Energy to Deliver

1
Energy to Deliver
Investor Briefing

• Sydney
• 13 November 2008

2
Safety evacuation procedure

• Pre-alert beeping tone
• Be alert but stay put
• If evacuation siren sounds
• Follow Floor and Exit Warden instructions
• Move immediately to nearest emergency exit
• Then to the Assembly Area
• Assembly area Martin Place
• Between water feature and Station first entry
• Follow Assembly Area Controller instructions

Exit 1
Exit 2
Stage
Main entrance
Foyer
Toilets
Heritage Ballroom, Westin Hotel, Sydney
3
Disclaimer and important notice

• This presentation contains forward looking
  statements that are subject to risk factors
  associated with oil and gas businesses. It is
  believed that the expectations reflected in these
  statements are reasonable but they may be
  affected by a variety of variables and changes in
  underlying assumptions which could cause actual
  results or trends to differ materially, including
  but not limited to price fluctuations, actual
  demand, currency fluctuations, drilling and
  production results, reserve estimates, loss of
  market, industry competition, environmental
  risks, physical risks, legislative, fiscal and
  regulatory developments, economic and financial
  market conditions in various countries and
  regions, political risks, project delay or
  advancement, approvals and cost estimates.
• All references to dollars, cents or in this
  presentation are to Australian currency, unless
  otherwise stated.
• References to Woodside may be references to
  Woodside Petroleum Ltd. or its applicable
  subsidiaries.

4
Agenda Energy to Deliver
1. Track record of delivery Mike Lynn, Lawrie
Tremaine, Stuart Brown 2. Delivering now Kevin
Gallagher, Jeff Soine, Niall Myles, Brad
Russell-Lane, Peter Moore, Tammie Sebire Q A
Don Voelte 3. Capability to deliver Tina
Thomas, Rob Cole, Feisal Ahmed 4. Delivering
Pluto Philip Meier, Lucio Della Martina, Peter
Moore 5. Delivering LNG Jane Cutler, Betsy
Donaghey, Reinhardt Matisons 6. Energy to
deliver Mark Chatterji Q A Don
Voelte Wrap Up Don Voelte
5
Track record of delivery

• Welcome Christine Bishop
• Track record Mike Lynn
• Financial management Lawrie Tremaine
• Strategy Stuart Brown

6
Exploration additions
2500
Oil
Lady Nora
Gas
Persephone
Pemberton
2000
Xena
Pluto
Geographe
Discovered Volume
1500
Brecknock South
Cumulative Volume (MMboe)
Vincent
Thylacine
Stybarrow
Enfield
1000
Perseus

• 192 wells drilled since 1995
• 25 commercial success rate

500
Woodside Expectation mean success volume
0
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008

• Discovered volumes - 1995 to Q3 2008

7
Discoveries converted to production
?
First 9 months 2008
CAGR 8.8 to 9
Production MMboe
8
Production converted to profit
?
Underlying profit (A millions)
CAGR 21
1H 2008
9
Delivery translated to TSR
10
LNG significant growth
Pluto T1 LNG 3.9mtpa or 35 MMboe
Production Volume
NWS Train 5
NWS T15 2.7mtpa or 24 MMboe
NWS Train 4
NWS Train 3
NWS Train 1, Train 2
1992
2008
1984
1989
2004
2010
Indicative only, Woodside share
11
Track record of delivery

• Welcome Christine Bishop
• Track record Mike Lynn
• Financial management Lawrie Tremaine
• Strategy Stuart Brown

12
Woodside growing rapidly
Revenue
?
2H
2574
1H

• Revenue growing at 24 to 2007
• Drivers production growth, energy prices and
  product mix
• Liquids represent 50 of total production

13
and growing profitably
Profit before Significant Items
?
2H
1009
1H

• 2006 profit impacted by one off gains
• H1 2008 85 higher than H1 2007
• 2008 expected to be a record annual profit

14
and generating operating cash flow
Operating Cash Flow
?
2H
1446
1H

• Growing at 27 CAGR to 2007
• Higher working capital impacting H1 2008 cash
  flow
• 2008 5th consecutive year of record cash flows

2004-2007 history adjusted to re-classify
unsuccessful exploration expenditure from
investing to operating cash flow
15
to fund investment in growth projects

• 2009 Pluto spend
• 73 of total WPL spend
• 48 of Pluto T1 budget
• 65 is estd to be in A

A Millions

• Outlook
• 2008 5.5 billion
• 2009 7.3 billion

Investment amounts include capitalised interest
16
whilst managing the Balance Sheet
US Debt
Additional facilities
5000
Undrawn facilities
gt1000
US Millions
3100
1050
1377
2050
872
0
2006
2007
2008
2009 H1 est.

