2023
ANNUAL
REPORT INCORPORATING
APPENDIX 4E
ANNUAL REPORT 2023
This Annual Report 2023 is a summary of Woodside’s
operations and activities for the 12-month period ended
31 December 2023 and financial position as at 31 December
2023. Woodside Energy Group Ltd (ABN 55 004 898 962) is the
ultimate holding company of the Woodside group of companies.
In this report, unless otherwise stated, references to ‘Woodside’,
the ‘Group’, the ‘company’, ‘we’, ‘us’ and ‘our’ refer to Woodside
Energy Group Ltd and/or its controlled entities, as a whole.
The text does not distinguish between the activities of the
ultimate holding company and those of its controlled entities.
NON-IFRS MEASURES
Certain parts of this report contain financial measures that have
not been prepared in accordance with International Financial
Reporting Standards (IFRS) and are also ‘non-GAAP financial
measures’ (as defined in Item 10(e) of Regulation S-K under
the US Securities Act of 1933, as amended). Refer to section
6.6 - Alternative performance measures for further details and a
reconciliation of these measures to the most directly comparable
IFRS measure presented in Woodside’s Financial Statements.
These non-IFRS financial measures are defined in section
6.7 - Glossary, units of measure and conversion factors.
This report contains references to woodside.com, and our
Climate Transition Action Plan and 2023 Progress Report.
These references are for the readers’ convenience only and
are not incorporated by reference into this report. Similarly,
the content of any other websites referred to in this report
does not form part of it.
Please refer to section 6.7 - Glossary, units of measure and
conversation factors for definitions of terms captured in this report.
IMPORTANT CAUTIONARY INFORMATION
This report contains forward-looking statements, greenhouse
gas emissions data, industry, market and competitive position
data and Woodside’s Financial Statements. Please refer to
section 6.8 - Information about this report for important
cautionary information relating to these matters.
CLIMATE AND SUSTAINABILITY
Climate and sustainability considerations are factored into
Woodside’s business activities and investment decisions.
A summary of Woodside’s approach to climate change for 2023
and climate-related plans, are included in our Climate Transition
Action Plan and 2023 Progress Report. Further information on
Woodside’s sustainability performance can be found at
woodside.com.
ACKNOWLEDGING COUNTRY
Woodside recognises Aboriginal and Torres Strait Islander
peoples as Australia’s First Peoples. We acknowledge their
connection to land, waters and the environment and pay our
respects to ancestors and Elders, past and present. We extend
this recognition and respect to First Nations peoples and
communities around the world.
Appendix 4E
Results for announcement to the market
Revenue from ordinary activities
2023
2022
Decreased 17% to US$13,994 million
Profit from ordinary activities after tax attributable to members
Decreased 74% to US$1,660 million
Net profit for the period attributable to members
Decreased 74% to US$1,660 million
Dividends
Final dividend (US cents per share)
Interim dividend (US cents per share)
None of the dividends are foreign sourced
Previous corresponding period:
Final dividend (US cents per share)
Interim dividend (US cents per share)
Amount
Ordinary 60¢
Ordinary 80¢
Ordinary 144¢
Ordinary 109¢
US$16,817 million
US$6,498 million
US$6,498 million
Franked amount per security
Ordinary 60¢
Ordinary 80¢
Ordinary 144¢
Ordinary 109¢
Ex-dividend date
Record date for determining entitlements to the final dividend
Payment date for the final dividend
Net tangible asset per ordinary security1,2
7 March 2024
8 March 2024
4 April 2024
31 December 2023
31 December 2022
$15.91
$16.68
1
2
Includes lease assets of $1,230 million and lease liabilities of $1,615 million (2022: $1,264 million and $1,634 million) as a result of AASB 16 Leases.
This is an alternative performance measure (APM) which is a non-IFRS measure that is unaudited. Woodside believes this non-IFRS measure provides useful performance information, however
it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such as net profit after tax or net cash from operating
activities) or any other measure of financial performance or position presented in accordance with IFRS. For more information on non-IFRS measures, including reconciliations to Woodside’s
Financial Statements, refer to section 6.6 - Alternative performance measures.
II
ANNUAL REPORT 2023 Contents
1. Overview
1.1 About Woodside
1.2 2023 summary
1.3 Chair’s report
1.4 Chief Executive Officer’s report
1.5 Focus areas
2. Strategy and Financial Performance
2.1 Woodside’s strategy
2.2 Capital management
2.3 Financial overview
2.4 Energy markets
2.5 Business model and value chain
3. Our Business
3.1 Australian operations
3.2 International operations
3.3 Marketing and trading
3.4 Projects
3.5 Decommissioning
3.6 Exploration and development
3.7 New energy and carbon solutions
3.8 Climate and sustainability
3.9 Risk factors
3.10 Reserves and Resources Statement
4
4
5
8
9
10
12
12
13
16
18
19
20
20
22
23
24
26
27
28
29
40
48
4. Governance
4.1 Corporate Governance Statement
Corporate governance at Woodside
Board of directors
Board committees
Executive Leadership Team
Promoting responsible and ethical behaviour
Risk management and internal control
Inclusion and diversity
Other governance disclosures
Shareholders
4.2 Directors’ report
4.3 Remuneration Report
5. Financial Statements
5.1 Financial statements
6. Additional Information
6.1 Supplementary information on oil and gas - unaudited
6.2 Three-year financial analysis
6.3 Additional disclosures
6.4 Shareholder statistics
6.5 Asset facts
6.6 Alternative performance measures
6.7 Glossary, units of measure and conversion factors
6.8 Information about this report
6.9 Ten-year comparative data summary
52
53
53
54
62
65
67
69
71
74
75
76
80
105
105
172
172
178
183
195
203
207
210
214
216
III
WOODSIDE ENERGY GROUP LTD 1
Overview
1.1
OVERVIEW
About
Woodside
We are a global energy company founded in Australia, providing reliable and
affordable energy to help people lead better lives.
Driven by a spirit of innovation and determination, we established
the liquefied natural gas (LNG) industry in Australia 35 years ago
and today supply a growing base of customers.
We are working to reduce our net equity Scope 1 and 2
greenhouse gas emissions towards our aspiration of net zero
by 2050 or sooner.2
We have reliably delivered gas to homes and businesses in
Australia for decades, supporting the development of local
industry and driving economic prosperity.
Following our merger with BHP’s petroleum business in 2022,
we have become a larger supplier of energy to the world through
an expanded global portfolio.
We are contributing to the energy transition by leveraging our
track record of reliable operations, strong customer relationships
and investing in new energy.
Our strategy is to thrive through this transition by developing a
low cost, lower carbon, profitable, resilient and diversified portfolio.1
Our LNG in particular can help customers in Asia’s major
economies meet their energy security needs, while also
supporting their decarbonisation goals. We are also investing
in new products and services that can help customers reduce
or avoid their emissions.
Our quality global portfolio and strong balance sheet
enables us to execute major projects today, while pursuing
opportunities that will deliver Woodside’s next wave of growth.
These opportunities are across gas, oil, new energy products
and lower carbon services.
We balance our pursuit of growth with a disciplined investment
approach, focused on financial returns and value for our
shareholders.
We recognise that to maintain strong operational and financial
performance, we need to run our business sustainably. We have a
continued focus on safety, environmental and social performance
and maintaining meaningful relationships with communities.
We are guided by our values, and we believe that our success
is underpinned by our people and culture.
1
2
Please see section 6.7 – Glossary, units of measure and conversion factors for a definition of how Woodside uses the term lower carbon portfolio.
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
44
ANNUAL REPORT 2023
ANNUAL REPORT 2023 1.2
OVERVIEW
2023
summary
NET PROFIT AFTER TAX
UNDERLYING NET PROFIT AFTER TAX1
FREE CASH FLOW1
$1.7 BILLION
$3.3 BILLIONX%
$0.6 BILLION
PRODUCTION VOLUME2
FULL-YEAR DIVIDEND
NET EQUITY SCOPE 1 AND 2 EMISSIONS
187.2 MMBOE
140 US CPS
2023 reduction achieved
12.5%
BELOW
STARTING
BASE3
DELIVERING ON OUR COMMITMENTS
Approved the final investment
decision for Trion.
Agreed the sale of a 10% equity
interest in the Scarborough
Joint Venture to LNG Japan.4
Continued project execution of
Sangomar Field Development
Phase 1, the Scarborough Energy
Project and the Trion Project.
On track for 2025 net equity
emissions reduction targets.
1
2
3
4
This is an alternative performance measure (APM) which is a non-IFRS measure that is unaudited. Woodside believes this non-IFRS measure provides useful performance information, however
it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such as net profit after tax or net cash from operating
activities) or any other measure of financial performance or position presented in accordance with IFRS. For more information on non-IFRS measures, including reconciliations to Woodside’s
Financial Statements, refer to section 6.6 – Alternative performance measures.
Includes production of 186.1 MMboe (2022: 156.8 MMboe) from Woodside reserves and 1.1 MMboe (2022: 0.9 MMboe) from feed gas purchased from Pluto non-operating participants processed
through the Pluto-KGP Interconnector.
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
Subject to completion of the transaction, targeted in the first quarter of 2024.
55
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD CREATING VALUE
We delivered a reported NPAT of
$1,660 million, reflecting our strong
operational performance amid a lower
pricing environment.
Our full-year fully franked total dividend
was 140 US cps which represents
approximately 80% of underlying NPAT,
the top end of our targeted dividend
payout range.
Reported net profit after tax
(NPAT)
Production1
6,498
1,983
1,660
343
n
o
i
l
l
i
m
$
(4,028)
e
o
b
M
M
100.3
89.6
91.1
187.2
157.7
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
FINANCIAL STRENGTH
Our gearing of 12.1% is at the lower end
of our target gearing range of 10-20%.
Net debt increased in line with planned
major capital expenditure.
We maintained our investment grade
credit rating and ended the period with
liquidity of approximately $7.8 billion.
Gearing2
Liquidity
24.4
21.9
14.4
%
12.1
1.6
10,239
7,790
6,952
6,704
6,125
n
o
i
l
l
i
m
$
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
CONSISTENT OPERATIONS
We maintained strong operated LNG
reliability at our assets, with Pluto
achieving a reliability of 99.9% in the first
five months of 2023 prior to the planned
turnaround.
Our total recordable injury rate (TRIR)
of 1.86 increased with 39 recordable
injuries in 2023, compared to 30 in 2022.
Woodside had a fatality in 2023.
Our production cost increased as 2023
includes 12 months of the merged
portfolio and planned turnaround
activities at Pluto, NWS and Ngujima-Yin.
LNG reliability
Safety
93.7
97.6
97.7
98.5
98.0
%
1.80
1.86
1.74
TRIR
s
e
i
r
u
n
j
i
l
e
b
a
d
r
o
c
e
r
l
a
t
o
T
0.88
0.90
11
3
8
3
19
24
34
Contractors
8
6
5
Employees
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
TRIR is the total recordable injury rate per million work hours.
Includes production of 186.1 MMboe (2022: 156.8 MMboe) from Woodside reserves and 1.1 MMboe (2022: 0.9 MMboe) from feed gas purchased from Pluto non-operating participants processed
through the Pluto-KGP Interconnector.
This is an alternative performance measure (APM) which is a non-IFRS measure that is unaudited. Woodside believes this non-IFRS measure provides useful performance information, however
it should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performance (such as net profit after tax or net cash from operating
activities) or any other measure of financial performance or position presented in accordance with IFRS. For more information on non-IFRS measures, including reconciliations to Woodside’s
Financial Statements, refer to section 6.6 - Alternative performance measures.
As of 2023, Woodside received a MSCI ESG Rating of AAA. Refer to the disclaimer on the Sustainability section of our website at woodside.com.
1
2
3
66
ANNUAL REPORT 2023ANNUAL REPORT 2023
Operating revenue
Sales volume
SHAREHOLDER OUTCOMES
16,817
13,994
201.5
168.9
n
o
i
l
l
i
m
$
4,873
3,600
6,962
106.8
111.6
97.4
e
o
b
M
M
2019
2020
2021
2022
2023
2019
2020
2021
2022
2023
Net debt2
Credit ratings
4,749
3,888 3,772
2,791
n
o
i
l
l
i
m
$
583
2019
2020
2021
2022
2023
BBB+
S&P GLOBAL
Baa1
MOODY’S
Production cost
S&P GLOBAL
8.3
Unit production
cost ($/boe)
2
6
5
,
1
8.1
1
8
2
,
1
5.7
5.3
4.8
n
o
i
l
l
i
m
$
5
0
5
8
7
4
1
8
4
2019
2020
2021
2022
2023
Woodside Energy Group Ltd
OGX Oil & Gas Upstream & Integrated
Top 10%
S&P Global Corporate Sustainability
Assessment (CSA) Score 2023
67/100
S&P Global CSA Score 2023:
Score date:
February 7, 2024
The S&P Global Corporate Sustainability Assessment (CSA) Score is the S&P
Global ESG Score without the inclusion of any modelling approaches.
Position and scores are industry specific and reflect exclusion screening criteria.
Learn more at https://www.spglobal.com/esg/csa/yearbook/methodology/
MORGAN STANLEY
CAPITAL INTERNATIONAL3
* Refer to Sustainability section
of our website at woodside.com
FULL-YEAR DIVIDEND
140 US CPS
EARNINGS PER SHARE
87.5 US CPS
RETURN ON EQUITY2
4.8 %
RETURN ON AVERAGE
CAPITAL EMPLOYED2
6.5 %
All footnotes related to this page are displayed on the previous page.
77
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD
1.3
OVERVIEW
Chair’s
report
At a time of rising cost of living
pressures, we are tremendously proud
to return value to our shareholders
and communities.
—
Richard Goyder, AO
Sadly, our 2023 performance was overshadowed by the fatality
of our colleague Michael Jurman at the North Rankin Complex
in June. We must improve on safety and do all we can to ensure
everyone who works on Woodside’s assets and facilities returns
home safely.
Creating value through performance
Record production from our expanded portfolio further
established Woodside as a global energy supplier.
We achieved strong financial performance in 2023. While oil
and gas prices eased from 2022’s record highs, robust product
demand continued. In 2023, we recorded an annual net profit
after tax of $1.7 billion and an underlying net profit after tax of
$3.3 billion. Based on this, the Board has determined a fully-
franked final dividend of 60 US cents per share, resulting in a
total full-year dividend of 140 US cents per share.
When Woodside performs well, the communities in which we
operate also benefit. In 2023, Woodside paid a record A$5 billion
to the Australian Government in tax and royalty payments.
A clear growth strategy
Woodside’s strategy is to thrive through the energy transition,
by building a low cost, lower carbon, profitable, resilient and
diversified portfolio.1 Our pipeline of longer-term opportunities
across different commodities supports this.
Our major growth projects including Sangomar, Scarborough
and Trion are well placed to support the demand needs of our
customers. Our strong performance and disciplined capital
management will help us to meet this demand and continue
delivering growth and returns.
Supporting the energy transition
In 2023, I spoke to many investors who want to learn more about
our plans to respond to the challenges of climate change and
this was a regular focus of Board meetings throughout the year.
We also continued to review our approach to Scope 3 targets in
response to investor feedback and have decided to supplement
our existing investment target with a new complementary
emissions abatement target. We have evolved our climate
disclosures, which will be put to an advisory shareholder
vote at our 2024 Annual General Meeting.
We will continue to listen carefully to investors to inform our
approach, including how we consider future investments.
Reflecting on 2023, conflicts in the Middle East and Europe
contributed to another volatile year on global energy markets.
Coupled with a strong focus on energy security, this further
indicates the transition will not be smooth or linear and our
strategy needs to be responsive.
We are confident gas will continue to play a crucial role in the
global energy mix, including as back up support for electricity
grids powered by renewables. We are also working to diversify
our portfolio into new energy products and lower carbon services.
Strong leadership
On behalf of the Board, it was a pleasure to welcome Ashok
Belani who started as non-executive director on 29 January 2024.
Ashok has extensive experience in new energy and petroleum
sector decarbonisation and will be a valuable asset to the
Woodside Board.
I would also like to thank our Chief Executive Officer Meg O’Neill
and the entire Woodside team for another successful year.
Meg is calm, methodical and inclusive. She is the right leader to
seize the opportunities the energy transition brings and work
through its challenges. Thank you also to our shareholders, for
investing and placing your trust in Woodside.
In 2024, Woodside is celebrating its 70th anniversary and
40 years of production from the North West Shelf, the birthplace
of Australia’s LNG industry. It is an opportunity to reflect on
the significant contribution Woodside has made to Australia’s
prosperity and regional energy security. We plan to build on this
legacy for years to come.
Richard Goyder, AO
Chair of the Board
27 February 2024
1
Please see section 6.7 – Glossary, units of measure and conversion factors for a definition of how Woodside uses the term lower carbon portfolio.
88
ANNUAL REPORT 2023ANNUAL REPORT 2023 1.4
OVERVIEW
Chief Executive
Officer’s report
The past year has seen Woodside
deliver record production while
laying the foundations for future
growth and value.
—
Meg O’Neill
We bedded down our transition to a larger, global energy
company following the merger with BHP’s petroleum business,
working effectively as one team across multiple locations.
Safety must improve
When I reflect on 2023 I will always think of our colleague
Michael Jurman, who lost his life while working at our North Rankin
Complex. His death continues to affect many of us, and I again
offer my deepest condolences to Michael’s family and friends.
Safety is our number one priority and we must improve. In 2023,
we commissioned an external review of our safety systems and
this will guide our efforts to improve safety performance.
Strong, reliable production
We achieved record full-year production of 187.2 MMboe
(513 Mboe/day) from our expanded global portfolio. Reliability at
Pluto LNG and the Karratha Gas Plant (KGP) in Western Australia
was excellent at 98%. Planned turnarounds and maintenance
activities were successfully completed at major assets.
This strong operational performance allowed us to leverage
continued robust demand for our products. Operating revenue
for 2023 was $14 billion, driving an annual reported net profit
after tax of $1.7 billion.
We achieved this record production while continuing to reduce
our net equity Scope 1 and 2 emissions, which in 2023 were
12.5% below our starting base (compared to 11% in 2022).1
Delivering the next wave of growth
During the year we made good progress at our key growth
projects. By the end of 2023, our Scarborough Energy Project
was more than 55% complete and on track for first LNG cargo
in 2026.2 At year end, fabrication of the Pluto Train 2 modules
was underway with six of the 51 complete, and site works were
well progressed.
Key environmental approvals were accepted in late 2023 and
following this our seismic program was successfully completed.
Our sale and purchase agreement with LNG Japan, for the sale
of a 10% equity interest in the Scarborough Joint Venture, was a
key 2023 achievement.3
The Sangomar project off Senegal was 93% complete at the end
of 2023, with 17 of 23 wells drilled and completed.4 The floating
production storage and offloading (FPSO) facility sailed away
from the Singapore shipyard in December. We are targeting first
oil in mid-2024.
In June, we took a final investment decision (FID) on the Trion
Project in the Gulf of Mexico. Procurement activities commenced
for the floating production unit (FPU) materials and subsea
equipment. We are targeting first oil from Trion in 2028.
In our new energy portfolio, we took FID on the Hydrogen
Refueller @H2Perth. We are targeting supply of hydrogen to
Western Australian industrial and public customers in 2025.
We are also advancing several carbon capture and storage (CCS)
projects. Progress is also being made on our proposed H2OK
hydrogen project in Oklahoma, United States and the proposed
Woodside Solar project near Karratha, Western Australia.
Sustainable performance
As Woodside’s global presence increases, our sustainability
performance becomes ever more important. In 2023 we updated
our Sustainability Strategy, further embedding sustainability
performance into everything we do.
In closing, I am proud of the Woodside team and proud to work
in this industry. I have seen first-hand how safe, reliable energy
transforms lives. We cannot lose sight of this as we work towards
a stable energy transition that benefits future generations.
Meg O’Neill
Chief Executive Officer and Managing Director
27 February 2024
1
2
3
4
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
The completion percentage excludes the Pluto Train 1 modifications project.
Subject to completion of the transaction, targeted in the first quarter of 2024.
The progress of the project has been updated to 93% following a 0.2% correction identified subsequent to the period.
99
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 1.5
OVERVIEW
Focus areas
Houston
Shenzi
Atlantis*
Mad Dog*
Gulf of Mexico
Trion
Canada
› Liard*
Capella*
H2OK
Houston
Gulf of
Mexico
› Shenzi
› Atlantis*
› Mad Dog*
› Trion
Caribbean
› Angostura
› Ruby
› Calypso
Senegal
› Sangomar
Phase
Producing assets
Projects
Developments1
Key
Primary product
Gas
Oil
New energy opportunity
or lower carbon service1
* Non-operated.
1
2
3
Subject to FID and/or regulatory approvals.
Denotes marketing offices.
Denotes representative and/or liaison offices.
1010
Refer to section 6.5 - Asset facts for
further detail on Woodside’s interests.
North West
Shelf Project
Angel CCS
Browse
Timor Sea
Pluto
Wheatstone*/
Julimar-Brunello
Okha FPSO
Scarborough
Karratha
› Pluto LNG
› Karratha Gas Plant
› Woodside Solar project1
Ngujima-Yin
FPSO
Onslow
› Macedon Gas Plant
› Wheatstone*
Pyrenees
FPSO
Macedon
Western
Australia
H2Perth
Perth
Woodside
headquarters
Beijing3
Seoul3
Tokyo3
Singapore2
Bonaparte CCS
Timor-Leste/
Australia
› Sunrise
Western
Australia
› Pluto
› Okha FPSO
› Ngujima-Yin FPSO
› Pyrenees FPSO
› Macedon
› Scarborough
› Browse
› North West Shelf
› Wheatstone*/Julimar-Brunello
H2Perth
Perth
Melbourne2
H2TAS
East coast Australia
› Bass Strait*
South East Australia CCS
Southern
Green Hydrogen*
ANNUAL REPORT 2023ANNUAL REPORT 2023 Houston
Shenzi
Atlantis*
Mad Dog*
Gulf of Mexico
Trion
Canada
› Liard*
Capella*
H2OK
Houston
North West
Shelf Project
Angel CCS
Browse
Timor Sea
Pluto
Wheatstone*/
Julimar-Brunello
Okha FPSO
Scarborough
Ngujima-Yin
FPSO
Pyrenees
FPSO
Macedon
Karratha
› Pluto LNG
› Karratha Gas Plant
› Woodside Solar project1
Onslow
› Macedon Gas Plant
› Wheatstone*
Western
Australia
H2Perth
Perth
Woodside
headquarters
Beijing3
Seoul3
Tokyo3
Gulf of
Mexico
› Shenzi
› Atlantis*
› Mad Dog*
› Trion
Caribbean
› Angostura
› Ruby
› Calypso
Senegal
› Sangomar
Timor-Leste/
Australia
› Sunrise
Western
Australia
› Pluto
› North West Shelf
› Wheatstone*/Julimar-Brunello
› Okha FPSO
› Ngujima-Yin FPSO
› Pyrenees FPSO
› Macedon
› Scarborough
› Browse
Singapore2
Bonaparte CCS
H2Perth
Perth
Melbourne2
H2TAS
East coast Australia
› Bass Strait*
South East Australia CCS
Southern
Green Hydrogen*
1111
All footnotes are displayed on the prior page.
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 2
Strategy and Financial Performance
2.1
STRATEGY AND FINANCIAL PERFORMANCE
Woodside’s
strategy
Woodside’s strategy is to thrive through the energy transition by building a low cost,
lower carbon, profitable, resilient and diversified portfolio.1
There are three goals which drive Woodside’s strategic direction.
Firstly, we strive to have the right portfolio to provide the
energy required for future demand. We play to our strengths,
providing oil and gas to our customers while advancing new
energy products and lower carbon services. Climate is an
integrated part of our strategy and we assess investment
decisions against a wide range of considerations including
climate outcomes. This is important as the demand from
our customers becomes increasingly shaped by their
decarbonisation goals.
Secondly, we want to create and return value to our
shareholders. Our capital management framework aims to
optimise value, balance strong shareholder returns and invest
in quality opportunities.
Finally, we aim to conduct our business sustainably. To achieve
this, we need to manage our impact on people, communities
and the environment in which we operate. The safety of our
people and a strong focus on managing our net equity Scope 1
and 2 emissions to meet our targets is critical to the longevity
of our business.
All three goals are critical to ensuring that Woodside delivers
its strategy and thrives through the energy transition.
Woodside’s strategy
Goals driving our strategic direction
P R OFITABLE
N
O
B
R
WER C A
LO
T
S
O
C
W
O
L
OPTIMISE
VALUE AND
SHAREHOLDER
RETURNS
R
E
SIL
I
E
N
T
D
I
V
E
R
S
I
F
I
E
D
Provide energy
Create and return value
Conduct our business
sustainably
1
Please see section 6.7 – Glossary, units of measure and conversion factors for a definition of how Woodside uses the term lower carbon portfolio.
1212
ANNUAL REPORT 2023ANNUAL REPORT 2023
2.2
STRATEGY AND FINANCIAL PERFORMANCE
Capital
management
Woodside’s capital management framework provides us with the flexibility to
optimise value and shareholder returns delivered from our portfolio of opportunities.
CAPITAL MANAGEMENT
Our disciplined and responsible approach to investment ensures
we manage financial risks and maintain a strong financial position,
enabling us to maximise the value we deliver to our shareholders.
With a robust capital management framework in place, we are
striving to ensure that Woodside remains a resilient and diversified
company in the future.
Our capital investment requirements are primarily funded by
our operating cash flows, which we augment or distribute with
a number of capital management levers:
• Debt management, enabling continued access to premium
debt markets at a competitive cost to support our growth
activities and managing the debt maturity profile of our debt
portfolio. Our gearing target is 10-20% and we continue to
target maintaining an investment grade credit rating.
Capital management framework
• Shareholder returns, to reward our shareholders appropriately.
Our dividend policy aims to pay a minimum of 50% of NPAT
excluding non-recurring items (underlying NPAT), with a
target payout ratio between 50% and 80%. Our dividend
reinvestment plan (DRP) remains suspended.
• Hedging, to protect the balance sheet against the commodity
cycle.
• Focused expenditure management, enabling prudent and
efficient deployment of capital to support delivery of our
operating asset and growth opportunities.
• Participating interest management, enabling us to balance
capital investment requirements, project execution risk and
long-term value.
Safe, reliable
and low cost
operations
Investment
expenditure
Strong
balance
sheet
Dividend policy
(minimum 50%
payout ratio)
Special dividends
Share buy-backs
Excess
cash
Future investment
Investment grade
credit rating
Maintain dividend based on NPAT
excluding non-recurring items,
targeting 50-80% payout ratio
Targeted
10-20% gearing
through the cycle
1313
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD CAPITAL ALLOCATION
Woodside’s high margin portfolio is made up of quality assets
which have the scale and resilience to deliver ongoing value.
Woodside’s disciplined capital allocation approach includes
robust assessment of opportunities, portfolio outcomes and
shareholder returns while maintaining focus on safe, reliable
and efficient operations.
We have major projects in execution phase that will deliver
Woodside’s next wave of growth. In Senegal, the Sangomar
Field Development Phase 1 is targeting first oil in mid-2024.
The Scarborough Energy Project in Australia is targeting first
LNG cargo in 2026. In Mexico, the Trion Project achieved a FID
in June 2023 and is targeting first oil in 2028.
Our global portfolio includes LNG, oil and gas assets across
Australia, the Gulf of Mexico, the Caribbean, Senegal,
Timor-Leste and Canada.
We have carbon capture and storage (CCS) opportunities in
Australia and are progressing hydrogen and ammonia projects
in Australia, the United States and New Zealand.
We are weighted towards LNG, which we expect to play
a sustained role through the energy transition as our customers
seek to reduce their emissions. Our LNG assets are geographically
advantaged.
Our domestic gas assets deliver steady cash flows, resilience
to commodity prices and provide reliable returns.
In our oil assets, we seek high cash generation and shorter
payback periods, which boosts our funding capabilities in the
short-term, while remaining resilient in the long-term as the
demand for oil decreases.
We strive to operate our assets safely, reliably and efficiently
to deliver the best value to our customers.
Our investment decisions for both organic and inorganic
opportunities are informed by energy market analysis including
supply, demand and price outlooks. We test the robustness
of potential investments against a wide range of scenarios to
support our investment decisions, with the goal of remaining
profitable and resilient through various commodity cycles and
climate outcomes.
Our capital allocation framework sets target investment
criteria for oil, gas and new energy opportunities. We use this
capital allocation framework to create a diversified and flexible
portfolio, which we believe allows us to respond to changes in
demand and supply for our products.
OIL
GAS
NEW ENERGY
OFFSHORE
PIPELINE
LNG
DIVERSIFIED
Focus
Generate high returns to
fund diversified growth,
focusing on high quality
resources
Leveraging infrastructure to
monetise undeveloped gas,
including optionality for hydrogen
New energy products and lower
carbon services to reduce customers’
emissions; hydrogen, ammonia,
CCUS1
High cash generation
Characteristics
Shorter payback period
Quick to market
Stable long-term
cash flow profile
Resilient to
commodity pricing
Long-term cash flow
Strong forecast
demand
Upside potential
Developing market
Lower capital requirement
Lower risk profile
Opportunity
targets
Emissions
reduction
IRR > 15%
IRR > 12%
IRR > 10%
Payback within 5 years2
Payback within 7 years2
Payback within 10 years2
Net equity Scope 1 and 2 greenhouse gas emissions:
target 30% reduction by 2030; aspiration for net zero by 2050 or sooner3
CCUS refers to carbon capture utilisation and storage.
Payback refers to RFSU + X years.
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
1
2
3
14
ANNUAL REPORT 2023 When assessing opportunities, we consider a broad range of portfolio evaluation and opportunity evaluation factors relevant
to the opportunity. These assessments can apply to acquisitions or divestments, and for evaluating the impact of a new project
on the portfolio.
Portfolio evaluation considerations1
Opportunity evaluation considerations1
Earnings
per share
Free cash
flow
Funding
capacity
Emissions
profile
Strategic
fit
IRR/NPV
Payback
period
Risk
Breakeven
Growth opportunities are screened against portfolio metrics using price, scenario and climate analysis
SUSTAINABILITY
Our Sustainability Strategy supports our Corporate Strategy and
Purpose and places an increased focus on those sustainability
topics most relevant to our current business activities. We apply
a sustainability mindset to guide decision making at all levels
of the business. Our Sustainability Strategy aims to embed
environment, social and governance performance in everything
we do.
As described further in section 3.8 - Climate and sustainability,
in 2023, our sustainability activities and disclosures continued to
evolve in response to the strategic importance of sustainability
topics, emerging mandatory sustainability standards and
investor priorities.
1
Illustrative of the considerations. Not an exhaustive list.
15
WOODSIDE ENERGY GROUP LTD 2.3
STRATEGY AND FINANCIAL PERFORMANCE
Financial overview
KEY METRICS
The financial summary below includes both IFRS and non-IFRS measures. Woodside uses various alternative performance measures
(APM) which are non-IFRS measures to reflect our underlying performance. These measures are identified below and are reconciled
to Woodside’s Financial Statements in section 6.6 - Alternative performance measures.
Operating revenue
EBITDA excluding impairment1
EBIT1
Net profit after tax (NPAT)2,3
Underlying NPAT1
Net cash from operating activities
Capital expenditure1,4
Exploration expenditure1,5
Free cash flow1,6
Dividends distributed
Final dividend determined
Earnings
Gearing1,7
Production volumes8
Gas
Liquids
Total
Sales volumes
Gas
Liquids
Total
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
US cps
%
MMboe
MMboe
MMboe
MMboe
MMboe
MMboe
2023
13,994
9,363
3,307
1,660
3,320
6,145
5,736
367
560
4,253
60
87.5
12.1
128.3
58.9
187.2
144.1
57.4
201.5
2022
16,817
11,234
9,186
6,498
5,230
8,811
4,115
418
6,546
3,088
144
430.0
1.6
113.8
43.9
157.7
125.0
43.9
168.9
2021
6,962
4,135
3,493
1,983
1,620
3,792
2,631
96
851
404
105
206.0
21.9
73.3
17.8
91.1
93.7
17.9
111.6
1
2
3
4
5
6
7
8
These are alternative performance measures (APM) which are non-IFRS measures that are unaudited. Woodside believes these non-IFRS measures provide useful performance information,
however they should not be considered as an indication of, or as a substitute for, statutory measures as an indicator of actual operating performances (such as net profit after tax or net cash
from operating activities) or any other measure of financial performance or position presented in accordance with IFRS. For more information on non-IFRS measures, including a reconciliation
of these measures to the most directly comparable financial measure calculated and presented in accordance with IFRS in Woodside’s Financial Statements, refer to the section 6.6 - Alternative
performance measures.
Net profit after tax attributable to equity holders of the parent.
The global operations effective income tax rate (EITR) is 27.5%. As a result of the final investment decision to develop the Trion resource in 2023, the de-recognition of the Pluto PRRT deferred
tax asset (DTA) and the impact of impairments, global EITR has reduced from an underlying 31% to 27.5%. The EITR is calculated as Woodside’s income tax expense or benefit divided by profit
or loss before income tax. EITR was ~31% for 2022 and ~32% for 2021.
Capital additions on oil and gas properties, evaluation capitalised and other corporate spend. Excludes exploration capitalised and the effect of Global Infrastructure Partners’ (GIP) additional
contribution to Pluto Train 2. The 2022 capital expenditure has been restated to include other corporate spend. The 2021 capital expenditure information has not been re-stated to include other
corporate spend.
Exploration and evaluation expenditure less amortisation of licence acquisition costs and prior year exploration expense written off.
Cash flow from operating activities less cash flow from investing activities.
The total interest-bearing liabilities used to calculate gearing in 2023 includes $9 million of capitalised costs to be amortised within the next 12 months. This aligns to Note C.2 of section 5 -
Financial Statements.
Includes production of 186.1 MMboe (2022: 156.8 MMboe) from Woodside reserves and 1.1 MMboe (2022: 0.9 MMboe) from feed gas purchased from Pluto non-operating participants processed
through the Pluto-KGP Interconnector.
1616
ANNUAL REPORT 2023ANNUAL REPORT 2023
Balance sheet
Woodside’s commitment to an investment grade credit rating
remains unchanged and supports Woodside’s aims of providing
sustainable returns to shareholders and investing in future
growth opportunities, in accordance with our capital allocation
framework. In 2023, Woodside’s credit ratings of BBB+ and Baa1
by S&P Global and Moody’s respectively were both maintained.4
Woodside’s gearing at the end of 2023 was 12.1%, within the
lower end of our target range of 10-20%. Woodside’s gearing
may at times fall outside the target range of 10-20% as the
balance sheet is managed through the investment cycle.5
Commodity price risk management
Woodside hedges to protect the balance sheet against
downside commodity price risk, particularly during periods
of high capital expenditure.
Woodside hedged approximately 22 MMboe of 2023 volumes.
The realised value of these oil price hedges was a pre-tax expense
of approximately $200 million.
As at 31 December 2023, Woodside has placed oil price hedges
for approximately 29 MMboe of 2024 production at an average
price of approximately $76 per barrel.
Woodside has also placed hedges for Corpus Christi LNG
volumes to protect against downside pricing risk. These hedges
are Henry Hub and Title Transfer Facility (TTF) commodity swaps.
An average of 63% of 2024 volumes and 17% of 2025 volumes
have reduced pricing risk as a result of hedging activities.
CAPITAL MANAGEMENT
Final dividend and dividend reinvestment plan
A 2023 fully franked final dividend of 60 US cps has been
determined. The total amount of the final dividend payment is
$1,139 million which represents approximately 80% of underlying
NPAT for the second half of 2023.1
The dividend reinvestment plan (DRP) remains suspended.
Liquidity and debt service
Woodside’s primary sources of liquidity are cash and cash
equivalents, net cash generated by operating activities, unused
borrowing capacity under its bilateral facilities and syndicated
facilities, issuances of debt or equity securities and other
sources, such as sales of non-strategic assets.
During the year, Woodside generated $6,145 million of cash flow
from operating activities and delivered positive free cash flow
of $560 million.2,3
Woodside increased its standby debt facilities from $4,050 million
to $6,050 million and repaid $284 million of maturing debt. At the
end of the period, drawn debt was $4,874 million, with no principle
debt payable in 2024 and liquidity was $7,790 million.
Additional details of Woodside’s credit facilities, including total
commitments, maturity and interest and amount outstanding
as at 31 December 2023, can be found in section 5 - Financial
Statements and Note C.2 to the audited Financial Statements
of Woodside as at 31 December 2023 and 2022.
Woodside’s principal ongoing uses of cash are to meet working
capital requirements, fund debt obligations and finance
Woodside’s capital expenditure and acquisitions. We believe
working capital is sufficient for our present requirements.
Woodside’s capital expenditure for 2024 is expected to be
between $5,000 million and $5,500 million primarily due to
Sangomar, Scarborough and Trion project expenditure.
This excludes the impact of any subsequent asset sell-downs,
acquisitions or other changes in equity. We are targeting first
oil in mid-2024 for Sangomar, first LNG cargo in 2026 for
Scarborough and first oil in 2028 for Trion.
Woodside has no off-balance sheet arrangements that have,
or are reasonably likely to have, a current or future material
effect on the Woodside’s financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures
or capital resources.
1
2
3
4
5
Underlying NPAT is a non-IFRS measures. Refer to section 6.6 - Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
Free cash flow is a non-IFRS measure. Refer to section 6.6- Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
Cash flow from operating activities less cash flow from investing activities.
Credit ratings are forward-looking opinions on credit risk. S&P Global’s and Moody’s credit ratings express the opinion of each agency on the ability and willingness of Woodside to meet its financial
obligations in full and on time. A credit rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, reduction or withdrawal at any time by an assigning rating
agency. Any rating should be evaluated independently of any other information.
Gearing and net debt are non-IFRS measures. Refer to section 6.6 - Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
17
WOODSIDE ENERGY GROUP LTD 2.4
STRATEGY AND FINANCIAL PERFORMANCE
Energy
markets
Geopolitical events continued to disrupt energy markets throughout 2023, reinforcing
the importance of providing customers with reliable, affordable and secure energy.
Recent events, including the energy security situation in Europe
and the conflict in the Middle East, have resulted in both positive
and negative drivers for the energy transition. Increased demand
for oil and natural gas has highlighted the need for continued
production of and investment in hydrocarbons, while policy
support for renewables and lower carbon services has continued
to be robust.
MACROECONOMIC
The global economy proved resilient in 2023 despite the dual
challenges of persistently high inflation levels and rising interest
rates; gross domestic product (GDP) grew at 3.0%.1 Hawkish
monetary policy from 2022 was adopted, curbing inflation.
Many advanced economies are passing peak interest rates;
however, longer-term macroeconomic impacts of policy
are unknown.
China presents uncertainty as the economy struggles with tepid
demand, lower confidence and the real estate sector faces
liquidity issues. However, recent government stimulus is a positive
sign for future growth enabling China to meet its 2023 official
GDP growth target of approximately 5%.
The world’s population is expected to increase by approximately
two billion people by 2050 and GDP is forecast to almost
double, driving increased energy demand.2
OIL
OPEC+ continues to exert control in balancing oil markets
and has committed to further production cuts in 2024.3
However, non-OPEC production volumes, particularly in the
US Lower 48, Canada, Brazil and Guyana will continue to grow
into 2024 potentially offsetting OPEC+ cuts.
Dated Brent averaged US$83/bbl in 2023, 18% below average
2022 prices which were elevated by the energy crisis and 14%
above the five-year average.4 Oil prices are expected to remain
elevated into 2024 supported by a geopolitical risk premium,
OPEC+ production management and a slower growth rate for
non-OPEC production.
LIQUIFIED NATURAL GAS
In 2023, global gas markets began to rebalance but remained
tight, exacerbated by Russian LNG sanction uncertainty.
Although North East Asian LNG prices averaged half of 2022
average prices at US$14/MMBtu, global gas prices remain robust
and consistent with long-term expectations.4 Wood Mackenzie
forecasts in its base case scenario that global LNG demand will
grow 53% to 2033, supported by growth in Europe (until 2029),
China and emerging Asian markets.5
NEW ENERGY PRODUCTS
Globally, investment in new energy technology has increased,
spurred by government incentives such as REPowerEU and
the US Inflation Reduction Act and a common goal to reduce
long-term emissions. Subsidies have driven early growth in wind
and solar followed by refinement of technology and large-scale
manufacturing which has improved affordability. Although the
environment for new energy products remains challenged by
uncertainty in proving technologies, securing future demand
for product, lack of clarity on the application of incentives,
and unfavourable project economics, Woodside believes that
new energy products will play an important role in the
energy transition.
AUSTRALIAN DOMESTIC GAS MARKETS
The Australian domestic gas market experienced supply
shortfalls in 2023 as demand outpaced supply. In Western
Australia, demand was supported by the progressive retirement
of coal fired power generation, numerous outages and project
delays. Demand is expected to exceed supply by up to 11% until
2029 with an increasing supply gap to 2032 as coal supply is
retired.6 Despite the Federal government implementing a price
cap of A$12/GJ for new supplies in 2023 to improve affordability,
further investment in supply and infrastructure will be needed in
the future to ensure that demand can be met.
