Woodside Energy Group Ltd
ACN 004 898 962
Mia Yellagonga
11 Mount Street
Perth WA 6000
Australia
T +61 8 9348 4000
www.woodside.com
ASX: WDS
NYSE: WDS
LSE: WDS
Announcement
Thursday, 15 February
2024
WOODSIDE RELEASES RESERVES STATEMENT AND FINANCIAL
UPDATES
· Strategic merger with BHP Petroleum delivered high-quality
resources and record production in 2023
· Top
quartile proved reserves life against peer group. 158% of
production replaced by proved plus probable reserves added in
2023
· Reserves additions from deepwater projects sanctioned in the
Gulf of Mexico and improved performance in North West Shelf and
Pluto, partly offset by reserves reductions in Shenzi
· Expected impairments associated with the goodwill and purchase
price allocated to Shenzi at the time of the merger with BHP
Petroleum, and Wheatstone short-term pricing, to be included in
2023 full-year financial statements
Woodside announced today that it
added 266 MMboe of proved oil and gas reserves in 2023, replacing
132% percent of production, and 318 MMboe of proved plus probable
reserves in 2023, replacing 158% of production.[1] Proved reserves life is 12.2 years given 2023
production levels, benchmarking in the top quartile of global
peers.[2]
Woodside CEO Meg O'Neill said the
reserves update reflects the quality of the larger portfolio
following the merger with BHP's petroleum assets and establishes a
continued platform for delivering strong shareholder
returns.
"Woodside has delivered strong
operational performance over the past 12 months. We achieved record
production in 2023, while progressing a world-class funnel of
development opportunities, which have us well positioned for growth
and returns.
"Our success in integrating the
strategic merger with BHP Petroleum, combined with our ability to
advance major projects and improve performance has delivered a
high-quality resource base that enjoys top quartile reserves
life.
"We continued to see strong
performance from our core assets in 2023."
Reserves and Resource update
At 31 December 2023, Woodside's
remaining proved (1P) reserves were 2,450.1 MMboe, proved plus
probable (2P) reserves remaining were 3,757.1 MMboe. The best
estimate (2C) contingent resources remaining were 5,902.0
MMboe.[3]
The first-time booking of reserves
at Trion in Mexico and Mad Dog Southwest in the US Gulf of Mexico
increased proved reserves by 204.1 MMboe and proved plus probable
reserves by
300.0 MMboe. Revisions of previous estimates and transfers in 2023
resulted in a net increase of 61.8 MMboe for proved reserves, and
17.8 MMboe for proved plus probable reserves. This includes
improved performance and technical updates at North West Shelf and
Pluto, offset by a 13.4 MMboe proved reserve, and a 30.2 MMboe
proved plus probable reserve, reduction at Shenzi.
The reduction in reserves at Shenzi
are mainly associated with the performance of infill sidetracks and
performance of the Shenzi North development following start
up.
Additionally, in 2023, Woodside
completed a transaction whereby Calgary-based Paramount Resources
took a 50% equity interest in, and operatorship of, 28 leases of
the Liard field in Canada. The transaction resulted in Woodside's
2C contingent resources decreasing by 2,241.2 MMboe.
A copy of Woodside's Reserves and
Resources Statement is attached.
2023 financials update
The 2023 full-year financial
statements are expected to recognise non-cash post-tax asset
impairments amounting to approximately $1,500 million, including
approximately $1,200 million ($1,400 million pre-tax) impairment
for the Shenzi asset. This is primarily related to goodwill and a
portion of the purchase price assigned to Shenzi on completion of
the merger with BHP Petroleum. The goodwill and purchase price
allocation resulted from application of acquisition accounting
principles and reflect both higher hydrocarbon prices and
Woodside's share price at the merger completion date. Goodwill is
not amortised and, once impaired, is not subject to a future
impairment reversal. For reference, Shenzi represented
approximately 5% of 2023 production and approximately 2% of 2023
year-end proved plus probable reserves.
The 2023 full-year financial
statements are also expected to recognise a non-cash post-tax
impairment of approximately $300 million for Wheatstone, mainly
related to short-term pricing.
Impairments will be excluded for the
purposes of calculating the 2023 full-year dividend, consistent
with prior practice. All impairment values are subject to the
completion of the 2023 external audit.