• US1.05 billion un-drawn facilities
• Additional debt facility not required until H1
  2009
• Limited impact on US debt requirement from
  recent market volatility
• Recent fall in A v US largely offsets downward
  movement in US oil price
• A lower A means our US debt can fund a larger
  A spend
• WPLs A spend is estd to be higher in
  2009 due to Pluto

17
Financial outlook

• Profitable growth
• Strong financial position
• Able to fund Pluto and other commitments

18
Track record of delivery

• Welcome Christine Bishop
• Track record Mike Lynn
• Financial management Lawrie Tremaine
• Strategy Stuart Brown

19
Industry trends
Production disruptions political / terrorism
threats
Global Energy Demand Growth
Declining Traditional Reserves
Security of Supply issues
Sustained high commodity prices
Increased Revenues
Increasing Influence of NOCs
High Activity Levels
Government Intervention
Increasing competition for acreage, assets and
resources
Margin Squeeze
Consider strategic options
Cost increases
Focus on core business
Diversify portfolio
20
Cost and revenue environment
400

• Rig rate increases slowing
• Steel prices peaked
• Labour rates stabilising

Rigs
Steel
Indexed rates
Labour
100
2004
2008
140
WTI oil price (USD)
Oil projects sanctioned in 30 to 60
world Project price assumptions typically
conservative
WTI oil price (USD)
60
Enfield
GEA hedges
Vincent
Stybarrow
Neptune
30
2004
2008
Data sources Steel CRU global Labour
Australian Bureau of Statistics, Western
Australia data Rigs RigLogix GEA hedges
Greater Enfield Area zero cost collars
21
Industry trends recent changes
Global economic turmoil
Production disruptions political / terrorism
threats
Global energy demand growth
Declining traditional reserves
Security of supply issues
Falling demand
Investor uncertainty
Sustained high commodity prices
Increased revenues
Lower commodity prices
Increasing Influence of NOCs
High activity levels
Government intervention
Increasing competition for acreage, assets and
resources
Margin squeeze
Strategic options
Cost increases
Consolidation
Focus on core business
Diversify portfolio
22
Maintaining focus core strategic themes

• Foundation Business
• Maximise returns from existing business
• Maintain and enhance our licence to operate
• LNG Growth
• Commercialise world-class gas assets in Australia
• Evaluate additional global LNG assets
• Complementary Business
• Maintain a limited portfolio of exploration
  assets outside Australia the Gulf of Mexico

23
Key messages

• Woodside has
• An enviable track record of delivering profitable
  growth
• A superior portfolio of quality producing assets
• A focussed strategy to achieve growth
• The financial strength for long term delivery

24
Delivering now
Investor Briefing
Kevin Gallagher, Jeff Soine, Niall Myles, Brad
Russell-Lane, Tammie Sebire, Peter Moore, Don
Voelte

• Sydney
• 13 November 2008

25
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS and Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

26
Enfield performing well
Woodside 60

• Since start-up 33 MMstb produced to end October
  2008
• Q4 expect average 40-45,000 bbl/day
• Successful sidetracks lifted production
• Further 4D seismic planned for late 2008
• 1H 2009 plan water injector/producer pair
• Potential 2009 exploration target

27
Stybarrow a star performer
Woodside 50

• gt 22 MMstb produced in 12 months
• Produced 70-80,000 bbl/day to August 2008
• Water cut increasing as expected
• Q4 expect average 55-65,000 bbl/day
• Infill drilling
• 4D seismic base-line survey planned late 2008
• Potential drill target identified for early 2010

28
Vincent ramping up
45
Woodside 60

• 1st production August 2008
• 1.5 MMstb produced in first 3 months
• Current production from 6 wells
• 35-42,000 bbl/day
• 7th well (tri-lateral) being completed
• Subsea / topsides commissioning essentially
  complete, all systems available
• Well cleanups taking longer than expected
• coil tubing planned at end of current well