International Monetary Fund, January 2024. “World Economic Outlook Update”.
1
2 Wood Mackenzie, September 2023. “Energy Transition Outlook 2023”.
3
4
5 Wood Mackenzie, October 2023. “Global Gas Investment Horizon Outlook”.
6
OPEC Monthly Oil Market Report, January 2024.
Thompson Reuters Eikon.
Australian Energy Market Operator, 2023. “Western Australian Gas Statement of Opportunities”.
1818
ANNUAL REPORT 2023ANNUAL REPORT 2023 2.5
STRATEGY AND FINANCIAL PERFORMANCE
Business model
and value chain
Woodside’s business model seeks to optimise returns across the value chain by
prioritising competitive growth opportunities; utilising our operational, development
and technological capabilities; and investing in customer relationships.
Acquire, divest, explore and develop
We manage our portfolio through acquisitions, divestments and exploration, based on a
disciplined approach to optimising shareholder value and appropriately managing risk.
We look for material positions in world-class assets and basins that are aligned with our
capabilities and existing portfolio. We are focused on value and look to generate low cost,
lower carbon development opportunities. During the development phases, we aim to optimise
value by selecting the best concept for extracting, processing and delivering energy to
our customers.
2023 examples
Took FID on the Trion Project in June 2023.
Achieved the sale of a 10% equity interest
in the Scarborough Joint Venture.1
Project execution
We are building on decades of project execution expertise, investing in opportunities
across the globe. Woodside is benefitting from the increased scope and scale of its projects
portfolio through knowledge sharing across projects and our relationships with suppliers and
contractors. We design and execute projects with a focus on safety, cost and sustainability.
Continued project execution of Sangomar
Field Development Phase 1, Scarborough
and Trion.
Operate
Our operations prioritise safety while focusing on strong reliability and environmental
performance in remote and challenging locations. In Australia, our operated assets include
the North West Shelf (NWS) Project and Pluto LNG. We also operate Macedon and three FPSO
facilities and have non-operated interests in Bass Strait and Wheatstone. Internationally,
we operate Shenzi in the Gulf of Mexico and Angostura and Ruby in Trinidad and Tobago and
have non-operated interests in Atlantis and Mad Dog in the Gulf of Mexico. We endeavour to
adopt technology and a continuous improvement mindset to support operational performance
and optimise the value of our assets.
Market
Our relationships with customers have been maintained through a track record of reliable
delivery since the NWS Project’s first LNG cargo was delivered to Japan in 1989. We are
building scale and flexibility in our portfolio by expanding our global supply presence,
through our own liquefied volumes and offtake agreements with third parties. This creates
opportunities to optimise our LNG cargoes and capture short-term trading opportunities.
We continue to look for opportunities to collaborate with our customers on lower carbon
energy solutions.
Decommission
Decommissioning is integrated into project planning, from the earliest stages of development
through to the end of field life. We work with global contractors to safely remove facilities
and plug and abandon wells that are no longer required for our operations. We work with
regulators to deliver our decommissioning commitments.
Achieved reliability of 98% at Pluto LNG,
KGP and reliability above 97% at Shenzi.
Preparing for first oil on Sangomar in 2024.
Signed a sales and purchase agreement (SPA)
with Mexico Pacific Limited to purchase
1.3 Mtpa of LNG for 20 years from the
Saguaro Energia LNG Project.2
Successfully completed removal of the
Nganhurra riser turret mooring (RTM).
The Enfield plug and abandonment (P&A)
campaign continued with all 18 wells
permanently plugged and 16 of the 18 xmas
trees removed.
1
2
Subject to completion of the transaction, targeted in the first quarter of 2024.
The SPA is subject to Mexico Pacific taking FID on the proposed third train at the Saguaro Energia LNG Project. The FID is expected in the second half of 2024 and commercial operations are
targeted to commence in 2029.
1919
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 3
Our Business
3.1
OUR BUSINESS
Australian
operations
Woodside’s Australian portfolio consists
of operated and non-operated oil
and gas projects across Australia.
Woodside’s share of production from
Australian operations was 145.1 MMboe
in 2023, a 6% increase compared
to 2022.1
PLUTO LNG
Pluto LNG is a gas processing facility in the Pilbara region of
Western Australia, comprising an offshore platform and one
onshore LNG processing train.
Woodside’s share of Pluto production was 51.8 MMboe in 2023,
a 1% decrease compared to 2022 due to planned turnaround
activities partly offset by the sustained high reliability of
98.2% in 2023.1
Woodside successfully completed a major turnaround on the
onshore and offshore facilities in the first half of 2023, executing
essential maintenance scopes to support continued safe,
reliable and efficient production. The major turnaround included
installation of additional tie-in points for potential carbon-to-
products value streams and for the potential importation of solar
energy from the proposed Woodside Solar project.
There was one Tier 1 loss of primary containment process safety
event at Pluto LNG. There were no injuries as a result of this
event and an investigation was undertaken which identified
contributing factors and corrective actions.
The Pluto Remote Operations Centre in Perth, Western Australia
became fully operational in June 2023 with day-to-day
operations of Pluto LNG now being undertaken remotely by
the Perth-based team.
Woodside is operator and holds a 90% participating interest.
Woodside Solar opportunity
Woodside is progressing a potential opportunity to reduce gross
Scope 1 greenhouse gas emissions at Pluto LNG by utilising solar
energy from the proposed Woodside Solar project. The project
plans to generate an initial supply of approximately 50 MW of
electricity from a large scale solar photovoltaic farm, located
approximately 15 km south-west of Karratha, Western Australia,
which will be complemented by a battery energy storage system.
In 2023, Woodside secured planning approvals and State and
Federal environmental approvals for the proposed solar facility
and associated infrastructure.
In December 2023, Woodside entered into a conditional
agreement under which a third-party will develop the proposed
solar facility and supply renewable energy from the facility
to Woodside. Woodside continues to progress commercial
agreements, including for power transmission to support the
proposed project.
1
Includes production of 1.1 MMboe (2022: 0.9 MMboe) from feed gas purchased from Pluto non-operating participants processed through the Pluto-KGP Interconnector.
2020
ANNUAL REPORT 2023ANNUAL REPORT 2023 BASS STRAIT
Bass Strait is located in the south-east of Australia and produces
oil and gas through a network of offshore platforms, pipelines
and onshore processing facilities. The Bass Strait assets include
the Gippsland Basin Joint Venture (GBJV) and the Kipper Unit
Joint Venture (KUJV).
Woodside’s share of production from the Bass Strait was
22.8 MMboe in 2023, driven by lower Australian east coast gas
market demand due to a number of factors including a warmer
winter. All of Woodside’s share of the gas produced by the GBJV
is supplied into the eastern Australian domestic gas market,
supporting Australia’s energy needs.
As production rates decline, progress has been made to optimise
facilities through the Gas Asset Streamlining project. This project
will support the implementation of a gas focused business.
The Kipper Compression project has progressed and is expected
to enable continued supply of gas to the domestic market in 2024.
Woodside holds a 50% non-operating interest in the GBJV and
a 32.5% non-operating interest in the KUJV.
OTHER AUSTRALIAN OIL AND GAS ASSETS
Woodside operates three FPSO facilities off the north-west
coast of Western Australia. These are the Ngujima-Yin FPSO
(Woodside interest: 60%), Okha FPSO (Woodside interest: 50%)
and Pyrenees FPSO (Woodside interest: 40% in WA-43-L and
71.4% in WA-42-L).
Woodside’s share of production from the FPSO assets was
8.0 MMboe, down from 10.6 MMboe in 2022 primarily due to the
planned five-yearly Ngujima-Yin FPSO maintenance turnaround.
The Ngujima-Yin FPSO turnaround performed in Singapore
was completed safely in June 2023. The Pyrenees turnaround is
planned for the first half of 2024.
Macedon (Woodside interest: 71.4%), also operated by Woodside,
is a gas project located near Onslow, Western Australia which
produces pipeline gas for the Western Australian domestic
gas market.
Woodside’s share of production from Macedon in 2023 was
8.2 MMboe. The Macedon facility delivered approximately 17%
of the Western Australian domestic gas market supply in 2023.
NORTH WEST SHELF PROJECT
The NWS Project consists of three offshore platforms and the
onshore KGP, which includes five onshore LNG processing trains.
Woodside’s share of NWS Project production was 40.8 MMboe
in 2023. This was an 11% increase compared to 2022, due to the
increase of Woodside’s equity share following completion of the
merger with BHP Petroleum in June 2022. In 2023, 11.2 MMboe
of Pluto gas was processed at KGP through the Pluto-KGP
Interconnector. The Interconnector enables gas from Pluto LNG
to be transported to KGP for processing.
In June 2023, a fatality occurred at the North Rankin Complex.
The tragic loss of our colleague, a contractor employee, has led to
the implementation of additional operational controls based on
preliminary investigation insights into the incident. The external
investigations into the incident are ongoing.
KGP is expected to have increased ullage in 2024 due to a
combination of natural field decline and limited third-party
gas processing demand. To optimise utilisation of onshore
infrastructure, NWS is planning to take one LNG train offline
in 2024.
Discussions continue between NWS and other resource owners
for the processing of third-party gas and NWS continues to
progress the development of infill and nearfield opportunities to
utilise ullage at KGP. The NWS Project started processing Waitsia
gas in 2023 at low rates and will commence processing at a large
scale when the Waitsia Stage 2 facility comes online which is
expected in 2024.
State and Commonwealth regulatory approval processes
continue for the North West Shelf Project Extension, which
supports long-term operations and processing of future
third-party gas resources at KGP.
Woodside successfully completed planned turnaround and
maintenance activities on the North Rankin Complex,
Goodwyn Platform and KGP in the second half of 2023.
Woodside is operator and holds a 33.33% participating interest.
WHEATSTONE AND JULIMAR-BRUNELLO
Wheatstone is an LNG processing facility near Onslow, Western
Australia, comprising an offshore production platform and two
onshore LNG processing trains. It processes gas from several
offshore gas fields including Julimar and Brunello.
Woodside’s share of Wheatstone production was 13.5 MMboe in
2023, an increase from 12.2 MMboe in 2022, which was impacted
by a major facility turnaround.
The FID on Julimar-Brunello Phase 3 was approved in April 2023.
The project involves the drilling of up to four development wells
tied-back from the Julimar field to the existing Julimar field
production system.
Woodside is operator and holds a 65% participating interest in
the Julimar-Brunello fields. Woodside holds a 13% non-operated
interest in the Wheatstone project.
21
WOODSIDE ENERGY GROUP LTD 3.2
OUR BUSINESS
International
operations
—
Photo credit: BP
Woodside’s international portfolio
includes assets in the US Gulf of Mexico
and the Caribbean with embedded
growth options. Woodside’s share of
production from international operations
was 42.1 MMboe in 2023.
SHENZI
Shenzi is a conventional oil and gas field developed through
a tension leg platform (TLP) located in the US Gulf of Mexico.
There are 16 producers flowing to the TLP and six water injection
wells. In addition, two subsea wells are tied back to the non-
operated Marco Polo platform.
Shenzi North is a two-well subsea tieback to the Shenzi TLP.
The project achieved flowback in September. Production
performance has been below expectations due to reservoir
connectivity.
The Shenzi facility achieved reliability above 97% in 2023.
Woodside’s share of production from Shenzi was 10.8 MMboe.
Woodside is operator and holds a 72% participating interest.
ATLANTIS
Atlantis is a conventional oil and gas development and is one of
the largest producing fields in the US Gulf of Mexico. The Atlantis
development includes a semi-submersible facility with 28 active
producer wells and three water injector wells.
Two wells (one producer and one injector) were completed in
2023 alongside an extensive well intervention campaign.
Woodside’s share of production from Atlantis was 12.6 MMboe
in 2023.
Woodside holds a 44% non-operating participating interest.
2222
MAD DOG
Mad Dog is a conventional oil and gas development located in the
US Gulf of Mexico. The Phase 1 development includes a spar facility
(A-spar) with drilling capability and ten active producer wells.
Mad Dog Phase 2 is a development of the southern flank of the
Mad Dog field through the new Argos floating production facility.
First oil was achieved in April 2023 and production ramped up
through the year.
A successful appraisal well was drilled in 2023 to extend the field
to the southwest. Subsequently, the co-owners have sanctioned
a three-well subsea tie back.
Woodside’s share of production from Mad Dog was 7.2 MMboe
in 2023.
Woodside holds a 23.9% non-operating participating interest.
GREATER ANGOSTURA
Greater Angostura includes the Angostura and Ruby
conventional oil and gas fields, located offshore Trinidad
and Tobago. The development includes an offshore central
processing facility and five wellhead platforms. Woodside is
operator and holds a 45% participating interest in the Angostura
field and a 68.5% participating interest in the Ruby field.
Woodside’s share of production from Greater Angostura
was 11.2 MMboe in 2023. Production enhancement activities
implemented in 2023 included gas injector-to-producer well
conversions, reducing back-pressure on wells and adding
well perforations. These enhancements have led to an increase
in reserves.
ANNUAL REPORT 2023ANNUAL REPORT 2023 3.3
OUR BUSINESS
Marketing and trading
Woodside has a global portfolio with positions in the Asia-Pacific and Atlantic
basins and has a proven track record in our integrated shipping, operations,
marketing and trading activities across LNG, condensate, crude and natural gas
liquid (NGL) cargoes.
The marketing segment’s profit before tax in 2023 was
$375 million. This reflected the optimisation activities and
incremental value generated through the marketing, trading
and shipping of Woodside’s oil and gas and through third-party
purchased values.
In April 2023, a long-term gas sale and purchase agreement
(GSPA) with Perdaman Chemicals and Fertiliser Pty Ltd became
unconditional. Supply under the GSPA is for approximately
130 TJ per day of gas over a term of 20 years expected to
commence in 2026 or 2027.
Woodside’s LNG portfolio is managed through a mix of short,
mid and long-term contracts, supplied with cargoes sourced
from producing assets or purchased from third parties. In 2023,
Woodside’s exposure of produced LNG to gas hub indices
was 30%.
Woodside also executed several natural gas sale agreements for
the combined supply of approximately 128 PJ of pipeline gas to
both the east coast and Western Australian domestic customers
including retailers and commercial and industrial users. Delivery
has commenced and is expected to continue to 2026.
Woodside’s LNG trading activities seek to maximise value of our
LNG portfolio. Third-party cargoes are purchased from Corpus
Christi LNG through a long-term offtake agreement and from
the spot market through our relationships with other producers
and traders.
In addition, Woodside also signed a SPA with Pilgangoora
Operations Pty Ltd, a 100% owned subsidiary of Pilbara Minerals,
for the supply of domestic LNG from the Pluto Truck Loading
Facility. Supply under the SPA is contracted to commence in
2024 for a period of five years.
The marketing of crude, condensate and NGLs is predominantly
based on short-term sales and supplemented by term
arrangements.
In the Gulf of Mexico, crude oil is sold to refiners and traders on
the US Gulf Coast. Woodside has also increased its operational
flexibility through the ability to export crude oil to international
markets. In Trinidad and Tobago, crude oil is sold to international
markets and natural gas is sold into the domestic market.
Natural gas is sold domestically in both Western Australia and
the east coast of Australia. In Western Australia, Woodside’s
domestic gas obligations are met from multiple producing
assets. All of Woodside’s production from Bass Strait is sold
into the east coast domestic market.
In 2023, Woodside’s Western Australian assets produced
76 petajoules (PJ) of gas, representing approximately 19% of
Western Australia’s domestic gas supply. Woodside’s share
of Bass Strait production was 97 PJ and that represented
approximately 19% of all gas supplied to the east coast market.
Woodside’s marketing and trading portfolio is supported by our
shipping capacity which includes six vessels under long-term
contract and multiple vessels on short-term charter. Woodside
has chartered an additional five new-build LNG ships to support
the delivery of Scarborough LNG cargoes and growth in trading
activities. The new-build vessels are expected to be delivered
between 2024 and 2026.
In August 2023, Woodside and LJ Scarborough Pty Ltd (LNG
Japan) entered into a non-binding heads of agreement for the
sale and purchase of 12 LNG cargoes per year (approximately
0.9 million tonnes per annum (Mtpa)) for ten years commencing
in 2026.1 This agreement is part of a broader strategic
relationship with LNG Japan and its parent entities which
includes the sale of a 10% non-operating participating interest
in Scarborough Joint Venture and collaboration on opportunities
in new energy.2
In December 2023, Woodside signed a SPA with Mexico Pacific
Limited (Mexico Pacific) for the purchase of 1.3 Mtpa of LNG over
20 years from Mexico Pacific’s Saguaro Energia LNG project on
the Pacific coast of Mexico. The SPA is subject to Mexico Pacific
taking a FID on the proposed third train which is expected in
the second half of 2024. Commercial operations are targeted to
commence in 2029.
Subsequent to the period, Woodside and JERA entered into
a non-binding heads of agreement for the sale and purchase
of six LNG cargoes on a delivered ex-ship basis per year for 10
years commencing in 2026 from Woodside’s global portfolio.
This agreement is part of a broader strategic relationship with
JERA which includes equity in the Scarborough Joint Venture
and collaboration on opportunities in new energy and lower
carbon services.
1
2
LJ Scarborough Pty Ltd is currently a wholly owned subsidiary of LNG Japan Corporation, which is a 50:50 joint venture between Sumitomo Corporation and Sojitz Corporation.
Subject to completion of the transaction, targeted in the first quarter of 2024.
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WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 3.4
OUR BUSINESS
Projects
Woodside’s portfolio of projects is underpinned by project delivery capability
that is focused on safety, low cost and lower carbon solutions.
SCARBOROUGH ENERGY PROJECT
The Scarborough gas field is located in the Carnarvon Basin,
approximately 375 km off the coast of Western Australia.
The field is being developed through new offshore facilities
connected by an approximately 430 km pipeline to a second
LNG train at the existing Pluto LNG onshore facility.
The development of the Scarborough field includes the
installation of a FPU with eight wells drilled in the initial phase
and 13 wells drilled throughout the life of the field. Expansion
of Pluto LNG includes the construction of a second LNG train
(Pluto Train 2), installation of additional domestic gas processing
facilities and supporting infrastructure and modifications to the
existing Pluto Train 1 to allow it to process Scarborough gas.
Scarborough gas is expected to produce approximately 5 Mtpa
of LNG from Pluto Train 2, and up to 3 Mtpa of LNG from the
existing Pluto Train 1. The Scarborough reservoir contains less
than 0.1% CO2. Combined with processing design efficiencies at
the offshore floating production unit and onshore Pluto Train 2
the Scarborough Energy Project will be one of the lowest carbon
intensity sources of LNG delivered into North Asian markets.1
At the end of 2023, the project was 55% complete.2 Fabrication
of the FPU is ongoing with the living quarters commissioning
underway and the hull and topsides progressing. Subsequent to
the period, the hull exited its first drydock and the flare boom
was installed on the topsides. Fabrication of the subsea flowlines
and trunkline are complete.
The environment plans for the seismic, drilling, subsea and
trunkline installation activities were accepted by the regulator
in December. Following this approval, the seismic program
was successfully completed. Subsequent to the period, the
first subsea flowline was installed, drilling of the production
wells commenced and work on the nearshore pipeline
installation completed. Work on the remainder of the pipeline
in Commonwealth waters is underway.
Pluto Train 2 site works are well progressed in preparation for
delivery of equipment and modules throughout 2024. At the
end of 2023, approximately 33,000 m3 of concrete has been
poured, 564 tonnes of structural steel erected and 3 km of piping
has been installed. Fabrication of six modules was complete,
with a further 38 modules underway. Additional modules were
completed subsequent to the period.
The engineering, procurement and construction management
(EPCM) contractor was selected for Pluto Train 1 modifications,
with engineering and procurement of long-lead items progressing.
Preparatory works for the Pluto Train 2 tie-in were carried out
during the Pluto LNG turnaround in May 2023.
Woodside took a FID for the Scarborough Integrated Remote
Operations Centre (IROC) in November 2023. The IROC
will allow Scarborough and the Pluto facility to be remotely
operated from Perth.
In August 2023, Woodside entered into an agreement with LNG
Japan for the sale of a 10% non-operating participating interest
in the Scarborough Joint Venture.3
Subsequent to the period, Woodside entered into an agreement
with JERA for the sale of a 15.1% non-operating participating
interest in the Scarborough Joint Venture.4
Woodside is operator and holds a 100% participating interest in
Scarborough, 51% participating interest in Pluto Train 2 and 90%
participating interest in Pluto LNG.5 Woodside is targeting first
LNG cargo in 2026.
SANGOMAR
The Sangomar oil and gas field, located approximately 100 km
south of Dakar, is Senegal’s first offshore oil project.
The Sangomar Field Development Phase 1 is developing the
less complex reservoir units and testing other reservoirs to
support potential future phases. Oil will be produced through a
stand-alone FPSO facility with 23 subsea wells and supporting
subsea infrastructure. It is designed to allow the tie-in of
subsequent phases.
The FPSO Léopold Sédar Senghor is a converted oil tanker with
new topsides, turret and mooring systems and has production
capacity of 100,000 bbl/day. The FPSO departed Singapore in
December 2023 and arrived offshore Senegal subsequent to the
period in February 2024.
The Phase 1 drilling and completions campaign includes 23
production, gas and water injection wells. The reinjection of gas
and water is intended to help maximise the recovery of the oil and
enable gas to be stored for future use. At the end of 2023, 17 wells
were completed and six further wells were partially complete.
1 Wood Mackenzie Emissions Benchmarking.
2
3
The completion percentage excludes the Pluto Train 1 modifications project.
LJ Scarborough Pty Ltd (LNG Japan) is currently a wholly owned subsidiary of LNG Japan Corporation, which is a 50:50 joint venture between Sumitomo Corporation and Sojitz Corporation.
Subject to completion of the transaction, targeted in the first quarter of 2024.
The sale and purchase agreement is with JERA Scarborough Pty Ltd which is a wholly owned subsidiary of JERA Co., Inc. Subject to completion of the transaction, targeted for the second half of 2024.
Following completion of the transactions with LNG Japan and JERA, Woodside will hold a 74.9% interest in the Scarborough Joint Venture and remain as operator. Completion is targeted for the first
quarter of 2024 for the transaction with LNG Japan and the second half of 2024 for the transaction with JERA.
4
5
2424
ANNUAL REPORT 2023ANNUAL REPORT 2023 The FPU engineering, procurement and construction contract
was executed with Hyundai Heavy Industries. Procurement
activities are progressing, commensurate with the maturity of
the engineering performed to date. Advancing these activities
will support the lump sum conversion which is planned to occur
in 2024.
The floating storage and offloading (FSO) vessel front-end
engineering and design (FEED) and shipyard engineering has
commenced with SBM Offshore. The fully negotiated FSO bare
boat charter and operating and maintenance contracts are
targeting execution at the conclusion of FEED in 2024.
Key contracts have also been awarded across drilling and
completions, facilities installation and subsea equipment.
Long lead equipment and materials for topsides and subsea
facilities have been ordered following contract awards.
Transocean was awarded the drilling rig contract in July 2023.
The rig will be selected 12 months prior.
The project is maturing opportunities across elements of the
Trion local content plan and engaging key stakeholders in Mexico
to understand local capabilities and establish prioritisation.
Woodside is operator and holds a 60% participating interest.
As at the end of 2023, Phase 1 of the project was approximately
93% complete.1
In May 2023, the Sangomar joint venture approved the drilling of
an additional production well to optimise field recovery. As at the
end of 2023, drilling of this well was partially complete.
Woodside is committed to a robust local content program
that includes training initiatives, local employment, supplier
business opportunities and capacity building within Senegal.
As at June 2023, the main project contractors have reported
more than 3,000 jobs fulfilled by Senegalese staff. Capacity
building activities are now focusing on the operating phase.
Woodside is operator and holds an 82% participating interest in
the Sangomar exploitation area and a 90% participating interest
in the remaining Rufisque Offshore, Sangomar Offshore and
Sangomar Deep Offshore (RSSD) evaluation area.
TRION
Trion is an oil development located in the Gulf of Mexico,
approximately 180 km off the Mexican coastline and 30 km south
of the United States/Mexico maritime border at a water depth of
approximately 2,500 m.
Woodside announced Trion’s FID in June 2023 and the Mexican
regulator, Comision Nacional de Hidrocarburos (CNH), approved
the Field Development Plan (FDP) in August 2023.
Woodside competitively tendered major scopes of the
development and at FID, approximately 70% of the forecast
capital was underpinned by firm tenders that were lump sum
or based on fixed rates. Key contracts have been progressively
executed since FID.
1
The progress of the project has been updated to 93% following a 0.2% correction identified subsequent to the period.
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WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 3.5
OUR BUSINESS
Decommissioning
Woodside is committed to executing our decommissioning responsibilities safely,
while also ensuring we focus on efficiency and low cost execution.
In 2023, Woodside continued execution of planned
decommissioning activities, spending approximately
US$447 million across our portfolio.
The Enfield project, located approximately 38 km north of the
North West Cape, Western Australia, ceased production in
November 2018. All 18 Enfield wells have been plugged and 16 of
the 18 xmas trees have now been removed. The remaining two
trees are expected to be recovered in the first half of 2024 along
with the completion of the wellhead severance program.
In May 2023, Woodside completed award of all major contracts
for the decommissioning of subsea infrastructure at the Enfield,
Griffin, Stybarrow and Echo Yodel oil and gas fields offshore
Western Australia. Drill rig contracts for the P&A of Stybarrow
and Minerva wells were also awarded during 2023.
In October 2023, the Nganhurra RTM was safely and successfully
removed from its location off the North West Cape in Western
Australia and transported to Perth, to be cleaned and
deconstructed in preparation for recycling and reuse.
For further information on the Nganhurra RTM removal, refer to
the Sustainability section of our website at woodside.com.
Decommissioning activities on Griffin commenced following
receipt of the regulatory approvals in December 2023.
Decommissioning activity continued in the Bass Strait, with
111 wells permanently plugged. In 2023, the GBJV awarded
contracts for a semi-submersible well intervention unit and a
jack-up rig to commence P&A work in 2024. The GBJV also
progressed the tender process with heavy lift contractors to
execute decommissioning activities for a number of facilities
within the Gippsland Basin. The contract was awarded
subsequent to the period.
2626
ANNUAL REPORT 2023ANNUAL REPORT 2023 3.6
OUR BUSINESS
Exploration and development
Woodside’s portfolio of developments and targeted exploration program is focused
on identifying and addressing key technical and commercial elements to allow
resources to compete for capital.
CALYPSO
Calypso is located approximately 220 km off the coast of Trinidad
in 2,100 m water depth. The resource comprises several gas
discoveries in Block 23(a) and Block TTDAA 14. The development
is located in a region with existing infrastructure and a favourable
demand outlook.
In the first half of 2023, Woodside completed conceptual studies
and selected an infield host as the preferred development
concept. Pre-FEED engineering commenced in the second
half of 2023 to mature the definition of the concept. Marketing
and commercial discussions continue with key stakeholders to
evaluate options to monetise the resource. Woodside is operator
and holds a 70% participating interest.
BROWSE
Browse comprises the Calliance, Brecknock and Torosa gas
and condensate fields in the offshore Browse Basin, located
approximately 425 km north of Broome, Western Australia.
Key work activities continued in support of the proposed
Browse to NWS Project development, including engagements
with environmental regulators on approvals and progressing
commercial agreements. A CCS solution has been incorporated
into the offshore design to abate a significant proportion of
Browse reservoir CO2. The Browse Joint Venture is evaluating
further carbon abatement and energy efficiency opportunities
to reduce and manage greenhouse gas emissions.
Woodside is operator and holds a 30.6% participating interest.
LIARD
The Liard field is an unconventional gas field located in British
Columbia, Canada. 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.
Woodside signed an agreement to join the Rockies LNG
partnership as an option to potentially export LNG via the west
coast of Canada. The Rockies LNG Partnership is collaborating
with Western LNG and the Nisga’ Nation, the developers of the
Ksi Lisims LNG project in British Columbia. Woodside holds a
50% participating interest in the Liard field.
SUNRISE
Sunrise comprises the Sunrise and Troubadour gas and
condensate fields which are located approximately
450 km north-west of Darwin, Australia and 150 km south
of Timor-Leste.
In 2023, the Sunrise Joint Venture (SJV) participants continued
to engage the Australian and Timor-Leste Governments on a
new Greater Sunrise Production Sharing Contract and other
related documents. The SJV also agreed with the Timor-Leste
and Australian Governments to undertake a concept study for the
potential development to inform relevant stakeholders in 2024.
The study will consider the key issues for developing, processing
and marketing gas via both Timor-Leste and Australia. In addition
to this, retention lease renewals were granted for Australian titles
NT/RL2 and NT/RL4. Woodside is operator and holds a 33.44%
participating interest.
EXPLORATION
Woodside’s exploration strategy remains focused on accessing,
testing and developing low cost, lower carbon, value-adding
opportunities with the characteristics and project pace to be
resilient through the energy transition.
In the US Gulf of Mexico, Woodside was awarded five leases in
lease sale 259 and was the highest bidder on 18 leases in lease
sale 261.1 Woodside acquired a 44% working interest in two
leases in the Green Canyon protraction area and participated
in the drilling of the Spinel well (non-operated), which did not
encounter hydrocarbons. Also acquired, was a 30% working
interest in 11 leases in the Atwater Valley protraction area.
The Egyptian regulator approved Woodside’s acquisition of a
27% interest in two non-operated blocks in the Herodotus Basin.
Woodside signed an option agreement to acquire at least a 56%
interest in Petroleum Exploration License 87, located offshore
Namibia in the Orange Basin. Seismic acquisition was completed
and a decision on exercising the option to enter will follow
evaluation of the seismic data in 2024.
Woodside continued to optimise its exploration portfolio,
exiting blocks no longer considered prospective. This included a
decision to exit Block 5 in deepwater Trinidad and Tobago and
completing formal exit activities in offshore Canada, Republic of
Korea, Peru and Myanmar Block A-6.
1
The final award of leases under lease sale 261 is pending regulatory approval.
2727
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 3.7
OUR BUSINESS
New energy and carbon solutions
Woodside is focusing on the development of new energy products and lower carbon
services, to help Woodside and our customers reduce emissions.
NEW ENERGY
United States
H2OK
H2OK is a proposed liquid hydrogen project to be located in
Ardmore, Oklahoma, expected to produce up to 60 tonnes per
day (tpd) of liquid hydrogen. Woodside continued to progress
technical, regulatory and contracting activities in 2023.
Woodside is evaluating the proposed US Federal Government
tax incentive criteria to determine implications for the project
and is working to finalise customer offtake agreements to
support a potential FID. Woodside is operator and holds a
100% participating interest.
US Gulf Coast
In 2023, Woodside assessed locations and progressed the early
stages of an opportunity for a potential large scale ammonia
production and export facility.
Heliogen Collaboration
Woodside and Heliogen have a project agreement to deploy
a 5 MW demonstration module of Heliogen’s artificial intelligence-
enabled concentrated solar energy technology in California, known
as the Capella project. In 2023, the project completed FEED.
Asia-Pacific
H2Perth is a proposed hydrogen and ammonia production
facility to be located in Perth, Western Australia. In 2023, primary
environmental approval application documents were submitted
to both the Commonwealth and Western Australian regulators.
The Hydrogen Refueller @H2Perth is a proposed self-contained
hydrogen production, storage and refuelling station which
achieved a FID in 2023.
H2TAS is a proposed renewable ammonia and hydrogen
production facility to be located in the Bell Bay area of Tasmania.
In 2023, Woodside continued to evaluate power solutions and
offtake opportunities.
Southern Green Hydrogen is a proposed renewable ammonia
production facility to be located in Southland, New Zealand.1
In 2023, work continued to finalise commercial arrangements
for Southern Green Hydrogen.
CARBON CAPTURE AND STORAGE (CCS)
Woodside, as a participant in various joint ventures, holds three greenhouse gas assessment permits and is a participant in the
proposed South East Australia (SEA) CCS Project.2 In 2023, Woodside entered into three non-binding memoranda of understanding
to enable studies of a potential CCS value chain between Japan and Australia.
Project3
Angel (Operated)
Bonaparte (Non-operated)
SEA CCS (Non-operated)
Description
Location
Interest
2023 Activities
Proposed large-scale multi-user CCS hub
aimed at capturing carbon emitted by
multiple industries.
Proposed large-scale multi-user CCS hub
aimed at capturing carbon emitted by
multiple industries.
Proposed multi-phased CCS project. Phase 1
of the project would use existing infrastructure
to store CO₂ in the depleted Bream field.
Offshore, North West Australia
Offshore, Northern Australia
Offshore, South East Australia
20%
21%
50%
Commenced pre-FEED studies and progressing
activities to support submission of the
environmental referral.
Commenced concept select in August 2023.
Progressed Phase 1 of the project to FEED.
CARBON CREDITS PORTFOLIO4
Woodside utilises carbon credits to offset equity Scope 1 and
2 greenhouse gas emissions that are above our net emissions
reduction targets. In 2023, Woodside planted approximately
2.7 million mixed biodiverse seedlings in Western Australia as
part of our Native Reforestation Project across approximately
4,700 hectares of land at Woodside owned properties.5
In Senegal, Woodside is funding the restoration of up to
7,000 hectares of mangroves in the Sine Saloum and
Casamance regions. Woodside is expected to receive up to
1.4 million carbon credits from this project over 30 years.
CARBON TO PRODUCTS
Woodside is focused on collaborating with carbon capture
and utilisation (CCU) technology developers and is assessing
opportunities to deploy their technologies in demonstration-
scale pilot projects, ahead of their potential deployment on a
larger-scale. Following agreements entered in 2022, Woodside
completed a number of engineering studies with CCU technology
developers LanzaTech, NovoNutrients, StringBio and several
engineering firms in 2023.
1 Woodside’s equity in Southern Green Hydrogen is subject to finalising commercial agreements.
2
Refer to section 6.5 – Asset facts for information on our Greenhouse gas assessment permits and the Climate Transition Action Plan and 2023 Progress Report for further information on Woodside’s
CCS projects.
This table provides information about proposed CCS opportunities focused on Scope 3 emissions. We are also working to develop additional opportunities not shown here.
Refer to section 3.4 – The use of carbon credits in the Climate Transition Action Plan and 2023 Progress Report for further information on Woodside’s use of carbon credits.
The project has a potential to sequester approximately 2,000 kt CO₂-e over 25 years.
3
4
5
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ANNUAL REPORT 2023ANNUAL REPORT 2023 3.8
OUR BUSINESS
Climate and sustainability
We apply a sustainability mindset to guide decision making at all levels of the business.
In 2023, our sustainability activities and disclosures continued to
evolve in response to the strategic importance of sustainability
topics, emerging mandatory sustainability standards and
investor priorities. As such, we elevated summary disclosures of
our material sustainability topics to the Annual Report, retired
the publication of a standalone annual Sustainable Development
Report and included additional information at woodside.com.
CLIMATE TRANSITION ACTION PLAN AND
2023 PROGRESS REPORT
The Climate Transition Action Plan and 2023 Progress Report
summarises Woodside’s climate-related plans, activities,
progress and climate-related data for the period 1 January 2023
to 31 December 2023. Woodside considers that the Climate
Transition Action Plan and 2023 Progress Report contains
disclosures consistent with TCFD’s four recommendations and 11
recommended disclosures, noting its Guidance for all Sectors and
Guidance for Non-Financial Groups.1,2 This Annual Report should
be read in conjunction with Woodside’s Climate Transition Action
Plan and 2023 Progress Report.3
SUSTAINABILITY STRATEGY
We refreshed our Sustainability Strategy in 2023, to incorporate
relevant sustainability-related risks and opportunities and reflect
the direction of our business. The Sustainability Strategy supports
our Corporate Strategy and places an increased focus on those
sustainability topics most relevant to our current business
activities and the communities where we are active.
Our Sustainability Strategy is built on the foundation of the
following principles:
• Integrity, accountability and transparency drive our
environmental, social and governance aspirations and guide
decision making at all levels of our business.
• We strive to operate responsibly across our business activities.
• Enduring and meaningful relationships with communities are
fundamental to our social performance.
• We recognise that our success is driven by our people and
our culture. We value diversity and we strive to keep each
other safe.
More information regarding our Sustainability Strategy is
available at woodside.com.
MATERIALITY PROCESS
Woodside conducts a materiality assessment process to inform
our understanding of which sustainability topics are most
relevant to our business activities and stakeholders.
This considers potential risks, opportunities and impacts of
sustainability topics upon our financial performance, as well as
the potential impacts of our operations on stakeholders.
This process involves a study by internal subject matter experts
drawing from a range of internal and external inputs, including
from our Executive Leadership Team and Directors. We also
continue to monitor developments, trends and stakeholder
views throughout the year. Our approach seeks to understand
the topics relevant to our business activities and to our
stakeholders. Potential risks, opportunities and impacts on the
economy, environment and people, including impacts on human
rights, are taken into account.
Engagements with stakeholders via online surveys and
interviews help verify and prioritise relevant topics. We engage
with stakeholders such as customers, employees, investors,
banks and ratings agencies, joint venture participants, First
Nations communities, local communities, local, state and national
governments, non-government organisations, suppliers and
contractors.
We classify the topics into three categories of material,
significant or important. This is followed by an endorsement
process with our Executive Leadership Team and the Board’s
Sustainability Committee. Our 2023 material sustainability topics
remain consistent with the previous year, including Climate,
Health safety and wellbeing, Environment and biodiversity and
First Nations cultural heritage and engagement.4
Climate
Health, safety
and wellbeing
Environment
and biodiversity
First Nations cultural heritage
and engagement
1
Financial Stability Board, 2017. “Recommendations of the Task Force on Climate-related Financial Disclosures. Final Report.” Figure 4, p. 14. Some elements of the TCFD’s four recommendations and
11 recommended disclosure have been presented in different order to enhance readability.
Financial Stability Board, 2021. “Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures.”
2
3 Woodside notes that following the completion of its 2023 status report, the TCFD has fulfilled its remit and disbanded. The Financial Security Board of the Bank of International Settlements has
4
asked the International Financial Reporting Standards (IFRS) Foundation to take over the monitoring of the progress of companies climate-related disclosures.
For the purposes of Woodside’s sustainability disclosures we classify the topics into three categories of material, significant or important. For these purposes, ‘material topic’ means a 2023 sustainability
topic described in this report, determined as part of the 2023 materiality assessment process undertaken by Woodside. Classification of any topic as material, significant or important should not be read
as a determination of whether that topic may necessarily rise to the level of materiality of disclosures required by law, including the laws of Australia, the United States and the United Kingdom.
2929
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 2023 MATERIAL TOPICS
Climate
Woodside’s climate strategy is integrated throughout our company strategy: our aspiration to thrive through the energy transition
with a low cost, lower carbon, profitable, resilient and diversified portfolio.1
Our climate strategy contains two key elements:
• reducing our net equity Scope 1 and 2 greenhouse gas emissions; and
• investing in products and services for the energy transition.
Each element of our strategy is supported by the detail in our Climate Transition Action Plan and 2023 Progress Report which is
available at woodside.com. The Climate Transition Action Plan is expected to continue to evolve over time, and will be updated in
future disclosures.
Highlights
Net equity Scope 1 and 2 emissions reduction targets2
12.5%
REDUCTION ACHIEVED IN 2023
On track for:
• 15% by 2025
• 30% by 2030
Aspiration of net zero by 2050 or sooner.
Scope 3 emissions targets
INVESTMENT TARGET3
EMISSIONS ABATEMENT TARGET3
2023 PROGRESS UPDATE
Investment in new energy
products and lower
carbon services by 2030.
Take FID on new energy products
and lower carbon services by 2030,
with total abatement capacity of
Cumulative total spend on
new energy products and
lower carbon services.4
$5
billion4
Mtpa CO₂-e55
$335
million
• In 2023 we advanced our net equity Scope 1 and 2 emissions reduction to 12.5% compared to 11% in 2022.2
› We also used 13% fewer carbon credits as offsets than last year, due to the underlying emissions
performance at our facilities.
› We completed the development of decarbonisation plans across our merged portfolio of operated
assets, including identifying potential large scale opportunities to reduce emissions beyond 2030.
› Gross emissions intensity lower (better) than benchmark of a comparable energy portfolio
– and improved further in 2023.6
• We established a Scope 3 Emissions Abatement Target, to complement our existing Scope 3
Investment Target. The target is to take FID on new energy products and lower carbon services by 2030,
with a total abatement capacity of 5 Mtpa CO2-e.5 The investment target tracks our work to develop
these projects and bring them to market. The emissions abatement target will track their impact on
customer emissions.
› Our spending on new energy products and lower carbon services increased over 135% in 2023
compared to 2022, building towards our target to invest $5 billion by 2030.3,4
› We have also included additional information in this report about the progress of our CCS and hydrogen
projects, the risks to achieving our targets, such as securing profitable customer offtake, and what we
are doing to address these risks.