2023 full-year line-item guidance
|
Comments
|
Other costs
|
|
|
|
Impairment expense
|
$ million
|
~1,900
|
~$1,500 million post-tax. This
includes impairments on Shenzi, Wheatstone and Pyrenees (previously
impaired as reported on 30 June 2023)
|
Net
finance cost
|
$
million
|
~35
|
|
Taxes
|
|
|
|
PRRT
|
$ million
|
850 -
950
|
Includes de-recognition of Pluto
PRRT Deferred Tax Asset (DTA) of $637 million (as previously
reported on 30 June 2023)
|
Income tax expense
|
$ million
|
600 -
750
|
Includes effect of $319 million DTA
recognised on Trion FID (as previously reported on 30 June 2023)
and impact of impairments
|
Contacts:
|
|
|
|
INVESTORS
Marcela Louzada
M: +61 456 994 243
E: investor@woodside.com
|
MEDIA
Christine Forster
M: +61 484 112 469
E:
christine.forster@woodside.com
|
|
|
|
|
|
|
|
| |
This announcement was approved and authorised for release by
Woodside's Disclosure Committee
Forward-looking statements
This announcement contains
forward-looking statements with respect to Woodside's business and
operations, market conditions, reserves and resources estimates,
results of operations and financial condition. All statements,
other than statements of historical or present facts, are
forward-looking statements and generally may be identified by the
use of forward-looking words such as 'guidance', 'foresee',
'likely', 'potential', 'anticipate', 'believe', 'aim', 'estimate',
'expect', 'intend', 'may', 'target', 'plan', 'strategy',
'forecast', 'outlook', 'project', 'schedule', 'will', 'should',
'seek' and other similar words or expressions. Similarly,
statements that describe the objectives, plans, goals or
expectations of Woodside are forward-looking statements.
Forward-looking statements in this
announcement are not guidance, forecasts, guarantees or predictions
of future events or performance. Those statements and any
assumptions on which they are based are subject to change without
notice and are subject to inherent known and unknown risks,
uncertainties, assumptions and other factors, many of which are
beyond the control of Woodside, its related bodies corporate and
their respective officers, directors, employees, advisers or
representatives.
A detailed summary of the key risks
relating to Woodside and its business can be found in the "Risk"
section of Woodside's most recent Annual Report released to the
Australian Securities Exchange and the London Stock Exchange and in
Woodside's most recent Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission and available on
the Woodside website at
https://www.woodside.com/investors/reports-investor-briefings. You
should review and have regard to these risks when considering the
information contained in this announcement.
All information included in this
announcement, including any forward-looking statements, reflect
Woodside's views held as at the date of this announcement and,
except as required by applicable law, Woodside does not intend to,
undertake to, or assume any obligation to, provide any additional
information or update or revise any information or forward-looking
statements after the date of this announcement, either to make them
conform to actual results or as a result of new information, future
events, changes in Woodside's expectations or otherwise.
Investors are strongly cautioned not
to place undue reliance on any forward-looking statements. Actual
results or performance may vary materially from those expressed in,
or implied by, any forward-looking statements.
Announcement contains inside information
This announcement contains inside
information. Marcela Louzada, Vice President Investor Relations is
responsible for release of this announcement.
Notes relating to reserves and resources
Woodside is an Australian company
with securities listed on the Australian Securities Exchange, the
New York Stock Exchange, and the London Stock Exchange. Woodside
reports its proved reserves in accordance with the regulations of
the United States Securities and Exchange Commission (SEC), which
are also compliant with SPE-PRMS guidelines, and prepares and
reports its proved plus probable reserves and 2C contingent
resources in accordance with SPE-PRMS guidelines. Woodside reports
all petroleum resource estimates using definitions consistent with
SPE-PRMS.
Further notes relating to the
disclosure of reserves and resources information are included under
the heading "Notes to the Reserves and Resources Statement" in the
accompanying Reserves and Resources Statement.
Disclosure of reserve information and cautionary note to US
investors
The SEC prohibits oil and gas
companies, in their filings with the SEC, from disclosing estimates
of oil or gas resources other than 'reserves' (as that term is
defined by the SEC). In this announcement, and the accompanying
Reserves and Resources Statement, Woodside includes estimates of
quantities of oil and gas using certain terms, such as 'proved plus
probable (2P) reserves,' 'best estimate (2C) contingent resources,'
'reserves and contingent resources,' 'proved plus probable,'
'developed and undeveloped,' 'probable developed,' 'probable
undeveloped,' 'contingent resources' or other descriptions of
volumes of reserves, which terms include quantities of oil and gas
that may not meet the SEC's definitions of proved, probable and
possible reserves, and which the SEC's guidelines strictly prohibit
Woodside from including in filings with the SEC. These estimates
are by their nature more speculative than estimates of proved
reserves and would require substantial capital spending over a
significant number of years to implement recovery, and accordingly
are subject to substantially greater risk of being recovered by
Woodside. In addition, actual locations drilled and quantities that
may be ultimately recovered from Woodside's properties may differ
substantially. Woodside has made no commitment to drill, and likely
will not drill, all drilling locations that have been attributable
to these quantities.
The Reserves Statement presenting
Woodside's proved oil and gas reserves in accordance with the
regulations of the SEC will be filed with the SEC as part of
Woodside's annual report on Form 20-F. U.S. investors are urged to
consider closely the disclosures in Woodside's filings with the
SEC, which are available at www.sec.gov.
Other important information
All references to dollars, cents or $
in this announcement are to US currency, unless otherwise stated.
References to "Woodside" may be references to Woodside Energy Group
Ltd and/or its applicable subsidiaries (as the context
requires).
All financial information for the
year ended 31 December 2023 included in this announcement has been
prepared by management solely based on currently available
information. Such information is based on estimates, is
subject to completion of our financial closing procedures and audit
processes, and is not a comprehensive statement of our financial
results for the year ended 31 December 2023.