30
Oil production rate (000 bpd)
15
Aug 08
Nov 08

• Future activity
• One more tri-lateral well in Q2 2009
• Possible further cleanups with coil tubing
• Phase 2 potential infill drilling

29
NWS oil continuing strong production
Woodside 33.3
75

• At end Q3, 395 MMstb produced in 13yrs
• Current oil production 60,000 bbl/day
• Q4 expect average 55-60,000 bbl/day
• Shell 16.67 interest acquired May 2008
• Life extension FID decision by year end,
• target replacement FPSO on-station Q4 2010
• Hermes field appraisal program underway
• Potential development well opportunity 2009

50
Oil production rate (000 bpd)
25
Nov 08
Jan 08
30
Laminaria / Corallina steady production
Woodside 59.9 / 66.7
15
Corallina riser unavailable
Corallina riser repair
Corallina producing via gas lift riser

• 186 MMstb oil produced in 9yrs
• Steady production 12,000 bbl/day
• Successful Corallina riser replacement
• Further subsea flowline and riser replacement
  work planned for H1 2009
• Corallina-4 appraisal well found unswept oil
  column (7m net)
• Q2 2009 potential Corallina-2ST2 sidetrack

10
Oil production rate (000 bpd)
5
Jan 08
Nov 08
31
Australian oil outlook

• Australian oil assets able to benefit during high
  oil prices
• By end Q3
• Produced 21.5 MMstb (net)
• 2.6 billion revenue (net)
• 60 total WEL revenue
• Focus on reservoir performance, facility
  availability and subsea system reliability
• Developing further infill drilling opportunities
  on all assets

• Good news expect another strong year in 2009

32
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

33
Gulf of Mexico

• Adding deepwater (oil) to existing shelf (gas)
  production
• Developing significant acreage position large,
  high-quality seismic database
• Shelf
• Short cycle times
• Stable cash flow base
• Predominantly gas
• Deepwater
• Longer cycle times
• Larger materiality
• Predominantly oil
• Focus area for growth

34
Neptune online 6 July 2008

• Woodside 20 WI, 17.5 NRI
• 50,000 bbl/day capacity achieved 21 July
• Favorable reservoir performance
• Production below facility capacity but exceeding
  initial expectations
• All 6 wells on line
• State of the art seismic completed
• Neptune Phase 2 planning in progress
• Potential 4-6 well campaign, with 2-3 wells
  planned in 2009
• In addition near field exploration potential

Neptune tension leg platform
WI Working Interest NRI Net Revenue
Interest
35
2009 exploration 3 4 wells planned
Exploration targets

• Large (gt100MMboe) to moderate (lt100MMboe) target
  sizes
• Possible developments short (18mths) to longer
  (5-7yrs)
• Low-risk, well-imaged structures adjacent to
  discoveries

36
2009 attractive oil targets

• Neptune NE prospect
• - Drill from Neptune template
• - 20 WI, 17.5 NRI
• - Rich azimuth seismic

Dunkirk

• Dunkirk prospect
• Exploration wildcat (subsalt, Wilcox)
• Farming-in
• - Kaskida discovery located nearby

WI Working Interest NRI Net Revenue
Interest
37
2009 attractive gas targets

• Flintcreek prospect
• - Deeper pool test of existing field
• - Tie-back to existing infrastructure
• - 25 WI, 20.3 NRI

• Beauregard prospect
• Shallow gas prospect with amplitude
• Success with analogous amplitudes
• Tie-back to existing infrastructure
• - 75 WI, 65.6 NRI
• - Acquired in 2006 lease sale

Beauregard
WI Working Interest NRI Net Revenue
Interest
Data courtesy of TGS-Nopec
38
Gulf of Mexico outlook

• Delivering positive results
• Production grown from 6,400 to 15,000boe/day,
  lifting cash flow
• Add to existing developments and infrastructure
• Phase 2 development at Neptune 2009-2011
• Grow through Deepwater exploration
• 3-4 exploration wells per year

39
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS and Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

40
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS and Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

41
NWS Gas major expansion phase completed

• LNG Train 5 first LNG
• 31 August 2008
• Angel platform first gas
• 2 October 2008
• Perseus over Goodwyn
• completed
• Perseus 1C drilling
• second well (Persephone)