1
2
3
4
5
For Woodside, a lower carbon portfolio is one from which the net equity Scope 1 and 2 greenhouse gas emissions, which includes the use of offsets, are being reduced towards targets, and into
which new energy products and lower carbon services are planned to be introduced as a complement to existing and new investments in oil and gas. Our Climate Policy sets out the principles that
we believe will assist us achieve this aim.
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
Scope 3 targets are subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual
investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment.
Includes pre-RFSU spend on new energy products and lower carbon services that can help our customers decarbonise by using these products and services. It is not used to fund reductions of
Woodside’s net equity Scope 1 and 2 emissions which are managed separately through asset decarbonisation plans.
Includes binding and non-binding opportunities in the portfolio, subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities
(which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance.
6 Woodside analysis, based on Woodside Scope 1 and 2 emissions data for 2022 and 2023 relative to a comparable portfolio of LNG, conventional shelf and deepwater assets, calculated from the
2023 emissions intensity of these primary resource themes reported in Wood Mackenzie’s Emissions Benchmarking Tool.
30
ANNUAL REPORT 2023 Our climate-related opportunities and risks are outlined below and also described in detail in section 5.0 of the Climate Transition
Action Plan and 2023 Progress Report. This includes detail of how these processes are integrated into Woodside’s overall risk
management framework.
The categories of potential climate-related opportunities include: resources efficiency, energy sources,
products and services, markets and resilience.
The categories of potential climate-related risks include: transition risks such as policy and legal risks,
technology, market, and reputation; physical risks such as acute, and chronic.
See also section 3.9 - Risk factors.
Potential
opportunities
Potential risks
Our approach
This is an abbreviated summary of our Climate Transition Action Plan and 2023 Progress Report which should be read in full,
and is available at woodside.com.
REDUCE OUR NET EQUITY SCOPE 1 AND 2 GREENHOUSE GAS EMISSIONS
Woodside is targeting a reduction of net equity Scope 1 and 2 greenhouse gas emissions of 15% by 2025 and 30% by 2030,
with an aspiration of net zero by 2050 or sooner.1 Our performance against these targets is highlighted in the highlights section.
Reducing our net equity Scope 1 and 2 greenhouse gas emissions is supported by three levers:
• avoiding emissions in design
• reducing emissions in operations and
• offsetting the remainder with carbon credits.
Woodside has a long standing focus on energy efficiency. Our first formal climate-related target was a 5% energy efficiency target
over the period 2016-2020. We exceeded this target, achieving 8%.
Decarbonisation planning
Our priority is to avoid and reduce emissions. All Woodside operated assets and projects must draw up decarbonisation plans
to identify the technical opportunities to reduce emissions at the facility, so that the opportunities can be further assessed for
engineering and commercial viability.
Opportunities that are estimated to cost less than our internal long-term cost of carbon of $80/t CO2-e (real terms 2022) are
incorporated into asset or project level business plans.2 These opportunities are at varying levels of maturity. To date:
• Opportunities that we estimate could avoid approximately 16 million tonnes CO2-e (cumulatively to 2050) have been incorporated
into the design of the Scarborough, Pluto Train 2 and Trion projects3
• Around a further 70 opportunities, which we estimate could avoid approximately 12 million tonnes CO2-e (cumulatively to 2050)
are targeted for completion at our existing facilities by 2030.3
We estimate that the opportunities still to be implemented at our existing operating facilities could have a combined capital cost
of around $200 million.3
Large scale abatement plan
Emissions reduction opportunities that are estimated to cost more than $80/t CO2-e are reviewed by our Executive Leadership
Team.2 They are subject to more engineering, cost reduction or technology maturation in a company-wide large scale abatement
plan, as depicted in the chart below. If they can be matured to an appropriate level, they will be reassessed by the Executive
Leadership Team and progressed where appropriate. The proposed Woodside Solar project is an example of a project likely costing
more than $80/t CO2-e that is progressing.
LNG facilities are the source of the majority of our emissions. They arise from reservoir CO2, power generation, mechanical turbines
and our flaring system. Electrification (using renewable or lower carbon power), CCS and hydrogen fuelling of turbines are all
options that could reduce these emissions, creating choices in the optimal mix.
1
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
2 Woodside’s assumptions on carbon cost pricing include a long-term carbon price of US$80/tonne of emissions (real terms 2022). Woodside continues to monitor the uncertainty around climate
3
change risks and will revise carbon pricing assumptions accordingly.
Indicative only, not guidance. Potential impact of opportunities identified in asset decarbonisation plans assuming all opportunities identified progress to execution, which is not certain and remains
subject to further maturity of cost and engineering definition. Greenhouse gas quantities are estimated using engineering judgement by Woodside engineers. Please refer to Climate Transition
Action Plan section 7.6 “Disclaimer, risks, emissions data and other important information” for important cautionary information relating to forward looking statements.
31
WOODSIDE ENERGY GROUP LTD We estimate these large scale opportunities could potentially deliver approximately 35 million tonnes of additional cumulative
Scope 1 and 2 emissions reductions through to 2050.1 The next stage of our planning process is therefore to determine which of the
multiple abatement options should be selected. With a focus on cost-effectiveness, they will also be compared with alternatives,
such as new emerging technologies, or the use of carbon credits as offsets.
If all current abatement efforts and future abatement pipeline opportunities are realised, residual emissions from our current
portfolio could be approximately 0.3 Mtpa CO₂-e in 2050, an approximately 95% reduction from our 2016-2020 starting base.1,2
Abatement option for typical
LNG emissions sources1
Marginal abatement cost curve1
Mechanical drives
Post combustion capture +
carbon sequestration
Electrification
Hydrogen fuelling +
carbon sequestration
Power generation
Renewable power
Post combustion capture +
carbon sequestration
Oxyfuel combustion +
carbon sequestration
Reservoir CO2
Carbon sequestration
Carbon to products
Flaring
Reduction or recovery
~50%
~25%
~15%
~10%
Carbon price
(US$/t)
Large scale abatement | Multiple technology options >$80/t
Priority is to reduce cost and mature engineering in order to make available for selection at
facilities with the longest future operating life and greatest emissions reduction potential.
Oxyfuel
combustion
Post
combustion
carbon
capture
Carbon
capture and
utilisation
(CCU)
Renewable
power
H2
fuelling
Carbon
sequestration
Opportunities costing <$80/t | in progress
• Flaring minimisation
• Energy efficiency
• Reliability improvement
• Methane reduction
US$80t/CO₂-e long term cost of carbon
Cumulative CO₂-e
emissions reductions
Utilising carbon credits
Like our asset decarbonisation plans, our portfolio of carbon credits enables our base business to manage the price risk associated
with regulations and our corporate net equity Scope 1 and 2 emissions targets.
One carbon credit is intended to represent a tonne of emissions avoided, reduced or removed outside of our facilities.3 Because of
the importance of carbon credit integrity, Woodside applies our own additional assessment to our carbon credits portfolio. This
assessment is described in the Climate Transition Action Plan, and includes:
• additionality of the credited abatement is demonstrable
• abatement has a high likelihood of permanence
• abatement is accurately quantified.
We established a Carbon Business in 2018 in order to develop a portfolio of carbon credits and our skills and expertise in managing
carbon credit integrity. Since then we have invested more than $150 million, with approximately one third of that spend focused on
the origination of our own projects, and the remainder on purchase of credits.4,5,6,7 Today, Woodside manages a portfolio of more
than 20 million carbon credits, which it has acquired with an average cost of supply of less than $20/t.5,7
Our approach is informed by current and emerging external frameworks such as the Integrity Council on the Voluntary Carbon
Market (ICVCM)’s Core Carbon Principles, the Investor Group on Climate Change’s (IGCC)’s guidance, and the Oxford Principles
for Net Zero Aligned Offsetting.8,9,10
1
2
3
4
Indicative only, not guidance. Graphic outlines future decarbonisation options currently being considered. Opportunities may or may not eventuate. Please refer to section 7.6 “Disclaimer, risks,
emissions data and other important information” for important cautionary information relating to forward looking statements.
Relative to a starting base of 6.32 Mt CO₂-e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or
down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
The measurement, verification and reporting of the abatement is prescribed and administered by independently managed Standards (such as Verra or Gold Standard), or by Regulators through
legislation (such as the Australian Clean Energy Regulator through the Carbon Farming Initiative Act).
Invested amount is pre-tax expenditure incurred prior to 31 December 2023 on market purchased carbon credits and Woodside developed carbon origination projects. Investment in carbon
credits allocated to Scope 1 and 2 emissions do not contribute to our Scope 3 investment target. The $150 million quoted investment in carbon credits in this report has not been attributed to the
$335 million Scope 3 investment target update in this report.
Portfolio volume excludes carbon credits (held and expected to be received) from Woodside Pluto Carbon Offset Project Stages 1-4 held by Woodside Burrup Pty Ltd.
Origination refers to carbon offset projects developed by Woodside or third-party project developers, characterised by (i) the provision by Woodside of up-front investment or funding; (ii) Woodside
either being a majority participant in the project or a recipient of carbon credits from the project (or both); and (iii) the acceptance of risk by Woodside in relation to carbon credit delivery.
The carbon portfolio is dynamic. Volumes, methods and geography are subject to change. Portfolio volume includes Australian Carbon Credit Units and voluntary carbon market credits held, and
expected to be delivered or generated up to 2050 under or in relation to: (i) third-party contracts entered into prior to 31 December 2023; or (ii) Woodside originated projects for which land has
been purchased prior to 31 December 2023. Volumes reported on an unrisked basis. Unrisked volumes do not include an adjustment to such volumes to reflect any risk of non-delivery. Portfolio
volume excludes retired units. Woodside does not make any claims in relation to the mitigation impact of carbon credit within the portfolio unless, and until, a credit is retired or surrendered (taken
out of circulation and can no longer be sold). Cost of supply is calculated pre-tax and is based on portfolio volumes and a calculation of 2023 present value unit costs.
ICVCM, 2023. “The Core Carbon Principles” https://icvcm.org/the-core-carbon-principles/.
8
IGCC, 2022. “Corporate Climate Transition Plans: A guide to investor expectations” https://igcc.org.au/wp-content/uploads/2022/03/IGCC-corporate-transition-plan-investor-expectations.pdf.
9
10 University of Oxford, 2020. “The Oxford Principles for Net Zero Aligned Carbon Offsetting” https://www.smithschool.ox.ac.uk/sites/default/files/2022-01/Oxford-Offsetting-Principles-2020.pdf.
5
6
7
32
ANNUAL REPORT 2023
INVEST IN PRODUCTS AND SERVICES FOR THE ENERGY TRANSITION
Investing in products and services for the energy transition is supported by three levers:
• assessing investments for their resilience to the energy transition
• diversifying our products and services and
• supporting our customers and suppliers to reduce their emissions.
Assessing investments
The precise shape and pace of the energy transition is uncertain. It is expected to vary across countries because they have different
starting points, development requirements, resources and capabilities. However, the scale of the transition is clearer as it will take
many trillions of dollars, invested over decades. The International Renewable Energy Agency (IRENA) estimates it will require
$150 trillion of cumulative investment by 2050.1
Whilst the scale of the investment required for the energy transition creates opportunity for Woodside, its inherent uncertainty and
potential volatility creates risks. We believe that acknowledging the uncertainty and building resilience to it is a better response than
picking a single future scenario and acting as if it were certain.
This approach requires us:
• to carefully analyse a wide range of energy market and climate-related scenarios
• diversify our portfolio to meet changing customer demand
• have a disciplined capital allocation framework to focus our investments where we believe we will be most competitive
• work diligently with our customers to understand and meet their needs so that ultimately we secure their purchase of our
products and services.
We have developed a ‘transition case’ methodology which, like a business case and a safety case, helps us to manage risk by assessing
investment opportunities across a range of climate-related factors. There are currently six elements to our transition case methodology,
which was first applied to the final investment decision for the Trion development in the Mexican segment of the Gulf of Mexico in 2023.
Transition case for oil and gas investments
We consider:
1.
Investment attractiveness utilising a range of economic
assumptions informed by climate scenarios as well as
other factors such as geopolitics and macroeconomics.
2. Cash flow scenario analysis impact by comparing the
impact ‘with and without opportunity’ on future cash
flows using scenarios, including a 1.5°C case. 2
3. Potential demand resilience analysis considering the
competitiveness of the project’s cost of supply relative
to the range of demand in IPCC scenarios, including
1.5°C cases.
4. Climate-related risks and opportunities by comparing
the impact ‘with and without opportunity’ on our
portfolio aggregate climate risk exposure.
5. Scope 1 and 2 portfolio emissions assessing the
impact of ‘design out’ work on project emissions, and of
residual emissions upon portfolio emissions abatement
demand, and portfolio emissions intensity.
6. Scope 1, 2 and 3 portfolio emissions intensity by
comparing the impact ‘with and without opportunity’
on our portfolio.
1
2
IRENA, 2023. “World Energy Transitions Outlook 2023: 1.5°C pathway”. International Renewable Energy Agency, Abu Dhabi. Page 134.
IPCC, 2023. “Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change”, [Core Writing
Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland, doi: 10.59327/IPCC/AR6-9789291691647, https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_FullVolume.pdf -
referred to in subsequent footnotes on this page as IPCC, 2023. “AR6-SYR”.
33
WOODSIDE ENERGY GROUP LTD Diversifying our portfolio
Woodside is working to diversify its portfolio by adding new products and services alongside our existing products, where we
believe we have a competitive advantage to supply them successfully through the energy transition.
In 2021, Woodside set a Scope 3 investment target – aiming to invest $5 billion in new energy products and lower carbon services
by 2030.1,2
At the end of 2023, we have cumulatively spent more than $335 million towards this target, with 2023 expenditure increased by
over 135% compared to 2022.1,2 We expect expenditure to continue to ramp up towards the back end of the target period, subject to
markets developing, because most project expenditure occurs in the construction phase.
Woodside has set a complementary Scope 3 emissions abatement target, to indicate the potential abatement impact of these
products and services upon customer Scope 1 or 2 emissions. This target is to take final investment decisions on new energy
products and lower carbon services by 2030, with total abatement capacity of 5 Mtpa CO2-e.1,3
The investment target tracks our work to develop these projects and bring them to market. The emissions abatement target will
track their potential impact on customer emissions.
Other elements of our approach are described in more detail in our Climate Transition Action Plan and 2023 Progress Report.
Our performance
See the ‘highlights’ section above, and the Climate Transition Action Plan and 2023 Progress Report for more information.
Scope 3 targets are subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual
investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment.
Includes pre-RFSU spend on new energy products and lower carbon services that can help our customers decarbonise by using these products and services. It is not used to fund reductions of
Woodside’s net equity Scope 1 and 2 emissions which are managed separately through asset decarbonisation plans.
Includes binding and non-binding opportunities in the portfolio, subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities
(which may or may not proceed). Individual investment decisions are subject to Woodside’s investment targets. Not guidance.
1
2
3
34
ANNUAL REPORT 2023 Health, safety and wellbeing
Protecting the health and safety of our people, our contractors and our host communities is a top priority at Woodside. We focus on
health and safety because we believe that everyone should be able to go home in the same condition as they started the day.
We aim to be an industry leader in health and safety outcomes to protect people, communities and environments. We expect all our
workers (including employees and contractors) to prioritise their own health and safety and that of others to keep each other safe.
We strongly believe in embedding a safety culture where our people are empowered to take action to prevent injuries and maintain
a safe working environment.
The fatality of our colleague, a contractor employee, on the North Rankin Complex (NRC) continues to affect many of us.
Our response prioritised the immediate safety and wellbeing of the workforce on the NRC. The Woodside Board convened and
members of our Board and Executive Leadership Team visited our operational sites to meet with our workers (including employees
and contractors) and offer their support. We completed a significant internal investigation into the incident and presented the
findings and agreed actions to the Board and the National Offshore Petroleum Safety and Environmental Management Authority.
In the fourth quarter of 2023, we facilitated an external review of our integrated safety and operational systems and plan to
incorporate recommendations of this review into actions as part of a continuous improvement to our safety performance.
Highlights
• Employee survey results showed us that our people feel empowered to speak up and act on health and
safety issues.
• The framework for our new Woodside Field Leadership Program was developed and we commenced
testing with our Australian based workforce.
• Integration of our global approach to wellbeing, event reporting and investigations, health, safety and
environment (HSE) in contracting and performance monitoring was progressed.
Potential
opportunities
• Continue to learn from the incident on the NRC that led to the fatality of our colleague employed
by a contractor company and other significant events.
• Embed our Field Leadership Program to strengthen understanding of our work practices and make
improvements to HSE risk controls.
• Improve tracking and visibility of leading indicators of HSE performance.
Potential risks
• Significant loss of primary containment process safety events.
• Failure to effectively plan and execute high-risk work activities.
• Failure to apply lessons from investigations and Field Leadership Program engagements leading
to repeated events.
See also section 3.9 - Risk factors.
Our approach
At Woodside everything we do is guided by Our Values. Everyone has the right to come to work and feel safe. Woodside continues
its longstanding commitment to building and maintaining a work environment that is free from all forms of discrimination and
inappropriate behaviour including sexual harassment. Our Code of Conduct defines the expected behaviours of everyone working at
Woodside. Implementation of our Working Respectfully Policy supports the psychological safety of our workforce.
Refer to woodside.com for our Code of Conduct and Working Respectfully Policy.
Our We Care value, guides us to keep each other safe and care for communities. We prioritise safety and promote a positive safety
culture by encouraging everyone to speak up and intervene on safety issues. We acknowledge providing energy to the world in the
form of oil, gas and new energy potentially presents safety risks. We aim to control or mitigate the potential impacts of these risks on
people, the economy and the environment.
Our Health and Safety Policy outlines the objectives and principles that shape our approach. This approach is consistent across
all our business operations. When assessing safety risks, we consider the potential negative impacts of our business activities to
communities and our workforce, including impacts on human rights. We implement systems and processes to identify, assess
and control safety risks by applying the hierarchy of controls. Our expectations and procedures set mandatory requirements for
managing high-risk work, including obligations to stop unsafe work to prevent potential fatalities and high-consequence injuries.
We take action to protect the health of our workforce and facilitate earliest recovery from work-related injury or illness. We aim to
eliminate or mitigate workplace health hazards at the design stage of projects or control them as far as reasonably practicable based
on the level of assessed risk. If hazards remain and there is a risk of exposure, we strive to ensure that worker exposure does not
exceed legal limits through implementation of the hierarchy of controls method.
35
WOODSIDE ENERGY GROUP LTD We perform health surveillance in accordance with applicable law to detect the early signs of occupational illness so intervention,
and if necessary, rehabilitation, can be initiated. Potentially harmful workplace health hazards include uncontrolled exposure to
noise, hazardous substances (e.g. benzene, toluene, ethylbenzene, and xylene (BTEX), and mercury), naturally occurring radioactive
material (NORM), infectious disease (e.g. COVID-19), hazardous manual tasks and psychological hazards.
Refer to woodside.com for additional information about our approach to Health, safety and wellbeing.
Our performance
A fatality of our colleague on the NRC occurred in June 2023. Three additional high-consequence injuries were also recorded for
2023. Two musculoskeletal injuries that required surgery with extended recovery beyond six months and partial amputation of a
thumb following a crush injury. Following insights from event investigations, we are focusing on field leadership and engagement,
risk assessments and equipment management processes.
In 2023, Woodside experienced two Tier 1 and one Tier 2 loss of primary containment (LOPC) process safety events (PSE). All events
were investigated, and actions were put in place to address the root causes, including preventative actions across our facilities.
We are also embedding lessons learned relating to equipment selection and maintenance.
The workforce exposure hours in 2023 (total hours 20,914,483) increased by 25%, when compared to 2022 (total hours 16,699,730).
The increase in exposure hours in 2023 was due to increasing project activity and merger integration.
Our total recordable injury rate (TRIR) of 1.86 increased with 39 recordable injuries in 2023, compared to 30 in 2022. The main injury
types were lacerations, wounds and soft tissue injuries.
Our total recordable occupational illness frequency (TROIF) increased to 1.15 per million hours worked from 0.72 in 2022.
The 24 recordable occupational illnesses comprised 12 noise induced hearing loss, five psychological illnesses, four musculoskeletal
conditions and three skin reactions.
Process safety
We recognise the critical importance of effective Process Safety Management (PSM) to avoid major accident and environmental events
due to loss of control of hazardous substances. We continue to focus on process safety leadership to ensure consistent awareness
of contemporary PSM approaches, organisational status, personal expectations, and accountabilities. In 2023, we rationalised and
improved our competency curriculum and continued with regular assessment and assurance of process safety critical roles across
global operations. Future focus areas include continuing our efforts to embed a strong process safety culture, building competency
across our hydrocarbon business and increasing process safety applications in our new energy and carbon business areas.
In 2024, we are targeting a 95% company-wide completion of competency assessments for people in process safety critical roles
requiring a skilled (advanced) level of competency.
Field Leadership Program
Woodside’s Field Leadership Program provides a structured approach to work team engagement, where leaders build their
understanding of onsite work practices and develop the leadership skills that aim to lead to a safer workplace. The program has
been designed to be applied at all worksite types from operating assets to the office environment. A key objective is to learn
from frontline workers which is aligned with Our Values and Human Organisational Performance (HOP) principles. Outcomes
from the program include increased organisational knowledge of risks and controls, a sustainable method to identify and improve
organisational factors, and to further develop our culture of care.
In 2023, the Field Leadership Program framework was tested with operational groups. This required extensive workforce
engagement to listen and learn from current approaches to HSE and work management so that the program can be tailored to
enable a safer Woodside.
In 2024, the program will evolve by listening and supporting end users through training and coaching activities. We aim to develop
and implement a strategy to rollout and sustain the program across our global sites.
Mental health and wellbeing
Our wellbeing vision is to be recognised as an employer of choice. We aim to cultivate a work environment where everyone can
flourish by focusing on people, empowerment, and quality leadership. To achieve this, we have expanded and refreshed our Global
Wellbeing Framework to focus on six key elements: (1) protecting from harm, (2) promoting health and wellbeing, (3) connection
and community, (4) work-life balance, (5) opportunities for growth, and (6) meaning and purpose. Each element has a strategic
goal, enabling activities and metrics to track progress, including the use of our employee survey to seek regular feedback from our
people. In 2024, we plan to launch our refreshed wellbeing framework across our global business areas, and work with our leaders to
commence enabling activities.
36
ANNUAL REPORT 2023 Environment and biodiversity
Woodside recognises the importance of managing and conserving the environment and biodiversity to support sustainable
development in the communities where we are active. We are committed to doing our part. We understand and embrace our
responsibility to undertake activities in an environmentally sustainable way that positively contributes towards biodiversity and
assists to reverse biodiversity loss.
Highlights
• No hydrocarbon spills or hazardous non-hydrocarbon spills greater than 1 bbl.
• In 2023, obtained secondary approvals for construction-related environment plans for the Scarborough
Energy project.
• We supported a number of scientific programs and industry working groups to further our knowledge
and understanding on noise-related issues and offshore whale species. Through these programs, bespoke
underwater noise controls were developed to avoid and minimise marine noise impacts for offshore projects.
• A consultation approach for Environment Plans in Australia which has successfully addressed evolving
regulatory requirements was developed.
• Invested in science and biodiversity programs and conservation partnerships to support improved
knowledge outcomes.
• Established Woodside’s Biodiversity Positive Program framework.
• In 2023, Woodside planted approximately 2.7 million mixed biodiverse seedlings across approximately
4,700 hectares of land at Woodside owned properties. These activities bring the total number of hectares
planted to approximately 10,000 hectares since the Native Reforestation Project began in 2020.
• Integrating the Environment and Biodiversity Policy into environmental management decision-making
processes.
• Assess biodiversity positive opportunities for individual Woodside assets. Begin to invest in biodiversity
positive projects in the regions where we are active.
• Continue to collect knowledge on environmental and biodiversity benefits of in-situ decommissioning.
• Ongoing development of technology to identify the seasonality of offshore cetaceans and further manage
our underwater noise impacts.
Potential
opportunities
Potential risks
• Increased regulatory landscape and stakeholder expectations leading to extended timeframes for
assessment and complexity of environmental approvals.
• Failure to progress biodiversity positive outcomes in a timely manner in the regions and areas where
we operate.
• Potential incident resulting in significant loss of hydrocarbon to the environment.
See also section 3.9 - Risk factors.
Our approach
The nature of our operations are accompanied by certain environmental impacts and risks. We work to minimise our impacts
by integrating environmental management into our activities, including the design, construction, operation and decommissioning
of our facilities.
We continue this integration by reviewing our processes and commitments, identifying areas of strength to build on and look to
embed renewed environmental standards across Woodside and set appropriate targets and metrics against these. Our focus on
implementing leading environmental management and mitigation strategies has allowed us to avoid and minimise our environmental
impacts and maintain a more than 30 year record of oil and gas operations without any major environmental incidents.
We recognise that it is not just how we approach environmental management, such as the use of a risk-based assessment which
matters, but that we also need to be clear and transparent. We engage with our stakeholders to better understand the possible
impacts of our activities and to further understand preferred methods and frequency of engagement.
Our hydrocarbon spill preparedness and response framework continues to be a focus across the company’s global portfolio.
The approach is underpinned by a comprehensive process informed by international best practice conventions. These require all
activities to assess credible spill scenarios to marine environment, evaluate surface and subsea response options and recommend
appropriate response techniques. These activity specific plans are supplemented by corporate plans, regional equipment, and locally
trained resources.
Environmental management
We recognise our activities have an environmental footprint and we seek to avoid or minimise adverse environmental impacts to the
natural environment in the regions we operate.
We do this by adopting a risk based approach that allows us to address the environmental impacts and risks associated with our
activities in a consistent way. It allows us to focus our effort and resources on the most significant risks associated with our activities
no matter where we operate or what a regulatory regime may require.
37
WOODSIDE ENERGY GROUP LTD Our performance
Our operations and growth strategy depends on obtaining and maintaining our social licence to operate. Given this and the growing
pressure on our natural environment, the environmental performance and the management of our environmental impacts is critical
to the future success of our business.
In 2023, there were no environmental incidents involving hydrocarbon or hazardous non-hydrocarbon spills greater than 1 bbl
released to the environment.
As part of our commitment to reducing impacts and risks, our hydrocarbon spill preparedness and response framework was
embedded across our global portfolio of activities and operations. This enables our business to plan and evaluate spill risks to the
marine environment in accordance with our environmental approach.
In 2023, we developed new oil pollution emergency plans that contributed to regulatory acceptance of 11 environmental approvals
across our Australian assets. We also delivered capability and training programs for regions where we operate. We continue to engage
with regional and international industry groups to assist in proactively managing and monitoring emerging risks.
From 2023, Woodside has committed to supporting positive biodiversity outcomes in the regions in which we operate. Our approach
builds on existing biodiversity positive projects, that commenced in the years prior to 2023. Woodside developed a framework in 2023
to assess and implement future projects. Woodside seeks to support biodiversity positive projects that have a measurable biodiversity
outcome, that enhance stakeholder involvement and adequately manage risks.
We continue to invest in science to support better environmental performance and outcomes across our global portfolio.
We also continue to progress our environmental regulatory authorisations across Australia, Trinidad and Tobago, the United States,
Mexico and Senegal to advance our projects. See section 3.7 - New energy and carbon solutions.
First Nations cultural heritage and engagement
We acknowledge the unique connection that First Nations communities have to land, waters and the environment. We believe First
Nations cultural heritage and industry can successfully coexist. We seek to ensure Traditional Owners and Custodians are central to
heritage management so that cultural values are understood and remain protected. We understand the importance of identifying and
working with those who have longstanding cultural and spiritual connections to land and waters where we have a presence, and we
are guided by them in our efforts to avoid or minimise potential impact of our operations on those First Nations communities.
We partner with First Nations communities to create positive outcomes that leave a lasting legacy.
We acknowledge the diversity of the First Nations communities in the areas where we are present. When communicating with a
wide audience, Woodside uses the term Indigenous and First Nations interchangeably. On a local level, Woodside will be guided by
the community as to the appropriate terms of reference.
Highlights
• Extensive consultations in relation to cultural heritage management approvals.
• Progression of relationships in New Zealand with the Ngāi Tahu iwi relevant to the Southern Green
Hydrogen Project, with a continued focus on strengthening stakeholder relationships.
• Provision of support for consultation with First Nations stakeholders relevant to environment plan approvals.
• Continued commitment to support submerged heritage research at Murujuga to inform project
implementation and manage possible impacts.
• First Nations Advisory Group Roundtable discussions.
Potential
opportunities
Potential risks
Our approach
• Pursue initiatives in addition to existing Reconciliation Action Plan targets.
• Further develop relationships with First Nations communities in the areas where we are active.
• Pursue and formalise First Nations partnerships in the areas where we are active.
• Woodside contributes to negative impacts to Murujuga Rock Art.
• Woodside does not meet local content outcomes for First Nations communities.
• Woodside does not meet expectations of First Nations communities in areas where we are active.
See also section 3.9 - Risk factors.
Our First Nations Communities Policy defines our approach and is regularly reviewed and updated as required. Woodside
employees, contractors and joint venture partners engaged in activities under Woodside’s operational control, are collectively
responsible for the application of the Policy and are provided with training to ensure they are able to do so. The Policy notes
that Woodside is to be guided by the United Nations Declaration on the Rights of Indigenous Peoples which demonstrates our
commitment to understanding the relevant human rights considerations as we engage with different First Nations communities.
38
ANNUAL REPORT 2023 In Australia, we maintain relationships with First Nations communities in the Pilbara, Kimberley, South West and Perth. Due to recent
changes to regulatory compliance requirements our approach to consultation has been extended. In 2023, Woodside’s First Nations
relations team consulted with a range of First Nations communities, in Australia, from Esperance to the Tiwi Islands and as far east as
Melbourne. The diversity of the environments we are operating in as a global company has expanded our engagements with a range
of community stakeholders in the United States, Mexico, Trinidad and Tobago, and New Zealand.
Refer to woodside.com for our First Nations Community Policy.
Our performance
In 2023, new relationships were formed and new land use and relationship agreements were executed. Woodside remains
committed to close consultation with the relevant persons in the areas in which we operate by way of community and individual
meetings, attending community-initiated events, and ensuring accessibility for feedback or questions as needed. A key element of
our consultation efforts is our willingness to be flexible and adaptable in our consultation format to suit the audience.
Cultural heritage
Woodside’s Cultural Heritage Management Procedure reflects our publicly available First Nations Communities Policy. This policy
includes engaging with affected communities of First Nations peoples in ways that are consistent with the principles of seeking Free,
Prior and Informed Consent (FPIC).
Our approach to the identification, management and protection of tangible and intangible cultural heritage seeks to avoid impacts,
or if avoidance is not possible, to minimise and mitigate those impacts. We seek to ensure Traditional Owners and Custodians are
central to heritage management so that cultural values are understood and remain protected.
Woodside also prepares detailed Cultural Heritage Management Plans (CHMPs) for nearshore and onshore facilities and projects and
completes heritage audits and surveys with Traditional Custodians and independent heritage experts. Woodside is also committed
to ensuring our management of cultural heritage is thorough, transparent and underpinned by consultation and continued
engagement with First Nations communities, which is illustrated through our extensive consultation on our Environment Plans,
completed heritage surveys for the proposed Woodside Solar project, and support for Murujuga’s World Heritage Listing.
Cultural heritage management approvals
Woodside’s activities are the subject of environmental assessments by a range of regulators including the Australian National
Offshore Petroleum Safety and Environmental Management Authority.
Woodside has consulted extensively with Indigenous stakeholders on a variety of activities in 2023. These consultations have
included the tangible and intangible cultural heritage of the environments in which we plan to operate, as well as the environmental
values. In 2023, we also agreed the Scarborough Cultural Heritage Management Plan with Murujuga Aboriginal Corporation (MAC),
which is publicly available on our website at woodside.com.
The CHMP is designed to ensure that impacts to heritage sites and values, including to Murujuga’s National Heritage Listed and
World Tentative Heritage Listed values, are adequately protected in a manner agreed between Woodside and Traditional Owners and
Custodians represented through MAC. It aims to preserve the tangible and intangible heritage values and protect the cultural and
spiritual values of the Traditional Owners and Custodians. Woodside is also progressing the agreement of a CHMP with Ngarluma
Aboriginal Corporation for the development of a proposed solar photovoltaic farm on the Maitland Strategic Industrial Estate.
Our continued commitment to reconciliation
Woodside has been part of Reconciliation Australia’s Reconciliation Action Plan (RAP) program since 2009. Woodside’s vision
for reconciliation is to partner with Indigenous communities to create positive economic, social and cultural outcomes. It is also to
reflect on our shared history, empower Indigenous voices to speak and be heard so all Australians can learn, and work together
towards a better, shared future.
We are continuing to move away from recording completed activities, in favour of measuring longer-term impact outcomes.
Woodside reports annually on progress towards the committed outcomes that support our four Reconciliation Action Plan pillars:
respect for culture and heritage, capability and capacity, economic participation and stronger communities.
In 2023, Woodside made donations to the Aboriginal and Torres Strait Islander Voice Referendum activities that were aligned with
Our Values, the principles set out within our 2021-2025 Reconciliation Action Plan and our First Nations Communities Policy. Our
donations supported organisations to disseminate information and advocate in favour of formalising a pathway for Indigenous
Australians to share their views on policies that impact them. Woodside’s contribution aligns with our support for the Uluru
Statement from the Heart, which called for the establishment of an Indigenous voice to Parliament, agreement making and truth-
telling. For further information, please see the Corporate Governance Statement included in this report and the Sustainability section
of our website at woodside.com.
39
WOODSIDE ENERGY GROUP LTD 3.9
OUR BUSINESS
Risk factors
Woodside recognises that taking risk is necessary for our business and the
effective management of risk is vital to meeting our objectives. We are committed
to managing risks in a proactive, informed and effective manner as a source of
competitive advantage.
Our approach is intended to enable risk informed decision
making, which will protect us against potential negative impacts
and enable us to seek the right opportunities. The objective of our
risk management framework is to provide a single consolidated
view of risks across the company to understand our full risk
exposure and prioritise risk management and governance.
For more information on our risk management process, refer to
our Risk Management Policy, available on our website at
woodside.com.
Woodside’s risk management process is presented as an
iterative sequence that we undertake in a coordinated manner.
The process helps us implement risk management to effectively
identify, assess, and control risks, thereby enhancing the
likelihood of achieving our objectives. The process involves:
• communication and consultation with key stakeholders
• define risk scope, context and criteria
• risk assessment
• risk treatment
• monitor and review risk management process; and
• record and report risks.
The process is defined in our risk management procedure
which is designed to provide a consistent process for the
identification, management and reporting of risks that have the
potential to materially impact the achievement of Woodside’s
business objectives.
The Audit & Risk Committee plays a crucial role in enabling
the Board to meet its oversight responsibility in relation to
Woodside’s risk management. The Sustainability Committee
also focuses on sustainability-related risk management. Refer
to section 4.1.3 - Board committees for more information on the
Audit & Risk Committee and the Sustainability Committee.
We categorise risks into three categories:
1.
Strategic risks
Risks that could affect our organisation’s ability to achieve
its strategic objectives.
2. Entity risks
Risks that could affect our organisation’s ability to achieve
our business objectives. They can be positive, negative,
or both; and can address, create, or result in opportunities
and threats.
3. Emerging risks
Risks defined as an external threat or opportunity that has
a high degree of uncertainty due to rapid or non-linear
evolution. They have the potential to materially impact the
achievement of strategic objectives.
Woodside’s risk appetite statement is a vital element of our risk
framework. In 2023 the statement was updated to reflect the
merged organisation’s appetite to take risk and tolerance to
outcomes. The statement is designed to enable our organisation
to make risk informed decisions.
4040
1.1 ANNUAL REPORT 2023ANNUAL REPORT 2023 OVERVIEW OF OUR RISK FACTORS
Climate change
The global response to climate change is changing the way the world produces and consumes energy. The complex and pervasive nature of
climate change means transition risks are interconnected with and may amplify other risks. Additionally, the inherent uncertainty of potential
societal responses to climate change may create a systemic risk to the global economy. Climate change may also create significant physical
risks, such as increased frequency and severity of storms, wildfires, floods and other climatic events, as well as chronic shifts in temperature
and precipitation patterns.
How is this factor relevant to Woodside?
Woodside’s risks associated with climate change and the transition to a lower carbon economy include possible impacts to demand (and pricing)
for oil, gas and its substitutes, the policy and legal environment for its exploration, development and production, and Woodside’s reputation and
operating environment. We may also face risks related to climate change’s potential to cause physical damage or disruptions to our assets or our
supply chains.
Woodside is an energy company and in order for us to meet the ongoing needs of our customers and the communities in which we operate,
we must understand, forecast and manage several critical risks to evolve and prosper through this transition.
These elements include:
• the demand and pricing of oil, gas, new energy products and lower carbon services
• the regulation of oil and gas exploration, production and consumption
• the timing and rate of the global transition to a lower carbon economy
• public perception of Woodside and the broader oil and gas industry
• access to, and value of, carbon credits or emission allowances; and
• uncertainties associated with changing weather patterns.
Examples of how this factor may impact Woodside
• Physical impacts on our assets or those of our suppliers, customers
• Availability and cost of emission allowances or carbon credits could
or communities caused by increased frequency or intensity of severe
weather events.
impact Woodside’s ability to meet its 2025 and 2030 net equity Scope
1 and 2 emissions reduction targets.
• Over or under investing in oil and gas reserves leading to an imbalance
• Failure of other organisations to meet emissions targets across the
between our supply and global demand.
broader oil and gas industry.
• Failure to transition to new energy at a pace that serves the global
demand, or stakeholder sentiments, or to develop and implement
lower carbon technologies on which Woodside’s strategy may depend.
• Climate-driven changes to legislation, regulation and policy or
climate-related litigation resulting in additional costs, prevent or
restrict Woodside from conducting activities and adversely impacting
Woodside’s reputation.
• Reputational risks with respect to Woodside or the oil and gas industry
in general.
• Financial risks, including limits on availability of funding, changes in
financing terms for oil and gas projects or ability to access capital
markets.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, delays or stoppages in our operations, reduced
capacity to fund capital projects, delayed or suspended regulatory
approvals, legal liabilities and adverse impacts on Woodside’s
reputation, social licence to operate and on the delivery of our strategy.
How is Woodside managing these risks?
Woodside is working to meet its net equity Scope 1 and 2 greenhouse
gas emissions reduction targets, and to invest in the products and
services for the energy transition. This includes oil, gas, new energy
products and lower carbon services.1
We engage and advocate with key industry and governance
stakeholders. Our Climate Transition Action Plan and 2023 Progress
Report includes further information on Woodside’s approach to
managing climate change risks.
For more information on this topic, refer to woodside.com and the Climate Transition Action Plan and 2023 Progress Report.
1
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and
2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021.
Net equity emissions include the utilisation of carbon credits as offsets.
41
WOODSIDE ENERGY GROUP LTD Social licence to operate
Risks associated with actual or perceived deviation from social or business expectations of ethical behaviour (including breaches of laws or
regulations) and social responsibility (including environmental impact and community contribution), particularly as these expectations evolve
and as Woodside expands its global operations.
How is this factor relevant to Woodside?
Woodside relies on maintaining healthy relationships with our numerous stakeholders in order for us to achieve our objectives. Our employees,
host communities, Traditional Owners and Custodians, government authorities, investors and other groups form significant relationships with our
organisation. These relationships are built on the trust that Woodside will meet our stakeholders’ expectations. We must also consider the role our
commercial agreements play in relation to human rights around the world, as we have a responsibility to ensure the rights of all humans are not
negatively affected by our organisation.
Some of the most significant risks to our relationships with stakeholders include:
• Engaging in activities that have real or perceived adverse impacts on the environment, biodiversity, human rights or cultural heritage.
• Failing to meet our net equity Scope 1 and 2 emissions reduction targets or investment targets in new energy.
• Inadequately responding to quickly evolving expectations of Woodside (including expectations that may significantly differ in the various
jurisdictions in which we operate).
Additionally, third-party risks that are outside of our control could negatively impact our reputation and licence to operate, such as oil spills or other
disasters or scandals that cause collateral damage to Woodside’s licence to operate via reputational damage to the oil and gas industry at large.
Failure to maintain healthy relationships with our various stakeholders may result in violation of local or national laws or regulations, significant
reputational damage, delayed approvals, civil suits and ultimately the deterioration of our licence to operate.
Examples of how this factor may impact Woodside
• Limited, delayed or failed approvals from local and national
government bodies.
• Lost or limited stakeholder support for our current business
and future opportunities.
• Risks related to class action lawsuits, litigation and activism,
including allegations of greenwashing.
• Reductions in the availability, or less favourable terms, of financing.
• Decreased ability to attract and retain a talented workforce, and other
operational concerns.
How is Woodside managing these risks?
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations or infringements on our ability to execute
and complete transactions, reduced capacity to fund capital projects,
delayed or suspended regulatory approvals, legal liabilities and adverse
impacts on Woodside’s reputation, social licence to operate and on the
delivery of our strategy.
Woodside proactively maintains and builds our social licence to operate
through the application of our values, effective stakeholder engagement
strategies, our regulatory compliance framework and our anti-fraud and
corruption program.