Reserves and
Resources Statement
Woodside produced a total of
201.0 MMboe in 2023,
including 186.1 MMboe produced for sale
and 15.0 MMboe of production consumed primarily as fuel in
operations.1 At 31 December 2023,
Woodside's remaining proved (1P) reserves
were 2,450.1 MMboe, proved plus probable (2P) reserves remaining
were 3,757.1 MMboe, while the best estimate (2C) contingent
resources remaining were 5,902.0 MMboe (Table 1).
The first-time booking of reserves
at Trion in Mexico and Mad Dog Southwest in the US Gulf of Mexico
increased proved reserves by 204.1 MMboe and proved plus probable
reserves by 300.0 MMboe (shown as extensions and discoveries
in Table 2), of
which:
· final
investment decision and regulatory approval of the field
development plan at Trion in August 2023 increased proved reserves
by 194.8 MMboe and proved plus probable reserves by 287.2 MMboe;
and
· approval of the Mad Dog Southwest Extension project increased
proved reserves by 9.3 MMboe and proved plus probable reserves by
12.7 MMboe.
Revisions of previous estimates and
transfers in 2023 resulted in a net increase of 61.8 MMboe for
proved reserves and 17.8 MMboe for proved plus probable reserves.
Key drivers for these revisions include:
· asset
optimisation, including injector to producer conversions, and field
performance at Angostura and Ruby in Trinidad and Tobago
contributed to proved and proved plus
probable reserves increases of 13.0 MMboe and 19.3 MMboe,
respectively
· improved overall field performance and technical updates in
North West Shelf increased proved reserves by 49.7 MMboe. North West Shelf proved
plus probable reserves decreased by 8.9 MMboe, due to the transfer of
several late life undeveloped projects to 2C contingent resources,
partially offset by improved overall field
performance
· performance based revisions at Shenzi resulted in decreases in
both proved and proved plus probable
reserves of 13.4 MMboe and 30.2 MMboe, respectively
· improved overall field performance and technical updates at
Pluto and Macedon contributed to proved
plus probable reserves increases of 28.4 MMboe and
14.7 MMboe, respectively.
Additionally, in 2023, Woodside
completed a transaction whereby Calgary-based Paramount Resources
took a 50% equity interest in, and operatorship of, 28 leases of
the Liard field in Canada. The transaction resulted in Woodside's
2C contingent resources decreasing by 2,241.2 MMboe. Voluntary
relinquishment of Magellan in Trinidad and Tobago, and Wildling in
the US Gulf of Mexico resulted in a 77.2 MMboe decrease in 2C
contingent resources.
The reclassification of undeveloped
reserves to developed reserves is discussed in the
Undeveloped Reserves section of this
Reserves and Resources Statement.
Unless stated otherwise, the
following apply to this Reserves and Resources
Statement2: The effective date for reserves and resources estimates is
31 December 2023. Proved reserves are calculated using
SEC-compliant economic assumptions and pricing. Production is
reported for the period from 1 January 2023 to 31 December 2023.
Reserves, resources and production stated are Woodside's net share
and inclusive of fuel consumed in operations. All numbers are
internal estimates produced by Woodside. Estimates of reserves and
contingent resources should be regarded only as estimates that may
change over time as further production history and additional
information becomes available.
Table 1: Woodside's
reserves3,4,5,6 and contingent
resources7 overview (net Woodside share,
as at 31 December 2023)
|
Natural gas8
Bcf11
|
NGLs9
MMbbl12
|
Oil & condensate MMbbl
|
Total10 MMboe13
|
Fuel included in
total
MMboe
|
Proved14 developed15 and undeveloped16
|
10,496.9
|
21.0
|
587.5
|
2,450.1
|
228.1
|
Proved developed
|
2,582.1
|
18.7
|
266.0
|
737.7
|
63.5
|
Proved undeveloped
|
7,914.7
|
2.3
|
321.6
|
1,712.5
|
164.6
|
Proved plus
probable17
developed and undeveloped
|
16,024.1
|
37.1
|
908.7
|
3,757.1
|
338.9
|
Proved plus probable
developed
|
3,759.1
|
32.9
|
382.4
|
1,074.8
|
88.7
|
Proved plus probable
undeveloped
|
12,264.9
|
4.2
|
526.3
|
2,682.3
|
250.1
|
Contingent
resources18
|
27,786.8
|
80.6
|
946.5
|
5,902.0
|
362.3
|
Small differences are due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Methodology
Reserves and contingent resources
estimates have not been adjusted for risk. Proved reserves are
estimated and reported on a net interest basis, excluding royalties
owned by others, in accordance with the United States Securities
and Exchange Commission (SEC) regulations and have been determined
in accordance with SEC Rule 4-10(a) of Regulation S-X. As defined
by the SEC, proved reserves are those quantities of crude oil,
natural gas, and natural gas liquids that, by analysis of
geoscience and engineering data, can be estimated with reasonable
certainty to be economically producible from a given date forward
from known reservoirs and under existing economic conditions,
operating methods, operating contracts, and government regulations.
Unless evidence indicates that renewal of existing operating
contracts is reasonably certain, estimates of economically
producible reserves reflect only the period before the contracts
expire. The project to extract the hydrocarbons must have commenced
or the operator must be reasonably certain that it will commence
within a reasonable time.