42
North Rankin 2 execution over 17 complete
Rolling the steel cans
to form tubular legs of the NRB jacket
Batam, Indonesia construction yard
43
Greater Western Flank to fill post-2014 ullage
Goodwyn GHA/B
Goodwyn C
Echo Yodel
Goodwyn South
Keast
Tidepole
Dockrell
Sculptor
Rankin
Lady Nora
Dixon
Pemberton
Haycock
Wilcox
44
Otway stable production

• High uptime
• Phase 2 studies maturing
• Options include
• Geographe tie-back
• Onshore compression
• Targeting decision Q1 2009

Otway gas plant
45
Australian Gas outlook

• Continues to provide long-term cash flow
• Eg. NWS KGP approximate 2009 production (100
  basis)
• 250 LNG cargoes
• over 40 million barrels condensate
• 950,000 tonnes LPG
• over 600 TJ/d pipeline gas
• Focus on continued growth
• Delivering additional supply
• Producing more from existing facilities
• Positioning for potential expansion

KGP Karratha Gas Plant
46
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS and Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

47
NWS exploration success maintaining momentum

• Demeter 3D Seismic Survey (2004)
• 5 / 5 gas discoveries
• Pemberton (2006)
• Persephone (2006)
• Pemberton East (2007)
• Lady Nora (2007)
• Lambert West (2008)
• Nereus-1
• Planned November 2008
• 2009 drill candidates
• Being matured

48
NWS 2008 exploration drilling

• Lambert West Prospect
• Could commercialise with Lambert Deep
• Follow up potential
• Penetrated gross 120m of gas
• WEL 30
• Nereus Prospect
• Drill schedule late November 2008
• Adjacent to analog Persephone discovery
• WEL 15.78

Lambert West
Lambert Deep
E
W
Persephone
Nereus
W
E
49
NWS 2009 exploration opportunities

• Seraph Prospect
• Triassic gas prospect
• Below Angel Field
• Strategic test
• WEL 15.78
• Leonis Prospect
• Angel Formation primary target
• Beneath Lambert field
• Oil or gas potential
• WEL oil 50, gas 15.78

Seraph
NW
SE
Leonis
S
N
50
Delivering now

• Oil Australia Kevin Gallagher
• Oil USA Jeff Soine
• NWS operations Niall Myles
• Gas in NWS and Otway Brad Russell-Lane
• NWS exploration Peter Moore
• Production prediction Tammie Sebire

51
Production prediction has uncertainty
Weather
Facilities
Market
Reservoir
52
Uncertainty reservoir

• Volumes initially in place (IIP)
• Recovery

cut-off
53
Uncertainty reservoir

• Volumes initially in place (IIP)
• Recovery
• Connectivity

cut-off
54
Uncertainty reservoir

• Volumes initially in place (IIP)
• Recovery
• Connectivity

cut-off
55
Uncertainty fluid behaviour

• Mobility
• Aquifer support

56
Uncertainty fluid behaviour

• Mobility
• Aquifer support
• Water cut

57
Uncertainty facilities

• Reliability
• Availability

58
Uncertainty facilities

• Reliability
• Availability

59
External uncertainties
facility capacity

• Weather
• Cyclones
• Ambient temperatures
• Market
• Customer offtake
• Commodity prices

utilisation
Production rate
t
Time
60
Prediction through probability
61
Uncertainty changes through time
Abandonment
Appraisal
Production
Volume range
Field maturity
62
Field production range changes through time
Cumulative Probability
100
P90
90
50
P50
Confidence Level
P10
10
0
Volume
P10 / P90 production range
63
Portfolio production range changes through time
Cumulative Probability
100
90
P90
Confidence Level
50
P50
P10
10
0
Volume
P10 / P90 production range
64
2008 production outlook
86
84
84
2008
81
81
80
Production (MMboe)
70.6
67.9
59.7
57.4
2007
2004
2006
2008F
2005
65
2009 production outlook
86
84
81
81
Production (MMboe)
70.6
67.9
59.7
57.4
2007
2004
2006
2009F
2005
2008F
66
Energy to Deliver
Investor Briefing

• Sydney
• 13 November 2008

Questions
67
Capability to deliver
Investor Briefing

• Sydney
• 13 November 2008

Tina Thomas, Rob Cole, Feisal Ahmed
68
Capability to deliver

• People and capability Tina Thomas
• Business environment Rob Cole
• Project environment Feisal Ahmed