Our fraud and corruption framework aims to prevent, detect and
respond to unethical behaviour. It incorporates policies, standards,
guidelines and training, which will enable us to conduct our activities
ethically and to a high standard.
Our regulatory compliance framework assists Woodside to proactively
maintain relationships with governments and regulators within countries
that support base business and future growth opportunities.
Woodside maintains meaningful relationships with stakeholders,
seeking proactive engagement to inform decisions and gain support
for changes.
Our business conduct is informed by the United Nations Guiding
Principles on Business and Human Rights (UNGPs), which set a global
standard of conduct for all businesses wherever they operate. These
principles exist over and above compliance with national laws and
regulations protecting human rights.
1
Individual investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment
42
ANNUAL REPORT 2023 Growth
Risks associated with delivery of both major and complex multi-year execution project activities and transactions (including acquisitions
and divestments) across multiple global locations, including a reliance on third parties for materials, products and services.
How is this factor relevant to Woodside?
Oil and gas
In order to maintain our production levels and deliver shareholder value, Woodside must continue to identify growth opportunities, organic and
inorganic, and commercialise them. To maintain a stable pipeline of future projects and realise the full value of growth opportunities, Woodside
will need to compete with major oil companies, national oil companies (NOCs), independent oil and gas companies, individual producers and
new energy companies. Failure to effectively compete with these companies may result in the inability to continue to expand Woodside’s current
operations and meet our objectives.
Woodside must continue to effectively manage relationships with industry partners, for example, at times we enter joint ventures with
organisations which may also be a competing oil and gas supplier. It is essential that our voice is heard both within our industry and more broadly.
In order for us to effectively communicate, we may at times align with industry bodies to advocate what we believe is right. In addition, our current
and planned projects involve uncertainties and operating risks that could prevent us from realising profits or result in the total or partial loss of our
investment.
New energy
We have set targets for our new energy products and lower carbon services.1,2 However, there is uncertainty around the pace of required
technological innovation and the reliability of technologies that will be needed to transition to a lower carbon environment. In addition, new sources
of energy, such as hydrogen or ammonia, may be more difficult to commercialise than expected or may not be able to be commercialised safely or
as efficiently as expected at scale. Woodside may also face unforeseen obstacles in the commercialisation of a future carbon capture business and
in the implementation of other lower carbon services and emission reduction efforts.
Examples of how this factor may impact Woodside
• An unbalanced portfolio of oil and gas and new energy, which may
• An inability to obtain financing at acceptable costs, or at all, for the
not meet the market’s needs.
development of new energy projects.
• Limited or reduced market share resulting in a loss of shareholder
• Failure to implement our new energy plans within our anticipated time
value.
• Our competitors may be able to pay more for exploratory prospects
and productive oil and natural gas properties and may be able to
define, evaluate, bid for and purchase a greater number of properties
and prospects, including operatorships and licences, than our financial
or human resources permit.
• Our projects could experience project implementation schedule
slippage, permitting delays, shortages of or delays in the delivery of
equipment or purpose-built components from suppliers, escalation
in capital cost estimates, possible shortages of construction or other
personnel, other labour shortages, environmental occurrences during
construction that result in a failure to comply with environmental
regulations or conditions on development, or delays and higher-than-
expected costs due to the remote location of the projects, the impact
of global conflicts on the relevant workforce or supply chain, other
unanticipated natural disasters, accidents, miscalculations, political or
other opposition, litigation, acts of terrorism, operational difficulties,
climate change related risks or other events associated with that
construction that may result in the delay, suspension or termination
of our projects.
How is Woodside managing these risks?
frame and in line with global demands.
• Failure to identify, execute and/or implement strategic transactions,
including acquisitions and divestments, or to achieve the full benefits
of those transactions.
• Failure to remain commercially and technologically competitive to
efficiently develop and operate an attractive portfolio of assets, to
obtain access to new opportunities and to keep pace with deployment
of new technologies and products.
• Higher than expected competition in the markets for new energy
products and lower carbon services in which Woodside expects
to participate.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations, reduced capacity to fund capital projects,
delayed or suspended regulatory approvals, legal liabilities and adverse
impacts on Woodside’s reputation, social licence to operate and on the
delivery of our strategy.
Our opportunity management framework is flexible and adaptable
with the primary objective to realise the value of an opportunity while
mitigating the risk of a suboptimal outcome for our organisation,
our shareholders and our communities.
We aim to identify and progress a suite of commercially attractive
and sustainable opportunities that complement our existing assets,
enable portfolio diversity and optimise our commercial position.
1
2
Please see section 6.7 – Glossary, units of measure and conversion factors for a definition of how Woodside uses the term lower carbon portfolio.
Scope 3 targets are subject to commercial arrangements, commercial feasibility, regulatory and Joint Venture approvals, and third-party activities (which may or may not proceed). Individual
investment decisions are subject to Woodside’s investment targets. Not guidance. Potentially includes both organic and inorganic investment.
43
WOODSIDE ENERGY GROUP LTD Operations
Due to the nature of our operations, Woodside and our communities are potentially exposed to a broad range of risks; some are beyond
Woodside’s control. This is a result of factors such as the geographical range, operational diversity and technical complexity of our assets.
Health and safety:
Our operations are subject to risks related to safety or major hazard events in connection with our activities or facilities, and may also include
unanticipated or unforeseeable adverse events which impact our ability to respond, manage and recover from such events.
Commercial:
We manage commercial risks within our operations, including third-party relationships such as joint venture partners, contract counterparties and
our supply chain.
Regulation:
Woodside is subject to extensive governmental oversight and regulation in the jurisdictions in which we operate, and such regulations may change
in ways that adversely affect our business, results of operations and financial condition. In addition, we are required to comply with securities
regulations in Australia, the US and the UK.
Reserves and resources estimates:
We manage the estimation of proved oil and gas reserves by using judgement and the application of complex rules, and subsequent downward
adjustments of Woodside’s reported reserves estimates are possible.
How is this factor relevant to Woodside?
General operational risks:
Our operating assets are subject to a range of operating risks associated with process safety incidents, breaches of cybersecurity, extreme weather
events and supply chain disruptions. Disruptions to our supply chain, or failure of our contractual counterparties to fulfill their obligations, could
adversely impact our production, operations and our financial performance, result in litigation or class actions and cause long-term damage to
our reputation.
Health and safety:
At Woodside, one of our competitive advantages is our ability to operate safely. Failure to continue to do so could result in sustained production
interruptions leading to an inability to meet production forecasts, as well as potential reputational damage with customers, employees, commercial
partners and other stakeholders.
Commercial:
The majority of our major projects and operations are conducted in joint ventures, which may limit our control over, and our ability to effectively
manage risks associated with, such projects. Joint venture participants may have economic or business interests or objectives that are inconsistent
with or opposed to our interests and objectives. For projects in which we are not the operator, we may be unable to control the behaviour,
performance and cost of operations of joint ventures in which we participate. In these cases, we will be dependent on joint venture participants
acting as operators and their ability to direct operations or manage the timing and performance of any activity or the costs or risks involved may
be reduced.
Regulation:
We are subject, in each of the countries in which we operate, to various national and local laws, regulations and approvals relating to
the exploration, development, production, marketing, pricing, transportation and storage of our products, as well as the management,
decommissioning, clean up and restoration of our properties, and management and disclosure of our operations and impacts. The exploration,
production, and transportation of oil and gas involves risk that releases to the environment may occur, which could cause substantial harm to the
environment, natural resources, or human health and safety.
These laws and regulations could change, and any such changes could have a material adverse effect on our business and financial condition.
Because such laws and regulations are subject to amendment and reinterpretation over time, we are unable to predict the future cost or impact
of complying with such laws. Moreover, we cannot predict whether new legislation to regulate the oil and gas industries might be proposed, what
proposals, if any, might actually be enacted and what effect, if any, the proposals might have on our operations. The adoption and implementation
of new or more stringent legislation, regulations or other regulatory initiatives that result in the imposition of more stringent standards for
greenhouse gas emissions from the oil and gas industry could restrict the areas in which this sector may operate, and could result in increased
compliance costs and changes in product pricing, which could impact consumer demand for our products.
Additionally, the conduct of Woodside, our employees and our third-party partners could result in actual or alleged breaches of laws, regulations
and approvals, including fraud, corruption, anti-competitive behaviour, money laundering, breaching trade or financial sanctions, market
manipulation, privacy breaches, ethical misconduct and wider organisational cultural failings. We have incurred and will continue to incur operating
and capital expenditures, some of which may be material, to comply with applicable laws, regulations and approvals.
Reserves and resources estimates:
Estimating proved oil and gas reserves involves subjective judgements and determinations based on available geological, technical, contractual and
economic information. New information from production or drilling activities, changes in economic factors, such as oil and gas prices, alterations in the
regulatory policies of host governments in the jurisdictions in which we operate, or other events may cause estimates to change over time. Additionally,
estimates may change to reflect acquisitions, divestments, new discoveries, extensions of existing fields and improved recovery techniques.
44
ANNUAL REPORT 2023 Examples of how this factor may impact Woodside
• A loss of containment event or other operational incident on or related
to our property or operations could occur, which could have significant
impacts including to human health and safety, the environment,
natural resources or cultural resources, as well as financial, legal and
reputational impacts.
• Certain activities are undertaken in deep waters where operations,
support services and decommissioning activities are more difficult and
costly than in shallower waters. The deep waters in the Gulf of Mexico,
as well as international deepwater locations, lack the physical and
oilfield service infrastructure present in shallower waters. As a result,
deepwater operations may have additional risks, such as a blowout,
and require significant time between a discovery and the time that
Woodside can market its production.
• Natural disasters, earthquakes, social unrest, pandemic diseases
(such as COVID-19) and criminal actions by external parties could
result in injuries, loss of life, disruption of our operations or the loss or
suspension of permits or other approvals.
• Our joint venture partners may have the ability to exercise veto rights
to block certain key decisions or actions that we believe are in our or
the joint venture’s best interests or approve those matters without our
support.
• Our partners and contractual counterparties may not be able to meet
their financial or other obligations to the projects. In addition, the
actions of our partners, contractors and subcontractors could result
in legal liability and financial loss for Woodside.
• Applicable laws and regulations may obligate Woodside to identify,
avoid, mitigate and disclose environmental risks in various operational
practices, which in turn could materially adversely affect our business,
financial condition or results of operations. We may also be required to
maintain financial assurance through bonds or insurance.
• A failure to comply with applicable laws, regulations and approvals
may result in the assessment of sanctions, including administrative,
civil, and criminal penalties, the imposition of investigatory, remedial,
and corrective action obligations or the incurrence of capital
expenditures, the occurrence of restrictions, delays or cancellations
in the permitting, development or expansion of current or proposed
projects, and issuance of injunctions restricting or prohibiting some
or all of our activities in a particular area.
• An operational incident could result in multiple fatalities.
• Supply chain disruptions such as long wait times for critical spares
may cause extended outages at our operations.
• Joint participants or contractual counterparties may be primarily
responsible for the adequacy of the human or technical competencies
and capabilities which they bring to bear on the joint project, which
may not be adequate.
• The suspension, revocation, failure to renew or alteration of, or
challenges to, the terms of the licences, permits, government contracts
or approvals required for our operations.
• Sanctions for non-compliance with laws and regulations may include
administrative, civil and criminal penalties, demand for reimbursement
for government or regulatory actions, government orders, suspension
or revocation of licences, permits, government contracts or approvals,
and corrective action orders.
• Government policy objectives in the countries in which we do
business, now or in the future, could take the form of increased
governmental regulations (including in respect of restoration,
protection of the environment, greenhouse gas emissions, natural
resources, and worker health and safety), redirection of product
distribution (such as domestic gas reservation policies), changes in
taxation regulation or enforcement (including, for example, changes in
tax rates or increased focus on audits), taxation subsidies or royalties,
nationalisation of resource assets or restrictions or moratoriums on
our operations on government leases, limitations on periods of lease
retention, interference with the confidentiality and availability of
information, forced renegotiation of contracts, changes in laws and
policies governing operations of foreign-based companies, trade
sanctions, currency restrictions and exchange rate fluctuations and
other governmental steps.
• Actual or alleged violations of the securities laws that we are subject
to could result in private or governmental litigation, civil penalties,
regulatory action and shareholder class actions.
• Downward adjustments of our reported reserves estimates could
indicate lower future production volumes or the impairment of assets.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations, reduced capacity to fund capital projects,
delayed or suspended regulatory approvals, legal liabilities and adverse
impacts on Woodside’s reputation, social licence to operate and on the
delivery of our strategy.
Woodside had a fatality in 2023. The tragic loss of our colleague, a
contractor employee, has led to the implementation of additional
controls based on preliminary investigation insights into the incident.
The external investigations into the incident are ongoing.
How is Woodside managing these risks?
• Safe operation is fundamentally embedded through an extensive
• Decommissioning is integrated into project planning. We work
framework of controls that deliver strong operational performance in
our base business.
• The framework includes production processes, drilling and
completions and well integrity management processes, inspection and
maintenance procedures and performance standards. The framework
is supported and inspected on an ongoing basis by our regulators.
with our partners and technical experts to identify sustainable and
beneficial post-closure options that minimise financial, social and
environmental impacts.
• The framework is adaptable to enable us to maintain and improve
our operating model and performance, target reliability, cost
discipline, emissions reductions and strong safety and environmental
performance for both our existing business and future growth
opportunities.
45
WOODSIDE ENERGY GROUP LTD Finance and market
Risks associated with the ability to capture value whether markets are stable or volatile, and manage the risks associated with interest rate,
commodity price and foreign exchange fluctuations and inflation. Generally, Woodside does not have control over the factors that affect
market development and prices.
How is this factor relevant to Woodside?
Woodside must be financially well positioned in order to pursue our strategic objectives and remain resilient during times of economic challenge.
Several factors can affect our position, including:
Market and commodity price:
Woodside’s revenues are primarily derived from the sale of hydrocarbons. The prices Woodside receives for these products are variable and are
impacted by global economic factors beyond Woodside’s control. We seek to forecast changes in the economic factors to enable us to maintain a
strong market position during challenging economic times. Refer to section 6.3 - Additional disclosures and section A in the Notes to the Financial
Statements for further information.
Capital management:
For Woodside to continue to operate sustainably we must make risk informed decisions related to allocation of capital. We seek to apply a
disciplined and balanced approach to capital management through the commodity price cycle. Refer to section 2.2 – Capital management for
further information.
Foreign exchange risk:
Woodside is exposed to foreign currency risk from future commitments, financial assets and financial liabilities that are not denominated in
US dollars. Refer to section A in the Notes to the Financial Statements for further information.
Interest rate risk:
This is the risk that Woodside’s financial position will fluctuate due to changes in market interest rates. Woodside’s risk relates primarily to financial
instruments with floating interest rates including long-term debt obligations, cash and short-term deposits. Refer to section C in the Notes to the
Financial Statements for further information.
Examples of how this factor may impact Woodside
• A reduced ability to fund our strategy including our projects.
• Significant volatility in energy prices, such as the volatility
experienced in recent years, may increase the challenges associated
with long-term plans.
• An imbalance in supply and demand can impact commodity prices
and our ability to forecast market conditions determines whether
we are impacted positively or negatively.
• Woodside may become a less attractive joint venture partner.
• Reduced shareholder returns due to lower commodity prices.
• If we inaccurately forecast the global demand for our LNG products
we may face difficulties obtaining longer term sales contracts with
desirable commercial terms.
• If counterparties to our derivative instruments are unable to fulfill their
obligations, a larger percentage of our future oil and gas production
could be subject to price changes.
• Inability to achieve anticipated synergies and cost savings on expected
timeline or at all.
• Unforeseen costs relating to the integration of development, extraction
and production operational systems, IT systems and financial and
accounting systems of both businesses.
• Impairments of assets, goodwill or other intangible assets could have
a significant negative effect on our reported net income and our ability
to pay dividends in one or more accounting periods if the level of
impairment were to exceed profits available for distribution.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations, reduced capacity to fund capital projects,
delayed or suspended regulatory approvals, legal liabilities and adverse
impacts on Woodside’s reputation, social licence to operate and on the
delivery of our strategy.
How is Woodside managing these risks?
• The delivery of our strategic portfolio objectives requires significant
capital expenditure, supported by strong underlying cash flows.
Uncertainty associated with product demand is mitigated by selling
LNG in a portfolio manner and under long-term take or pay sale
agreements, in addition to the spot market. Our low cost of production
and prudent approach to balance sheet risk management further
mitigates this exposure. Refer to section 6.3 - Additional disclosures
and section A in the Notes to the Financial Statements for further
information.
• A flexible approach to capital management enables this overall level
of investment in the different areas of our business and the mix to be
adjusted to reflect the external environment. Our capital management
strategy focuses on capital allocation, capital discipline and efficiency,
and active balance sheet management including commodity and
foreign exchange hedging.
• Woodside hedges to protect the balance sheet against downside
commodity price risk, particularly during periods of high capital
expenditure.
• The US dollar reflects the majority of Woodside’s underlying cash
flows and is used in our financial reporting, reducing our exposure to
currency fluctuations. Refer to section A in the Notes to the Financial
Statements for further information. Refer to section C in the Notes to
the Financial Statements for further information on interest rate risk
management.
• We maintain insurance in line with industry practice and sufficient
to cover normal operational risks. However, Woodside is not insured
against all potential risks because not all risks can be insured and
because of constraints on the availability of commercial insurance in
global markets. Insurance coverage is determined by the availability
of commercial options and cost/benefit analysis, taking into account
Woodside’s risk management program. Losses that are not insured
could impact Woodside’s financial performance. For example,
Woodside does not purchase insurance for the loss of revenue
arising from an operational interruption. Our extensive framework of
financial controls, including monitoring of counterparties, enables the
management of these risks.
46
ANNUAL REPORT 2023 People and culture
Risks associated with the ability to attract, retain, develop and motivate key employees to succeed and safeguard both current or future
performance and growth.
How is this factor relevant to Woodside?
People are key to the success of Woodside. We must build and maintain a capable workforce if we are to achieve our objectives. An effective
operating model with a balanced organisation structure will allow us to conduct our operations and pursue new energy opportunities. For
Woodside to remain an employer of choice, our culture must support our current employees and attract the best new candidates.
Examples of how this factor may impact Woodside
• During periods of high demand for skilled resources, Woodside may
be unable to fill critical roles at acceptable costs or at all, leading to
operational impacts.
• A limited ability to operate due to our people leaving critical roles.
• An inability to pursue innovation opportunities due to a skills shortage.
• Loss of key personnel or expert knowledge.
• An inability to reach timely agreements with employees including
where represented by third parties may result in industrial action.
How is Woodside managing these risks?
Woodside has a set of resourcing frameworks to attract, retain and
develop our workforce to support both base business and growth
opportunities. We recognise and value the benefits of creating an
inclusive and diverse working environment.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations, reduced capacity to fund capital projects,
delayed or suspended regulatory approvals, legal liabilities and adverse
impacts on Woodside’s reputation, social licence to operate and on the
delivery of our strategy.
We employ a direct engagement model to maintain effective
employee and industrial relations. We engage with employees and
their representatives where required and strive to maintain positive
relationships. We proactively engage our major contractors and
suppliers to strengthen alignment with expectations, securing capability
and pricing to meet future business needs.
Digital and cybersecurity
Risks associated with adopting and implementing new technologies, whilst safeguarding our digital information and landscape (including from
cyber threats) across our value chain.
How is this factor relevant to Woodside?
Woodside must relentlessly protect the confidentiality, integrity and availability of digital information and operational technologies. Woodside’s
technology systems including artificial intelligence and machine learning technologies, may be targeted by an internal or external malicious act or
our systems may be disrupted unintentionally. Additionally, the cost of implementing and maintaining effective technology systems may be higher
than anticipated. While our technology controls are designed to protect against all causes of disruption, we cannot be certain that they will protect
our systems in all cases.
Refer to section 4.1.6 - Risk management and internal control and section 6.3 - Additional disclosures for further information on cybersecurity.
Examples of how this factor may impact Woodside
• In the event of a cyber attack, Woodside’s confidential or sensitive
information may be made public or held for ransom.
• Our operations may be disrupted if an attacker gains access to our
control systems.
• Litigation and governmental proceedings arising from the occurrence
of a cyber attack.
• Potential adverse impacts on our reputation and the safety of our
employees and the communities in which we operate.
How is Woodside managing these risks?
We are committed to the protection of our people, assets, reputation
and brand through securely enabled digital technologies.
Digital risks are identified, assessed and managed based on the business
criticality of our people, data and systems, and may be required to be
segregated and isolated. Digital risks include third parties, including
suppliers and service providers, within our supply chain.
These impacts may lead to a loss in shareholder value, loss of market
share to competitors, decreases in the value of assets, delays or
stoppages in our operations, loss of revenue, increased expenses,
reduced capacity to fund capital projects, delayed or suspended
regulatory approvals, legal liabilities and adverse impacts on Woodside’s
reputation, social licence to operate and on the delivery of our strategy.
Our operating model aims to continuously assess and determine
access permissions to critical information or data, while consolidating,
simplifying and automating security controls.
Our exposure to cyber risk is managed by a control framework to
identify, contain and recover from cyber events in a timely manner, and
embeds a cyber-safe culture across the company, with our joint venture
participants and in our supply chain. However, due to the rapid evolution
of cyber threats, there can be no certainty that such controls will be
sufficient to prevent all security breaches.
47
WOODSIDE ENERGY GROUP LTD 3.10
OUR BUSINESS
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).
• 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.
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
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.
• 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
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
Proved developed
Proved undeveloped
Proved plus probable17 developed and undeveloped
Proved plus probable developed
Proved plus probable undeveloped
Contingent resources18
Small differences are due to rounding
10,496.9
2,582.1
7,914.7
16,024.1
3,759.1
12,264.9
27,786.8
21.0
18.7
2.3
37.1
32.9
4.2
80.6
587.5
266.0
321.6
908.7
382.4
526.3
946.5
2,450.1
737.7
1,712.5
3,757.1
1,047.8
2,682.3
5,902.0
228.1
63.5
164.6
338.9
88.7
250.1
362.3
4848
1.1 ANNUAL REPORT 2023ANNUAL REPORT 2023 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
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
l
s
u
p
d
e
v
o
r
P
l
e
b
a
b
o
r
p
d
e
v
o
r
P
d
e
v
o
r
P
Reserves as at 31 December 2022
10,783.6
16,425.9
26.3
Acquisitions and divestments19
Revision of previous estimates20
Transfer to/from reserves21
Extensions and discoveries22
0.0
355.9
-11.6
177.9
0.0
348.5
-62.4
121.0
Production1
-809.0
-809.0
Reserves as at 31 December 202323
10,496.9
16,024.1
Fuel included in reserves as at 31 December 2023
1,297.5
1,927.5
Small differences are due to rounding
0.0
1.6
0.1
0.4
-7.3
21.0
0.5
l
s
u
p
d
e
v
o
r
P
l
e
b
a
b
o
r
p
48.0
0.0
-3.1
-1.0
0.5
-7.3
37.1
0.7
l
s
u
p
d
e
v
o
r
P
l
e
b
a
b
o
r
p
d
e
v
o
r
P
l
s
u
p
d
e
v
o
r
P
l
e
b
a
b
o
r
p
d
e
v
o
r
P
467.0
710.6
2,385.2
3,640.3
0.0
-0.8
0.5
172.5
-51.8
587.5
0.0
0.0
-28.6
0.3
278.2
-51.8
0.0
63.3
-1.5
204.1
-201.0
0.0
29.4
-11.6
300.0
-201.0
908.7
2,450.1
3,757.1
0.0
228.1
338.9
49
WOODSIDE ENERGY GROUP LTD
Table 3: 2C contingent resources reconciliation (net Woodside share, as at 31 December 2023)
Contingent resources as at 31 December 2022
Acquisitions and divestments
Extensions and discoveries
Transfer to/from reserves
Revision of previous estimates
Contingent resources as at 31 December 202318
Small differences are due to rounding
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
41,589.1
-12,774.6
0.0
-58.6
-969.0
27,786.8
88.8
0.0
0.0
0.4
-8.6
80.6
1,276.7
0.0
0.0
-278.5
-51.7
946.5
Total
MMboe
8,661.9
-2,241.2
0.0
-288.4
-230.3
5,902.0
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
d
e
p
o
e
v
e
D
l
764.2
279.6
825.6
491.8
l
d
e
p
o
e
v
e
d
n
U
155.3
64.6
0.0
l
a
t
o
T
919.5
344.2
825.6
108.9
600.7
Australia Greater Pluto24
Bass Strait
North West Shelf25
Exmouth26
Scarborough27
0.0
7,336.0
7,336.0
Gulf of Mexico28
International29
87.8
133.1
16.2
233.7
104.0
366.8
USA
Other
Total
Reserves
2,582.1
7,914.7
10,496.9
18.7
Fuel included in reserves
as at 31 December 2023
Small differences are due to rounding
359.5
938.0
1,297.5
0.4
l
d
e
p
o
e
v
e
d
n
U
0.0
1.0
0.0
0.0
0.0
1.3
0.0
2.3
0.1
d
e
p
o
e
v
e
D
l
9.6
6.2
26.4
25.7
0.0
197.2
l
a
t
o
T
0.0
9.6
4.0
0.0
0.0
7.4
0.0
d
e
p
o
e
v
e
D
l
143.6
63.9
l
a
t
o
T
11.5
7.4
26.4
175.3
l
d
e
p
o
e
v
e
d
n
U
1.9
1.2
0.0
1.5
0.0
l
d
e
p
o
e
v
e
d
n
U
l
a
t
o
T
29.2
172.8
13.5
0.0
77.4
175.3
132.6
291.6
313.4
27.2
0.0
112.0
20.6
0.0
1,287.0
1,287.0
68.7
265.9
218.7
72.9
0.8
248.3
249.1
24.2
289.3
21.0
266.0
321.6
587.5
737.7
1,712.5
2,450.1
0.5
0.0
0.0
0.0
63.5
164.6
228.1
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
l
d
e
p
o
e
v
e
d
n
U
0.1
1.8
0.0
0.0
0.0
2.2
0.0
4.2
0.1
d
e
p
o
e
v
e
D
l
15.7
10.2
35.5
35.1
0.0
l
d
e
p
o
e
v
e
d
n
U
3.1
1.5
0.0
3.4
0.0
d
e
p
o
e
v
e
D
l
232.7
108.9
l
a
t
o
T
18.8
11.7
35.5
232.0
38.6
143.7
l
d
e
p
o
e
v
e
d
n
U
l
a
t
o
T
45.8
278.5
14.9
0.0
51.3
123.8
232.0
195.1
0.0
0.0
2,010.8
2,010.8
284.4
100.9
385.4
1.4
417.4
418.9
317.2
40.2
107.6
424.9
451.8
492.0
382.4
526.3
908.7
1,074.8 2,682.3
3,757.1
0.0
0.0
0.0
88.7
250.1
338.9
l
a
t
o
T
0.3
19.1
5.6
0.0
0.0
12.0
0.0
37.1
0.7
d
e
p
o
e
v
e
D
l
l
d
e
p
o
e
v
e
d
n
U
l
a
t
o
T
Australia Greater Pluto
1,235.9
243.1
1,479.0
Bass Strait
464.2
66.0
530.1
North West Shelf
1,088.0
0.0
1,088.0
Exmouth
619.1
272.9
892.0
Scarborough
Gulf of Mexico
International
0.0
11,461.4
11,461.4
131.2
220.8
25.4
196.1
156.6
416.9
USA
Other
Total
Reserves
3,759.1
12,264.9
16,024.1
32.9
Fuel included in reserves
as at 31 December 2023
Small differences are due to rounding
502.1
1,425.4
1,927.5
0.7
50
d
e
p
o
e
v
e
D
l
0.0
8.6
4.0
0.0
0.0
6.1
0.0
d
e
p
o
e
v
e
D
l
0.2
17.3
5.6
0.0
0.0
9.8
0.0
ANNUAL REPORT 2023 Table 6: 2C contingent resources summary by region (net Woodside share, as at 31 December 2023)
Country
Australia
Assets
Greater Pluto
Bass Strait
North West Shelf
Exmouth
Scarborough
Browse30
Greater Sunrise Special Regime Area
Sunrise31
USA
Canada
Other
Total
Small differences are due to rounding
Gulf of Mexico
Liard18
International
Resources
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.
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
1,061.8
581.7
539.0
709.4
1,632.2
4,403.3
1,778.0
239.9
14,225.7
2,616.0
27,786.8
0.0
32.1
4.3
0.0
0.0
8.3
0.0
35.8
0.0
0.0
80.6
20.2
51.5
35.9
46.5
0.0
117.5
75.6
294.7
0.0
304.6
946.5
206.5
185.7
134.8
171.0
286.4
898.3
387.5
372.6
2,495.7
763.6
5,902.0
Table 7: Proved undeveloped reserves reconciliation (net Woodside
share, as at 31 December 2023)
Reserves as at 31 December 2022
Extensions and discoveries
Revision of previous estimates
Reclassifications to developed
Performance, technical studies, and other
Development plan changes
Price
Acquisitions and divestments
Reserves as at 31 December 2023
Small differences are due to rounding
Total
MMboe
1,615.2
204.1
-106.9
-87.7
-3.4
0.0
-15.8
0.0
1,712.5
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.
51
WOODSIDE ENERGY GROUP LTD 4
Governance
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 report,
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. US investors are urged to
consider closely the disclosures in Woodside’s filings with the
SEC, which are available at www.sec.gov.
2
3
4
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 this report and in Woodside’s quarterly 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.
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.
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.
‘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.
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.
5
52
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
‘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.
‘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.
‘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.
‘Total’ includes fuel consumed in operations.
‘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).
‘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).
‘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.
‘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.
‘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.
‘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.
‘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.
‘Liard’ comprises unconventional contingent resources in the Liard Basin. As at 31 December
2023, Liard represents approximately 42% of Woodside’s 2C contingent resources.
‘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.
‘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.
‘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).
‘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.
24
25
26
27
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.
‘Greater Pluto’ consists of the Pluto, Xena, Pyxis, Larsen, Martell, Martin, Noblige, and Remy
fields.
‘North West Shelf’ consists of all oil and gas fields within the North West Shelf Project Area.
‘Exmouth’ consists of the Pyrenees, Macedon, Julimar-Brunello, and Ngujima-Yin fields.
‘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”.
‘Gulf of Mexico’ consists of the Shenzi, Shenzi North, Atlantis, and Mad Dog fields.
‘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.
‘Browse’ consists of the Brecknock, Calliance, and Torosa fields.
‘Sunrise’ consists of the Sunrise and Troubadour fields.
30
31
28
29
ANNUAL REPORT 2023 4.1
GOVERNANCE
Corporate Governance
Statement
4.1.1 Corporate governance at Woodside
Woodside is committed to a high level of corporate governance
and fostering a culture of ethical behaviour, integrity and respect.
The Board is responsible for the overall corporate governance
of Woodside.
Woodside’s corporate governance model is illustrated in the
diagram below. The Woodside Management System (WMS)
describes the Woodside way of working, enabling Woodside
to understand and manage its business to achieve its objectives.
It defines the boundaries within which Woodside employees
and contractors are expected to work. The WMS establishes a
common approach to how we operate, wherever the location.
Woodside continues to review and, where necessary, enhance
our corporate governance policies and practices. We frequently
consider developments arising in the markets where Woodside
securities are listed, including the Australian Securities Exchange
(ASX), London Stock Exchange (LSE) and New York Stock
Exchange (NYSE). Our practices will evolve as we continually
look to strengthen our governance framework in the context
of our multi-jurisdictional business.
STAKEHOLDERS
BOARD
AUDIT & RISK
COMMITTEE
HUMAN RESOURCES &
COMPENSATION COMMITTEE
CHIEF EXECUTIVE
OFFICER
NOMINATIONS &
GOVERNANCE COMMITTEE
SUSTAINABILITY
COMMITTEE
INDEPENDENT ASSURANCE
MANAGEMENT GOVERNANCE AND ASSURANCE
EXTERNAL AUDIT
__________________________________
STRATEGY
INTERNAL AUDIT
RISK MANAGEMENT
WOODSIDE
MANAGEMENT SYSTEM
INCLUDING WOODSIDE
VALUES AND POLICIES
AUTHORITIES
OPERATING
STRUCTURE
The company must comply with the Corporations Act 2001
(Cth), the ASX Listing Rules, UK Listing Rules, UK Disclosure
Guidance and Transparency Rules, UK Market Abuse Regulation,
relevant provisions of the NYSE Listed Company Manual and
US securities laws applicable to Woodside as a foreign private
issuer and other applicable Australian and international laws.
This Corporate Governance Statement (Statement) reports on
Woodside’s key governance principles and practices.
The ASX Listing Rules require the company to report on the
extent to which it has followed the Corporate Governance
Recommendations contained in the fourth edition of
the ASX Corporate Governance Council’s Principles and
Recommendations (ASXCGC Recommendations). The UK
Disclosure Guidance and Transparency Rules, the NYSE listing
standards and US securities laws also require the company to
report on its governance arrangements and the governance
code that it applies.
The ASXCGC Recommendations are publicly available at
https://www.asx.com.au/documents/asx-compliance/cgc-
principles-and-recommendations-fourth-edn.pdf.
The ASXCGC Recommendations are not incorporated by
reference to this Statement. As shown in this Statement,
throughout the year, Woodside complied with all ASXCGC
Recommendations. Woodside is also subject to certain
governance requirements of the LSE, the NYSE and the
SEC. Refer to the section ‘Differences from NYSE corporate
governance requirements’ for further information.
The Statement is current as at 27 February 2024 (unless
otherwise specified) and has been approved by the Board.
All Board and committee charters and copies of the policies
and documents referred to in this Statement are available
on the Corporate Governance and Policies section of our
website at woodside.com.
5353
1.2 WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 4.1.2 Board of directors
Board role and responsibilities
The Constitution provides that the business and affairs of the
company are to be managed by or under the direction of the
Board. The central role of the Board is to set the company’s
strategic direction, to select and appoint a Chief Executive
Officer (CEO) and to oversee the company’s management
and business activities.
The Board’s role, powers, duties and functions are formalised in
a Board Charter. Each year the Board performs its central role
as set out in the Charter. The Charter sets out the matters and
functions that are specifically reserved to the Board and the
powers that are delegated to the CEO and management.
The Board Charter and the delegation of Board authority to the
CEO and management are reviewed regularly.
Some of the key activities of the Board undertaken during the
year include overseeing:
• management’s response to key safety events, including the
fatality of a colleague employed by a contractor at the North
Rankin Complex
• Woodside’s strategy and providing input and guidance
including on management’s execution of strategy
• the monitoring of impact of certain macroeconomic and
geopolitical events on the global energy market
• the appointment of Liz Westcott as Executive Vice President
Australian Operations effective June 2023
• the plan to implement emissions reductions to meet the
company’s near and medium-term emissions reduction targets
and support Woodside’s pathway towards its aspiration of net
zero equity Scope 1 and 2 greenhouse gas emissions by 2050
or sooner1 and consideration of adopting a Scope 3 emissions
abatement target
• the final investment decision to develop the Trion resource
in Mexico
• management’s response to policy and regulatory
developments, including legal challenges to regulatory
decision making in Australia
• the sale of a 10% non-operating participating interest in the
Scarborough Joint Venture to LNG Japan2
• the progression of carbon capture and storage studies and
the H2OK hydrogen project
• the Scarborough and Pluto Expansion Projects and the
Sangomar Field Development
• the commencement of production from the Mad Dog Phase 2
project and the Shenzi North project in the deepwater US Gulf
of Mexico
• the appointment of two new directors to the Board.
Board composition
The Constitution provides that the company is not to have
more than 12, nor less than three directors. At the date of this
report, the Board is comprised of 11 independent non-executive
directors and the CEO. The following page shows each of the
current directors and those directors who served during the year
and the date of their appointment as a director.
Target is for net equity Scope 1 and 2 greenhouse gas emissions, relative to a starting base representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-
2020 and may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with an FID prior to 2021.
Subject to completion of the transaction, targeted in the first quarter of 2024.
1
2
54
ANNUAL REPORT 2023 Richard Goyder, AO
BCom, FAICD
Meg O’Neill
BSc (Ocean Engineering), BSc (Chemical
Engineering), MSc (Ocean Systems Management)
Larry Archibald
BSc (Geosciences), BA (Geology), MBA
Term of office: Director since February 2017,
re-election required at AGM in 2026.
Independent: Yes
Experience: Mr Archibald previously worked
at ConocoPhillips, where he spent eight
years in senior executive positions including
Senior Vice President, Business Development
and Exploration and Senior Vice President,
Exploration. Prior to joining ConocoPhillips,
Mr Archibald spent 29 years at Amoco from
1980 to 1998 and BP from 1998 to 2008 in
various positions including leading exploration
programs covering many world regions.
Committee membership: Audit & Risk,
Sustainability and Nominations & Governance
Committees.
Current directorships/other interests:
Chair: University of Arizona Geosciences
Advisory Board (since 2019).
Other directorships of listed entities within
the past three years: Nil.
Chair: Chair since April 2018.
CEO and Managing Director
Term of office: Director since August 2017,
re-election required at AGM in 2024.
Term of office: Director since August 2021.
Independent: No
Independent: Yes
Experience: Mr Goyder spent 24 years
with Wesfarmers Limited, where he served
as Managing Director and Chief Executive
Officer from 2005 to late 2017. Mr Goyder
also served as Chair of the Australian B20
(the key business advisory body to the
international economic forum which includes
business leaders from all G20 economies) from
February 2013 to December 2014.
Committee membership: Chair of the
Nominations & Governance Committee.
Attends other Board committee meetings.
Current directorships/other interests:
Chair: Qantas Airways Limited (since 2018),
Channel 7 Telethon Trust (since 2018), West
Australian Symphony Orchestra (WASO)
(since 2018) and Australian Football League
Commission (since 2017). Mr Goyder will retire
as chairman of Qantas Airways Limited before
the next Qantas Annual General Meeting in
late 2024.
Other directorships of listed entities within
the past three years: Nil.
Experience: Ms O’Neill joined Woodside in
2018 and has performed a number of senior
executive positions including Chief Operations
Officer, Executive Vice President Development
and Executive Vice President Development
and Marketing. From April 2021 to August
2021, Ms O’Neill was acting CEO until she was
formally appointed to the position.
Prior to joining Woodside, Ms O’Neill spent 23
years with ExxonMobil in a variety of technical,
operational and senior leadership roles.
Committee membership: Attends Board
committee meetings.
Current directorships/other interests:
Chair: Australian Energy Producers
(since 2022).
Director: American Petroleum Institute
(API) (since 2022), Reconciliation WA (since
2022), WA Venues & Events Pty Ltd (WAVE)
(since 2019) and West Australian Symphony
Orchestra (WASO) (since 2019).
Member: Chief Executive Women, National
Petroleum Council (US) and UWA Business
School Advisory Board.
Other: Honorary Governor of the American
Chamber of Commerce (AmCham).
Other directorships of listed entities within
the past three years: Nil.
55
WOODSIDE ENERGY GROUP LTD
Ashok Belani
M.S. Engineering
Arnaud Breuillac
MSc Engineering
Frank Cooper, AO
BCom, FCA, FAICD
Term of office: Director since January 2024,
election required at AGM in 2024.
Term of office: Director since March 2023,
re-election required at AGM in 2026.
Independent: Yes
Independent: Yes
Experience: Mr Breuillac had a 40-year
career with TotalEnergies SE, including as
President Middle East, Senior Vice President
E&P, Continental Europe and Central Asia,
and seven years as President Exploration
& Production before his retirement at the
end of 2021. From 2021 to 2022, Mr Breuillac
continued as Senior Advisor to the Chair and
Chief Executive Officer of TotalEnergies.
Committee membership: Chair of the Human
Resources & Compensation Committee.
Member of Sustainability and Nominations
& Governance Committees.
Current directorships/other interests:
Director: Trident Energy Ltd (since 2022)
and Géosel Manosque SAS (since 2022).
Term of office: Director since February 2013.1
Independent: Yes
Experience: Mr Cooper was a Partner at
PricewaterhouseCoopers from 2006 until
his retirement in 2012, and a director of the
Insurance Commission of Western Australia
until September 2022. Prior to joining
PricewaterhouseCoopers, Mr Cooper was a
partner of Ernst & Young from 2002 to 2005
and managing partner of Arthur Andersen
from 1991 to 2002.
Committee membership: Chair of the Audit
& Risk Committee. Member of the Human
Resources & Compensation, and Nominations
& Governance Committees.
Current directorships/other interests:
Director: Wright Prospecting Pty Ltd
(since 2022), St John of God Australia Limited
(since 2015) and South32 Limited (since 2015).
Member: Board of ACL (Association des
diplomes de l’ECL).
Trustee: St John of God Health Care
(since 2015).
Other: President of ECL (Ecole Centrale de
Lyon) Endowment Fund.
Other directorships of listed entities within
the past three years: Nil.
Other directorships of listed entities within
the past three years: Nil.