Proved reserves are estimated by
reference to available well and reservoir information, including
but not limited to well logs, well test data, core data, production
and pressure data, geologic data, seismic data and, in some cases,
similar data from analogous, producing reservoirs. A wide range of
engineering and geoscience methods, including performance analysis,
numerical simulation, well analogues and geologic studies, have
been used to develop high confidence in estimated
quantities.
Proved plus probable reserves and 2C contingent resources are estimated in
accordance with the 2018 Society of Petroleum Engineers/World
Petroleum Council/American Association of Petroleum
Geologists/Society of Petroleum Evaluation Engineers Petroleum
Resources Management System (SPE-PRMS) guidelines. SPE-PRMS
guidelines allow (amongst other things) escalations to prices and
costs and, as such, volume estimates in accordance with those
guidelines would be on a different basis than volumes estimated as
prescribed by the SEC. Proved plus probable reserves and 2C contingent resources estimates are inherently
more uncertain than proved reserves estimates.
Governance and assurance
Woodside has several processes
designed to provide assurance for reserves and contingent resources
reporting, including its Reserves and Resources Policy, Petroleum
Resources Management Procedure, Reserves and Resources Guideline,
annual staff training and minimum experience levels. The Woodside
Reserves and Resources Policy requires external audits of all
projects or fields with material reserves at least once every four
years. In addition, Woodside has a dedicated and independent
Corporate Reserves Team (CRT) that provides oversight and assurance
of the reserves and resources assessments and reporting processes.
Reserves and resources are estimated by staff in teams directly
responsible for development and production activities. These
individuals are trained in the fundamentals of reserves reporting
and are approved by the CRT on an annual basis. Reserves
assessments are reviewed annually by the CRT to ensure technical
quality, adherence to internally published guidelines and
compliance with SEC and SPE-PRMS reporting requirements (as
applicable). All reserves and resources are reviewed and approved
by Woodside's Qualified Petroleum Reserves and Resources Evaluator
and approved by senior management and the Board prior to public
reporting.
Qualified Petroleum Reserves and
Resources Evaluator statement
The estimates of petroleum
reserves and contingent resources
are based on and fairly represent information and
supporting documentation prepared by, or under the supervision of
Mr. Ben Stephens, Woodside's Vice President Reserves and
Subsurface, who is a full-time employee of the company and a member
of the Society of Petroleum Engineers. The Reserves and Resources Statement as a whole has been approved by
Mr. Stephens. Mr. Stephen's qualifications include a Bachelor of
Engineering (Petroleum Engineering) from the University of New
South Wales, Australia, and 20 years of relevant
experience.
Table 2: Proved and proved plus
probable developed and undeveloped reserves reconciliation (net
Woodside share, as at 31 December 2023)
|
Natural gas
|
NGLs
|
Oil &
condensate
|
Total
|
|
Bcf
|
MMbbl
|
MMbbl
|
MMboe
|
|
Proved
|
Proved
plus probable
|
Proved
|
Proved
plus probable
|
Proved
|
Proved
plus probable
|
Proved
|
Proved
plus probable
|
Reserves as at 31 December 2022
|
10,783.6
|
16,425.9
|
26.3
|
48.0
|
467.0
|
710.6
|
2,385.2
|
3,640.3
|
Acquisitions and
divestments19
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
Revision of previous
estimates20
|
355.9
|
348.5
|
1.6
|
-3.1
|
-0.8
|
-28.6
|
63.3
|
29.4
|
Transfer to/from
reserves21
|
-11.6
|
-62.4
|
0.1
|
-1.0
|
0.5
|
0.3
|
-1.5
|
-11.6
|
Extensions and
discoveries22
|
177.9
|
121.0
|
0.4
|
0.5
|
172.5
|
278.2
|
204.1
|
300.0
|
Production1
|
-809.0
|
-809.0
|
-7.3
|
-7.3
|
-51.8
|
-51.8
|
-201.0
|
-201.0
|
Reserves as at 31 December 202323
|
10,496.9
|
16,024.1
|
21.0
|
37.1
|
587.5
|
908.7
|
2,450.1
|
3,757.1
|
Fuel included in reserves as at 31
December 2023
|
1,297.5
|
1,927.5
|
0.5
|
0.7
|
0.0
|
0.0
|
228.1
|
338.9
|
Small differences are due to rounding
|
|
|
|
|
|
|
|
|
