment target for new energy products and lower-carbon services by 2030.
• Achieved start-up of Pyxis Hub and Julimar-Brunello Phase 2.
• Appointed Mr Graham Tiver as Chief Financial Officer and Executive Vice President.

Woodside CEO Meg O'Neill noted a broad range of highlights for the quarter which included strong revenue supported by increased product pricing, executing the binding share sale agreement with BHP for the proposed merger, taking final investment decisions on the Scarborough and Pluto Train 2 projects and progressing Woodside's strategy for new energy investment.

"The 86% increase in sales revenue for the quarter was underpinned by a 22% increase in sales volume as well as significantly stronger average realised prices. We achieved our highest quarterly sales revenue on record.

"The upward trajectory in global oil and gas prices resulted in a portfolio realised price of $90 per barrel of oil equivalent and a strong realised LNG price of $93 per barrel of oil equivalent. This increase in realised price demonstrates the continued strong demand for LNG and improvement in the trading environment over the course of 2021.

"We signed a binding share sale agreement for the merger of BHP's oil and gas portfolio with Woodside. The merger will deliver increased scale, diversity and resilience to better navigate the energy transition and will provide the financial strength to help fund planned developments in the near-term, invest in future energy opportunities and return value to our shareholders through the cycle.

"The Australian Competition and Consumer Commission provided informal clearance of the merger in December and clearance from the Committee on Foreign Investment in the United States was recently received. This provides momentum towards completion of the merger which is targeted in the second quarter of 2022.

"Final investment decisions were also made to approve the Scarborough and Pluto Train 2 projects in November, including new domestic gas facilities and modifications to Pluto Train 1.

"Scarborough is a world-class resource, a globally competitive project and is amongst the lowest carbon intensity projects for LNG delivered to north Asia. The project is already underway with full notice to proceed

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issued to key offshore contractors, and early construction works have commenced on the worker accommodation village.

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"Woodside entered into a sale and purchase agreement with Global Infrastructure Partners for the sale of a 49% non-operating participating interest in the Pluto Train 2 Joint Venture in November. This transaction completed earlier this week.

"Significant progress was made at our Sangomar Field Development Phase 1 in Senegal, with equipment continuing to arrive in country ahead of the subsea installation campaign scheduled to commence in the second quarter of this year.

"In December, we announced a target to invest $5 billion in new energy products and lower-carbon services by 2030. This significant investment will position Woodside as an early mover in the new energy market and support the decarbonisation goals of our customers.

"During the quarter, land was secured for two proposed hydrogen and ammonia projects, H2Perth and H2TAS in Australia and the proposed hydrogen project, H2OK in North America. Front-end engineering design commenced on the H2OK project and we signed a memorandum of understanding with two potential hydrogen customers.

"In November, we sold our first carbon offset LNG cargo to Uniper Global Commodities SE, and our first carbon offset LPG cargo to Vitol Asia Pte Ltd.

"Construction of the Pluto-KGP Interconnector pipeline between Pluto LNG and the Karratha Gas Plant was completed ahead of the targeted ready for start-up in H1 2022 with commissioning currently underway. The Pyxis Hub and Julimar-Brunello Phase 2 tie-back projects achieved ready for start-up, with both delivered ahead of schedule and under budget," she said.

Contacts:
INVESTORS	MEDIA
Damien Gare	Christine Forster
W: [phone]	M: [phone]
M: [phone]	E: [e-mail]
E: [e-mail]

This ASX announcement was approved and authorised for release by Woodside's Disclosure Committee.

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ersonal use only

FOURTH QUARTER 2021 REPORT

20 January 2022

2021 production of 91.1 MMboe

only		25						Previous period
									(Q3 2021 to Q4 2021)
use		30		22.2			0.3	0.1				-		22.6
MMboe	20
			15
ersonal		10
	5
			0
					Q3 2021	LNG			Liquids¹	Other²		Q4 2021
1.	Liquids includes oil and condensate.
2.	Other includes domestic gas and LPG.

MMboe

			Corresponding period
			(Q4 2020 to Q4 2021)
30			(1.2)
24.9
25			(0.8)	(0.3)	22.6
20

15

10

5

0

Q4 2020

LNG

Liquids¹

Other²

Q4 2021

Fourth Quarter 2021 Report		2

93% increase in LNG sales revenue

only					Sales volume										Sales revenue1
32		29.1					31.8				3,000								2,852
					7.4
28		2.3		26.0					2,500
24						5.9
											2,000
	MMboe	20		19.4												1,531		2,354
	16						18.0				1,500
use	12						15.6						million$	1,000			920	1,219
8
	1.0		0.6			1.0			500			607					49
4
			6.4									14	11
						5.4										449
					3.9
		0											0		299	301
						Q4 2020	Q3 2021	Q4 2021									Q4 2020		Q3 2021	Q4 2021
						Oil, condensate			LPG, domestic gas	2						Oil, condensate			LPG, domestic gas			LNG
						Produced LNG			Purchased LNG
1.	Revenue from the sale of produced and purchased hydrocarbons. Excludes processing and services revenue.
2.	Domestic gas includes Woodside equity sales volumes and Woodside share of NWS contracts.
3.	Represents average realised price including exchange rate impact.
4.	Average of daily published Platts JKM prices for delivery during the quarter.
ersonal

Realised price3,4

	Units	Q4 20	Q3 21	Q4 21
LNG	$/boe	28	57	93
Domestic gas	$/boe	15	17	17
Condensate	$/boe	44	75	81
Oil	$/boe	51	80	87
LPG	$/boe	-	-	104
Average realised	$/boe	32	59	90
price
Dated Brent	$/bbl	44	73	80
JCC (lagged	$/bbl	41	67	73
three months)
JKM	$/MMBtu	5.5	13.2	28.0

Fourth Quarter 2021 Report		3