Experience: Mr Belani joined SLB (formerly
Schlumberger) in 1980 and served as a senior
executive of SLB from 2011 until his retirement
in 2022, Mr Belani held several senior executive
roles at SLB including President Reservoir
Characterization, Executive Vice President
Technology and most recently, Executive
Vice President New Energy where he was
responsible for deploying differentiated
technologies and practices to decarbonise
exploration and production operations, and
the development of new avenues of growth
in emerging markets with carbon-neutral
technologies. Mr Belani continued to work
as a Senior Advisor to SLB from 2022.
Committee membership: Member of the
Sustainability, Audit & Risk and Nominations
& Governance Committees.
Current directorships/other interests:
Director: AMGreen Group (since 2024),
Gentari Sdn. Bhd. (since 2023) and
Enervenue, Inc. (since 2021).
Member: Board of AStar, the agency for
science and technology for the Government
of Singapore.
Other directorships of listed entities within
the past three years: Nil.
1
Anticipated to retire from the Board at or before the Annual General Meeting in April 2024.
56
ANNUAL REPORT 2023
Swee Chen Goh
BSc (Information Science), MBA
Ian Macfarlane
Former Australian Federal Minister (Resources;
Energy; Industry and Innovation), FAICD
Angela Minas
MBA Finance, BA Managerial Studies
Term of office: Director since January 2020,
re-election required at AGM in 2026.
Term of office: Director since November 2016,
re-election required at AGM in 2026.
Term of office: Director since April 2023,
re-election required at AGM in 2026.
Independent: Yes
Independent: Yes
Independent: Yes
Experience: Ms Goh joined Shell in 2003 and
was the Chair of Shell Companies in Singapore
from 2014 until her retirement in 2019.
During her tenure at Shell, Ms Goh served on
the boards of a number of Shell joint ventures
in China, Korea and Saudi Arabia. Prior to
joining Shell, Ms Goh worked at Procter &
Gamble and IBM.
Committee membership: Member of
the Human Resources & Compensation,
Sustainability and Nominations & Governance
Committees.
Current directorships/other interests:
Chair: Nanyang Technological University (since
2021) and National Arts Council (since 2019).
Director: Carbon Solutions Holdings Pte
Ltd (since 2022), Carbon Solutions Platform
Pte Ltd (since 2022), Carbon Solutions
Investments Pte Ltd (since 2022), Carbon
Solutions Services Pte Ltd (since 2022), JTC
Corporation (since 2022), Singapore Airlines
Ltd (since 2019) and Singapore Power Ltd
(since 2019).
Member: Singapore Legal Services
Commission, Centre for Liveable Cities
Advisory Panel and Singapore Research,
Innovation and Enterprise Council.
Other directorships of listed entities within
the past three years: CapitaLand Investment
Limited (2017 to 2022).
Experience: Mr Macfarlane served as director
of METS Ignited Ltd and was Australia’s
longest serving Federal Resources and Energy
Minister, and the Coalition’s longest serving
Federal Industry and Innovation Minister, with
over 14 years of experience in both Cabinet
and shadow ministerial positions. Prior to
entering politics, Mr Macfarlane was the
President of the Queensland Graingrowers
Association from 1991 to 1998 and the
President of the Grains Council of Australia
from 1994 to 1996.
Committee membership: Member of
the Human Resources & Compensation,
Sustainability and Nominations & Governance
Committees.
Current directorships/other interests:
Director: Sovereign Manufacturing Automation
for Composites Cooperative Research
Centre (since 2023), CSIRO (since 2021) and
Toowomba and Surat Basin Enterprise Board
(since 2018).
Member: Fellow of the Australian Institute of
Company Directors, Toowoomba Community
Advisory Committee of the University
of Queensland Rural Clinical School and
Mooloolaba and the Spit Association.
Other directorships of listed entities within
the past three years: Nil.
Experience: Ms Minas is an experienced
financial executive with strong capital markets
experience, including six years as a public
company Chief Financial Officer (CFO) at
Constellation Energy Partners LLC and DCP
Midstream LLC. Ms Minas spent the first 20
years of her career in investment banking
and management consulting, including as
Arthur Andersen’s Partner leading the North
American oil and gas consulting practice and
at Leidos (formerly known as SAIC) as Senior
VP, global consulting leader.
Committee membership: Member of the
Audit & Risk, Sustainability and Nominations
& Governance Committees.
Current directorships/other interests:
Director: Vallourec S.A. (since 2021).
Member: Rice University Business School
Board of Advisors, National Association
of Corporate Directors, Women Corporate
Directors.
Other directorships of listed entities within
the past three years: Westlake Chemical
Partners (2016 to 2023) and Crestwood Equity
Partners L.P. (2022 to 2023).
57
WOODSIDE ENERGY GROUP LTD
Ann Pickard
BA, MA
Gene Tilbrook
BSc, MBA, FAICD
Ben Wyatt
LLB, MSc
Term of office: Director since February 2016,
re-election required at AGM in 2025.
Independent: Yes
Experience: Ms Pickard joined Shell in 2000
and served in a number of senior executive
positions including as the Director, Global
Business and Strategy and as a member of
the Shell Gas & Power Executive Committee.
Ms Pickard retired from Shell in 2016. Prior to
joining Shell, Ms Pickard spent 11 years with
Mobil before its merger with Exxon in 1998.
Committee membership: Chair of the
Sustainability Committee. Member of the
Human Resources & Compensation and
Nominations & Governance Committees.
Current directorships/other interests:
Director: Noble Corporation Plc. (since 2021)
and KBR Inc (since 2015).
Member: Chief Executive Women and
University of Wyoming Foundation Board.
Other directorships of listed entities within
the past three years: Nil.
Term of office: Director since December 2014.1
Independent: Yes
Experience: Mr Tilbrook served as a senior
executive of Wesfarmers Limited between
1985 and 2009, including as Executive Director
Finance and Executive Director Business
Development.
Committee membership: Member of the Audit
& Risk, Human Resources & Compensation and
Nominations & Governance Committees.
Current directorships/other interests:
Director: Orica Limited (since 2013).
Member: Life Fellow of the Australian Institute
of Company Directors.
Other directorships of listed entities within
the past three years: GPT Group Limited
(2010 to 2021).
Term of office: Director since June 2021,
re-election required at AGM in 2025.
Independent: Yes
Experience: Mr Wyatt served in the Western
Australian Legislative Assembly for 15 years,
including as the Western Australian Treasurer
and Minister for Finance, Energy, Aboriginal
Affairs and Lands. Additionally, Mr Wyatt held
various shadow cabinet portfolios including
Shadow Treasurer (2008 to 2017) and
responsibility for Native Title and the Pilbara.
Prior to entering Parliament, Mr Wyatt
practised as a lawyer in both private practice
and with the Western Australian Office of the
Director of Public Prosecutions.
Committee membership: Member of the
Human Resources & Compensation, Audit
& Risk and Nominations & Governance
Committees.
Current directorships/other interests:
Director: APM Group (since 2022), Rio Tinto
Ltd (since 2021), Wyatt Martin Pty Ltd (since
2021), West Coast Eagles (since 2021), Perth
International Arts Festival (since 2021),
Telethon Kids Institute (since 2021).
Member: UWA Business School Advisory
Board, Australian Institute of Company
Directors and Australian Capital Equity Pty Ltd
Advisory Board.
Other directorships of listed entities within
the past three years: Nil.
Christopher Haynes, OBE
BSc, DPhil, FREng, CEng, FIMechE, FIEAust
Sarah Ryan
BSc (Geology), BSc (Geophysics) (Hons 1), PhD (Petroleum and Geophysics),
FTSE
Independent: Yes
Independent: Yes
Experience: Dr Haynes retired on 28 April 2023 after 11 years of service
on Woodside’s Board of Directors.
Experience: Dr Ryan retired on 28 April 2023 after ten years of service
on Woodside’s Board of Directors.
Dr Haynes served on a number of Woodside Board committees including
as a member of the Audit & Risk, Sustainability and Nominations &
Governance Committees.
Dr Ryan served on a number of Woodside Board committees including
as a member of the Audit & Risk, Sustainability and Nominations &
Governance Committees.
1 Will retire from the Board on 28 February 2024.
58
ANNUAL REPORT 2023
Director appointment, induction training
and continuing education
All new non-executive directors are required to sign a letter of
appointment which sets out the key terms and conditions of
their appointment, including duties, rights and responsibilities,
the time commitment envisaged, and the Board’s expectations
regarding their involvement with committee work.
Executive Directors and other Senior Executives enter into
employment agreements which govern the terms of their
employment. Woodside undertakes extensive background
and screening checks prior to appointing Senior Executives.
Details of Woodside’s Senior Executives are set out in section
4.1.4 - Executive Leadership Team.
Woodside also undertakes extensive background and
screening checks prior to nominating a director for election
by shareholders, including checks as to character, experience,
education, criminal record and bankruptcy history. Woodside
provides to shareholders all material information in its possession
concerning the director standing for election or re-election in the
explanatory notes accompanying the notice of meeting.
Induction training is provided to all new directors. It includes a
comprehensive induction manual, discussions with the CEO and
Senior Executives, and the option to visit Woodside’s principal
operations either upon appointment or with the Board during
its next site tour.
Questionnaires are completed annually to assess each director’s
skills and knowledge required to discharge their obligations
to the company. Woodside considers at least annually the
Director attendance at meetings
need for new and existing directors to undertake professional
development to develop and maintain the skills and knowledge
needed to perform their role as directors effectively, and
provides directors the opportunity to develop and maintain
the required skills and knowledge. Directors attend continuing
professional education sessions, including industry seminars
and approved education courses, which are paid for by the
company, where appropriate.
Director remuneration
Details of remuneration paid to directors (executive and
non-executive) are set out in the 2023 Remuneration Report
in section 4.3 - Remuneration Report. The Remuneration
Report also contains information on the company’s policy
for determining the nature and amount of remuneration for
directors and Senior Executives and the relationship between
the policy and company performance.
Board access to information and independent
advice
Subject to the Directors’ Conflict of Interest Policy, directors
have direct access to members of company management and
to company information in the possession of management.
Directors are entitled to obtain independent legal, accounting
or other professional advice at the company’s expense where a
request for such advice is approved by the Chair. In the case of
a request made by the Chair, approval is required by a majority
of the non-executive directors.
Directors in office, committee membership and directors’ attendance at meetings during 2023
Director
Board
Audit & Risk
Human Resources
& Compensation
Sustainability
Nominations
& Governance
Held1
Attended2
Held1
Attended2
Held1
Attended2
Held1
Attended2
Held1
Attended2
Executive Director
Meg O’Neill
12
Non-Executive Director
Larry Archibald
Arnaud Breuillac3
Frank Cooper
Swee Chen Goh
Richard Goyder
Chris Haynes4
Ian Macfarlane
Angela Minas4
Ann Pickard
Sarah Ryan4
Gene Tilbrook
Ben Wyatt
12
9
12
12
12
4
12
9
12
4
12
12
12
12
9
12
12
12
4
12
9
12
4
11
11
8
8
3
6
3
8
8
8
8
6
8
7
8
3
8
6
8
3
7
8
5
4
3
4
4
5
2
5
2
5
2
5
5
4
4
3
2
4
4
2
4
3
4
2
3
4
3
2
3
3
3
1
3
2
3
1
3
3
3
3
2
2
3
3
1
3
2
3
1
3
3
4
3
4
2
4
3
4
2
4
3
5
5
2
5
5
2
5
5
Current Chair
Current Member
Prior Member
1
2
3
4
‘Held’ indicates the number of meetings held during the period of each director’s tenure. Where a director is not a member but attended meetings during the period, then only the number of
meetings attended rather than held is shown.
‘Attended’ indicates the number of meetings attended by each director. All directors are entitled to and generally attend meetings of the standing committees.
Mr Breuillac was appointed on 8 March 2023.
Dr Haynes and Dr Ryan retired at the 2023 Annual General Meeting on 28 April 2023. Ms Minas was appointed at the conclusion of the Annual General Meeting.
59
WOODSIDE ENERGY GROUP LTD
Board performance evaluation
Board performance evaluations are conducted annually.
The Board performance evaluation process is conducted by
way of questionnaires appropriate in scope and content to
effectively review:
• the performance of the Board and each of its committees
against the requirements of their respective charters;
• the individual performance of the Chair and each director; and
• the interface between Board and management.
The Board performance evaluation process may also involve
interviews with directors and senior management, and
observation of Board and committee meetings by an external
consultant. The reports on Board and committee performance
are provided to all directors and discussed by the Board. The
report on the Chair’s performance is provided to the Chair and
two committee chairs for discussion.
A report on each individual director is also provided to the
individual and to the Chair. The Chair meets individually with
each director to discuss the findings of their report. The Board,
through the Nominations & Governance Committee, considers
and discusses the final report in detail.
The performance of each director retiring at the next AGM is
taken into account by the Board in determining whether or not
the Board should support the re-election of the director. The
directors seeking re-election will be asked to reconfirm that
they have sufficient time to meet their responsibilities.
The Human Resources & Compensation Committee reviews and
makes recommendations to the Board on the criteria for the
evaluation of the performance of the CEO. The Board conducts
the evaluation of the performance of the CEO and considers
senior executive succession planning.
In 2023, performance evaluations for the Board, its committees,
directors and Senior Executives took place in accordance with
the process disclosed above, and in the section on ‘Performance
evaluation of Executive Leadership Team’ on page 66 and in the
Remuneration Report.
Directors’ retirement and re-election
The Woodside Constitution sets out the requirements for the
retirement and re-election of directors. With the exception of the
CEO/Managing Director, directors must retire at the third AGM
following their election or most recent re-election. At least one
director must stand for election at each AGM.
Board support for a director’s re-election is not automatic and is
subject to satisfactory director performance and assessment of
overall Board composition and capabilities.
Director independence
In accordance with the Policy on Independence of Directors,
the Board assesses independence with reference to whether a
director is non-executive, not a member of management and is
free of any business or other relationship that could materially
interfere with, or could reasonably be perceived to materially
interfere with, the independent exercise of their judgement.
60
In making this assessment, the Board considers all relevant facts
and circumstances. In particular, the Board focuses on the factors
relevant to assessing the independence of a director set out in
Box 2.3 of the ASXCGC Recommendations.
The Board has reviewed the independence of each of the
non-executive directors in office at the date of this Statement
and determined they are all independent. The CEO, Meg O’Neill,
is not considered independent as she is an Executive Director
and a member of management.
Frank Cooper was re-elected at the 2022 AGM and has served
11 years on the Board in February 2024. The Board reviewed the
independence of Mr Cooper and determined that he remained
independent, notwithstanding his length of tenure on the Board.
Conflicts of interest
The Board has approved a Directors’ Conflict of Interest Policy
which applies if there is, or may be, a conflict between the
personal interests of a director, or the duties a director owes to
another company, and the duties the director owes to Woodside.
Directors are required to disclose circumstances that may affect,
or be perceived to affect, their ability to exercise independent
judgement so that the Board can assess independence on a
regular basis.
Under Woodside’s Constitution, directors must comply with
the Corporations Act in relation to disclosure and voting on
matters involving material personal interests. Subject to the
Corporations Act:
• a director may be counted in a quorum at a Board meeting
that considers, and may vote on, any matter in which that
director has an interest
• the company may proceed with any transaction that relates to
the interest and the director may participate in the execution
of any relevant document by or on behalf of the company
• the director may retain benefits under the transaction even
though the director has an interest
• the company cannot avoid the transaction merely because
of the existence of the interest.
Under Woodside’s Constitution, a director may be a director of
or hold any other office or position in any corporation promoted
by the company or in which the company may be interested.
The Board may exercise the voting power conferred by the
shares in any corporation held or owned by the company, and
a director may vote in favour of exercising those voting rights
despite the fact that the director is, or may be about to be
appointed, a director of that other corporation and may be
interested in the exercise of those voting rights. An interested
director is to be counted in a quorum despite the interest.
Under Woodside’s Constitution, the Board may exercise all the
powers of the company to raise or borrow money, guarantee
the debts or obligations of any person or enter into any other
financing arrangements on the terms it thinks fit. If any director
or officer of the company is personally liable for the payment
of any sum which is or may become primarily due from the
company, the Board may charge the whole or any part of the
assets of the company by way of indemnity to secure the
director or officer from any loss in respect of the liability.
ANNUAL REPORT 2023 Areas of competence and skills of the
Board of Directors
The directors on the Board collectively have a combination of
skills and experience which are necessary to direct the company
in accordance with high standards of corporate governance and
oversee Woodside’s management and business activities.
The competences and skills are set out in the skills matrix
below. The Board uses this skills matrix to assess the skills and
experience of each director and the combined capabilities
of the Board, to identify potential areas of focus for director
recruitment and to identify any professional development
opportunities that may benefit directors.
Leadership and culture
• Business leadership
• Values and behaviours
Finance
• Public listed company
experience
• Accounting and audit
• Financial acumen
• Insurance
• Taxation
Business strategy
• Corporate financing
• Capital projects
and treasury
• Business strategy
Commercial
• Gas/LNG marketing
• Mergers and acquisitions
• Business development
• Legal and regulatory
compliance
• US regulatory compliance
• Risk management
Sustainability and stakeholder management
• Health and safety
• Community relations
• Corporate governance
Climate change
• Policy and legal risks
• Market
People and capability
• People and culture
• Industrial relations
Industry
• Environment
• Public and regulatory policy
• Technology
• Reputation
• Remuneration
• Oil and gas experience
• New energy and renewables
• Technology and innovation
• Major projects
• Digital
• Cybersecurity
International
• International oil and gas
• International experience
exploration, development
and production
The skills matrix is reviewed annually and updated regularly
to ensure it remains appropriate for Woodside’s strategy,
operations and risk profile and any other emerging issues.
The 2023 review confirmed that the Board collectively have the
necessary skills and competencies. As discussed in the Board
performance evaluation section, the review also informed and
supported the Board’s review of succession priorities.
The Board supplements its expertise with internal and external
subject matter experts as appropriate (for example, regular
attendance at Board meetings by relevant executives and
other independent advisers). The Sustainability Committee
received regular briefings and education on climate change from
Woodside’s Senior Executive responsible for climate change,
to inform its oversight of related matters with input from climate
change science and expert advice.
Chair
The Chair of the Board, Richard Goyder, is an independent,
non-executive director and an Australian resident and citizen.
The Chair is responsible for leadership and effective performance
of the Board and for the maintenance of relations between
directors and management that are open, cordial and conducive
to productive cooperation. The Board has arrangements in place
to ensure ongoing leadership if unforeseen circumstances mean
Mr Goyder is not available. Mr Goyder’s office is located in the
company’s headquarters in Perth, Western Australia. The Board is
satisfied that Mr Goyder commits the time necessary to discharge
his role effectively. The Chair’s responsibilities are set out in more
detail in the Board Charter.
Company Secretaries
Details of the Company Secretaries are set out in section 4.2
- Directors’ report - Company Secretaries. All directors have
direct access to the Company Secretaries who are accountable
directly to the Board, through the Chair, on all matters to do with
the proper functioning of the Board. The Company Secretaries’
responsibilities are set out in more detail in the Board Charter.
Board succession planning
The Board manages its succession planning with the assistance
of the Nominations & Governance Committee which annually
reviews the size, composition and diversity of the Board.
In conducting the review, the Board skills matrix and the
tenure of each director is considered.
The Nominations & Governance Committee is also responsible
for evaluating Board candidates and recommending individuals
for appointment to the Board. The Committee evaluates
prospective candidates against a range of criteria including
the skills, experience, expertise and diversity that will best
complement Board effectiveness at the time. The Board may
engage an independent recruitment firm to undertake a search
for suitable candidates.
Refer to the ‘Board composition’ section for information about
recent changes to the Board’s composition.
61
WOODSIDE ENERGY GROUP LTD 4.1.3 Board committees
The Board has four standing committees to assist in the discharge
of its responsibilities. The committees operate principally in a
review or advisory capacity, except in cases where powers are
specifically conferred on a committee by the Board.
Each committee has a charter, detailing its role, duties and
membership requirements. The committee charters are reviewed
regularly and updated as required.
Membership of the committees is based on directors’ qualifications,
skills and experience. Each standing committee is comprised of:
• only non-executive directors
• at least three members, the majority of whom are independent
• a chair appointed by the Board who is one of the independent
non-executive directors.
Audit & Risk Committee
The Audit & Risk Committee and the Human Resources &
Compensation Committee have additional membership
requirements as set out in their respective charters.
Each committee is entitled to seek information from any
employee of the company and to obtain any professional advice
it requires in order to perform its duties. All directors are entitled
to and generally attend meetings of the standing committees.
Assists with overseeing the company’s financial reporting, compliance with legal and regulatory requirements,
risk management and the internal and external audit functions in accordance with the Committee Charter.
Members
• Frank Cooper (Committee Chair)
• Larry Archibald
• Ashok Belani (from January 2024)
• Angela Minas
• Gene Tilbrook
• Ben Wyatt (from December 2023)
Some of the FY23 key activities undertaken by the Committee include:
• overseeing the ongoing integration activities in connection
with the merger with BHP Petroleum including Sarbanes-
Oxley compliance and monitoring SAP S/4 HANA migration
• overseeing developments in accounting, financial reporting
and taxation relevant to Woodside
• reviewing significant accounting policies and practices
• reviewing and making recommendations to the Board for
the adoption of the Group’s half-year and annual Financial
Statements
• approving the fees and reviewing the external auditor’s
scope and plan for the 2023 external audit, considering and
approving non-audit services provided by the external auditor
and reviewing the independence and performance of the
external auditor
• reviewing Internal Audit reports and material post-investment
reviews and approval of the 2024/2025 Internal Audit program
• reviewing the Group’s key risks and risk management
framework and reviewing reports from management on the
effectiveness of the Group’s management of its material
business risks including contemporary and emerging risks such
as cybersecurity, conduct risk, technology and innovation,
privacy and data breaches, sustainability and climate change
• overseeing the establishment of the new ethics and
compliance team and revised governance structures post
merger
• overseeing matters and informing the Board of any material
concerns raised under the Code of Conduct, the Anti-Bribery
and Corruption and Whistleblower Policies that call into
question the culture of the organisation
• overseeing the revocation of the deed of cross guarantee and
entry into a new deed of cross guarantee
• informing the Board of the company’s compliance with
material legal and regulatory requirements and any conduct
that is materially inconsistent with the company’s values or
Code of Conduct.
Audit committee financial expert
Woodside’s Board has determined that Frank Cooper, who serves on the Audit & Risk Committee, meets the audit committee
financial expert requirements under SEC Rules. The Board has also determined that he is independent under applicable NYSE rules.
62
ANNUAL REPORT 2023 Nominations & Governance Committee
Assists the Board with reviewing Board composition, performance and succession planning, including identifying,
evaluating and recommending candidates for the Board in accordance with the Committee Charter.
Members
• Richard Goyder (Committee Chair)
• Larry Archibald
• Ashok Belani (from January 2024)
• Arnaud Breuillac
• Frank Cooper
• Swee Chen Goh
• Ian Macfarlane
• Angela Minas
• Ann Pickard
• Gene Tilbrook
• Ben Wyatt
Some of the FY23 key activities undertaken by the Committee include:
• identifying and recommending to the Board new
directors to join the Woodside Board in 2023
• reviewing the size and composition of the Board
• reviewing the director skills matrix
• reviewing the directors’ material interests
• Board succession planning
• recommending to the Board directors for re-election
• recommending for Board approval the Woodside Corporate
Governance Statement
• approving the process for the annual Board performance
evaluation.
Human Resources & Compensation Committee
Assists with establishing human resources and compensation policies and practices in accordance with the Committee Charter.
Members
• Arnaud Breuillac (Committee Chair)
• Frank Cooper
• Swee Chen Goh
• Ian Macfarlane
• Ann Pickard
• Gene Tilbrook
• Ben Wyatt
Some of the FY23 key activities undertaken by the Committee include:
• overseeing Woodside’s response to key safety events including
• reviewing the company’s remuneration policies and practices
the North Rankin Complex fatality involving a colleague
employed by a contractor
globally and considering advice on the remuneration of
Woodside’s key management personnel
• considering industrial relations issues relevant to Woodside’s
onshore and offshore assets
• approving changes to the leadership structure, including
the appointment and remuneration packages of executives
reporting directly to the CEO
• considering organisation requirements design, and policy
changes required to meet changing regulatory requirements
• endorsing for Board approval a new Mandatory Clawback
Policy to meet US regulatory requirements
• overseeing amendments to Woodside’s employee and
executive equity plans
• overseeing Woodside’s response to Australian, US and UK
legislative and corporate governance developments, including
Workplace Gender Equality Agency legislation reforms,
and stakeholder feedback, in relation to employment and
remuneration matters relevant to Woodside
• overseeing the implementation of the payroll harmonisation
• reviewing the company’s recruitment and retention strategies
• oversight of programs to assess and monitor culture (including
survey findings), including across all areas of our Integrated
Culture Framework (values, safety, risk and compliance)
• reviewing progress against the 2021-2025 Inclusion and
Diversity strategy and consideration of global differences
• overseeing progress against measurable objectives in respect
of gender diversity and endorsing for Board approval the 2024
measurable objectives
• reviewing and making recommendations to the Board on:
› remuneration for non-executive directors
› the remuneration of the CEO
› the criteria for the evaluation of the CEO’s performance
›
incentives payable to the CEO
› employee equity-based plans
› the annual Remuneration Report.
63
WOODSIDE ENERGY GROUP LTD Sustainability Committee
Assists the Board in meeting its oversight responsibilities in relation to the company’s sustainability policies and practices
in accordance with the Committee Charter.
Members
• Ann Pickard (Committee Chair)
• Larry Archibald
• Ashok Belani (from January 2024)
• Arnaud Breuillac
• Swee Chen Goh
• Ian Macfarlane
• Angela Minas
• Ben Wyatt (until December 2023)
Some of the FY23 key activities undertaken by the Committee include:
• overseeing Woodside’s response to key safety events
• considering Woodside’s management of climate change risk
including the North Rankin Complex fatality involving a
colleague employed by a contractor
• overseeing the company’s in-year Scope 1 and 2 greenhouse
gas emissions performance, and its plans for meeting
emissions targets
and opportunities
• overseeing and reviewing the proposed content for
Woodside’s Climate Transition Action Plan and 2023 Progress
Report, and approach to climate-related disclosures
• considering First Nations affairs, including cultural heritage
• reviewing Woodside’s environmental performance, including
and land access matters
major incident prevention
• endorsing for Board approval changes to the Group Human
• overseeing the Group’s health and personal safety
Rights Policy
performance
• reviewing Woodside’s activities supporting local content in
• considering for Board approval the company’s approach to
our supply chain
climate reporting
• overseeing Woodside’s social performance and social
• overseeing Woodside’s process safety performance including
contribution in our host communities
major incident prevention
• reviewing Woodside’s quality management
• considering security and emergency management
performance, including major incident prevention and
response and business continuity
• reviewing Woodside’s reputational performance and issues
of significance to our communities and stakeholders
• overseeing publication of the Reconciliation Action Plan
Report 2022
• endorsing for Board approval Woodside’s Modern Slavery
Statement 2022 and reviewing related human rights issues.
64
ANNUAL REPORT 2023 4.1.4 Executive Leadership Team
Graham Tiver1
Executive Vice President and Chief Financial
Officer
BBus, FCPA
Shiva McMahon1
Executive Vice President International
Operations
MA, BA
Elizabeth (Liz) Westcott1
Executive Vice President Australian Operations
BCom, BEng (Hons), GAICD
Joined Woodside: 2022
Joined Woodside: 2022
Joined Woodside: June 2023
Experience: Graham is responsible for
Finance; Treasury; Tax; Investor Relations;
Governance, Risk and Compliance; Audit;
and Mergers and Acquisitions. Prior to
joining Woodside, Graham spent 28 years
with BHP and WMC Resources where he
held significant financial, commercial and
leadership roles across multiple business
sectors. He has extensive international
experience, having worked in North and
South America as well as in a variety of roles
around Australia.
Directorship: Nil.
Experience: Shiva is responsible for
Woodside’s International operations portfolio.
Shiva has 30 years of industry experience
and prior to joining Woodside held senior
leadership roles at both BHP and BP. Shiva
spent a large part of her career at BP in roles
including CFO Global Lubricants, Chief of
Staff Upstream Executive Office and CFO
Trinidad and Tobago.
Directorship: Greater Houston Partnership
(since 2022) and National Ocean Industries
Association (NOIA).
Experience: Elizabeth (Liz) is responsible for
Woodside’s Australian operations portfolio.
Liz has 30 years of industry experience in
operations and project roles and prior to
joining Woodside held senior leadership
roles at EnergyAustralia and ExxonMobil.
Her roles spanned strategic planning,
operations, project management, and safety,
technical and commercial leadership.
Directorship: Beyond Bank Australia Limited.
Julie Fallon
Executive Vice President Corporate Services
BEng (Hons) (ChemEng)
Shaun Gregory
Executive Vice President New Energy
BSc (Hons), MBT
Daniel Kalms
Executive Vice President Technical Services
BEng (Hons) (ChemEng), MBA
Joined Woodside: 1998
Joined Woodside: 1995
Joined Woodside: 2001
Experience: Julie is responsible for Legal;
Ethics and Compliance; Health, Safety and
Environment; Security and Emergency
Management; Supply Chain; and Human
Resources. Julie has 30 years of industry
experience and has held a number of senior
leadership roles at Woodside including
Senior Vice President Pluto and Senior Vice
President Engineering.
Experience: Shaun is responsible for new
energy and carbon solutions. Shaun has over
30 years of industry experience and has had
senior leadership roles across Woodside’s
value chain from Exploration acreage capture
and evaluation, through to Development
concept selection and technology
development.
Experience: Daniel is responsible for Digital;
Technology; Surface Engineering; and
Subsurface and Reserves. Daniel has over 25
years of industry experience and has held
senior leadership roles across development,
projects, operations and corporate.
1
Identified as key management personnel (KMP).
65
WOODSIDE ENERGY GROUP LTD Mark Abbotsford
Executive Vice President Marketing and Trading
BEc (Hons), MPhil, MBA
Tony Cudmore
Executive Vice President Strategy and Climate
BA, GCIR
Joined Woodside: 2002
Joined Woodside: 2022
Experience: Mark is responsible for
Woodside’s global commodity marketing,
trading and shipping portfolio. Mark has over
20 years’ industry experience and has held a
number of senior leadership positions across
commercial, finance and marketing in various
global locations. Prior to joining Woodside,
Mark had roles at Treasury (Western
Australia) and BHP Iron Ore.
Experience: Tony is responsible for Corporate
Strategy, Climate and Sustainability, External
Environment and Corporate Affairs. Tony
has over 20 years’ industry experience and
prior to joining Woodside, Tony worked for
ExxonMobil and BHP where he held senior
leadership positions including Chief Public
Affairs Officer, and Group Sustainability and
Public Policy Officer.
Andy Drummond
Executive Vice President Exploration
and Development
BEng (Hons) (ChemEng)
Matthew Ridolfi
Executive Vice President Projects
BEng (Hons) (MechEng)
Joined Woodside: 2022
Joined Woodside: 2022
Experience: Andy is responsible for
exploration and development activities at
Woodside. Andy has over 25 years’ industry
experience. Prior to joining Woodside, Andy
held senior leadership positions at BHP and
Marathon Oil Corporation, including Vice
President of Sustainability and Innovation for
BHP’s petroleum business.
Experience: Matthew is responsible for
Woodside’s project execution activities
globally. Matthew has more than 30 years
of industry experience and prior to joining
Woodside held a number of senior leadership
positions at BHP including Vice President of
Major Developments for BHP’s petroleum
business and Vice President of Health, Safety,
Environment and Community.
Performance evaluation of Executive Leadership Team
With respect to executives, their performance is reviewed annually, which considers and assesses the executive’s performance against
a list of key performance indicators.
All executives had a performance evaluation in FY2023 and further details are set out in section 4.3 - Remuneration Report. Details of
the CEO’s performance evaluation (process and outcomes) are set out in section 4.3 - Remuneration Report and ‘Board Performance
Evaluation’ on page 60.
66
ANNUAL REPORT 2023 4.1.5 Promoting responsible and ethical behaviour
OUR VALUES
Everything we do is guided by Our Values and inspired by our common purpose. We are one team, we care, we innovate every day,
our results matter and we build and maintain trust.
CODE OF CONDUCT AND ANTI-BRIBERY AND
CORRUPTION POLICY
The Code of Conduct and the Anti-Bribery and Corruption Policy
(ABC Policy) cover matters such as compliance with laws and
regulations, responsibilities to shareholders and the community,
sound employment practices, confidentiality, privacy, conflicts
of interest, giving and accepting business courtesies and the
protection and proper use of Woodside’s assets.
All directors, officers and employees are required to comply
with the Code of Conduct and the ABC Policy and managers are
expected to take reasonable steps to ensure that employees,
contractors, consultants, agents and partners under their
supervision are aware of both policies.
Substantiated breaches of the Code of Conduct and ABC Policy
are reported to the Audit & Risk Committee.
WHISTLEBLOWER POLICY
Woodside’s Whistleblower Policy documents our commitment
to maintaining an open working environment in which Woodside
personnel and other stakeholders can report instances of
unethical, unlawful or undesirable conduct without fear of
intimidation or reprisal. Whistleblower submissions are assessed
and investigated in accordance with internal investigation
guidance and applicable whistleblower protection laws.
The Whistleblower Policy also links the EthicsPoint
whistleblower service available for submitting anonymous
reports of alleged improper conduct.
Substantiated incidents reported under Woodside’s Whistleblower
Policy are reported to the Audit & Risk Committee and in line with
applicable whistleblower protection laws.
SECURITIES DEALING POLICY
Woodside’s Securities Dealing Policy applies to all directors,
employees, contractors, consultants and advisers. It prohibits
directors and employees from dealing in the company’s
securities when they are in possession of price-sensitive
information that is not generally available to the market. It also
prohibits dealings by directors and certain restricted employees
during ‘black-out’ periods, such as during the period between
the end of the financial half and full-year and the day following
the announcement of the results.
The Securities Dealing Policy also sets out our approach to
transactions which limit the economic risk of participating in
equity-based remuneration schemes.
67
WOODSIDE ENERGY GROUP LTD PAYMENTS TO THE REFERENDUM CAMPAIGN
In October 2023, a referendum was held on a proposal to alter
the Australian Constitution to recognise First Nations people
by establishing an Aboriginal and Torres Strait Islander Voice
(Referendum).
As reported to the Australian Electoral Commission, Woodside’s
total reportable payments to the Referendum campaign was
A$2,175,000, consisting of three donations:
• Australians for Indigenous Constitutional Recognition
A$2,000,000
• Kimberley Land Council A$100,000
• Yamatji Marlpa Aboriginal Corporation A$75,000.
All 2023 Referendum disclosure returns (donor and recipient)
will be made publicly available on the Australian Electoral
Commission’s online Transparency Register on 1 April 2024.
Woodside made donations to Referendum activities that
were aligned with Our Values, the principles set out within our
2021-2025 Reconciliation Action Plan and our First Nations
Communities Policy. Our donations supported organisations to
disseminate information and advocate in favour of formalising
a pathway for Indigenous Australians to share their views on
policies that impact them. Woodside’s contribution aligns with
our support for the Uluru Statement from the Heart, which called
for the establishment of an Indigenous voice to Parliament,
agreement making and truth-telling. These contributions will
be published on the Australian Electoral Commission’s online
Transparency Register.
WORKING RESPECTFULLY POLICY
Woodside is committed to a safe, inclusive and respectful
working environment. Our culture is underpinned by Our Values
and Code of Conduct. Sexual and other unlawful discrimination,
bullying and harassment are serious violations of those principles
and will not be tolerated. The Woodside Working Respectfully
Policy sets out our expectation for everyone working for and
with our employees, contractors and customers to treat others
with respect, in line with our values, Code of Conduct, and the
Working Respectfully Policy.
HUMAN RIGHTS POLICY
We conduct business in a way that respects the human rights of
all people, including our employees, the communities where we
are active and those working throughout our supply chains.
Woodside’s approach to human rights is set out in our
Human Rights Policy and overseen by the Board. The Board’s
Sustainability Committee is responsible for reviewing and
making recommendations and endorsements to the Board on
Woodside’s Human Rights Policy and performance.
PAYMENTS TO POLITICAL ENTITIES FOR BUSINESS
ENGAGEMENT
Woodside does not donate to campaign funds for any political
party, politician or candidate for public office in any country.
In Australia, Woodside makes payments to attend adhoc
business engagement events arranged by political stakeholders.
Decisions to attend these events are subject to strict governance
processes. Our Board considers and approves our approach to
political contributions annually.
As reported to the Australian Electoral Commission in
compliance with our reporting requirements, our payments
for the financial year 2022/2023 totalled A$97,550 down from
A$109,930 in 2021/2022.
Our contributions for the year ending 30 June 2023 (being the
relevant reporting period) are as follows:
Australian Labor Party
Australian Labor Party (Western Australia Branch)
Liberal Party of Australia
Liberal Party (WA Division) Inc
National Party of Australia
National Party of Australia (WA) Inc
Total:
Value (A$)
38,500
17,100
22,200
8,250
8,500
3,000
97,550
68
ANNUAL REPORT 2023 4.1.6 Risk management and internal control
RISK MANAGEMENT
Approach to risk management
Woodside is committed to managing risks in a proactive
and effective manner as a source of competitive advantage.
Our approach is intended to protect us against potential
negative impacts and improve our resilience against emerging
risks. These include conduct risk, technology and innovation,
cybersecurity, privacy and data breaches, sustainability and
climate change.
Woodside’s Risk Management Policy describes the manner in
which Woodside:
• provides a consolidated view of risks across the company to
understand risk exposure and prioritise risk management and
governance
• confers responsibility on Woodside staff at all levels to
pro-actively identify, assess and treat risks relating to the
objectives they are accountable for delivering.
Board, Audit & Risk Committee and management
The Board is responsible for reviewing and approving
Woodside’s risk management framework, policy and
performance. The Board is also responsible for satisfying itself
that management has developed and implemented a sound
system of risk management and internal control.
The Board has delegated oversight of the Risk Management
Policy, including review (at least annually) of the effectiveness
of Woodside’s internal control system and risk management
framework, to the Audit & Risk Committee. The Audit & Risk
Committee also regularly reviews Woodside’s Risk Appetite
Statement and oversees Internal Audit’s activities and reviews
Internal Audit’s performance.
Management is responsible for promoting and applying the Risk
Management Policy.
In 2023, the Audit & Risk Committee reviewed and confirmed
the company’s risk management framework was sound, and that
the company was operating with due regard to the risk appetite
endorsed by the Board. In 2023, Woodside also identified
opportunities to change the risk management framework and
updated the risk matrix and risk appetite statement to represent
today’s organisation. Additionally, Woodside’s approach to
managing risk will follow a three lines model, this model clarifies
roles and responsibilities of all areas of the business related to
managing risk. These changes enable risk informed decision
making and effective management of current risks.
As part of its oversight of the Risk Management Policy, the
Audit & Risk Committee oversees risks from cybersecurity
threats. The Audit & Risk Committee aims to hold at least five
regular meetings a year with cybersecurity risks and the Group’s
management of such risks reviewed as part of those meetings.
The identification and direct management of cybersecurity risks
and threats are performed by Woodside’s cybersecurity function,
with subject matter expertise provided as part of our cyber
resilience process.
The cybersecurity function is led by Woodside’s Chief
Information Security Officer (CISO) and a group of competent
and experienced cybersecurity professionals. Our CISO has
over a decade of industry experience and has held multiple
technology and business facing roles.
The cyber resilience process as described previously includes the
monitoring, prevention, detection, mitigation and remediation of
cybersecurity risks and incidents.
The Woodside Board and the Audit & Risk Committee are kept
informed of any material cybersecurity risks and incidents
through formal risk registers, briefing papers, internal audit
reports and periodic reporting in person at Audit & Risk
Committee meetings or as required through our Crisis and
Emergency Management process if and when a major cyber
security incident were to occur.
Woodside’s cybersecurity resilience and risk management
strategy and process are based on the National Institute of
Standards and Technology Cybersecurity Framework. This
process is documented within the WMS.
Internal Audit function
Internal Audit provides assurance that the design and operation
of the Group’s risk management and internal control system is
effective. A risk-based audit approach is used to ensure that
higher risk activities are prioritised in the audit program.
Internal Audit is independent of both business management
and of the activities it reviews and has all necessary access to
management and information to fulfill its role. Internal Audit is
staffed by industry professionals including qualified accountants
and engineers. The head of Internal Audit is jointly accountable
to the Audit & Risk Committee and the Executive Vice President,
Finance and Chief Financial Officer (CFO).
Governance, Risk and Compliance function
The Governance, Risk and Compliance function is responsible
for Woodside’s risk management framework, development of
risk management capability, and providing risk management
oversight to senior levels of management and the Audit & Risk
Committee on the strategic risk profile and the Group’s risk
management performance.
Material risks
Our material risks (including environmental and social risks) and
how they are managed are disclosed in section 3.9 - Risk factors.