Table 3: 2C contingent resources
reconciliation (net Woodside share, as at 31 December
2023)
|
Natural gas
Bcf
|
NGLs
MMbbl
|
Oil &
condensate
MMbbl
|
Total
MMboe
|
Contingent resources as at 31 December 2022
|
41,589.1
|
88.8
|
1,276.7
|
8,661.9
|
Acquisitions and
divestments
|
-12,774.6
|
0.0
|
0.0
|
-2,241.2
|
Extensions and
discoveries
|
0.0
|
0.0
|
0.0
|
0.0
|
Transfer to/from reserves
|
-58.6
|
0.4
|
-278.5
|
-288.4
|
Revision of previous
estimates
|
-969.0
|
-8.6
|
-51.7
|
-230.3
|
Contingent resources as at 31 December
202318
|
27,786.8
|
80.6
|
946.5
|
5,902.0
|
Small differences are due to rounding
Table 4: Proved developed and
undeveloped reserves (net Woodside share, as at 31 December
2023)
Country
|
Assets
|
Natural gas
Bcf
|
NGLs
MMbbl
|
Oil &
condensate
MMbbl
|
Total
MMboe
|
|
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Australia
|
Greater
Pluto24
|
764.2
|
155.3
|
919.5
|
0.0
|
0.0
|
0.0
|
9.6
|
1.9
|
11.5
|
143.6
|
29.2
|
172.8
|
|
Bass Strait
|
279.6
|
64.6
|
344.2
|
8.6
|
1.0
|
9.6
|
6.2
|
1.2
|
7.4
|
63.9
|
13.5
|
77.4
|
|
North West
Shelf25
|
825.6
|
0.0
|
825.6
|
4.0
|
0.0
|
4.0
|
26.4
|
0.0
|
26.4
|
175.3
|
0.0
|
175.3
|
|
Exmouth26
|
491.8
|
108.9
|
600.7
|
0.0
|
0.0
|
0.0
|
25.7
|
1.5
|
27.2
|
112.0
|
20.6
|
132.6
|
|
Scarborough27
|
0.0
|
7,336.0
|
7,336.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
1,287.0
|
1,287.0
|
USA
|
Gulf of
Mexico28
|
87.8
|
16.2
|
104.0
|
6.1
|
1.3
|
7.4
|
197.2
|
68.7
|
265.9
|
218.7
|
72.9
|
291.6
|
Other
|
International29
|
133.1
|
233.7
|
366.8
|
0.0
|
0.0
|
0.0
|
0.8
|
248.3
|
249.1
|
24.2
|
289.3
|
313.4
|
Total
|
Reserves
|
2,582.1
|
7,914.7
|
10,496.9
|
18.7
|
2.3
|
21.0
|
266.0
|
321.6
|
587.5
|
737.7
|
1,712.5
|
2,450.1
|
Fuel included in reserves as at 31
December 2023
|
359.5
|
938.0
|
1,297.5
|
0.4
|
0.1
|
0.5
|
0.0
|
0.0
|
0.0
|
63.5
|
164.6
|
228.1
|
Small differences are due to rounding
Table 5: Proved plus probable
developed and undeveloped reserves (net Woodside share, as at 31
December 2023)
Country
|
Assets
|
Natural gas
Bcf
|
NGLs
MMbbl
|
Oil &
condensate
MMbbl
|
Total
MMboe
|
|
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Developed
|
Undeveloped
|
Total
|
Australia
|
Greater Pluto
|
1,235.9
|
243.1
|
1,479.0
|
0.2
|
0.1
|
0.3
|
15.7
|
3.1
|
18.8
|
232.7
|
45.8
|
278.5
|
|
Bass Strait
|
464.2
|
66.0
|
530.1
|
17.3
|
1.8
|
19.1
|
10.2
|
1.5
|
11.7
|
108.9
|
14.9
|
123.8
|
|
North West Shelf
|
1,088.0
|
0.0
|
1,088.0
|
5.6
|
0.0
|
5.6
|
35.5
|
0.0
|
35.5
|
232.0
|
0.0
|
232.0
|
|
Exmouth
|
619.1
|
272.9
|
892.0
|
0.0
|
0.0
|
0.0
|
35.1
|
3.4
|
38.6
|
143.7
|
51.3
|
195.1
|
|
Scarborough
|
0.0
|
11,461.4
|
11,461.4
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
0.0
|
2,010.8
|
2,010.8
|
USA
|
Gulf of Mexico
|
131.2
|
25.4
|
156.6
|
9.8
|
2.2
|
12.0
|
284.4
|
100.9
|
385.4
|
317.2
|
107.6
|
424.9
|
Other
|
International
|
220.8
|
196.1
|
416.9
|
0.0
|
0.0
|
0.0
|
1.4
|
417.4
|
418.9
|
40.2
|
451.8
|
492.0
|
Total
|
Reserves
|
3,759.1
|
12,264.9
|
16,024.1
|
32.9
|
4.2
|
37.1
|
382.4
|
526.3
|
908.7
|
1,074.8
|
2,682.3
|
3,757.1
|
Fuel included in reserves as at 31
December 2023
|
502.1
|
1,425.4
|
1,927.5
|
0.7
|
0.1
|
0.7
|
0.0
|
0.0
|
0.0
|
88.7
|
250.1
|
338.9
|
Small differences are due to rounding
Table 6: 2C contingent resources
summary by region (net Woodside share, as at 31 December
2023)
Country
|
Assets
|
Natural gas
Bcf
|
NGLs
MMbbl
|
Oil &
condensate
MMbbl
|
Total
MMboe
|
Australia
|
Greater Pluto
|
1,061.8
|
0.0
|
20.2
|
206.5
|
|
Bass Strait
|
581.7
|
32.1
|
51.5
|
185.7
|
|
North West Shelf
|
539.0
|
4.3
|
35.9
|
134.8
|
|
Exmouth
|
709.4
|
0.0
|
46.5
|
171.0
|
|
Scarborough
|
1,632.2
|
0.0
|
0.0
|
286.4
|
|
Browse30
|
4,403.3
|
8.3
|
117.5
|
898.3
|
Greater Sunrise Special Regime Area
|
Sunrise31
|
1,778.0
|
0.0
|
75.6
|
387.5
|
USA
|
Gulf of Mexico
|
239.9
|
35.8
|
294.7
|
372.6
|
Canada
|
Liard18
|
14,225.7
|
0.0
|
0.0
|
2,495.7
|
Other
|
International
|
2,616.0
|
0.0
|
304.6
|
763.6
|
Total
|
Resources
|
27,786.8
|
80.6
|
946.5
|
5,902.0
|
Small differences are due to rounding
Undeveloped reserves
At 31 December 2023, Woodside's
remaining proved undeveloped reserves were 1,712.5 MMboe, representing an
increase of 97.2 MMboe from the 1,615.2
MMboe as at 31 December 2022 (Table 7).