69
Experience

• Long term experienced workforce
• Experienced at project execution
• Retaining quality staff

70
Resourcing

• Successful recruitment for growth
• Indigenous and gender diversity
• Global workforce
• Challenges
• Labour market
• Industrial relations
• Karratha infrastructure

Woodside workforce locations
71
Workforce flexibility
Workforce

• Workforce combination of staff and contractors
• Reversing the trend of an ageing workforce

Employees
72
Opportunities
Graduate Apprentice/Trainee Programs

• Record number of graduates, trainees and
  apprenticeships
• 20M per annum on training and development
• Long term career opportunities
• Leadership development and talent management
• Cultural change

73
Resourced for growth

• A wealth of experience and capability
• Successful recruiting
• Developing our people

74
Capability to deliver

• People and capability Tina Thomas
• Business environment Rob Cole
• Project environment Feisal Ahmed

75
Business environment
Challenging
but we are up to it
76
Government relations

• Pluto
• Effective approvals management
• Sunrise
• Working with Australian and Timor Leste
  governments
• Browse
• Seismic and drilling approvals
• Northern Development Taskforce

77
Emissions trading

• LNG the most emissions efficient fossil fuel
• LNG part of a global solution
• Green Paper (July 2008) signalled potential
  adverse LNG treatment
• Woodside assumed leadership position in policy
  debate
• White Paper release due year-end

78
Managing the challenges

• Challenging environment
• We are up to it
• Our track record of delivery shows that

79
Capability to deliver

• People and capability Tina Thomas
• Business environment Rob Cole
• Project environment Feisal Ahmed

80
Project history
NRA1984
Domgas 1984
Train 1 2 1989
Train 3 1992
GWA 1995
Laminaria Corallina 1999
Wanaea Cossack 1995
Enfield 2006
LPG 1995
Train 4 2004
Otway 2007
Angel 2008
Otway 2007
Vincent 2008
Train 5 2008
81
Angel video
82
Contractor management

• Portfolio view across all projects
• Optimum contract management
• Lump sum vs. reimbursable
• Market conditions
• Contractor capability
• Project pipeline
• Project staff rollover
• Contractor transition

83
Technology a strategic approach

• Improve safety, efficiency and environmental
  performance
• Smart application of technology
• while balancing the risk
• Improve costs, scheduling and operability
• Some examples
• Intelligent field management
• Rigless well intervention
• Large bore subsea production systems
• Pipeline design second order wave theory
• 4D seismic and reservoir management
• Multilateral wells
• Modularisation of the LNG plant

84
Cost and schedule management

• Cost estimating and planning in the project
  development phase
• Cost control, planning and scheduling in the
  project execution phase

P50
P50
Internal
Base








Allowances
Scope
Escalation
Allowances
Contingency
Contingency
Scope
Costs
Estimate
Estimate
Estimate
P90
40
25
P90
P90
15
10
P50
P50
-5
P10
P10
-10
-15
-25
P10
Estimates
Class 2
Class 1
Class 3
Class 4
85
Cost and schedule benchmarking

• IPA methodology
• Woodside outperforms industry norm for both cost
  and schedule

Schedule Index
Cost Index
0.75
0.70
Ahead of schedule
Under budget
1.00
1.00
Industry norm
Industry norm
Over budget
Behind schedule
1.50
1.35

• Source Independent Project Analysis group
  Upstream Industry Benchmarking Conference
  November 2007
• Benchmark peers Anadarko, BHP Billiton, BP,
  Chevron, ConocoPhillips, Hydro, Petrobras,
  Repsol, Santos, Shell and Statoil

86
Capability to deliver

• We have
• A proven track record
• The right people
• We are
• Controlling costs
• Managing the schedule
• Delivering our projects

87
Delivering Pluto
Investor briefing

• Sydney
• 13 November 2008

Philip Meier, Lucio Della Martina, Peter Moore
88
Delivering Pluto

• Pluto construction Philip Meier
• Pluto positioning for growth Lucio Della
  Martina
• Pluto exploration Peter Moore