69
WOODSIDE ENERGY GROUP LTD • Tax services – tax related work, including tax compliance
services, that is outside the scope of the statutory audits of
Woodside and its controlled entities but is permissible within
the framework of the Sarbanes-Oxley Act and other relevant
independence standards.
• Other services – other work that is permissible within the
framework of the Sarbanes-Oxley Act and other relevant
independence standards.
Verification of periodic corporate reports
The Board has adopted a Continuous Disclosure and Market
Communications Policy (Disclosure Policy) that applies to all
disclosures to the market, including periodic corporate reports
that are not audited by an external auditor. Management has
developed practices and guidance material that are intended to
ensure that periodic corporate reports provide clear, concise and
effective disclosure, in accordance with the Disclosure Policy.
Authority has been delegated to the Disclosure Committee to
ensure the implementation of the reporting and communications
processes and controls set out in the Disclosure Policy and
associated guidance material.
Reports are prepared by, or under the supervision of, subject
matter experts and material statements in the reports are
reviewed for accuracy. Reports are also reviewed for compliance
with applicable legal and regulatory requirements. This process
is intended to ensure that all applicable laws, regulations and
company policies have been complied with, and that appropriate
approvals are obtained before a report is released to the market.
CEO and CFO assurance
Before approving the Financial Statements for a financial period,
the Board receives from the CEO and CFO a declaration stating
that:
• in their opinion Woodside’s financial records have been
properly maintained, comply with the appropriate accounting
standards and give a true and fair view of Woodside’s financial
position and performance
• the opinion has been formed on the basis of a sound system
of risk management and internal control which is operating
effectively.
EXTERNAL AUDIT AND REPORTING
External Auditor
In accordance with Woodside’s External Auditor Policy,
the Audit & Risk Committee oversees the engagement of
Woodside’s external auditor, governed by the External Auditor
Guidance Policy. Internal audit and external audit are separate
and independent of each other.
The Audit & Risk Committee evaluates the objectivity and
independence of the external auditor and the quality and
effectiveness of the external audit arrangements, including
through:
• review of all non-audit services for actual and perceived
independence threats
• confirmation that non-audit service fee commitment does
not exceed 70% of audit fees for the year
• confirmation that Woodside fees does not exceed 10% of
PricewaterhouseCoopers (PwC) Perth aggregate revenues
for the prior period
• annual review of auditor performance.
External Auditor independence
The guidance policy includes provisions directed at maintaining
the independence of the external auditor and assessing whether
the proposed provision of any non-audit services by the external
auditor is appropriate. The External Auditor Guidance Policy
classifies a range of non-audit services which could potentially
be provided by the external auditor as acceptable within
limits, requiring Audit & Risk Committee pre-approval or not
acceptable. The Audit & Risk Committee reviews the auditor
independence annually.
The Audit & Risk Committee did not waive the pre-approval
requirement under paragraph (c)(7)(i) of Rule 2-01 of SEC
Regulation S-X in 2023.
With effect from 2022, PwC was appointed as auditor of the
Group, replacing Ernst & Young (EY). Under SEC regulations,
the remuneration of the auditors (PwC) of $9.6 million (2022:
$5.4 million (PwC)) is required to be presented as follows: audit
fees represent 84% (2022: 76%); audit-related fees 5% (2022:
18%); tax fees 11% (2022: 5%); and all other fees nil (2022: 1%).
The nature of the services comprising each category of fees is
described below:
• Audit – work that constitutes the agreed fees for the audit
of Woodside’s consolidated financial statements, report on
Woodside’s internal controls over financial reporting, and
statutory audits of Woodside’s controlled entities (including
interim reviews).
› Audit-related – includes assurance services and agreed
upon procedures. This is work that is outside the scope of
the statutory audits of Woodside and its controlled entities
but is consistent with the role of the external statutory
auditor. The work is reasonably related to the performance
of an audit or review, is of a compliance or procedural
nature, and is work that the external auditors must or are
best placed to undertake and is permissible within the
framework of the Sarbanes-Oxley Act and other relevant
independence standards.
70
ANNUAL REPORT 2023 4.1.7
Inclusion and diversity
INCLUSION AND DIVERSITY POLICY
Our Inclusion and Diversity (I&D) Policy outlines our commitment
to an inclusive workplace culture that values diversity and
promotes equal opportunities. Our I&D Policy applies throughout
Woodside, including the Board and its committees. The Human
Resources & Compensation Committee is responsible for
monitoring the company’s I&D Policy and setting measurable
objectives for achieving diversity in the composition of the
Board, Senior Executives and Woodside’s workforce generally.
Our diversity encompasses differences in age, nationality, race,
ethnicity, national origin, religious beliefs, sex, sexual orientation,
intersex status, gender identity or expression, relationship
status, disability, neurodiversity, cultural background, thinking
styles, experience, family background, including caregiving
commitments and education.
Initiatives to promote inclusion and diversity
Woodside aims to drive I&D and implement the objectives set
out in the I&D Policy by, among other things:
• respecting the unique attributes that each individual brings
to the workplace and fostering a values-based and leader-led
inclusive culture
• providing I&D education and training as well as undertaking
initiatives and measuring their effectiveness
• amplifying the voices of employees to inform our activities to
achieve inclusion by enabling Employee Resource Groups and
conducting employee surveys
• the Board annually reviewing the aspirational goals it has set
for achieving improvement in Woodside’s I&D indicators and
the progress in achieving those objectives:
› reporting gender equality indicators in accordance with
the Workplace Gender Equality Act 2012 (Cth). For further
information, refer to our 2023 submission available on our
website at woodside.com.
increased focus on recruiting and developing Indigenous
Australian talent will be made in 2024.
›
2023 MEASURABLE OBJECTIVES
Our 2023 measurable objectives include objectives set out in our I&D policy.
2023 measurable objective
Progress
Continue to track perceived level of inclusion and
use inclusion survey insights to inform initiatives
to continually improve.
• Our Voice survey was completed twice in 2023, with belonging, inclusive culture and inclusive
leadership measured. Survey feedback will assist to inform 2024 priorities.
Embed Respectful Behaviours at Woodside via
increasing a ‘speak up’ culture and proactive
employee engagement on this topic.
• 644 people completed the 3.5 hour Working Better Together – Respectful Behaviours
program and 661 people completed the 1.5 hour Respect at Woodside education session.
• Inclusive Leadership capability building embedded into Navigator Leadership Program.
Ensure diversity of the Board with consideration
for gender, racial and cultural diversity.
During 2023, through Navigator, 1,273 completed leadership program immersions; 41 senior
leaders completed Inclusive Leadership Assessments; and 109 people participated in two
half-day Inclusive Leadership courses.
• Employee perceptions in relation to respect, harassment and discrimination at work improved
during 2023 (measured via the employee survey).
• Multi-disciplinary team charged with identifying and embedding improvements related to
respect at work.
• As of 31 December 2023, Board diversity included:
- 36% female representation
- 9% LGBTIQA+ representation
- country based cultural diversity - Indigenous and non-Indigenous Australian, American,
Singaporean Chinese, Greek and French
- racial diversity - 9% Asian, 9% Indigenous Australian, 82% white/Caucasian.
Increase the percentage of Indigenous Australian
people employed in leadership roles, mid-career
and senior roles and overall.
• The percentage of Indigenous Australian people employed by Woodside in:
- mid-career and senior roles increased to 0.8% (from 0.7%)
- leadership roles decreased to 0.7% (from 0.9 %).
• Overall participation (including third-party pathway program participants) increased to 5.7%
(from 5.4%).
Make progress towards our aspirations to increase
the percentage of females employed in leadership
roles, trade and technician roles and overall.
• The percentage of females employed by Woodside in:
- trade and technician roles increased to 11.2% (from 9.8%);
- leadership roles increased to 27.7% (from 26.8%); and
• There was an overall increase to 33.6% (from 33.4%).
71
WOODSIDE ENERGY GROUP LTD 2023 measurable objective
Progress
Maintain gender balance1 and meet recruitment
goals for Indigenous Australian peoples through
all forms of entry to Woodside including pathway
programs and experienced hires.
• Recruitment results for gender were:
- non-tertiary pathways2: 43% female;
- summer vacation and graduates: 56% female for summer vacation 2023/2024
and 48% female for graduates; and
- experienced hires: 39% female.
• Recruitment results for Indigenous Australian people, against goals, were:
- non-tertiary pathways2: 57% (goal of 50%);
- summer vacation and graduates: 15% for summer vacation 2023/2024 and 17%
for graduates (goal of 10%); and
- experienced hires: 5% (goal of 2%).
Make progress towards building greater inclusion
of people who are differently abled and/or
neurodiverse.
• Progress made with improvements to recruitment process, digital accessibility, introduction of
a Workplace Adjustments Guide and awareness raising events held by the Employee Resource
Group ADAPT (Advocates for Different Abilities and Personal Traits).
Support LGBTIQA+ individuals to feel safe to be
out at work.
• Authentic Leaders Program for LGBTIQA+ employees commenced in the Americas region.
• 488 people completed LGBTIQA+ awareness and inclusion related training in 2023.
• Bronze status achieved in Australian Workplace Equality Index for LGBTQ workplace inclusion.
Make progress towards achieving racial equity.
• Global approach to Anti-Racism and Cultural Respect developed.
• Annual remuneration review included review for pay equity for Black, Indigenous and People
of Colour (BIPOC) in USA and Indigenous Australians (and gender).
• 134 people completed Subtle Racism or Racial Equity training.
• EmBRace (Employees Beyond Race) Employee Resource Group led a range of awareness
raising campaigns and initiatives throughout the year in the US.
• United Nations Day for the Elimination of Racial Discrimination (known as Harmony Day in
Australia) was recognised with events led by Employee Resource Group CALD (Cultural and
Linguistic Diversity).
1
2
Gender balance in the US is defined as representative and reflective of the available talent pool.
Non-tertiary pathway data is based on third-party program recruitment information.
WOODSIDE WORKFORCE GENDER PROFILE3
Administration
Female
Male
%
47.4
52.6
Technical
Female
Male
%
31.4
68.6
Trade/Technician
Female
Male
%
11.2
88.8
Supervisory/professional
Female
Male
%
36.7
63.3
Middle management
Female
Male
%
25.6
74.4
Senior management
Female
Male
%
29.8
70.2
Total
Female
Male
%
33.6
66.4
Board members
Female
Male
%
36.4
63.6
3
Gender profile data reflects all employees engaged on 31 December 2023, excluding temporary personnel such as vacation students, cadets and scholarship students.
72
ANNUAL REPORT 2023 BOARD AND EXECUTIVE MANAGEMENT
DIVERSITY
The UK Listing Rules require listed companies to publish
information on gender and ethnic representation on their boards
and in executive management. In addition, the UK Listing Rules
require companies to disclose their progress against three
specified diversity targets, being:
• At least 40% of the directors are women
• At least one director is from an ethnic minority background
• At least one of the senior positions on the board is held
by a woman
Under the UK Listing Rules, the senior positions on the Board
are the Chair, CEO, CFO and Senior Independent Director (SID).
For Woodside, the senior positions on the Board are only the
Chair and the CEO. In line with market practice for Australian
listed companies, the CFO does not sit on the Board and
Woodside does not have a SID as this role is not required under
the corporate governance code Woodside applies, being the
ASXCGC Recommendations.
As at 31 December 2023, Woodside had at least one of the senior
positions on the Board held by a woman and at least one director
from an ethnic minority background.
36% of the Board were women which is below the 40% figure
set out in the UK Listing Rules. The I&D Policy includes a
commitment to improve diversity on the Board, with a key
focus on reaching 40% female representation. As part of Board
succession planning, the Nominations & Governance Committee
evaluates prospective candidates against a range of criteria
including the skills, experience, expertise and diversity that will
best complement Board effectiveness at the time.
The tables below set out the diversity information required under
the UK Listing Rules as at 31 December 2023. The data presented
in those tables was collected by requesting all members of
the Board, Executive Leadership Team and Group Company
Secretary to self-report in questionnaires about their cultural
background, languages spoken, racial identity, LGBTIQA+
identity and gender.
In accordance with UK Listing Rule 14.3.33, these tables set out
the Board and executive management diversity data as at
31 December 2023.
Woodside notes that the ethnic/racial background groupings
do not align to groupings common in some regions but has
presented the data in this way to comply with UK Listing
requirements.
Gender identity
Men
Women
Not specified/
prefer not to say
Ethnic/racial background
Number of
Board members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)1
Number in
executive
management2
Percentage
of executive
management
7
4
64%
36%
1
1
8
5
62%
38%
Number of
Board members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)1
Number in
executive
management2
Percentage
of executive
management
White British or other White
(including minority-white groups)
Mixed/multiple ethnic groups
Asian/Asian British
Black/African/Caribbean/Black British
Other ethnic group, including Arab
Not specified/prefer not to say
9
1
1
82%
2
11
2
85%
15%
9%
9%
1
2
As noted above, for Woodside the senior positions on the Board are only the Chair and the CEO.
In accordance with the UK Listing Rules, ‘executive management’ includes the Executive Leadership Team (the most senior executive body below the Board) and the Group Company Secretary,
excluding administrative and support staff.
73
WOODSIDE ENERGY GROUP LTD 4.1.8 Other governance disclosures
EVALUATION OF DISCLOSURE CONTROLS AND
PROCEDURES
Woodside’s management, with the participation of its CEO
and CFO, have evaluated, as required by Rule 13a-15(b)
under the US Securities Exchange Act of 1934 (Exchange
Act), the effectiveness of Woodside’s disclosure controls
and procedures (as defined in Exchange Act Rule 13a-15(e))
as at 31 December 2023. Based on that evaluation, the CEO
and CFO concluded that Woodside’s disclosure controls and
procedures were effective, as at 31 December 2023, in ensuring
that information required to be disclosed by Woodside in
the reports that it files or submits under the Exchange Act
is recorded, processed, summarised and reported within the
time periods specified in the SEC’s rules and forms, including
that such information is accumulated and communicated to
Woodside’s management, including the CEO and CFO, to allow
timely decisions regarding required disclosure.
Management’s annual report on internal control
over financial reporting
The management of Woodside is responsible for establishing
and maintaining adequate internal control over financial
reporting (as defined in Rule 13a-15(f) and Rule 15d-15(f) under
the Exchange Act).
Under the supervision and with the participation of
management, including our CEO and CFO, the effectiveness
of Woodside’s internal control over financial reporting was
evaluated based on the framework and criteria established in
Internal Controls – Integrated Framework (2013), issued by the
Committee of the Sponsoring Organizations of the Treadway
Commission. Based on this evaluation, management concluded
that internal control over financial reporting was effective as at
31 December 2023.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements and, even
when determined to be effective, can only provide reasonable
assurance with respect to financial statement preparation and
presentation. Projections of any evaluation of effectiveness to
future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or the degree of
compliance with the policies or procedures may deteriorate.
There were no changes in our internal control over financial
reporting during FY2023 that materially affected or were
reasonably likely to materially affect our internal control over
financial reporting.
Attestation report of the registered public
accounting firm
The effectiveness of internal control over financial reporting as
of 31 December 2023 has been audited by PwC, an independent
registered accounting firm that also audits Woodside’s Financial
Statements. Their audit report on the internal control over
financial reporting is included in the Financial Statements.
74
DIFFERENCES FROM NYSE CORPORATE
GOVERNANCE REQUIREMENTS
Woodside’s ADSs are listed on the New York Stock Exchange
(NYSE) and, accordingly, Woodside is subject to the listing
standards of the NYSE (NYSE Listing Rules). The NYSE Listing
Rules include certain accommodations in the corporate
governance requirements that allow foreign private issuers, such
as Woodside, to follow ‘home country’ corporate governance
practices in lieu of the otherwise applicable corporate
governance standards of the NYSE. Woodside has elected to
comply with certain home country rules in lieu of the applicable
NYSE requirements, as more fully described below.
Woodside may in the future decide to use other foreign private
issuer exemptions with respect to other NYSE Listing Rules.
Following Woodside’s home country governance practices, as
opposed to the requirements that would otherwise apply to a
company listed on the NYSE, may provide less protection than
is accorded to investors under the NYSE Listing Rules applicable
to US domestic issuers. If, at any time, Woodside ceases to be a
foreign private issuer, it will take all action necessary to comply
with the SEC and NYSE Listing Rules.
Quorum
The NYSE Listing Rules generally require that a listed company’s
by-laws provide for a quorum for any meeting of the holders of
such company’s voting shares that is sufficiently high to ensure
a representative vote. Pursuant to the NYSE Listing Rules,
Woodside, as a foreign private issuer, has elected to comply
with practices that are permitted under Australian securities
laws in lieu of the provisions of the NYSE Listing Rules. The
Woodside Constitution provides that a quorum for a meeting of
Woodside Shareholders is three eligible Woodside Shareholders
entitled to vote.
Audit committee requirements
Under Section 303A.06 of the NYSE Listing Rules and the
requirements of Rule 10A-3 under the Exchange Act (Rule 10A-3),
a US listed company is required to have an audit committee
of such company’s board of directors consisting entirely of
independent members that comply with the requirements of
Rule 10A-3. In addition, the audit committee must have a written
charter which is compliant with the requirements of Section
303A.07(b) of the NYSE Listing Rules, the listed company must
have an internal audit function and the listed company must
fulfill all other requirements of the NYSE Listing Rules and
Rule 10A-3. Foreign private issuers must comply with the audit
committee standard set forth in Rule 10A-3, subject to limited
exemptions, but may elect to follow ‘home country’ practices
in lieu of the additional audit committee requirements in the
NYSE Listing Rules. Rule 10A-3 requires NYSE-listed companies
to ensure their audit committees are directly responsible for
the appointment, compensation, retention and oversight of the
work of the external auditor unless the company’s governing
law or documents or other home country legal requirements
require or permit shareholders to ultimately vote on or approve
these matters. While Woodside’s Audit & Risk Committee is
ANNUAL REPORT 2023 directly responsible for remuneration and oversight of the
external auditor, ultimate responsibility for the appointment
of the external auditor rests with Woodside shareholders, in
accordance with Australian law and the Woodside Constitution.
However, in accordance with the limited exemptions set forth
in Rule 10A-3, the Audit & Risk Committee is responsible for
the annual auditor engagement and if there is any proposal to
change auditors, the committee does make recommendations
to the Woodside Board on any change of auditor, which are then
considered by Woodside shareholders at the annual meeting of
Woodside shareholders.
Refer to section 4.1.3 - Board committees - Audit & Risk
Committee for information on Audit and Risk Committee
requirements under the ASX Recommendations.
Code of Ethics
The Woodside Board has adopted the Code of Conduct, which
applies to the Woodside Board and Woodside’s CEO and CFO,
along with all other Woodside employees.
During 2023, we refreshed our Code of Conduct to align it with
global best practices.
4.1.9 Shareholders
Shareholder communications
Shareholders are encouraged to receive electronic communications from the company and can
elect to receive email notification when key materials are posted to our website. Shareholders
can also receive an email notification of Woodside’s announcements and media releases.
Shareholders can communicate directly with Woodside by submitting questions or comments
on the Contact Us section of our website. The Shareholder Services section of our website also
sets out the email address for Woodside’s share registry, Computershare.
Investor relations program
Woodside has an investor relations program to facilitate effective two-way communication
with investors.
Our Continuous Disclosure and Market Communications Policy facilitates this by requiring:
• the full and timely disclosure of information about Woodside’s material activities to the
ASX and other relevant exchanges and our website (where they are retained for at least
three years)
• that all disclosures, including notices of meetings and other shareholder communications,
are drafted clearly and concisely
• the conduct of briefings for investors from time to time (such as the annual and half-year
results, and Investor Briefing Days).
Investor briefings are webcast and presentation material for briefings or speeches containing
new and substantive information is first disclosed to the market and other relevant exchanges
and posted to our website.
The company recognises the importance of shareholder participation in general meetings and
supports and encourages that participation. The company has direct voting arrangements in
place, allowing shareholders unable to attend the AGM to vote on resolutions without having to
appoint someone else as a proxy. Voting on any substantial resolution at an AGM is conducted
by poll.
Shareholder meetings
Continuous disclosure and
market communications
Woodside’s Continuous Disclosure and Market Communications Policy and associated guidelines
reinforce Woodside’s commitment to continuous disclosure and outline management’s
accountabilities and the processes to be followed for ensuring compliance.
A Disclosure Committee manages compliance with market disclosure obligations and is
responsible for implementing and overseeing reporting processes and controls and setting
guidelines for the release of information. The Disclosure Committee is comprised of senior
leaders. Employees considered to hold higher risk roles are required to participate in annual
continuous disclosure training.
The Board and Senior Executives are provided with copies of all information disclosed pursuant
to all applicable stock exchange rules.
75
WOODSIDE ENERGY GROUP LTD 4.2
GOVERNANCE
Directors’ report
The directors of Woodside Energy Group Ltd present their report (including the
Remuneration Report) together with the Financial Statements of the consolidated
entity, being Woodside Energy Group Ltd and its controlled entities, for the year
ended 31 December 2023.
DIRECTORS
The directors of Woodside Energy Group Ltd in office at any
time during or since the end of the 2023 financial year and
information on the directors (including qualifications and
experience and directorships of listed companies held by the
directors at any time in the last three years) are set out on pages
55-58 in section 4.1.2 - Board of directors.
The number of directors’ meetings held (including meetings of
committees of the Board) and the number of meetings attended
by each of the directors of Woodside Energy Group Ltd during
the financial year are shown on page 59 in section 4.1.2 - Board
of directors - Director attendance at meetings.
Details of director and Senior Executive remuneration are set out
on pages 80-104 in section 4.3 - Remuneration Report.
The particulars of directors’ interests in shares of Woodside as at
the date of this report are set out at the end of this section.
Principal activities
The principal activities and operations of Woodside during
the financial year were hydrocarbon exploration, evaluation,
development, production and marketing.
Other than as previously referred to in the operating and
financial review section there were no other significant changes
in the nature of the activities of the consolidated entity during
the year.
Consolidated results
The consolidated profit attributable to equity holders after
provision for income tax was $1,660 million ($6,498 million
in 2022).
Operating and financial review
A review of the operations of Woodside during the financial year
and the results of those operations are set out on pages 4-11
in section 1 - Overview, pages 12-19 in section 2 - Strategy and
Financial Performance, pages 20-52 in section 3 - Our Business
and pages 203-206 in section 6.5 - Asset facts.
Significant changes in the state of affairs
The review of operations on pages 4-52 sets out a number of
matters that have had a significant effect on the state of affairs
of the consolidated entity.
Other than those matters, there were no significant changes
in the state of affairs of the consolidated entity during the
financial year.
Events subsequent to end of financial year
Since the reporting date, the directors have resolved to pay a fully
franked dividend. More information is available in the Dividend
section below. No provision has been made for this dividend in
the financial report as the dividend was not determined by the
directors on or before the end of the financial year.
Other than those disclosed in Note E.5 of section 5 - Financial
Statements on page 158, there are no other material subsequent
events.
Dividend
The directors have resolved to pay a final dividend in respect of
the year ended 31 December 2023 of 60 US cents per ordinary
share (fully franked) payable on 4 April 2024.
Type
2023 final
2023 interim
2022 final
Payment date
4 April 2024
28 September 2023 5 April 2023
Period ends
31 December 2023
30 June 2023
31 December 2022
Cents per share
60
Value $ million
1,139
Fully franked
80
1,519
144
2,734
7676
ANNUAL REPORT 2023ANNUAL REPORT 2023 Indemnification and insurance of directors and
officers
Woodside Energy Group Ltd’s constitution requires Woodside
Energy Group Ltd to indemnify each director, secretary,
executive officer or employee of Woodside Energy Group Ltd
or its wholly owned subsidiaries against liabilities (to the extent
Woodside Energy Group Ltd is not precluded by law from doing
so) incurred in or arising out of the conduct of the business
of Woodside Energy Group Ltd or the discharge of the duties
of any such person. Woodside Energy Group Ltd enters into
deeds of indemnity with directors, secretaries, certain Senior
Executives and employees serving as officers on wholly owned
or partly owned companies of Woodside in terms consistent
with the indemnity provided under Woodside Energy Group
Ltd’s constitution.
From time to time, Woodside engages its external auditor,
PricewaterhouseCoopers, to conduct non-statutory audit work
and provide other services in accordance with Woodside’s
External Auditor Guidance Policy. The terms of engagement
include an indemnity in favour of PricewaterhouseCoopers:
• against all losses, claims, costs, expenses, actions, demands,
damages, liabilities or any proceedings (liabilities) incurred
by PricewaterhouseCoopers in respect of third-party claims
arising from a breach by Woodside under the engagement
terms
• for all liabilities PricewaterhouseCoopers has to Woodside or
any third party as a result of reliance on information provided
by Woodside that is false, misleading or incomplete.
Woodside Energy Group Ltd has paid a premium under a
contract insuring each director, officer, secretary and employee
who is concerned with the management of Woodside Energy
Group Ltd or its subsidiaries against liability incurred in that
capacity. Disclosure of the nature of the liability covered by and
the amount of the premium payable for such insurance is subject
to a confidentiality clause under the contract of insurance.
Woodside Energy Group Ltd has not provided any insurance for
the external auditor of Woodside Energy Group Ltd or a body
corporate related to the external auditor.
During the financial year ended 31 December 2023 and as at the
date of this Directors’ report, no indemnity in favour of a current
or former director, officer or external auditor of the Group has
been called on.
Likely developments, business strategies, future
prospects and expected results
In general terms, the review of operations of Woodside as set
out on pages 4-52 gives an indication of likely developments,
business strategies, prospects for future financial years, and
the expected results of the operations. In the opinion of the
directors, disclosure of any further information would be likely
to result in unreasonable prejudice to Woodside. Page 214 of
section 6.8 - Information about this report includes further
details regarding Woodside’s reliance on the unreasonable
prejudice exemption.
Environmental compliance
Woodside is subject to a range of environmental legislation
in Australia and other countries in which it operates. In 2023,
there were no incidents involving spills of hydrocarbons or
hazardous non-hydrocarbons greater than 1 bbl released to
the environment.
Through its Environment and Biodiversity Policy, Woodside
plans and performs activities so that adverse effects on the
environment are avoided or minimised as much as reasonably
practicable.
For the financial year ended 31 December 2023, we recorded no
fines or prosecutions relating to our environmental performance.
Research and development
Woodside is leveraging technology to drive cost efficiencies
and exploring a range of technology options to support step
change abatement. Woodside has a number of technology
collaborations and pursues opportunities through technology
across operations including for emissions reduction.
For further information on examples of the Group’s activities
in the field of research and development see section 3.7 - New
energy and carbon solutions on page 28.
Company Secretaries
The following individuals have acted as Company Secretary
during 2023:
Warren Baillie LLB, BCom, Grad. Dip. CSP
Group Company Secretary
Mr Baillie joined Woodside in 2005 and was appointed Group
Company Secretary effective 1 February 2012. Mr Baillie is a
solicitor and chartered secretary. He is a former President of the
board of the Governance Institute of Australia.
Lucy Bowman MA (Oxon), Jurisprudence
Joint Company Secretary
Ms Bowman joined Woodside in 2021 as Senior Legal
Counsel and was appointed Joint Company Secretary effective
20 October 2022. She is a graduate member of the Australian
Institute of Company Directors.
Branches
Woodside Energy Group Ltd, through various subsidiaries,
has established branches in a number of countries.
77
WOODSIDE ENERGY GROUP LTD Directors’ relevant interests in Woodside Energy
Group Ltd shares as at the date of this report
Director
Larry Archibald
Ashok Belani2
Arnaud Breuillac2
Frank Cooper
Swee Chen Goh
Richard Goyder
Ian Macfarlane
Angela Minas2
Meg O’Neill1
Ann Pickard
Gene Tilbrook
Ben Wyatt
Relevant interest in shares
13,524
Nil
Nil
16,142
14,953
26,163
11,376
Nil
432,621
15,870
9,947
3,054
1
2
Meg O’Neill is the only Woodside Energy Group Ltd director who has rights on issue
and her rights holdings are set out on page 97 in section 4.3 - Remuneration Report.
Woodside Energy Group Ltd does not have any options on issue.
Mr Breuillac, Ms Minas and Mr Belani are participating in the Non-Executive Directors’
Share Plan and will acquire shares going forward under this plan.
Signed in accordance with a resolution of the directors.
R J Goyder, AO
Chair
Perth, Western Australia
27 February 2024
M E O’Neill
Chief Executive Officer and Managing Director
Perth, Western Australia
27 February 2024
Non-audit services and auditor independence
declaration
Details of the amounts paid or payable to the external auditor of
the company, PricewaterhouseCoopers for audit and non-audit
services provided during the year are disclosed in Note E.4 of
section 5 - Financial Statements.
Based on advice provided by the Audit & Risk Committee, the
directors are satisfied that the provision of non-audit services by
the external auditor during the financial year is compatible with
the general standard of independence for auditors imposed by
the Corporations Act 2001 for the following reasons:
• all non-audit services were provided in accordance with
Woodside’s External Auditor Policy and External Auditor
Guidance Policy
• all non-audit services were subject to the corporate
governance processes adopted by the company and have
been reviewed by the Audit & Risk Committee to ensure that
they do not affect the integrity or objectivity of the auditor.
The auditor’s independence declaration, as required under
section 307C of the Corporations Act 2001, is set out on
page 79 and forms part of this report.
Financial instruments
For further information on Woodside’s financial risk
management objectives and policies, hedging and exposure
to price risk, credit risk, liquidity risk and cash flow risk, refer
to sections A, C and D on pages 115, 140 and 144 in section
5 - Financial Statements and Quantitative and qualitative
disclosures about market risk on pages 186-187 in section
6.3 - Additional disclosures.
Proceedings on behalf of the company
No proceedings have been brought on behalf of the company,
nor has any application been made in respect of the company,
under section 237 of the Corporations Act 2001.
Rounding of amounts
Woodside Energy Group Limited is an entity to which the
Australian Securities and Investments Commission (ASIC)
Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 (ASIC Instrument 2016/191) applies.
Amounts in this report have been rounded in accordance with
ASIC Instrument 2016/191. This means that amounts contained
in this report have been rounded to the nearest million dollars
unless otherwise stated.
Information in other parts of the Annual Report
Where this Directors’ report refers to other parts of the Annual
Report, those pages form part of this report.
78
ANNUAL REPORT 2023 Auditors independence declaration to the Directors of Woodside Energy Group Ltd
Auditor’s Independence Declaration
As lead auditor for the audit of Woodside Energy Group Ltd for the year ended 31 December 2023, I
declare that to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit, and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Woodside Energy Group Ltd and the entities it controlled during the
period.
N M Henry
Partner
PricewaterhouseCoopers
Perth
27 February 2024
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
79
WOODSIDE ENERGY GROUP LTD
4.3
GOVERNANCE
Remuneration Report
CONTENTS
4.3.1 Committee Chair’s letter
4.3.2 Remuneration Report (audited)
KMP and summary of Woodside’s five-year performance
Executive KMP
Remuneration policy
Executive Incentive Scheme
Executive KMP remuneration structure
Remuneration changes and benchmarking
Corporate Scorecard measures and outcomes for 2023
Executive KMP KPIs and outcomes for 2023
Contracts for Executive KMP
Non-executive directors (NEDs)
Remuneration policy
Minimum Shareholding Requirements (MSR) Policy
NEDs remuneration structure
Human Resources & Compensation Committee
Loans and transactions
Use of remuneration consultants
Reporting notes
Reporting in United States dollars
Statutory tables
4.3.3 Glossary
81
83
83
84
84
84
86
89
90
91
97
98
98
98
98
99
99
99
99
99
100
104
8080
1.1 ANNUAL REPORT 2023ANNUAL REPORT 2023
4.3.1 Committee Chair’s letter
27 February 2024
Dear Shareholders
On behalf of the Board, I am pleased to present the Remuneration Report for the year ended 31 December 2023.
I would like to acknowledge that, in June, one of our colleagues tragically lost his life while working at the North Rankin Complex.
Protecting the health and safety of our employees and our contractors is our top priority, and we must ensure we remain focused
on our commitment to prevent injuries. We are resolved to strive to achieve industry-leading safety performance.
In 2023, our expanded global portfolio has delivered record and reliable production, good progress has been made on our key growth
projects and we achieved strong emissions performance at our facilities. While our operating performance was strong in 2023, lower
realised oil and gas prices contributed to earnings before interest, taxes, depreciation, and amortisation, excluding impairment (EBITDA)
being below target.
These results are reflected in our 2023 Executive key management personnel (KMP) remuneration outcomes outlined below and in further
detail in this report. The Board considers the 2023 remuneration outcomes align with overall corporate performance and shareholder’s
return, while maintaining Woodside’s ability to attract and retain talented executive capability in a globally competitive market.
Business performance
In 2023, the Corporate Scorecard continued to have a strong link between executive reward and our shareholders’ experience. It was
based on Woodside’s performance across four equally weighted measures of financial, base business, material sustainability issues,
and strategy and growth.
The health and safety performance measure, which contributes to 10% of the total 2023 scorecard outcome, was zero. This reflects the
tragic fatality at our North Rankin Complex, together with below target TRIR and disappointing process safety performance. The Board
recognises we must improve on safety.
The financial measure for EBITDA was US$9,363 million, below the target of US$11,860 million due to lower realised prices. While LNG
prices remained above the long-term average, they were less than budget. Operating Expenditure was $47 million higher than the target
of US$2,208 million.
Our expanded global portfolio delivered record production in 2023 (187.2 MMboe) due to reliable operating performance. This was
achieved while beating our internal gross equity Scope 1 and 2 emissions1 target by 5%.
Over the year, we made good progress on our key growth projects with the Scarborough Energy Project on track for first LNG cargo
in 2026. First oil is targeted for mid-2024 on our Sangomar project off Senegal and we achieved FID on the Trion Project in the Gulf of
Mexico. On our new energy projects, work continues on our proposed H2OK hydrogen project in Oklahoma and several CCS opportunities
are advancing. In Western Australia, State and Federal environmental approvals were secured for the proposed Woodside Solar Project
near Karratha.
The company’s performance across the four Corporate Scorecard measures gave an overall corporate performance outcome of 4.8
(out of a maximum of 10).
The 2024 Corporate Scorecard has been reviewed and approved by the Board and reflects Woodside’s balanced approach to operational
performance against material sustainability criteria. It includes a distinct standalone measure for each of safety and climate, at 15% each
of the total 2024 scorecard. These changes are described in further detail in the 2024 Corporate Scorecard section of this report.
Executive Incentive Scheme outcomes
Variable Annual Reward (VAR) is delivered under the Woodside Executive Incentive Scheme (EIS). Each executive’s award is based on
their individual performance against key performance indicators (KPIs) and the company’s performance through the Corporate Scorecard.
In 2023, the individual performance of the CEO was assessed against five equally weighted measures of growth agenda, effective
execution, enterprise capability, culture, reputation, and shareholder focus. At the end of the year, the Board reviewed the CEO’s
performance, which together with the Corporate Scorecard outcome, resulted in an EIS award at 104% of the target opportunity.
1 Gross equity emissions are calculated prior to retirement of carbon credits as offsets, focusing the organisational priorities on avoiding and reducing emissions. This contributes
to our company target to reduce net equity Scope 1 and 2 emissions. Further information on this company target is provided in section 3.8 - Climate and sustainability.
81
WOODSIDE ENERGY GROUP LTD The CEO proposed to the Board her final EIS award be reduced by 5% in light of the fatality at our North Rankin Complex. The Board
exercised its discretion to reduce the EIS award to 99% of the target opportunity (66% of the maximum opportunity). The Board will
consider whether any further action is appropriate as Woodside’s response to the fatality continues.
Senior Executive individual performance was evaluated against the same performance measures as the CEO, with individual KPIs set
relevant to each Executive’s area of responsibility. Senior Executive EIS awards ranged from 101% to 105% of target opportunity.
The Board has reviewed the 2023 EIS outcomes and believes they appropriately align with overall corporate performance and
shareholder experience.
Executive remuneration
CEO and Senior Executives remuneration, both fixed and variable, is reviewed annually with regard for accountabilities, experience and
individual performance. It is also supported by external benchmarking.
Effective 1 January 2024, the Board determined that the CEO’s Fixed Annual Reward (FAR) would increase by 3%. The VAR component
of the CEO’s remuneration package remained unchanged.
Senior Executive FAR was also reviewed during 2023. The Board determined that FAR would increase by 5% for Mr Graham Tiver and
Ms Shiva McMahon, effective 1 April 2023. The VAR structure and opportunity of Senior Executive remuneration remained unchanged.
External benchmarking was conducted by external remuneration consultants, against ASX 20 companies, selected peers in the Australian
materials and energy sector, and international oil and gas companies. The Board believes this review brings the total remuneration of the
CEO and Senior Executives to a competitive position in the selected peer groups.
These changes are described in further detail in the remuneration changes section of this report.
The Board appointed Ms Liz Westcott as Executive Vice President Australian Operations effective 1 June 2023. Details of Ms Westcott’s
FAR and key contract terms are set out in this report.
Chair and non-executive director fees
Fees for the Chair, and non-executive directors are reviewed annually against benchmarking from external remuneration consultants.
The fees for the Chair and non-executive directors and committee membership were last increased by 5% on 1 January 2023, the first
increase since 2019. This increase considered benchmarking conducted by external independent remuneration consultants KPMG against
the ASX 20 and selected international oil and gas companies.
No changes to Chair or non-executive director fees are proposed for 2024.
Governance
The Human Resources & Compensation Committee continued to review the company’s remuneration policies and practices globally
to ensure these remain competitive in local markets and meet changing regulatory requirements. In 2023, this included adopting
a Mandatory Clawback Policy consistent with the requirements of Section 303.A14 of the New York Stock Exchange Listed
Company Manual.
More detail on the Committee’s activities in 2023 is available in the Corporate Governance Statement 2023.
Conclusion
On behalf of the Board, I would like to thank Mr Gene Tilbrook who served as Chair of the Committee from 2019 until December 2023.
As Committee Chair, Gene has overseen the introduction of activities to assess and monitor culture and brought a focus to investor
engagement on executive remuneration and its connection to the strategy and shareholder experience.
We look forward to our ongoing engagement with you and sharing in Woodside’s future success.
Yours sincerely,
Arnaud Breuillac
Chair of Human Resources & Compensation Committee
82
ANNUAL REPORT 2023
4.3.2 Remuneration Report (audited)
KMP AND SUMMARY OF WOODSIDE’S FIVE-YEAR PERFORMANCE
This report outlines the remuneration arrangements and outcomes achieved for Woodside’s key management personnel (KMP)
during 2023.
Woodside’s KMP are the people who have the authority to shape, influence and control the Group’s strategic direction and performance
through their actions, either collectively (in the case of the Board) or as individuals acting under delegated authorities (in the case of the
CEO and Senior Executives).
The names and positions of the individuals who were KMP during 2023 are set out in Tables 1A and 1B. Unless otherwise indicated in
Table 1A and 1B, all individuals were KMP for the full year in 2023.
Table 1A – Executive KMP
Executive Director
Table 1B – Non-Executive Directors KMP
Non-Executive Directors
Meg O’Neill (Chief Executive Officer and Managing Director (CEO))
Richard Goyder, AO (Chair)
Senior Executive
Larry Archibald
Graham Tiver (Executive Vice President and Chief Financial Officer)
Frank Cooper, AO
Shiva McMahon (Executive Vice President International Operations)
Swee Chen Goh
Liz Westcott (Executive Vice President Australian Operations)1
1 Ms L Westcott commenced with Woodside on 1 June 2023.
Ian Macfarlane
Ann Pickard
Gene Tilbrook
Ben Wyatt
Arnaud Breuillac1
Angela Minas2
Former Non-Executive Directors
Christopher Haynes, OBE3
Sarah Ryan4
1 Mr A Breuillac was appointed as a non-executive director on 8 March 2023.
2 Ms A Minas was appointed as a non-executive director on 28 April 2023.
3 Dr C Haynes ceased being a non-executive director on 28 April 2023.
4 Dr S Ryan ceased being a non-executive director on 28 April 2023.
KMP changes in 2024
Woodside announced on 24 January 2024 that Mr Frank Cooper, AO and Mr Gene Tilbrook are anticipated to retire from the Woodside
Board at or before the Annual General Meeting in April 2024. Further, Mr Ashok Belani was appointed as a non-executive director
effective 29 January 2024.
Table 2 – Five-year performance
EBITDA excluding impairment1
Operating Expenditure2
Net profit after tax (NPAT)4
Basic earnings per share5
Underlying NPAT1
Dividends per share
Share closing price (last trading day of the year)
Production7,8
Average annual Dated Brent8
(US$million)
(US$million)
(US$million)
(US cents)
(US$million)
(US cents)
(A$)
(MMboe)
($/boe)
2023
9,363
2,255
1,660
87.5
3,320
140
31.06
187.2
83
2022
11,234
2,0633
6,498
430
5,230
253
35.44
157.7
101
2021
4,135
1,0303
1,983
206
1,620
135
21.93
91.1
71
2020
1,922
-
(4,028)
(424)
447
38
22.74
100.3
42
2019
3,531
-
343
37
1,063
91
34.385
89.6
64
1 This is a non-IFRS measure that is unaudited but derived from audited Financial Statements. This measure is presented to provide further insight into Woodside’s performance and has been
calculated as defined in the Alternative performance measures section of the Annual Report.