Extensions and discoveries increased
proved undeveloped reserves by 204.1 MMboe
following the final investment decision and regulatory approval of
the field development plan at Trion, and
approval of the Mad Dog Southwest Extension project.
In 2023, 87.7 MMboe of
proved undeveloped reserves were converted
to proved developed reserves with start-up of development wells in
Mad Dog Phase 2 (56.0 MMboe), Shenzi North (10.5
MMboe), Atlantis (8.7 MMboe), and Pyrenees
(1.1 MMboe), and
completion of offshore Pluto water handling (11.3 MMboe). Technical studies and
performance resulted in a 3.4
MMboe decrease to proved undeveloped
reserves. The effect of commodity prices relative
to 2022 resulted in a 15.8
MMboe reduction to proved undeveloped reserves at
Sangomar.
Undeveloped reserves in Julimar
Brunello have remained undeveloped for longer than five years from
the dates they were initially reported and are expected to be
developed in a phased manner to meet long-term contractual
commitments. The project is included in the company business
plan, demonstrating the intent to proceed with the
development.
The changes in proved undeveloped
reserves in 2023 are summarised by category
in Table 7.
Table 7: Proved undeveloped reserves
reconciliation (net Woodside share, as at 31 December
2023)
|
Total
MMboe
|
Reserves as at 31 December 2022
|
1,615.2
|
Extensions and discoveries
|
204.1
|
Revision of previous estimates
|
-106.9
|
Reclassifications to developed
|
-87.7
|
Performance, technical studies, and other
|
-3.4
|
Development plan changes
|
0.0
|
Price
|
-15.8
|
Acquisitions and divestments
|
0.0
|
Reserves as at 31 December 2023
|
1,712.5
|
Small differences are due to rounding
At 31 December 2023, Woodside's
remaining proved plus probable undeveloped reserves were 2,682.3
MMboe, representing an increase of 157.7 MMboe from the 2,524.5
MMboe as at 31 December 2022.
Extensions and discoveries
associated with Trion and Mad Dog Southwest increased proved plus
probable undeveloped reserves by 300.0 MMboe.
In 2023, 130.1 MMboe of proved plus
probable undeveloped reserves were converted to proved plus
probable developed reserves with start-up of development wells in
Mad Dog Phase 2 (71.7 MMboe), Shenzi North (28.6 MMboe), Atlantis
(15.8 MMboe), and Pyrenees (1.3 MMboe), and completion of offshore
Pluto water handling (12.7 MMboe). Additionally,
22.0 MMboe of late life
North West Shelf undeveloped projects were transferred to 2C
contingent resources.
During 2023, Woodside spent US$5.3
billion on development activities worldwide. Of this amount, US$4.7
billion was spent progressing the conversion of proved undeveloped
reserves for projects where development status was achieved in 2023
or is expected to be achieved when development is completed in the
future.
Additional information for US investors
The SEC prohibits oil and gas
companies, in their filings with the SEC, from disclosing estimates
of oil or gas resources other than 'reserves' (as that term is
defined by the SEC). In this Reserves and Resources Statement,
Woodside includes estimates of quantities of oil and gas using
certain terms, such as 'proved plus probable (2P) reserves,' 'best
estimate (2C) contingent resources,' 'reserves and contingent
resources,' 'proved plus probable,' 'developed and undeveloped,'
'probable developed,' 'probable undeveloped,' 'contingent
resources' or other descriptions of volumes of reserves, which
terms include quantities of oil and gas that may not meet the SEC's
definitions of proved, probable and possible reserves, and which
the SEC's guidelines strictly prohibit Woodside from including in
filings with the SEC. These estimates are by their nature more
speculative than estimates of proved reserves and would require
substantial capital spending over a significant number of years to
implement recovery, and accordingly are subject to substantially
greater risk of being recovered by Woodside. In addition, actual
locations drilled and quantities that may be ultimately recovered
from Woodside's properties may differ substantially. Woodside has
made no commitment to drill, and likely will not drill, all
drilling locations that have been attributable to these quantities.