89
Pluto milestone look ahead
offshore
Award hook-up contract
First development well
Commence pipe lay
Commence 2nd drilling
operations
campaign
Commence deck stacking
Q3
Q4
Q1
Q2
2008
2008
2009
2009
Compressor delivered
Commence site
Ship first 10 modules
Heat exchangers
civils
from Thailand
delivered
Commence site mechanical engineering
onshore
Complete accommodation
Air-lift first LNG
tank roof
village
90
Delivering Pluto
Karratha Gas Plant
pipeline gas plant potential location
Train 3 potential location
Pluto Train1
Train 2 potential location

• Pluto construction Philip Meier
• Pluto positioning for growth Lucio Della
  Martina
• Pluto exploration Peter Moore

91
Pluto positioned for growth
Up to 12 million tonnes approved
92
Pursuing options to accelerate Train 2
OPTION 2
OPTION 1
Capacity
Capacity
Supply from future Woodside discoveries
Capacity available to third parties
Train 2
Train 2
Train 1
Pluto / Xena
Pluto / Xena
Train 1
Time
Time
OPTION 3
Capacity
capacity available to third parties
Train 2
supply from future Woodside discoveries
Accelerated
Train 1
Pluto / Xena
Pluto / Xena
Time
93
Solid progress on Train 1 supports growth

• The economic case for Train 2 is compelling
• Evaluating options to accelerate Train 2
• Driving Woodsides exploration campaign

94
Delivering Pluto

• Pluto construction Philip Meier
• Pluto positioning for growth Lucio Della
  Martina
• Pluto exploration Peter Moore

95
Large exploration portfolio
Substantial acreage in Pluto vicinity

• 9 licence blocks
• 34,525 sq. km area
• Belicoso-1 (2007)
• Established outboard reservoir
• Ixion-1 Bellatrix-1 (2008)
• Targeted Jansz Io sands
• High-risk high-reward, stratigraphic tests
• Pluto Train 2 exploration
• Planning 6 to 9 wells in 2009

96
New seismic data, multiple play types

• Substantial new seismic data
• Acquired 2008, north of Pluto
• Currently being processed
• Colombard 3D
• 3,166 sq km
• Armagnac 2D
• Swath 6,484 km
• Abundant large structures
• Triassic fault traps and anticlines
• Triassic pinnacle reefs
• Jurassic/Cretaceous plays

97
Positioned to find gas for Pluto in 2009
Martell

• Encouraging preliminary seismic data
• WA-404-P
• 9 wells planned for 2009/10
• 1st well Martell
• Planned December 2008 / February 2009
• WA-347/348/353-P
• Drilling depends on seismic results
• Inboard areas
• Maturing prospects for 2009 and 2010
• Deepwater rigs available

Interpreted gas-water contact
Pyxis
Interpreted gas-water contact
Pinnacle Reef
98
Delivering LNG
Investor briefing

• Sydney
• 13 November 2008

Jane Cutler, Betsy Donaghey, Reinhardt Matisons
99
Delivering LNG

• Sunrise Jane Cutler
• Browse Betsy Donaghey
• LNG market overview Reinhardt Matisons

100
Sunrise 2008 achievements

• Sunrise Commission established facilitates
  timely
• FDP approval
• Reservoir appraisal progressed
• Sunrise 3
• Seismic reprocessing
• Focus narrowed to 2 concepts
• Floating LNG
• Darwin LNG
• Moving towards concept selection
• 1H 2009

Sunrise-3
101
Concept A - Floating LNG option (FLNG)

• Innovative concept. Integrates well established,
  proven components
• No pipelines
• No onshore liquefaction facilities
• Shell has invited tenders for
• and construction of FLNG facilities

Image reproduced with the permission of Shell
102
Concept B - Darwin LNG option (DLNG)

• Brownfield expansion at Wickham Point
• Opportunity to leverage existing LNG plant
  facilities and infrastructure
• Conventional development
• ConocoPhillips has existing approval for a 10
  mtpa LNG facility

Sunrise DLNG2
LNG Storage
103
Operator targets

• 1H 2009 select development concept
• Q3 2009 submit field development plan
• 2009/2010 FEED LLIs FID

FEED front-end engineering design LLIs long
lead items FID final investment decision
104
Delivering LNG

• Sunrise Jane Cutler
• Browse Betsy Donaghey
• LNG market overview Reinhardt Matisons

105
Browse world scale development

• World scale development
• High Woodside equity
• Significant contributor to
• Woodside LNG growth