2 Operating expenditure is a non-IFRS measure that is unaudited. This measure includes only those expenses within production costs and general, administrative and other expenses directly
attributable to generating revenue from the sale of hydrocarbons from Woodside’s operating assets. Operating expenditure was not disclosed prior to 2021.
3 As of 2023, Operating Expenditure for the Corporate Scorecard is calculated and reported in USD reflecting the global nature of the organisation post merger. Prior to 2023, the Operating
Expenditure was calculated and reported in AUD.
4 Represents profit after tax attributable to equity holders of the parent. This measure is presented to provide further insight into Woodside’s performance.
5 Basic earnings per share from total operations.
6 Share closing price (last trading day) for 2018 was $31.32.
7 From 2022 onwards, production volumes have been calculated using updated conversion factors as defined in the Glossary, units of measure and conversion factors section of the Annual Report.
8 These measures are non-IFRS financial performance measures and therefore are unaudited.
83
WOODSIDE ENERGY GROUP LTD EXECUTIVE KMP
Remuneration policy
Woodside’s strategy is to thrive through the energy transition
by building a low cost, lower carbon, profitable, resilient and
diversified portfolio. There are three goals which drive this
strategic direction.
First, we strive to have the right portfolio to provide the energy
required for future demand. We play to our strengths, providing
oil and gas to our customers while advancing new energy
products and lower carbon services. Climate is an integrated
part of our strategy and we assess investment decisions against
a wide range of considerations including climate outcomes.
This is important as the demand from our customers becomes
increasingly shaped by their decarbonisation goals.
Secondly, we want to create and return value to our shareholders.
Our capital management framework aims to optimise value,
balance strong shareholder returns and invest in quality
opportunities.
Finally, we aim to conduct our business sustainably. To achieve
this, we need to manage our impact on people, communities
and the environment in which we operate. The safety of our
people and a strong focus on managing our net equity Scope 1
and 2 emissions to meet our targets is critical to the longevity
of our business.
All three goals are critical to ensuring that Woodside delivers its
strategy and thrives through the energy transition.
To do so, the company must be able to attract and retain executive
capability in a globally competitive market. The Board structures
remuneration so that it rewards those who perform, is valued by
Executives, and is aligned with the company’s values, strategic
direction and the creation of enduring value to shareholders, and
other stakeholders.
Fixed Annual Reward (FAR) is determined having regard to the
scope of each Executive’s role and their level of knowledge, skills
and experience.
Variable Annual Reward (VAR) is calculated annually, based
on performance measures set by the Board aimed at aligning
executive remuneration with short and long-term shareholder
returns. VAR aligns shareholder and executive remuneration
outcomes by making a significant portion of executive
remuneration at risk, while rewarding performance.
Executive remuneration is reviewed annually, having regard
to the accountabilities, experience and performance of each
individual. FAR and VAR are compared against domestic and
international competitors at target, to maintain Woodside’s
capacity to attract and retain talent and to ensure appropriate
motivation is provided to Executives to deliver on the company’s
strategic objectives.
Executive Incentive Scheme
VAR is delivered under the Woodside Executive Incentive Scheme (EIS). The EIS is structured having regard to the key objectives
of executive engagement, alignment with the shareholder experience and strategic fit.
EXECUTIVE ENGAGEMENT
Enable Woodside to attract and retain
executive capability in a globally
competitive environment by providing
Executives with a clear remuneration
structure giving line of sight to
how performance is reflected in
remuneration outcomes.
ALIGNMENT WITH THE
SHAREHOLDER EXPERIENCE
Promote significant share ownership
through equity awards. Equity awards
are delivered as a combination of
Restricted Shares and Performance
Rights. The Performance Rights are
Relative Total Shareholder Return
(RTSR) tested against comparator
groups, after five years.
STRATEGIC FIT
Measures which determine the
quantum of the EIS award are selected
for alignment with Woodside strategy
and award deferral periods reflect
Woodside’s strategic time horizons.
Together these drive Executives to
deliver our strategic objectives with
discipline and collaboration, in turn
creating shareholder value.
84
ANNUAL REPORT 2023
Individual and Company Performance
The EIS delivers a single variable reward linked to challenging
individual and company annual targets set by the Board.
Each Executive KMP’s award is based upon two components:
individual performance against KPIs (30% weighting) and the
company’s performance against the Corporate Scorecard
(70% weighting).
Individual performance measures are designed to ensure
Executives focus on driving Woodside’s culture and values whilst
executing Woodside’s strategic imperatives.
The Board has strong oversight and governance to ensure that
appropriate and challenging individual targets are set to create a
clear link between performance and reward.
The 2023 Corporate Scorecard for Executive KMP was based
on four equally weighted measures that were chosen because
they impact short-term and long-term shareholder value.
This includes measures selected for alignment with Woodside
strategy, covering operational efficiency, financial outcomes and
performance against key sustainability measures.
Financial
Base business
Sustainability
Strategy and growth
EBITDA is a key contributor to
annual profitability, and controlling
Operating Expenditure brings a
focus on efficient operations,
cost competitiveness and
shareholder returns.
Revenue is maximised and value
generated from our assets when
they are fully utilised in production.
Material sustainability issues
include personal and process
safety, environment, emissions
reductions, and our social licence
to operate.
Business priorities focus on
progress and milestones of capital
projects, business developments,
and balance sheet management.
25%
25%
25%
25%
Calculation of Award
The EIS award is subject to performance in each 12-month period
and is determined at the conclusion of each performance year.
Individual performance is rated on a scale between 0 and 5 and
is assessed by the Board in the case of the CEO, and by the CEO
and the Human Resources & Compensation Committee in the
case of Senior Executives. Corporate performance is rated on
a scale between 0 and 10, with a score of 5 for an outcome at
target and a maximum of 10 on each measure. The sum of these
two components determines the award.
Exceeding targets results in an increased award with a linear
calculation up to the maximum, while under-performance will
result in a reduced award. The minimum award that an Executive
can receive is zero if the performance conditions are not
achieved on either company or individual performance.
The decision to pay or allocate an EIS award is subject to the
overriding discretion of the Board, which may adjust outcomes,
both upwards and downwards, to better reflect shareholder
outcomes and company or management performance. Each
year, the Board conducts a holistic assessment of Woodside’s
performance on all significant factors, before considering
whether it is appropriate to adjust EIS outcomes, either upwards
or downwards.
Corporate
Scorecard
70%
Variable
Annual
Reward
Individual
KPIs
30%
Target variable reward opportunity for 2023
Each Executive is given a target VAR opportunity and a maximum VAR opportunity which is expressed as percentage of the Executive’s
FAR. The opportunities for 2023 are outlined below.
Position
CEO
Senior Executives
Minimum opportunity
(% of FAR)
Target opportunity
(% of FAR)
Maximum opportunity
(% of FAR)
Zero
Zero
280
160
420
256
CEO remuneration at target
Senior Executives remuneration at target
Fixed reward 26% Variable reward 74%
Fixed reward 38%
Variable reward 62%
85
WOODSIDE ENERGY GROUP LTD Executive KMP remuneration structure
Woodside’s remuneration structure for the CEO and Senior Executives is comprised of two components: FAR and VAR.
FAR
• Based upon the scope of the Executive’s role and their
individual level of knowledge, skill and experience.
• Benchmarked for competitiveness against domestic and
international peers to enable the company to attract and
retain superior executive capability.
VAR
• Executives are eligible to receive a single variable reward linked
to individual and company annual targets set by the Board.
• The VAR is subject to performance against individual and
corporate performance in the initial 12-month period and is
determined at the conclusion of each performance year.
The VAR for the CEO and Senior Executives is outlined below:
CEO EIS structure
Performance
Rights1
30%
Restricted
Shares1
30%
Restricted
Shares1
10%
Restricted
Shares1
10%
Cash
20%
Subject to 5-year RTSR performance
Subject to a 5-year deferral period
Subject to a 4-year
deferral period
Subject to a 3-year deferral
period
Senior Executives EIS structure
Subject to 5-year RTSR performance
Subject to a 5-year deferral period
Subject to a 3-year
deferral period
Performance
Rights1
27.5%
Restricted
Shares1
27.5%
Restricted
Shares1
25%
Cash
20%
Year 12
Year 2
Year 3
Year 4
Year 5
Year 12
Year 2
Year 3
Year 4
Year 5
1 Allocated using a face value methodology.
2 Award allocated after completion of performance year.
Cash
The cash component is payable following the end of the
12-month performance year, in the March pay-cycle.
investment timelines. It is imperative that Executives take decisions
in the long-term interest of shareholders, focused on value creation
across the commodity price cycles of the oil and gas industry.
Restricted Shares
For the CEO’s VAR award, the Restricted Share component is
divided into tranches with three, four and five-year deferral
periods and for Senior Executive’s VAR awards, the Restricted
Shares are divided into tranches with three and five-year deferral
periods. There are no further performance conditions attached
to these awards. This element creates a strong retention
proposition for Executives as vesting is subject to employment
not being terminated with cause or by resignation during
the deferral period. The deferral mechanism means that the
value of awards reflects fluctuations in share price across the
deferral periods, which is intended to reflect the sustainability
of performance over the medium and long-term and support
alignment between Executives and shareholders.
Performance Rights
The Performance Rights are divided into two portions with each
portion subject to a separate RTSR performance hurdle tested
over a five-year period. Performance is tested after five years
as Woodside operates in a capital intensive industry with long
Our view is that RTSR is the best measure of long-term value
creation across the commodity price cycle of our industry.
One-third of the Performance Rights are tested against a
comparator group that comprises the entities within the ASX 50
index at 1 December 2023. The remaining two-thirds are tested
against an international group of oil and gas companies, set out
in Table 11.
RTSR outcomes are calculated by an external adviser after
the conclusion of the performance period. The outcome of the
test is measured against the schedule below. For EIS awards,
any Performance Rights that do not vest will lapse and are
not retested.
For valuation purposes all Performance Rights are treated as
if they will be equity settled. Each Performance Right is a right
to receive a fully paid ordinary share in Woodside on vesting
(or, at the Board’s discretion, as cash equivalent payment).
No amount is payable by the Executive on the grant or vesting
of a Performance Right.
86
ANNUAL REPORT 2023 RTSR performance hurdle vesting
Woodside RTSR percentile position within peer group
Vesting of Performance Rights in the relevant RTSR component
Less than 50th percentile
Equal to 50th percentile
Between the 50th and 75th percentile
Equal to or greater than 75th percentile
No vesting
50% vest
Vesting on a pro-rata basis
100% vest
Table 3 – Key EIS features
Allocation methodology
Dividends and voting
Clawback provisions
Control event
Cessation of employment
Restricted Shares and Performance Rights are allocated using a face value allocation methodology. The number
of Restricted Shares and Performance Rights is calculated by dividing the value by the volume weighted average
price (VWAP) of the Company’s shares traded on each trading day across December of the performance year.
Executives are entitled to receive dividends on Restricted Shares. No dividends are paid on Performance Rights
prior to vesting. For Performance Rights that do vest, a dividend equivalent payment will be paid by Woodside for
dividends paid during the period between allocation and vesting. The dividend equivalent payment will be paid in
cash unless the Board determines otherwise.
Restricted Shares have voting rights in the same way as other Woodside shareholders. Performance Rights do not
have voting rights until shares are allocated following vesting.
The Board has broad discretion to reduce vested and unvested entitlements, including where an Executive has
acted fraudulently or dishonestly or is found to be in material breach of their obligations; there is a material
misstatement or omission in the financial statements; a significant unexpected or unintended consequence or
outcome has occurred; or the Board determines that circumstances have occurred that have resulted in an unfair
benefit to the Executive.
In 2023, the Board adopted a Mandatory Clawback Policy consistent with the requirements of Section 303.A14 of
the New York Stock Exchange Listed Company Manual. Where the company is required to prepare an accounting
restatement due to material non-compliance with any financial reporting requirements under the securities laws,
the Company will recoup the amount of erroneously awarded incentive-based compensation in accordance with
such Mandatory Clawback Policy.
The Board has the discretion to determine the treatment of any EIS award on a change of control event. If an
actual change of control occurs during the performance year, an Executive will generally receive at least a pro-
rata cash payment in respect of the unallocated cash and Restricted Share components of the EIS award for that
performance year, assessed at target.
If an actual change of control occurs during the vesting period for equity awards, unless the Board determines
otherwise Restricted Shares will vest in full whilst Performance Rights, will vest on a pro-rata basis having regard
to the portion of the vesting period elapsed.
During a performance year, should an Executive resign or be terminated for cause, no EIS award will be provided
(unless the Board determines otherwise). In any other case, Woodside will have regard to performance against
target and the portion of the performance year elapsed in determining any EIS award.
During a deferral or performance period, should an Executive resign or be terminated for cause, any EIS award will
be forfeited or lapse (unless the Board determines otherwise). In any other case, any Restricted Shares will vest in
full from a date determined by the Board while any Performance Rights will remain on foot and vest in the ordinary
course subject to the satisfaction of applicable conditions, unless the Board determines otherwise.
No retesting
There will be no retest applied to EIS awards. Performance Rights will lapse if the required RTSR performance is
not achieved at the conclusion of the five-year period.
87
WOODSIDE ENERGY GROUP LTD Minimum Shareholding Requirements (MSR) Policy
The Executive MSR Policy reflects the long-term focus of
management and aims to further strengthen alignment with
shareholders.
The MSR Policy requires Senior Executives to have acquired and
maintained Woodside shares for a minimum total purchase price
of at least 100% of their FAR after a period of five years, and in
the case of the CEO a minimum of 200% of FAR after a period of
five years.
Of the Executive KMP, Ms O’Neill, Mr Tiver and Ms McMahon
meet the MSR requirements. Ms Westcott commenced with
Woodside in 2023 and will acquire Woodside shares to meet the
MSR requirements. See Table 14 for details.
Other equity plans
Woodside has a history of providing employees with the
opportunity to participate in ownership of shares in the
company and using equity to support a competitive base
remuneration position.
Details of prior year allocations are provided in Table 12.
The terms applying to prior year grants are described in past
Woodside Annual Reports.
Supplementary Woodside Equity Plan (SWEP)
In October 2011, the Board approved the establishment of the
SWEP to enable the offering of targeted retention awards of
Equity Rights (ERs) for key capability.
The SWEP was updated in 2022 to broaden eligibility to all
employees of a subsidiary of Woodside Energy Group Ltd
and ensure compliance in all jurisdictions in which Woodside
operates. This facilitated the offer of replacement unvested
incentives as required under transitional arrangements for
eligible heritage BHP employees transitioning from BHP
Group Long-Term Incentive (LTI) plans to VAR offered under
Woodside’s VAR arrangements.
The SWEP awards have service conditions and no performance
conditions. Each ER entitles the participant to receive a
Woodside share on the vesting date.
ERs under the SWEP may vest prior to the vesting date on a
change of control or on a pro-rata basis, at the discretion of
the CEO, limited to the following circumstances; redundancy,
retirement (after six months’ participation), death, termination
due to illness or incapacity or total and permanent disablement
of a participating employee. An employee whose employment is
terminated by resignation or for cause prior to the vesting date
will forfeit all their unvested ERs.
In relation to the applicable cessation of employment treatment
for SWEP ERs granted as replacement awards to heritage
BHP employees, unless the Board determines otherwise,
unvested SWEP ERs will vest on a pro-rata basis in the following
circumstances; redundancy, death, termination due to medical
illness or incapacity or total and permanent disablement of
the participant. For cessation in other circumstances, (and
other than where employment is terminated by resignation or
for cause), Woodside’s CEO (or Committee of the Board, as
applicable) has discretion to permit pro-rata vesting.
There is no entitlement to dividends on ERs and ERs do not carry
voting rights.
88
ANNUAL REPORT 2023 Remuneration changes and benchmarking
The Board reviewed the remuneration for the CEO and Senior
Executives with regard for accountabilities, experience and
individual performance, supported by external benchmarking.
In 2023, the Board engaged independent remuneration
consultants KPMG (Australia) and Meridian (US) to provide input
to this review. The benchmarking conducted by KPMG included
ASX 20 companies, selected peers in the Australian materials
and energy sector and international oil and gas companies.
Meridian benchmarked 18 companies with global operations,
primarily in the oil and gas energy sector.
With reference to market benchmarks, the Board has set
Ms O’Neill’s FAR at A$2,472,000 effective 1 January 2024.
This increase of three percent (compared to Ms O’Neill’s FAR of
A$2,400,000 in 2023) recognised the expertise, knowledge and
performance of Ms O’Neill and brings the total remuneration to
a competitive position in the selected peer groups.
In 2022 the Board approved an increase to the target
opportunity for the CEO’s VAR and structure of the EIS. This has
applied to the assessment of the CEO’s performance from 1 June
2022 and the 2023 performance year. No changes are proposed
to the target opportunity or structure of EIS for 2024.
Benchmarking indicates Ms O’Neill’s remuneration is positioned
competitively in the selected peer groups. CEO FAR is
comparable to median of the ASX 20 peer group and the
upper quartile of global oil and gas peers. CEO Total Target
Remuneration (TTR), which includes FAR and at target VAR, is
aligned to the upper quartile of the ASX peer group and is below
the median compared to global oil and gas peers.
To support the review of Senior Executive remuneration
the Board engaged KPMG to provide benchmarking and
remuneration recommendations. Following this review, the FAR
for Mr Tiver and Ms McMahon was increased by five percent
effective 1 April 2023. No changes are proposed to the VAR
target opportunity or structure of EIS for 2024.
Woodside CEO 1 January 2024 FAR and TTR comparison to ASX 20 and global oil and gas peers:
CEO FAR comparison
CEO TTR comparison
Upper quartile
Median to upper quartile
Lower to median quartile
Lower quartile
ASX
Global
ASX
Global
2024 Corporate Scorecard
The 2024 Corporate Scorecard has been approved by the Board
and reflects Woodside’s balanced approach to setting measures
aligned with Woodside’s strategy. The 2024 Scorecard has five
individually weighted measures which assess safe, reliable, and
efficient operations, implementation of our strategic plan and
delivery of sustainable business priorities.
To focus Executives on their leadership contribution to
Woodside’s safety performance and delivery against climate
plans, each objective has been elevated a standalone measure
in 2024.
Safety metrics make up 15% of the total 2024 scorecard to
ensure a focus on our aim to prevent all injuries and the critical
importance of effective process safety management and
leadership to avoid major accident and environmental events.
Climate metrics make up 15% of the total 2024 scorecard
to ensure appropriate emphasis on meeting Scope 1 and 2
emissions targets as well as progress of new energy projects.
Financial
Base business
Growth
Safety
Climate
EBITDA is a key contributor
to annual profitability
and controlling Operating
Expenditure brings a focus
on efficient operations,
cost competitiveness and
shareholder returns.
Revenue is maximised and
value generated from our
assets when they are fully
utilised in production.
Growth focuses on
achievement of capital
project milestones and
business developments
aligned to our strategic
plan.
Protecting the health
and safety of our people,
our contractors and our
host communities is a top
priority.
Ensures appropriate
emphasis on meeting
Scope 1 and 2 emissions
targets and progress of
new energy projects.
30%
20%
20%
15%
15%
89
WOODSIDE ENERGY GROUP LTD Corporate Scorecard measures and outcomes for 2023
Financial (25%)
MID-POINT
MAX
Outcome
3.3
EBITDA excluding impairment is a key contributor to annual profitability and is influenced by both management performance and commodity prices.
EBITDA is closely aligned with short-term shareholder value creation. EBITDA is underpinned by efficient operational performance and outcomes
are exposed to the upside and downside of oil and gas price and foreign exchange fluctuations, as are returns to shareholders. Controlling Operating
Expenditure brings a focus on efficient operations; cost competitiveness; and shareholder returns.
2023 performance: EBITDA excluding impairments was US$9,363 million, below the target of US$11,860 million due to lower realised prices, partially
offset by higher production. Operating Expenditure was US$2,255 million, US$47 million higher than the target of US$2,208 million due to higher
operating costs on Pluto and Gulf of Mexico assets. Operating Expenditure excludes the foreign exchange impact of a weaker US dollar, and the
commodity price and volume impacts on Pluto-KGP Interconnector Operating Expenditure.
Base business (25%)
MID-POINT
MAX
Outcome
6.1
Revenue is maximised and value generated from Woodside’s assets when they are fully utilised in production. Production must be carefully managed
throughout the year to optimise value from the assets. The production target for Corporate Scorecard purposes is set relative to the company’s
annual budget and market guidance.
2023 performance: Production of 187.2 MMboe was within production guidance of 180 – 190 MMboe due to higher Pluto-KGP Interconnector
production and continued Pluto Train 1 reliability, Mad Dog Phase 2 first oil achieved in April 2023 and strong field performance for Trinidad and
Tobago. This is offset by turnaround activities and lower than planned gas demand at Bass Strait.
Material sustainability issues (25%)
MID-POINT
MAX
Outcome
4.4
The Board considers performance across material sustainability issues including personal and process safety, climate change and greenhouse gas
emissions, and our social licence to operate. Strong performance in this area creates and protects value in four ways; it reduces the likelihood of major
accident events and catastrophic losses; it maintains Woodside’s licence to operate which enables the development of its growth portfolio; it reflects
efficient, optimised and controlled business processes that generate value; and it supports the company’s position as a partner of choice.
2023 performance: The health and safety performance measure, which contributes to 10% of the overall scorecard outcome, was zero. This reflects
safety performance below target with a TRIR of 1.86 (compared to a target of 1), which included one fatality at the North Rankin Complex and process
safety performance below target with three Tier 1 or 2 process safety events recorded against a maximum target of 1. Gross equity Scope 1 and 2
emissions performance was 6,190kT CO₂-e, 5% better than the target. Woodside is on track for 8 of the 9 indicators in the 2021 – 2025 Reconciliation
Action Plan.
Strategy and growth (25%)
MID-POINT
MAX
Outcome
5.3
In 2023, we focused on progressing Scarborough and Sangomar, taking FID on Trion and progressing new energy projects, combined with delivery
of annual synergy initiatives following the merger with BHP’s petroleum business.
Scarborough and Pluto Train 2
Progress on New Energy projects
• Scarborough and Pluto Train 2 55% complete,1 targeting first LNG
• Woodside continued to progress technical, regulatory and contracting
cargo in 2026.
• Environmental plans for the seismic, drilling, subsea and trunkline
installations activities were accepted by the regulator in December.
Sangomar
• 93% complete at year end and first oil targeted for mid-2024,
compared to a first oil target of late 2023.2
• FPSO sailed from Singapore in late 2023.
Trion
• Final investment decision (FID) achieved.
• Contracts for major scopes of work awarded.
activities for H2OK in 2023. FID has been delayed pending more
certainty regarding government tax incentive qualifications and
customer offtake agreements.
• Secured planning approvals and State and Federal environmental
approvals for the proposed Woodside Solar facility and associated
infrastructure compared to targeting FID readiness in 2023.
• Pre front-end engineering and design (FEED) commenced on the
Angel carbon capture and storage (CCS) opportunity.
Merger integration
• Exceeded synergies target of greater than US$400 million realised.3
Overall corporate performance outcome
MID-POINT
MAX
Outcome
4.8
1 The completion % excludes the Pluto Train 1 modifications project.
2 The progress of the project has been updated to 93% following a 0.2% correction identified subsequent to the period.
3 Synergies realised is unaudited.
90
ANNUAL REPORT 2023 Senior Executive FAR
As a result of the Board’s review of Senior Executive
Remuneration, Mr Tiver’s FAR was increased to A$1,155,000
and Ms McMahon’s FAR to US$578,000 effective 1 April 2023.
Ms Westcott’s FAR on appointment was A$1,090,000.
Management will continue to monitor market developments
to ensure FAR for Senior Executives remains competitive and
benchmarks appropriately against peer companies.
Senior Executive VAR and other incentives
For 2023, the individual performance of each Senior Executive
was evaluated against the same performance measures as the
CEO, with individual KPIs set relevant to each Executive’s area
of responsibility. These metrics aim to align individual
performance with the achievement of Woodside’s corporate
strategy while fostering collaboration between Executives.
The Board approved EIS awards to Senior Executives based on
the Corporate Scorecard result and their individual performance
assessment.
Information on the individual performance of Senior Executives
who were KMP as at 31 December 2023 is shown in Table 4.
Details of the EIS award for each Senior Executive who were
KMP as at 31 December 2023 are set out in Table 7.
Executive KMP KPIs and outcomes for 2023
CEO FAR
As a result of the Board’s review of CEO remuneration,
Ms O’Neill’s FAR increased from A$2,400,000 to A$2,472,000
effective 1 January 2024.
CEO VAR and other incentives
Ms O’Neill’s incentive arrangements are governed under the EIS.
For 2023, the individual performance of the CEO was reviewed by
the Board against five equally weighted measures. These metrics,
outlined in Table 4, were chosen because the Board considers
successful performance in each area to be a key driver of superior
shareholder returns.
The same metrics were cascaded to the Senior Executives to
measure individual performance.
At the end of the year, the Board reviewed the CEO’s
performance for 2023. The CEO was given an individual
performance score between 0 and 5, which together with the
Corporate Scorecard determined the VAR outcome. This resulted
in an EIS award at 104% of the target opportunity. The CEO
proposed to the Board her final EIS award be reduced by 5%
in light of the fatality at our North Rankin Complex. The Board
exercised its discretion to reduce the EIS award to 99% of the
target opportunity (66% of the maximum opportunity). The
Board will consider whether any further action is appropriate as
Woodside’s response to the fatality continues.
Information on the individual performance of the CEO is shown
in Table 4.
The 2023 EIS award for the CEO is detailed in Table 7.
In June 2023, Ms O’Neill was paid the second tranche of a one-
off cash bonus approved by the Board in 2022, in recognition
of Ms O’Neill’s significant contribution towards the merger of
Woodside and BHP’s petroleum business. This payment of
A$200,000 was subject to satisfactory individual performance
and continued service. This payment is detailed in Table 5 and
Table 10.
CEO actual remuneration
Senior Executives actual remuneration1
Fixed reward
26.5%
Variable reward
73.5%
Fixed reward
37.5%
Variable reward
62.5%
1 This represents an average of all Senior Executives actual and variable remuneration for 2023.
91
WOODSIDE ENERGY GROUP LTD Table 4 - CEO and Senior Executive individual performance for 2023 EIS
Meg O’Neill - CEO and Managing Director
KPI
Performance
Growth agenda
Assesses the alignment of growth opportunities to
shareholder return; portfolio balance; the achievement
of challenging business objectives.
• Matured the corporate strategy, focusing the company on areas
of LNG, deepwater oil, integrated carbon solutions and lower
carbon energy.
• Scarborough selldown of 10% equity to LNG Japan achieved,
with associated non-binding agreements on offtake and
collaboration on new energy.
• Trion FID achieved with regulatory approval in place.
• Achieved FID on Hydrogen Refueller. Woodside Solar
and H2OK hydrogen project progressing.
Outcome
Above target
Effective execution
Assesses the maintenance, operation and profitability of
existing assets; project delivery to achieve budget, schedule
and stated performance; cost reduction; achievement of
health, safety and community expectations.
Enterprise capability
Assesses leadership development; workforce planning;
executive succession; Indigenous participation and
diversity; effective risk identification and management.
Culture and reputation
Assesses performance culture and emphasis on values;
engagement and enablement; improved employee
climate; Woodside’s brand as a partner of choice.
Shareholder focus
Assesses whether decisions are made with a long-
term shareholder return focus; efficient and timely
communication to shareholders, market analysts
and fund managers; the focus on shareholder return
throughout the organisation.
• Personal and process safety performance failed to meet targets.
On target
External review of safety system ongoing.
• Strong operational performance with above target production
and high LNG reliability.
• Commencement of production from the Mad Dog Phase 2 and
Shenzi North projects.
• Safe removal of the Nganhurra Riser Turret Mooring.
• Full year net equity Scope 1 and 2 emissions reduced.
• Sangomar project 93% complete.1
• Steady improvement in overall female participation including in
Above target
leadership and technician and trade roles.
• Delivered 2022 Reconciliation Action Plan, with 8 of 9 targets
on track and focus areas agreed for 2024.
• Effective succession planning progressed with improved
pipeline of talent across senior and critical roles.
• Continued embedding of Woodside’s leadership program with
over 50% of employees completing foundational programs.
• Active external representation of Woodside and the Australian
energy sector, including Chair of Australian Energy Producers.
• Continued proactive community engagement and relationships
Above target
in place.
• Steady improvement in workforce engagement scores
reflecting improved organisational climate.
• Maintained organisational focus on shareholder returns,
Above target
delivering strong dividends in a weaker commodity price
environment.
• Financially well positioned with strong balance sheet, low
gearing, high liquidity, and appropriate strategies in place to
protect against changes to the price environment.
• Exceeded synergies target following the merger with BHP
Petroleum.
EIS earned2 as percentage of target opportunity
99.0%3
EIS earned1 as percentage of maximum opportunity
66.0%
1 The progress of the project has been updated to 93% following a 0.2% correction identified subsequent to the period.
2 The award of Restricted Shares and Performance Rights is subject to shareholder approval at the 2024 Woodside Annual General Meeting.
3 The CEO proposed to the Board her final EIS award be reduced by 5% in light of the fatality at our North Rankin Complex. The Board exercised discretion to reduce the EIS award to 99% of the
target opportunity.
92
ANNUAL REPORT 2023 Graham Tiver - Executive Vice President and Chief Financial Officer
KPI
Performance
Growth agenda
Assesses the alignment of growth opportunities to
shareholder return; portfolio balance; the achievement
of challenging business objectives.
• Execution of sell down of a 10% non-operating interest in
Scarborough to LNG Japan achieved for accretive value.
• Identified and led the evaluation of several potential acquisition
and divestment opportunities.
Outcome
Above target
Effective execution
Assesses the maintenance, operation and profitability of
existing assets; project delivery to achieve budget, schedule
and stated performance; cost reduction; achievement of
health, safety and community expectations.
• Implemented Sarbanes-Oxley (SOX) program for certification /
Above target
attestation.
• Delivered improved planning and corporate modelling
outcomes.
• Submitted first Securities and Exchange Commission (SEC)
Form 20-F in parallel with existing reporting requirements.
• Delivery of merger synergies including sustainably locking into
future plans.
Enterprise capability
Assesses leadership development; workforce planning;
executive succession; Indigenous participation and
diversity; effective risk identification and management.
• Improved commercial capability with an outward focus, tuned
On target
to the market.
• Continued to harmonise risk identification and management
across the organisation including learnings and improved focus
on controls.
Culture and reputation
Assesses performance culture and emphasis on values;
engagement and enablement; improved employee
climate; Woodside’s brand as a partner of choice.
• Led the Finance division to deliver across critical enterprise-
On target
wide initiatives while protecting enterprise value.
• Largely harmonised Finance processes, achieving better ways
of working to become more efficient and effective.
Shareholder focus
Assesses whether decisions are made with a long-
term shareholder return focus; efficient and timely
communication to shareholders, market analysts
and fund managers; the focus on shareholder return
throughout the organisation.
• Disciplined balance sheet management; well positioned with
high liquidity and appropriate hedging to protect against low
price environment.
• A strong balance sheet combined with focused capital
allocation has facilitated returns to shareholders at 80% of
underlying NPAT.
Above target
EIS earned as percentage of target opportunity
105.5%
EIS earned as percentage of maximum opportunity
66.0%
93
WOODSIDE ENERGY GROUP LTD Shiva McMahon - Executive Vice President International Operations
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities to
shareholder return; portfolio balance; the achievement
of challenging business objectives.
Effective execution
Assesses the maintenance, operation and profitability of
existing assets; project delivery to achieve budget, schedule
and stated performance; cost reduction; achievement of
health, safety and community expectations.
Enterprise capability
Assesses leadership development; workforce planning;
executive succession; Indigenous participation and
diversity; effective risk identification and management.
Culture and reputation
Assesses performance culture and emphasis on values;
engagement and enablement; improved employee
climate; Woodside’s brand as a partner of choice.
Shareholder focus
Assesses whether decisions are made with a long-
term shareholder return focus; efficient and timely
communication to shareholders, market analysts
and fund managers; the focus on shareholder return
throughout the organisation.
• Strong collaboration with operator to deliver Mad Dog Phase 2
On target
remediation work and start-up.
• Delivered uplift in Caribbean production and reserves.
• No high consequence injuries in 2023 and continued focus on
On target
learning from organisational health and safety events.
• Delivered production higher than target due to asset reliability
improvement, production optimisation and minimal weather
impacts.
• Safe and on schedule execution of Shenzi turnaround.
• Prioritised building process safety capability and competency.
• Managed resourcing to support growth and sustainability
On target
priorities such as decarbonisation.
• Led International Operations’ commitment to value capture,
innovation, environment and climate outcomes and asset
integrity improvement.
• Continued improvement in International Operations’ workforce
Above target
engagement scores.
• Active stakeholder engagement in Gulf of Mexico, Trinidad and
Tobago and in Senegal.
• Established Senegal operations organisation and support
services in Dakar and Houston in readiness for first oil.
• Strong delivery against value capture targets with ongoing cost
Above target
optimisation.
• Delivered asset decarbonisation opportunities ahead of plan.
EIS earned as percentage of target opportunity
101.0%
EIS earned as percentage of maximum opportunity
63.1%
94
ANNUAL REPORT 2023 Liz Westcott - Executive Vice President Australian Operations
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities to
shareholder return; portfolio balance; the achievement
of challenging business objectives.
• Maximised facility utilisation with focus on optimisation and
Above target
infill opportunities.
• Pluto-KGP Interconnector opportunities maximised and Waitsia
processing commenced.
Effective execution
Assesses the maintenance, operation and profitability of
existing assets; project delivery to achieve budget, schedule
and stated performance; cost reduction; achievement of
health, safety and community expectations.
• Demonstrated leadership in driving focus and improvement on
On target1
personal and process safety outcomes.
• Maintained high facility reliability.
• Drove disciplined performance on turnarounds achieving
improved maintenance efficiency and cost performance.
• Successfully commissioned the Pluto Remote Operating Centre,
enabling future integration of Scarborough.
Enterprise capability
Assesses leadership development; workforce planning;
executive succession; Indigenous participation and
diversity; effective risk identification and management.
• Embedded a simpler, asset-based operating model.
• Refocused on safety fundamentals, and commissioned an
external assessment of the operational safety system to guide
improvement of safety performance.
Above target
Culture and reputation
Assesses performance culture and emphasis on values;
engagement and enablement; improved employee
climate; Woodside’s brand as a partner of choice.
• Focussed Australian Operations on building pride and strong
Above target
engagement on strategy.
• Increased open, transparent communication with workforce.
• Led successful Enterprise Bargaining negotiations on NWS Gas
Assets.
Shareholder focus
Assesses whether decisions are made with a long-
term shareholder return focus; efficient and timely
communication to shareholders, market analysts
and fund managers; the focus on shareholder return
throughout the organisation.
• Optimised KLE program to ensure ongoing reliability of key
On target
assets while minimising costs.
• Implemented asset decarbonisation initiatives at Pluto LNG
and KGP.
• Managing reduction in NWS operating costs focused on late life
asset management.
EIS earned as percentage of target opportunity
105.5%
EIS earned as percentage of maximum opportunity
66.0%
1 Ms Westcott commenced with Woodside on 1 June 2023 and has led the refocus on safety fundamentals following the 2 June 2023 fatality at North Rankin Complex.
95
WOODSIDE ENERGY GROUP LTD Table 5 - CEO and Senior Executive take home pay table (non-IFRS information)1
The following table provides greater transparency to shareholders of the take home pay received or receivable by the CEO and
Senior Executives, in 2022 and 2023. This includes FAR, EIS cash awards earned in respect of performance for the year and the value
of shares and rights which vested during the year calculated using the five-day VWAP leading up to but not including the vesting,
forfeiture or lapsing date. Termination benefits are not included in the table below; these amounts are disclosed in Table 10. Amounts
are shown in the currency in which the remuneration is paid, either AUD or USD, whereas Table 10 is expressed in USD which is
Woodside’s functional and presentational currency.
Take home pay differs from statutory remuneration reported in Table 10 that is prepared in accordance with the Corporations Act 2001
(Cth) and Accounting Standards which require share-based payments to be reported as remuneration from the time of grant, even
though actual value may ultimately not be realised from these share-based payments.
Salary,
allowances and
superannuation2
A$
EIS cash and
other cash
incentives3,4,5
A$
2,400,000
1,530,600
2,316,667
1,542,075
1,145,053
432,900
1,006,419
859,124
709,771
239,538
-
US$
-
US$
731,585
186,800
459,638
80,875
Name
M O’Neill7
G Tiver8
L Westcott9
S McMahon10
Year
2023
2022
2023
2022
2023
2022
2023
2022
Restricted Shares
vested6
A$
Performance
Rights vested6
A$
Equity
Rights vested6
A$
Total
remuneration
received
A$
Previous years’
awards forfeited
or lapsed6
A$
534,659
384,692
-
-
-
-
US$
-
-
-
-
-
-
-
-
US$
-
-
-
-
1,229,333
1,129,782
-
-
US$
4,465,259
4,243,434
2,807,286
2,995,325
949,309
-
US$
327,039
1,245,424
-
540,513
-
-
-
-
-
-
US$
-
-
1 This is non-IFRS information that is unaudited.
2
3
4
5
6
7
Represents the total fixed annual rewards earned in 2023 and 2022 including salaries, fees, allowances and company contributions to superannuation. This reflects pro-rated amounts for the
period that Executives were in KMP roles.
Includes the EIS cash incentive earned in the respective year, which is actually paid in the following year.
In 2022, cash incentives earned by Ms O’Neill (A$200,000) and Mr Tiver (A$50,000) include a one-off cash bonus payment in relation to their significant contribution towards the merger of
Woodside and BHP’s petroleum business. Mr Tiver’s cash incentives include a further cash bonus payment (A$500,000) as a sign-on benefit to compensate for benefits forgone on leaving the
BHP Group.
In 2023, cash incentives earned by Ms O’Neill (A$200,000) include the second tranche of a one-off cash bonus payment in relation to significant contribution towards the merger of Woodside and
BHP’s petroleum business.
The value of Restricted Shares, Performance Rights and Equity Rights is calculated using the five-day VWAP leading up to but not including the vesting or forfeiture or lapsing date. For Ms
McMahon the amount was translated to USD based on the exchange rate reflective of the five-day period leading up to but not including the vesting date.
An increase to target opportunity and change to the structure of the EIS for Ms O’Neill was approved by the Board in 2022. This revised target opportunity and structure applied on a pro-rata basis
for the period 1 June 2022 to 31 December 2022 and the 2023 performance year.
Mr G Tiver commenced with Woodside on 1 February 2022.
Ms L Westcott commenced with Woodside on 1 June 2023.
8
9
10 Ms S McMahon commenced with Woodside on 1 June 2022. Ms McMahon was paid in Australian dollars for the period 1 June 2022 to 31 July 2022. Take home pay received has been converted to
US dollars using the exchange rate reflective of this period.
Table 6 - 2023 vestings
2019 EIS 3-year Restricted Shares vested on 18 February 2023
2022 Equity Rights sign on benefit vested on 31 August 2023
2022 Equity Rights BHP replacement vested on 31 August 2023
Executive
M O’Neill
G Tiver
S McMahon
Shares
15,025
32,307
13,355
Vesting value
US$1
370,026
791,138
327,039
1 The value of Restricted Shares and Equity Rights is calculated using the five-day VWAP leading up to but not including the vesting date. Amounts were translated to USD based on the exchange
rate reflective of the five-day period leading up to but not including the vesting date.
96
ANNUAL REPORT 2023 Table 7 - Valuation summary of Executive KMP EIS for 2023 and 2022
Name
M O’Neill
G Tiver
S McMahon
L Westcott4
Year
20232
20223
20232
20223
20232
20223
20232
2022
Cash1
US$
906,280
910,591
265,631
189,809
186,800
80,875
146,983
-
Restricted Shares
3-year vesting
period
US$
Restricted Shares
4-year vesting
period
US$
Restricted Shares
5-year vesting
period
US$
Performance Rights
5-year vesting
period
US$
Total EIS
US$
463,891
804,166
339,914
414,767
243,171
177,819
188,091
-
463,891
350,853
-
-
-
-
-
-
1,391,714
1,539,248
373,918
452,495
267,484
193,978
206,902
-
937,894
4,163,670
1,051,501
4,656,359
251,988
309,111
180,261
132,511
139,434
-
1,231,451
1,366,182
877,716
585,183
681,410
-
1 Represents the cash incentive earned in the respective year, which is actually paid in the following year. Amounts were translated to USD using the closing spot rate on 31 December.