U.S. investors are urged to consider closely the disclosures in
Woodside's filings with the SEC, which are available at
www.sec.gov.
Notes to the Reserves and Resources
Statement
1.
'Production' is the volume of natural gas, natural
gas liquids (NGLs), condensate and oil produced during the period
from 1 January 2023 to 31 December 2023 and converted to 'MMboe'
for the specific purpose of reserves reconciliation. The production
volume figures in this Reserves and Resources Statement differ from
the production volume figures reported elsewhere in Woodside's
reports, because the production volume figures reported in this
Reserves and Resources Statement include all fuel consumed
in operations but exclude 1.1 MMboe in excess of reserves
working interest percentage from Pluto non-operating participants
processed via the Pluto-KGP Interconnector. Small differences are due to rounding.
2.
Woodside is an Australian company listed on the
Australian Securities Exchange, the New York Stock Exchange, and
the London Stock Exchange. Woodside reports its proved reserves in
accordance with SEC regulations, which are also compliant with
SPE-PRMS guidelines, and prepares and reports its proved plus
probable reserves and 2C contingent resources in accordance with
SPE-PRMS guidelines. Woodside reports all petroleum resource
estimates using definitions consistent with SPE-PRMS.
3.
For offshore oil projects, the reference point is
defined as the outlet of the floating production storage and
offloading facility (FPSO) or platform, while for the onshore gas
projects the reference point is defined as the outlet of the
downstream (onshore) gas processing facility.
4.
'Reserves' are estimated quantities of petroleum
that have been demonstrated to be producible from known
accumulations in which the company has a material interest from a
given date forward, at commercial rates, under presently
anticipated production methods, operating conditions, prices, and
costs. Woodside reports reserves inclusive of all fuel consumed in
operations. Proved reserves are estimated and reported in
accordance with SEC regulations which are also compliant with
SPE-PRMS guidelines. SEC-compliant proved reserves estimates use a
more restrictive, rules-based approach and are generally lower than
estimates prepared solely in accordance with SPE-PRMS guidelines
due to, among other things, the requirement to use commodity prices
based on the average of first of month prices during the 12-month
period in the reporting company's fiscal year. Proved plus probable
reserves are estimated and reported in accordance with SPE-PRMS
guidelines and are not compliant with SEC regulations.
5.
Assessment of the economic value in support of an
SPE-PRMS (2018) reserves and resources classification, uses
Woodside Portfolio Economic Assumptions (Woodside PEAs). The
Woodside PEAs are reviewed on an annual basis, or more often if
required. The review is based on historical data and forecast
estimates for economic variables such as product prices and
exchange rates. The Woodside PEAs are approved by the Woodside
Board. Specific contractual arrangements for individual projects
are also taken into account.
6.
Woodside uses both deterministic and probabilistic
methods for the estimation of reserves and contingent resources at
the field and project levels. All proved reserves estimates have
been estimated using deterministic methods and reported on a net
interest basis in accordance with the SEC regulations and have been
determined in accordance with SEC Rule 4-10(a) of Regulation S-X.
Unless otherwise stated, all petroleum estimates reported at the
company or region level are aggregated by arithmetic summation by
category. The aggregated proved reserves may be a conservative
estimate due to the portfolio effects of arithmetic
summation.
7.
'Contingent resources' are those quantities of
petroleum estimated, as of a given date, to be potentially
recoverable from known accumulations, but the applied project(s)
are not yet considered mature enough for commercial development due
to one or more contingencies. Contingent resources are estimated
and reported in accordance with SPE-PRMS guidelines and may
include, for example, projects for which there are currently no
viable markets, or where commercial recovery is dependent on
technology under development, or where evaluation of the
accumulation is insufficient to clearly assess commerciality.
Woodside reports contingent resources inclusive of all fuel
consumed in operations. Contingent resources are different from,
and should not be construed as, reserves. Contingent resources
estimates may not always mature to reserves and do not necessarily
represent future reserves bookings. Contingent resources volumes
are reported at the 'Best Estimate' (P50) confidence level. 2C
contingent resources are not compliant with SEC regulations. The
SEC prohibits disclosure of oil and gas resources, including
contingent resources, in SEC filings. However, Australian
securities regulatory authorities allow disclosure of oil and gas
resources, including contingent resources.
8.
'Natural gas' is defined as the gas product
associated with liquefied natural gas (LNG) and pipeline gas.
Liquid volumes of crude oil, condensate and NGLs are reported
separately.
9.
'Natural gas liquids' or 'NGLs' is defined as the
product associated with liquified petroleum gas (LPG) and consists
of propane, butane, and ethane - individually or as a
mixture.
10. 'Total' includes fuel consumed in operations.
11. 'Bcf' means Billions (109) of cubic feet of gas at
standard oilfield conditions of 14.696 psi (101.325 kPa) and 60
degrees Fahrenheit (15.56 degrees Celsius).
12. 'MMbbl' means millions (106) of barrels of NGLs,
oil and condensate at standard oilfield conditions of 14.696 psi
(101.325 kPa) and 60 degrees Fahrenheit (15.56 degrees
Celsius).