106
World scale challenges

• People / Contractors
• Costs
• Economics

Karratha
Kimberley
107
Significant progress made in 2008

• Appraisal activities
• Wells Torosa-6
• Calliance-3
• Torosa-5
• Seismic 81km 2-D
• 489km2 3-D
• Environmental
• Upstream development referral submitted
• Narrowed to two options
• Karratha
• Kimberley

Kimberley coastline
108
Operator targets

• End 2008 theme select
• 2009 concept select
• 2009/2010 pre-FEED FEED
• 2010/2011 LLIs FID

Relative location of themes
FEED front-end engineering design LLIs long
lead items FID final investment decision
109
Delivering LNG

• Sunrise Jane Cutler
• Browse Betsy Donaghey
• LNG market overview Reinhardt Matisons

110
LNG market remaining firm
Global LNG supply and demand

• Demand growth continues pace slowed
• New supply delayed
• Only 3 greenfield FIDs in last 3 years
• CSM and PNG actively marketing
• Demand gt supply at least until 2015

500
Possible
Probable
Demand
mtpa
Under Construction
Existing Projects
0
2020
2005
WoodMac
111
Diversified market opportunities

• Foundation Markets
• Foundation markets continue to dominate global
  LNG demand
• Developing Markets
• India and China prepared to pay market price
• Market Entrants
• New niche market entrants Thailand, Singapore,
  Pakistan, Kuwait, Brazil

112
Long term contract pricing
Indicative industry pricing into North Asia

• Current trends continue
• Asian prices still oil-linked (JCC)
• No s curves or ceilings
• Prices rose to oil parity
• 2008 prices holding oil parity

/MMBtu
JCC
JCC Japan Custom Cleared oil price Timing of
agreement shown (not timing of deliveries)
113
LNG and domestic gas contract trends

• Greater flexibility
• Price reviews balance benefits between buyers
  and sellers
• By 2012 85 of Woodside LNG contracts have
  re-openers

Woodside LNG Gas contracts pricing structure
Short term sales contracts (0-4 years)
Tonnes
Contracts expiring within 4 years
Long term contracts with re-openers
Long term contracts without re-openers
114
Shipping outlook
Global LNG ship supply and demand
500

• Strategy control, no need to own
• Base Pluto shipping volumes covered
• Ship supply exceeds forecast demand in the
  mid-term
• Collapse in dry bulk freight rates downward
  pressure on new ship cost
• Reasonably priced time charters available

Demand
Forecast Additions
No. of Ships (av. 165,000 cm3)
Existing Ordered
0
2008
2020
Source Poten
115
Woodside ranks amongst global leaders
mtpa
Source Poten Partners Australia Pty Ltd LNG
plant operatorship is allocated to the plant
operator when it is clear which company is the
operator and split along equity lines when it is
not
116
Woodside leveraged to LNG
equity LNG market capitalisation
Thousands (000s) of tonnes per million
market capitalisation
Ratio of thousand tonnes of LNG equity to Q2 2008
Market Capitalisation (USM)
Equity Production Source Poten Partners
Australia Pty Ltd Market
Capitalisation Source Thomson Reuters Knowledge
117
Key messages

• Supply remains constrained
• Demand growth continues in traditional markets
  with new customers emerging
• Tight supply and demand balance
• Pricing at oil parity
• Opportunities for price reviews on contracts
• Positive LNG shipping outlook
• Woodside is a major global operator of LNG
  projects

118
Energy to deliver
Investor Briefing

• Sydney
• 13 November 2008

Mark Chatterji, Don Voelte
119
Prioritising the projects
Pluto-2
2009
FID
Gas
FEED
FDP
Sunrise
FDP
FEED
Development concept
ETS
FDP
Browse
FEED
Development concept
FDP field development plan FEED front end
engineering ETS Emissions trading scheme
120
Energy to Deliver
Investor Briefing

• Sydney
• 13 November 2008

Questions
121
We continue to deliver

• 2008 delivered 5 new projects
• Vincent, Angel, NWS T5,
  Powerplay, Neptune
• Lifting 2008 production by 15
  to 20
• 2009 production similar or better than 2008
  levels
• Pluto T1 will boost LNG equity share by 150
• Future LNG growth Pluto T2 / T3, Sunrise and
  Browse
• Greater Pluto area initiating significant
  campaign of 6-9 wells

122
Energy to Deliver
Investor Briefing

• Sydney
• 13 November 2008