13. 'MMboe' means millions (106) of barrels of oil
equivalent. Natural Gas volumes are converted to oil equivalent
volumes via a constant conversion factor, which for Woodside is 5.7
Bcf of dry gas per 1 MMboe. Volumes of NGLs, oil and condensate are
converted from MMbbl to MMboe on a 1:1 ratio.
14. 'Proved reserves' are those quantities of crude oil,
condensate, natural gas and NGLs that, by analysis of geoscience
and engineering data, can be estimated with reasonable certainty to
be economically producible from a given date forward from known
reservoirs and under existing economic conditions, operating
methods, operating contracts, and government regulations. Proved
reserves are estimated and reported on a net interest basis in
accordance with the SEC regulations and have been determined in
accordance with SEC Rule 4-10(a) of Regulation S-X.
15. 'Developed reserves' are those reserves that are producible
through currently existing completions and installed facilities for
treatment, compression, transportation and delivery, using existing
operating methods and standards.
16. 'Undeveloped reserves' are those reserves for which wells and
facilities have not been installed or executed but are expected to
be recovered through future significant
investments.
17. 'Probable reserves' are those reserves which analysis of
geological and engineering data suggests are more likely than not
to be recoverable. Proved plus probable reserves represent the best
estimate of recoverable quantities. Where probabilistic methods are
used, there is at least a 50% probability that the actual
quantities recovered will equal or exceed the sum of estimated
proved plus probable reserves. Proved plus probable reserves are
estimated and reported in accordance with SPE-PRMS guidelines and
are not compliant with SEC regulations.
18. 'Liard' comprises unconventional contingent resources in the
Liard Basin. As at 31 December 2023, Liard represents approximately
42% of Woodside's 2C contingent resources.
19. 'Acquisitions and divestments' are revisions that represent
changes (either upward or downward) in previous estimates of
reserves or contingent resources, which result from either purchase
or sale of interests and/or execution of contracts conveying
entitlement.
20. 'Revision of previous estimates' are changes (either upward or
downward) in previous estimates of reserves or contingent
resources, resulting from new information normally obtained from
development drilling and production history, or resulting from a
change in economic factors.
21. 'Transfer to/from reserves' are revisions that represent
changes (either upward or downward) in previous estimates of
reserves or contingent resources, which are a result of
re-classification of petroleum resources estimates (i.e. from
reserves to contingent resources or vice versa) associated with one
or more project(s).
22. 'Extensions and discoveries' represent additions to reserves
or contingent resources that result from increased areal extensions
of previously discovered fields demonstrated to exist subsequent to
the original discovery and/or discovery of reserves or contingent
resources in new fields or new reservoirs in old fields.
23. Proved reserves at 31 December 2023 are estimated and reported
in accordance with SEC regulations. Proved plus probable reserves
and contingent resources at 31 December 2023 are estimated and
reported in accordance with SPE-PRMS guidelines.
24. 'Greater Pluto' consists of the Pluto, Xena, Pyxis, Larsen,
Martell, Martin, Noblige, and Remy fields.
25. 'North West Shelf' consists of all oil and gas fields within
the North West Shelf Project Area.
26. 'Exmouth' consists of the Pyrenees, Macedon, Julimar-Brunello,
and Ngujima-Yin fields.
27. 'Scarborough' consists of Scarborough, Thebe, and Jupiter
fields. Scarborough proved undeveloped reserves as
at 31 December 2023 are 7,336.0 Bcf (1,287.0 MMboe). Development
activities are underway. In this Reserves and Resources
Statement, Scarborough estimates are based on one hundred per cent
interest in the Scarborough Joint Venture until completion of the
transaction with LNG Japan referenced in the announcement on 8
August 2023 entitled "Woodside to Sell 10% Scarborough Interest to
LNG Japan".
28. 'Gulf of Mexico' consists of the Shenzi, Shenzi
North, Atlantis, and Mad Dog fields.
29. 'International' consists of the Angostura, Ruby, Trinidad and
Tobago Deep Water, Trion, and Sangomar fields which are under
Production/Revenue Sharing-type agreements. These fields represent
approximately 13% of proved reserves, proved plus probable
reserves, and 2C contingent resources. Woodside net economic
interest volumes are reported.
30. 'Browse' consists of the Brecknock, Calliance, and Torosa
fields.
31. 'Sunrise' consists of the Sunrise and Troubadour
fields.
[1] Reserve
replacement is the extent to which the
year's production has been replaced by reserves
added to our reserve base. This includes changes resulting from
extensions and discoveries, transfers, revisions to previous
estimates, and acquisitions and divestments.
[2] Peer set
is APA, ConocoPhillips, Coterra Energy, Devon, ENI, EOG, Equinor,
Hess, Inpex, Marathon, OXY and Santos. Comparison is relative to
2022 Annual Reports. Canadian oil sands companies are
excluded.
[3] Proved
reserves include 228.1 MMboe fuel; proved plus probable reserves
include 338.9 MMboe fuel; 2C contingent resources include 362.3
MMboe fuel (Woodside share).