2
The number of Restricted Shares and Performance Rights allocated for 2023 was calculated by dividing the amount of the Executive’s entitlement allocated to Restricted Shares by the face value
of Woodside shares. The USD fair value of Restricted Shares and Performance Rights at their date of grant has been estimated by reference to the closing share price at 31 December 2023 and
preliminary modelling respectively. Grant date for Senior Executives’ awards has been determined to be the date of the Board of Directors’ approval, being 27 February 2024 while grant date for
Ms O’Neill’s award will, subject to shareholder approval being given, be the date of the 2024 Woodside Annual General meeting. Any differences between the estimated fair value at 31 December
2023 and the final fair value will be trued-up in the 2024 financial year. The fair value is not indicative of the benefit (if any) that an individual Executive may ultimately realise should these equity
instruments vest.
3 The number of Restricted Shares and Performance Rights allocated for 2022 was calculated post year-end by dividing the amount of the Executive’s entitlement allocated to Restricted Shares and
Performance Rights by the face value of Woodside shares. The USD fair value shown above was estimated at 31 December 2022 with reference to the closing share price and preliminary modelling
respectively. Grant date for Senior Executives’ awards has been determined to be the date of the Board of Directors’ approval, being 27 February 2023 while grant date for Ms O’Neill’s award is the
date of shareholder approval at the 2023 Woodside Annual General Meeting. The final fair value was calculated at these dates and was trued-up in the 2023 financial year. The amount above is not
indicative of the benefit (if any) that an individual Executive may ultimately realise should these equity instruments vest.
4 Ms L Westcott commenced with Woodside on 1 June 2023.
Contracts for Executive KMP
Each Executive KMP has a contract of employment. Table 8 below contains a summary of the key contractual provisions of the
contracts of employment for the continuing Executive KMP.
Table 8 - Summary of contractual provisions for Executive KMP
Name3
M O’Neill
G Tiver
S McMahon
L Westcott
Employing company
Contract duration
Woodside Energy Ltd
Woodside Energy Ltd
Woodside Energy USA Services Inc
Woodside Energy Ltd
Unlimited
Unlimited
Unlimited
Unlimited
Termination notice
period company1,2
Termination notice
period Executive
6 months
6 months
6 months
6 months
6 months
6 months
3 months
3 months
1 Woodside may choose to terminate the contract immediately by making a payment in lieu of notice equal to the fixed remuneration the Executive KMP would have received during the ‘Company
Notice Period’. In the event of termination for serious misconduct or other nominated circumstances, Executive KMP are not entitled to this payment. Any payments made in the event of a
termination of an executive contract will be consistent with the Corporations Act 2001 (Cth).
2 On termination of employment, Executive KMP will be entitled to the payment of any fixed remuneration calculated up to the termination date, any leave entitlement accrued at the termination
date and any payment or award permitted under the EIS and Equity Award Rules. Executive KMP are restrained from certain activities for specified periods after termination of their employment in
order to protect Woodside’s interests.
3 Remuneration is reviewed annually or as required to maintain alignment with policy and benchmarks.
97
WOODSIDE ENERGY GROUP LTD NON-EXECUTIVE DIRECTORS (NEDS)
Remuneration policy
Woodside’s Remuneration Policy for NEDs aims to attract,
retain, motivate and to remunerate fairly and responsibly
having regard to:
• the level of fees paid to NEDs relative to other major Australian
listed companies.
• the size and complexity of Woodside’s operations.
• the responsibilities and work requirements of Board members.
Fees paid to NEDs are recommended by the Human Resources &
Compensation Committee (Committee) based on benchmarking
from external remuneration consultants and determined by the
Board. In 2023, the Board determined that there would be no
increase to the Board or committee fees or any other benefits.
Fees paid to NEDs are subject to an aggregate limit of
A$4.675 million per financial year, which was approved by
shareholders at the 2023 AGM.
Minimum Shareholding Requirements (MSR) Policy
NEDs are required to have acquired shares for a total purchase
price of at least 100% of their pre-tax base annual fee after five
years on the Board. The NEDs may utilise the Non-executive
Directors’ Share Plan (NEDSP) to acquire the shares on market at
market value. As the shares are acquired after tax, the shares in
the NEDSP are not subject to any forfeiture conditions.
As at 31 December 2023, all NEDs met the MSR, except Mr Wyatt
who joined Woodside in 2021 and Mr Breuillac and Ms Minas who
joined Woodside in 2023. Mr Wyatt, Mr Breuillac and Ms Minas are
participating in the NEDSP to assist with acquiring shares. See
Table 14 for details.
Table 9 - Annual base Board and committee fees for NEDs1
NEDs remuneration structure
NEDs remuneration consists of base Board fees and committee
fees, plus statutory superannuation contributions or payments in
lieu (currently 11%). Other payments may be made for additional
services outside the scope of Board and Committee duties. NEDs
do not earn retirement benefits other than superannuation and
are not entitled to any form of performance-linked remuneration
in order to preserve their independence.
Table 9 shows the 2023 annual base Board and committee fees
for NEDs.
In addition to these fees, NEDs are entitled to reimbursement of
reasonable travel, accommodation and other expenses incurred
attending meetings of the Board, committees or shareholders, or
while engaged on Woodside business. NEDs are not entitled to
compensation on termination of their directorships.
An allowance is paid to any NED required to travel internationally
to attend Board commitments, compensating for factors related
to long-haul travel. Where travel is between six and ten hours, an
allowance of A$5,000 gross per trip is paid. Where travel exceeds
10 hours, an allowance of A$10,000 gross per trip is paid.
Board fees are not paid to the CEO, as the time spent on
Board work and the responsibilities of Board membership are
considered in determining the remuneration package provided
as part of the normal employment conditions.
The total remuneration paid to, or in respect of, each NED in
2023 is set out in Table 13.
Position
Chair of the Board3
Non-executive directors4
Committee chair
Committee member
Audit & Risk
Committee
A$
Human Resources
& Compensation
Committee
A$
Sustainability
Committee
A$
Nominations
& Governance
Committee
A$
-
-
62,328
33,562
-
-
54,600
27,825
-
-
49,770
24,885
-
-
Nil
Nil
Board2
A$
759,465
230,137
-
-
1 Fees in this table reflect 2023 annual base Board and committee fees for NEDs.
2
3
4
NEDs receive Board and committee fees plus statutory superannuation (or payments in lieu where statutory superannuation is not required to be paid).
Inclusive of committee work.
Board fees paid to NEDs other than the Chair.
98
ANNUAL REPORT 2023 HUMAN RESOURCES & COMPENSATION
COMMITTEE
The Committee assists the Board to determine appropriate
remuneration policies and structures for NEDs and Executives.
Further information on the role of the Committee is described in
the Corporate Governance section of the Annual Report.
LOANS AND TRANSACTIONS
No loans or transactions (other than as described in this report)
have been made, guaranteed or secured, directly or indirectly, by
Woodside or any of its subsidiaries at any time throughout the
year, to any KMP including to a KMP related party.
USE OF REMUNERATION CONSULTANTS
From time-to-time, the Committee directly engages independent
external advisers to provide input to the process of reviewing
the remuneration for NEDs and Executives. The Committee may
receive executive remuneration advice directly from external
independent remuneration consultants for Executive KMP.
Under communications and engagement protocols adopted
by the Company, market data reports are provided directly to
the Committee Chair, and a consultant provides a statement
to the Committee that reports have been prepared free of
undue influence from Executive KMP. This process ensures the
Committee has full oversight of the review process and therefore
it, and the Board, can be satisfied that the work undertaken by
external independent remuneration consultants is free from
undue influence by Executive KMP.
In 2023, KPMG was engaged to provide remuneration
recommendations related to remuneration packages of
Senior Executives, as defined by the Corporations Act 2001.
KPMG was engaged in accordance with the Corporations Act
and advice was provided directly to the Human Resources
& Compensation Committee through the Committee Chair.
Remuneration recommendations were provided to the Board as
an input into decision-making only, and the Board considered
the recommendations, along with other factors, when making
remuneration decisions.
Both KPMG and the Board are satisfied that the remuneration
recommendations were made free from undue influence from
the Executive KMP to whom the remuneration recommendations
applied. The Board was satisfied that the remuneration
recommendations provided were free from undue influence
because of the communications and engagement protocols
adopted by the Company, and because the Senior Executives
whose remuneration was the subject of the recommendation
were not involved in any aspect of the engagement of KPMG to
provide such advice or the process of Woodside receiving the
advice.
KPMG was paid A$15,000 in relation to remuneration
recommendations related to remuneration packages of Senior
Executives. KPMG was paid US$6,319,793 for other services not
related to remuneration recommendations.
External benchmarking was obtained from external independent
remuneration consultants KPMG and Meridian in support of
the 2023 review of CEO and Senior Executive remuneration
and from KPMG in support of the 2023 NED fee review. No
remuneration recommendations were received for the CEO or
NEDs during 2023.
REPORTING NOTES
Reporting in United States dollars
In this report, the remuneration and benefits reported have
been presented in US dollars, unless otherwise stated. This is
consistent with the functional and presentation currency of the
Company.
Compensation for Australian-based employees and Australian-
based KMP is paid in Australian dollars and, for reporting
purposes, converted to US dollars based on the exchange rate
reflective of the service period. Compensation for US-based
employees and US-based KMP is paid in US dollars. Valuation of
equity awards is converted at the spot rate applying when the
equity award is granted.
99
WOODSIDE ENERGY GROUP LTD STATUTORY TABLES
Table 10 - Compensation of CEO and Senior Executives for the year ended 31 December 2023 and 2022
FAR
VAR and other incentives
Short-term
Post-
employment
Short-term
Long-term
Salaries,
fees and
allowances
Non-
monetary
benefits1
Superannuation
/ Pension
Contributions
$
2023
1,672,740
47,576
2022
1,696,133
35,829
$
-
-
Cash2,3,4
$
958,405
1,127,634
Equity
Rights5
Restricted
Shares5
Performance
Rights5
Long
Service
Leave
Termination
benefits
Total
Remuneration6
Performance
related7
$
-
-
$
$
$
$
$
A$
1,521,538
537,298
177,194
-
4,914,751
7,373,431
1,344,879
415,137
41,244
- 4,660,856
6,753,540
2023
721,973
9,169
23,486
294,851
599,593
311,868
90,077
25,681
- 2,076,698
3,116,921
2022
717,042
24,725
28,453
599,364 1,284,700
160,013
46,231
10,197
- 2,870,725
4,144,816
2023
634,567
60,110
143,997
186,800 335,940
180,375
51,649
2022
361,471
57,012
96,084
80,875
221,627
47,143
13,399
-
-
2023
443,247
53,174
48,373
163,151
2022
2023
-
-
-
-
-
-
-
-
2022
244,076
3,876
8,410
130,448
2023
2022
2023
2022
-
-
-
-
542,533
9,651
19,471
41,294
-
57,495
-
882
-
2,668
-
-
-
-
-
-
-
-
-
-
50,518
14,216
10,687
-
-
-
-
-
-
250,799
78,947
20,614
-
-
-
-
-
-
-
-
-
-
1,593,438
2,392,942
877,611
1,300,287
783,366
1,186,020
-
-
-
-
737,170
1,030,862
-
-
(527,204)
(221,628)
26,595
152,531
43,243
69,494
-
-
-
-
-
(94,350)
-
-
-
-
(33,305)
(46,436)
%
61
62
62
73
47
41
29
-
-
62
-
-
-
-
57
56
M O’Neill8
Chief Executive
Officer and
Managing
Director
G Tiver9
Executive Vice
President and
Chief Financial
Officer
S McMahon10
Executive
Vice President
International
Operations
L Westcott11
Executive
Vice President
Australian
Operations
S Gregory12
F Hick13
S Duhe14
Executive
KMP Total
2023
3,472,527
170,029
215,856
1,603,207
935,533 2,064,299
693,240
213,562
- 9,368,253 14,069,314
2022
3,618,750
131,975
155,086
1,979,615 1,506,327
1,275,630
332,086
4,300
152,531 9,156,300 13,252,563
1 Reflects the value of allowances and non-monetary benefits (including relocation, travel, health insurance, car parking and any associated fringe benefit tax).
2 The amount includes the EIS cash incentive earned in the respective year, which is actually paid in the following year. Amounts were translated to USD using the closing spot rate on 31 December.
3 Cash incentives earned by Ms O’Neill include an accrual (US$52,125) for the second tranche of a one-off cash bonus payment (US$130,817) paid during the year in relation to significant contribution
4
5
towards the merger of Woodside and BHP’s petroleum business.
In 2022, cash incentives earned, by Mr Tiver (US$33,677), Mr Gregory (US$61,941) and Ms Hick (US$41,294) include a one-off cash bonus payment in relation to their significant contribution towards the
merger of Woodside BHP’s petroleum business. Mr Tiver’s cash incentives include a further cash bonus payment (US$355,948) as a sign-on benefit to compensate for benefits forgone on leaving the
BHP Group.
In accordance with the requirements of AASB 2 Share-based Payment, the fair value of equity instruments as at their date of grant has been determined with reference to the closing share price
at grant date, or by applying the Black-Scholes option pricing technique or applying the binomial valuation method combined with a Monte Carlo simulation. The fair value of equity instruments is
amortised over the vesting period from the commencement of the service period, such that ‘total remuneration’ includes a portion of the fair value of unvested equity compensation during the year.
The portion of the expense relating to the 2023 EIS has been measured using estimated fair values as disclosed in footnote 2 in Table 7. The amount included as remuneration is not indicative of the
benefit (if any) that individual Executives may ultimately realise should these equity instruments vest.
6 The total remuneration in AUD is converted from USD using the exchange rate reflective of the service period. This non-IFRS unaudited information is included for the purposes of showing the total
annual cost of benefits to the company in Australian dollars for the service period.
7 Performance related outcome percentage is calculated as total variable annual reward divided by the USD total remuneration figure.
8 Ms M O’Neill elected to receive a cash payment in lieu of all superannuation contributions in accordance with the Superannuation Guarantee (Administration) Act 1992, on the basis of being a Senior
Foreign Executive. The cash payment is subject to (PAYG) income tax and paid as part of Ms O’Neill’s normal monthly salary. The amount is included in salaries, fees and allowances.
9 Mr G Tiver commenced employment with Woodside on 1 February 2022.
10 Ms S McMahon commenced employment with Woodside on 1 June 2022.
11 Ms L Westcott commenced employment with Woodside on 1 June 2023.
12 Mr S Gregory ceased being an Executive KMP on 31 May 2022.
13 Ms F Hick ceased being an Executive KMP on 28 November 2022. Ms Hick’s termination benefit of US$152,531 includes salaries, fees and allowances received for the period of 29 November 2022 to 24
February 2023 while on gardening leave.
14 Ms S Duhe ceased being an Executive KMP on 4 February 2022.
100
ANNUAL REPORT 2023 Table 11 - Peer group of international oil and gas companies
APA Corporation (previously Apache Corporation)
ENI S.p.A
Canadian Natural Resources
ConocoPhillips
Coterra Energy
Devon Energy
EOG Resources
Equinor ASA
Hess Corporation
Inpex Corporation
Marathon Oil Company
Occidental Petroleum
Santos Ltd
Table 12 - Summary of CEO and Senior Executive KMP allocated, vested or lapsed equity
Name
M O’Neill8
Type of equity1
Restricted Shares
Grant date
13 February 2019
Vesting date2,3
19 February 2024
Awarded but
not vested
15,379
Vested
in 2023
-
% of total
vested
-
Lapsed
in 2023
-
Fair value
of equity4,5,6
24.71
Unamortised
value $7
8,958
Restricted Shares
12 February 2020
18 February 2023
-
15,025
100
Restricted Shares
12 February 2020
18 February 2025
Restricted Shares
17 February 2021
24 February 2024
Restricted Shares
17 February 2021
24 February 2026
Restricted Shares
19 May 2022
Restricted Shares
19 May 2022
Restricted Shares
28 April 2023
Restricted Shares
28 April 2023
Restricted Shares
28 April 2023
19 May 2025
19 May 2027
28 April 2026
28 April 2027
28 April 2028
Restricted Shares
24 April 2024
February 2027
Restricted Shares
24 April 2024
February 2028
Restricted Shares
24 April 2024
February 2029
Performance Rights
13 February 2019
19 February 2024
Performance Rights
12 February 2020
18 February 2025
Performance Rights
17 February 2021
24 February 2026
Performance Rights
19 May 2022
19 May 2027
Performance Rights
28 April 2023
28 April 2028
Performance Rights
24 April 2024
February 2029
16,391
17,697
17,697
46,861
51,122
33,143
14,591
64,013
21,923
21,923
65,771
15,379
16,391
23,596
51,122
64,013
65,771
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
G Tiver
Equity Rights
18 February 2022
31 August 2023
-
32,307
100
Equity Rights
18 February 2022
31 August 2024
Equity Rights
18 February 2022
31 August 2025
Restricted Shares
27 February 2023
7 March 2026
Restricted Shares
27 February 2023
7 March 2028
Restricted Shares
27 February 2024
February 2027
Restricted Shares
27 February 2024
February 2029
Performance Rights
27 February 2023
7 March 2028
Performance Rights
27 February 2024
February 2029
S McMahon Equity Rights
Equity Rights
1 June 2022
1 June 2022
31 August 2023
31 August 2024
Equity Rights
1 September 2022
31 August 2025
Restricted Shares
27 February 2023
7 March 2026
Restricted Shares
27 February 2023
7 March 2028
Restricted Shares
27 February 2024
February 2027
Restricted Shares
27 February 2024
February 2029
Performance Rights
27 February 2023
7 March 2028
Performance Rights
27 February 2024
February 2029
L Westcott Restricted Shares
Restricted Shares
27 February 2024
February 2027
27 February 2024
February 2029
Performance Rights
27 February 2024
February 2029
32,307
27,460
17,249
18,818
16,064
17,671
18,818
17,671
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13,355
100
14,118
11,061
7,395
8,067
11,492
12,641
8,067
12,641
8,889
9,778
9,778
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22.76
22.76
20.18
20.18
20.91
20.91
22.28
22.28
22.28
21.16
21.16
21.16
16.87
15.81
14.44
13.40
14.92
14.26
18.42
17.60
16.82
23.63
23.63
21.16
21.16
16.18
14.26
20.50
19.59
18.38
23.63
23.63
21.16
21.16
16.18
14.26
21.16
21.16
14.26
-
69,085
12,956
124,922
309,269
566,595
400,632
203,012
975,503
352,423
374,018
1,165,947
6,116
47,989
119,186
363,098
653,254
785,747
-
147,125
215,048
217,147
305,099
258,460
313,427
208,908
211,222
-
81,997
112,966
101,214
138,240
184,899
224,211
94,656
151,098
158,805
185,907
125,285
1 For valuation purposes all Performance Rights and Equity Rights are treated as if they will be equity settled. Each Performance Right and Equity Right is a right to receive a fully paid ordinary share in
Woodside (or, at the Board’s discretion, as cash equivalent). No amount is payable by the Executive on the grant or vesting of a Performance Right or Equity Right.
2 Vesting date and exercise date are the same. Vesting is subject to satisfaction of vesting conditions. Full details of the vesting conditions for all prior year equity grants to Executive KMP are included
3
4
in the remuneration report for the relevant year.
Vesting of Restricted Shares and Performance Rights granted in 2024 will occur following the release of full-year results in the relevant vesting year. Where the vesting date is not yet known the
estimated vesting month is shown.
In accordance with the requirements of AASB 2 Share-based Payment, the fair value of Performance Rights and Equity Rights as at their date of grant has been determined by applying the Black-
Scholes option pricing technique or binomial valuation method combined with a Monte Carlo simulation. The amount included as remuneration is not indicative of the benefit (if any) that individual
Executives may ultimately realise should these equity instruments vest.
5 The fair value of Restricted Shares as at their date of grant has been determined by reference to the share price at acquisition. The fair value is not indicative of the benefit (if any) that individual
Executive KMP may ultimately realise should these equity instruments.
6 Fair values for the 2023 EIS with grant date being 27 February 2024 and expected to be 24 April 2024 have been estimated as disclosed in footnote 2 of Table 7. Fair values for the 2022 EIS with grant
dates of 27 February 2023 and 28 April 2023 have been trued-up as disclosed in footnote 3 of Table 7.
7 The maximum value of the equity instruments awarded for future financial years has been determined as the fair value amount at grant date multiplied by the number of equity instruments awarded,
less what has been amortised to date. The minimum total value of the equity instruments awarded for future financial years is nil if relevant vesting conditions are not satisfied.
8 Ms M O’Neill was granted Performance Rights and Restricted Shares on 28 April 2023 as approved by shareholders at the 2023 Woodside Annual General Meeting under Listing Rule 10.14. The grant
of the Performance Rights and Restricted Shares components of Ms O’Neill’s 2023 EIS award is subject to shareholder approval at the 2024 Woodside Annual General Meeting. The grant date for
Performance Rights and Restricted Shares is the date of shareholder approval.
101
WOODSIDE ENERGY GROUP LTD Table 13 - Total remuneration paid to NEDs in 2023 and 2022
The following table provides a detailed breakdown of the components of remuneration for each of the company’s NEDs.
Non-executive
director
R Goyder
L Archibald2
F Cooper
S C Goh2
I Macfarlane3
A Pickard2
G Tilbrook
B Wyatt
A Breuillac2,4
A Minas2,5
C Haynes2,6
S Ryan7
NEDs total
2023
2022
2023
20221
2023
20221
2023
2022
2023
2022
2023
2022
2023
2022
2023
20221
2023
2022
2023
2022
2023
2022
2023
2022
2023
2022
Short-term
Post-employment
Cash salary and allowances
Pension/Superannuation
Board and
Committee fees
$
Other fees and
allowances
$
Company contributions
to superannuation
$
504,188
501,606
191,583
190,602
212,632
211,543
187,774
186,813
187,774
186,813
204,295
203,248
210,092
210,228
188,169
186,813
153,106
-
127,853
-
65,411
190,602
65,411
190,602
2,298,288
2,258,870
36,710
41,407
33,873
55,150
6,639
14,809
27,106
27,768
26,824
28,807
35,239
34,703
6,639
6,935
13,277
14,809
36,298
-
20,465
-
20,467
47,276
-
6,935
263,537
278,599
17,490
16,942
-
-
22,858
21,683
-
-
-
-
-
-
22,582
21,548
20,229
22,885
-
-
-
-
-
-
6,868
19,536
90,027
102,594
Total
$
558,388
559,955
225,456
245,752
242,129
248,035
214,880
214,581
214,598
215,620
239,534
237,951
239,313
238,711
221,675
224,507
189,404
-
Total
A$8
841,108
807,438
339,607
353,013
364,721
356,304
323,677
309,419
323,253
310,917
360,813
343,119
360,480
344,214
333,912
322,377
287,704
-
148,318
225,936
-
85,878
237,878
72,279
217,073
2,651,852
2,640,063
-
126,295
343,013
106,295
313,013
3,993,801
3,802,827
1 A proportion of 2022 other fees and allowances includes an additional payment of A$20,000 each for services outside the scope of Board and committee duties, in connection with the merger
with BHP’s petroleum business.
2 As non-residents for Australian tax purposes Mr L Archibald, Ms S C Goh, Ms A Pickard, Mr A Breuillac, Ms A Minas and Dr C Haynes have elected to receive a cash payment in lieu of all
superannuation contributions, in accordance with the Superannuation Guarantee (Administration) Act 1992. The cash payment is subject to (PAYG) income tax and paid as part of their normal
monthly fees. The amount is included in Other fees and allowances.
3 Mr I Macfarlane has elected to receive a cash payment in lieu of all superannuation contributions in accordance with the Superannuation Guarantee (Administration) Act 1992, on the basis that he
works with multiple employers. The cash payment is subject to (PAYG) income tax and paid as part of his normal monthly fees. The amount is included in Other fees and allowances.
4 Mr A Breuillac was appointed as a non-executive director on 8 March 2023.
5 Ms A Minas was appointed as a non-executive director on 28 April 2023.
6 Dr C Haynes ceased being a non-executive director on 28 April 2023.
7 Dr S Ryan ceased being a non-executive director on 28 April 2023.
8 This non-IFRS information is included for the purposes of showing the total annual cost of benefits to the company in Australian dollars for the service period.
102
ANNUAL REPORT 2023 Table 14 - KMP share and equity holdings
Details of shares held by KMP including their personally related entities1 for the 2023 financial year are as follows:
Opening
holding at
1 January
20232
NEDSP3
Rights
granted
Rights
vested
Restricted
shares
granted
Restricted
shares
vested
Net
changes -
Other
Name
Type of Equity
Non-executive directors
R Goyder
L Archibald
F Cooper
S C Goh
Shares
Shares
Shares
Shares
I MacFarlane
Shares
A Pickard
G Tilbrook
B Wyatt
A Breuillac6
A Minas7
C Haynes
S Ryan
Executive KMP
Shares
Shares
Shares
Shares
Shares
Shares
Shares
26,163
13,524
14,895
13,949
10,891
15,870
9,947
1,639
-
-
16,009
13,168
M O’Neill
Equity Rights
-
Performance Rights
106,488
Restricted Shares
Shares
G Tiver
Equity Rights
Performance Rights
Restricted Shares
Shares
S McMahon
Equity Rights
Performance Rights
Restricted Shares
Shares
L Westcott8
Equity Rights
Performance Rights
Restricted Shares
Shares
180,172
147,463
92,074
-
-
27,076
38,534
-
-
1,212
-
-
-
-
-
-
1,247
1,004
485
-
-
1,415
-
-
615
549
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
64,013
-
-
-
18,818
-
-
-
8,067
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(32,307)
-
-
32,307
(13,355)
-
-
13,355
-
-
-
-
Closing
holding
at 31
December
20234,5
26,163
13,524
16,142
14,953
11,376
15,870
9,947
3,054
-
-
-
-
-
170,501
276,894
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
111,747
(15,025)
-
-
-
-
-
-
-
-
-
-
(16,624)
(13,717)
-
-
-
-
-
-
36,067
-
-
-
15,462
-
-
-
-
-
15,025
(6,761)
155,727
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
59,767
18,818
36,067
(14,538)
44,845
-
-
-
25,179
8,067
15,462
(3,368)
11,199
-
-
-
-
-
-
-
-
Includes personally related entities such as a KMP’s spouse, dependants or entities over which they have direct control or significant influence.
1
2 Opening holding represents amounts carried forward in respect of KMP.
3 Related to participation in the Non-executive Directors’ Share Plan (NEDSP).
4 Closing Shares and Restricted Shares holdings represents Shares and Restricted Shares held by the NEDs and KMP at 31 December 2023. The total Shares and Restricted Shares held by the NEDs
and KMP is 651,223 which constitutes less than 1% of all outstanding shares. None of these shares have different voting rights.
5 Closing rights holdings represents unvested options and rights held at the end of the reporting period. There are no options or rights vested but unexercised as at 31 December 2023.
6 Mr A Breuillac was appointed as a NED on 8 March 2023. Mr Breuillac is participating in the NEDSP and will acquire shares under this plan going forward.
7 Ms A Minas was appointed as a NED on 28 April 2023. Ms Minas is participating in the NEDSP and will acquire shares under this plan going forward.
8 Ms L Westcott commenced with Woodside on 1 June 2023.
103
WOODSIDE ENERGY GROUP LTD 4.3.3 Glossary
Key terms used in the Remuneration Report
Term
Committee
Meaning
The Human Resources & Compensation Committee
Corporate Scorecard
A corporate scorecard of key measures that aligns with Woodside’s overall business performance
EIS
Equity Award Rules
ER or Equity Right
The Executive Incentive Scheme
The rules which govern offers of incentive securities to eligible employees
Equity Right. ERs are awarded under the WEP and SWEP and each one entitles participants to receive a
fully paid share in Woodside on the vesting date (or a cash equivalent in the case of international assignees).
No amount is payable by the participants on the grant or vesting of an ER
Executive
A senior employee whom the Board has determined to be eligible to participate in the EIS
Executive Director
Meg O’Neill
Executive KMP
The Executive Director and Senior Executives listed in Table 1A
FAR
KMP
KPI
MSR
NED
NEDSP
Fixed Annual Reward
Key management personnel
Key performance indicator
Minimum shareholding requirements
Non-executive director
The Non-executive Directors’ Share Plan
Operating Expenditure
Operating and general, administrative and other expenses incurred in generating revenue from the sale of
hydrocarbons from Woodside’s operating assets
Performance Rights
Restricted Shares
Rights
RTSR
Each Performance Right is a right to receive a fully paid ordinary share in Woodside (or, at the Board’s discretion,
as cash equivalent). No amount is payable by the Executive on the grant or vesting of a Performance Right
Woodside ordinary shares that are awarded to Executives as the deferred component of their STA or as a part
of their VAR under the EIS. No amount is payable by the Executive on the grant or vesting of a Restricted Share
ERs and Performance Rights
Relative total shareholder return
Senior Executive
A Senior Executive listed as KMP in Table 1A, excluding the Executive Director
SWEP
TTR
VAR
The Supplementary Woodside Equity Plan
Total Target Remuneration
Variable Annual Reward
104
ANNUAL REPORT 2023 5
Financial Statements
5.1
FINANCIAL STATEMENTS
Financial statements
CONTENTS
Financial statements
106
C. Debt and capital
Consolidated income statement
Consolidated statement of comprehensive income
Consolidated statement of financial position
Consolidated statement of cash flows
Consolidated statement of changes in equity
Notes to the financial statements
About these statements
Climate change and energy transition
A. Earnings for the year
A.1 Segment revenue and expenses
A.2 Finance costs
A.3 Dividends paid and proposed
A.4 Earnings per share
A.5 Taxes
B. Production and growth assets
B.1 Segment production and growth assets
B.2 Exploration and evaluation
B.3 Oil and gas properties
B.4 Impairment of exploration and evaluation, oil and gas
properties and goodwill
B.5 Business combination
B.6 Goodwill
B.7 Significant production and growth asset acquisitions
B.8 Disposal of assets
106
107
108
109
110
111
111
111
115
116
120
120
120
121
124
125
127
128
130
136
137
137
138
C.1 Cash and cash equivalents
C.2 Interest-bearing liabilities and financing facilities
C.3 Contributed equity
C.4 Other reserves
D. Other assets and liabilities
D.1 Segment assets and liabilities
D.2 Receivables
D.3 Inventories
D.4 Payables
D.5 Provisions
D.6 Other financial assets and liabilities
D.7 Leases
E. Other items
E.1 Contingent liabilities and assets
E.2 Employee benefits
E.3 Related party transactions
E.4 Auditor remuneration
E.5 Events after the end of the reporting period
E.6 Joint arrangements
E.7 Parent entity information
E.8 Subsidiaries
E.9 Other accounting policies
Directors’ declaration
Independent auditor's report
140
141
141
143
143
144
145
145
145
146
146
148
151
154
155
155
158
158
158
158
160
160
164
165
166
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD
As a result of the acquisition of BHP Petroleum International Pty Ltd (BHPP) on 1 June 2022, financial performance for the comparative year ended
31 December 2022 includes seven months of BHPP results, compared to twelve months for the year ended 31 December 2023.
The financial performance and position of the Group were particularly affected by the following events and transactions during the reporting period:
• During the year ended 31 December 2023, the Group reduced the Pluto
petroleum resource rent tax (PRRT) DTA by $637 million ($446 million
post-tax) on the basis of future taxable profits not being available to utilise
the deductible expenditure. This is primarily driven by decreases in forecast
pricing assumptions and actual pricing realised during the year ended
31 December 2023 (refer to Note A.5).
• The Group recognised pre-tax impairments of $1,917 million for the Shenzi,
Wheatstone and Pyrenees cash-generating units (refer to Note B.4).
• In 2023, the Group completed the purchase price accounting for the BHPP
merger (refer to Note B.5).
• In April 2023, Mad Dog Phase 2 in the US Gulf of Mexico achieved first
production at the Argos platform. During the year ended 31 December 2023,
Mad Dog Phase 2 produced 3.1 MMboe of hydrocarbons.
• In April 2023, conditions precedent were achieved in the long-term gas sale
and purchase contract (GSPA) with Perdaman. The contract price contains
an embedded derivative linked to the price of urea, which is recognised as
a net liability of $35 million at 31 December 2023 (refer to Note D.6).
• On 20 June 2023, the Group made a final investment decision (FID) to
develop the Trion resource in Mexico. Related exploration and evaluation
assets were transferred to oil and gas properties (refer to Notes B.2 and
B.3). Upon FID, the Group recognised a deferred tax asset (DTA) of
$319 million (refer to Note A.5).
• On 8 August 2023, the Group and LJ Scarborough Pty Ltd (LNG Japan)
entered into a Sale and Purchase Agreement for LNG Japan to acquire a
10% non-operating participating interest in the Scarborough Joint Venture.
The transaction is expected to complete in the first quarter of 2024. As a
result, $823 million of assets have been reclassified as assets held for sale and
$94 million of liabilities have been reclassified to liabilities directly associated
to assets held for sale (refer to Note B.8). A reduction in the deferred tax
liability due to the change to a held for sale basis resulted in a tax benefit
of $78 million being recognised for the year ended 31 December 2023.
105
WOODSIDE ENERGY GROUP LTD Financial statements
Consolidated income statement
for the year ended 31 December 2023
Operating revenue
Cost of sales
Gross profit
Other income
Other expenses
Impairment losses
Impairment reversals
Profit before tax and net finance costs
Finance income
Finance costs
Profit before tax
Petroleum resource rent tax (PRRT) (expense)/benefit
Income tax expense
Profit after tax
Profit attributable to:
Equity holders of the parent
Non-controlling interest
Profit for the period
Basic earnings per share attributable to equity holders of the parent (US cents)
Diluted earnings per share attributable to equity holders of the parent (US cents)
The accompanying notes form part of the Financial Statements.
Notes
A.1
A.1
A.1
A.1
A.1
A.1
A.2
A.5
A.5
E.8
A.4
A.4
2023
US$m
13,994
(7,519)
6,475
322
(1,573)
(1,917)
-
3,307
273
(307)
3,273
(898)
(653)
1,722
1,660
62
1,722
87.5
86.9
2022
US$m
16,817
(6,540)
10,277
735
(2,726)
-
900
9,186
155
(167)
9,174
313
(2,912)
6,575
6,498
77
6,575
430.0
426.3
2021
US$m
6,962
(3,845)
3,117
139
(811)
(10)
1,058
3,493
27
(230)
3,290
(297)
(957)
2,036
1,983
53
2,036
206.0
204.1
106
ANNUAL REPORT 2023
Consolidated statement of comprehensive income
for the year ended 31 December 2023
Profit for the period
Other comprehensive income/(loss)
Items that may be reclassified to the income statement in subsequent periods:
Gains/(losses) on cash flow hedges
Losses on cash flow hedges reclassified to the income statement
Tax recognised within other comprehensive income
Exchange fluctuations on translation of foreign operations taken to equity
Items that will not be reclassified to the income statement in subsequent periods:
Remeasurement gains on defined benefit plan
Net (loss)/gain on financial instruments at fair value through other comprehensive income
Other comprehensive income/(loss) for the period, net of tax
Total comprehensive income for the period
Total comprehensive income attributable to:
Equity holders of the parent
Non-controlling interest
Total comprehensive income for the period
The accompanying notes form part of the Financial Statements.
2023
US$m
1,722
459
299
(84)
(1)
14
(32)
655
2,377
2,315
62
2,377
2022
US$m
6,575
(1,097)
847
64
3
34
2
(147)
6,428
6,351
77
6,428
2021
US$m
2,036
(390)
66
(5)
-
13
-
(316)
1,720
1,667
53
1,720
107
WOODSIDE ENERGY GROUP LTD
Consolidated statement of financial position
as at 31 December 2023
Current assets
Cash and cash equivalents
Receivables
Inventories1
Other financial assets
Assets held for sale
Tax receivable
Other assets
Total current assets
Non-current assets
Receivables
Inventories1
Other financial assets
Exploration and evaluation assets
Oil and gas properties
Deferred tax assets
Lease assets
Investments accounted for using the equity method
Goodwill
Other assets1
Total non-current assets
Total assets
Current liabilities
Payables
Interest-bearing liabilities
Other financial liabilities
Liabilities directly associated with assets held for sale
Provisions
Tax payable
Lease liabilities
Other liabilities
Total current liabilities
Non-current liabilities
Interest-bearing liabilities
Deferred tax liabilities
Other financial liabilities
Provisions
Tax payable
Lease liabilities
Other liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued and fully paid shares
Shares reserved for employee share plans
Other reserves
Retained earnings
Equity attributable to equity holders of the parent
Non-controlling interest
Total equity
1.
The accompanying notes form part of the Financial Statements.
108
Notes
C.1
D.2
D.3
D.6
B.8
D.2
D.3
D.6
B.2
B.3
A.5
D.7
B.6
D.4
C.2
D.6
B.8
D.5
D.7
C.2
A.5
D.6
D.5
D.7
C.3
C.3
C.4
E.8
2023
US$m
1,740
1,517
616
209
826
118
92
5,118
839
120
120
668
40,791
1,717
1,230
249
3,995
514
50,243
55,361
1,724
-
67
94
1,506
1,108
298
185
4,982
4,883
1,627
42
6,451
40
1,317
849
15,209
20,191
35,170
29,001
(49)
5,261
186
34,399
771
35,170
2022
US$m
6,201
1,578
678
677
-
73
83
9,290
845
65
120
807
39,919
1,959
1,264
265
4,614
173
50,031
59,321
2,094
260
654
-
1,219
1,854
324
203
6,608
4,878
2,457
67
5,960
36
1,310
878
15,586
22,194
37,127
29,001
(38)
4,031
3,342
36,336
791
37,127
Inventories include carbon credits which were previously presented within other assets (non-current). The 2022 amounts have been reclassified to be presented on the same basis.
ANNUAL REPORT 2023
Consolidated statement of cash flows
for the year ended 31 December 2023
Cash flows from/(used in) operating activities
Profit after tax for the period
Adjustments for:
Non-cash items
Depreciation and amortisation
Depreciation of lease assets
Change in fair value of derivative financial instruments
Net finance costs
Tax expense
Exploration and evaluation written off
Impairment losses
Impairment reversals
Restoration movement
Gain on disposal of oil and gas properties (including revaluation gain)
Movement in onerous contracts provision
Other
Changes in assets and liabilities
Decrease/(increase) in trade and other receivables
Increase in inventories
Increase in lease assets
(Decrease)/increase in provisions
Decrease in lease liabilities
Increase in other assets and liabilities
(Decrease)/increase in trade and other payables
Cash generated from operations
Purchases of shares and payments relating to employee share plans
Interest received
Dividends received
Borrowing costs relating to operating activities
Income tax and PRRT paid
Payments for restoration
Receipts/(payments) for hedge collateral
Net cash from operating activities
Cash flows from/(used in) investing activities
Cash received on business combination, including cash acquired
Payments for capital and exploration expenditure
Borrowing costs relating to investing activities
Advances to other external entities
Proceeds from disposal of non-current assets
Funding of equity accounted investments
Payments for acquisition of joint arrangements
Net cash used in investing activities
Cash flows from/(used in) financing activities
Repayment of borrowings
Borrowing costs relating to financing activities
Repayment of the principal portion of lease liabilities
Borrowing costs relating to lease liabilities
Purchases of shares and payments relating to Dividend Reinvestment Plan
Contributions to non-controlling interests
Dividends paid (net of Dividend Reinvestment Plan)
Net payments from share issuance
Net cash used in financing activities
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the period
Effects of exchange rate changes
Cash and cash equivalents at the end of the period
The accompanying notes form part of the Financial Statements.
Notes
2023
US$m
2022
US$m
2021
US$m
1,722
6,575
2,036
B.4
B.4
B.5
B.7
C.2
C.1
3,960
179
349
34
1,551
77
1,917
-
147
-
-
(226)
107
(31)
-
(114)
-
(736)
(135)
8,801
(57)
264
20
(26)
(2,916)
(447)
506
6,145
-
(5,291)
(311)
-
19
(2)
-
2,808
140
960
12
2,599
164
-
(900)
272
(494)
(245)
(254)
(77)
(146)
-
131
(31)
(961)
184
10,737
(45)
108
19
(21)
(1,218)
(263)
(506)
8,811
1,082
(3,136)
(287)
(48)
132
(8)
-
(5,585)
(2,265)
(284)
(4)
(340)
(21)
-
(98)
(4,253)
-
(5,000)
(4,440)
6,201
(21)
1,740
(283)
(18)
(248)
(10)
(144)
(98)
(2,558)
(5)
(3,364)
3,182
3,025
(6)
6,201
1,582
108
31
203
1,254
265
10
(1,058)
68
-
(95)
30
(39)
(4)
(16)
(75)
(25)
(128)
75
4,222
(47)
11
6
(91)
(271)
(38)
-
3,792
-
(2,406)
(126)
(206)
9
-
(212)
(2,941)
(784)
(15)
(155)
(89)
-
(92)
(289)
-
(1,424)
(573)
3,604
(6)
3,025
109
WOODSIDE ENERGY GROUP LTD
e
h
t
l
f
o
s
r
e
d
o
h
y
t
i
u
q
E
t
n
e
r
a
p
i
s
g
n
n
r
a
e
d
e
n
a
t
e
R
i
US$m
US$m
3,342
1,660
14
36,336
1,660
655
1,674
(4,830)
-
-
-
-
2,315
-
(57)
-
58
(4,253)
186 34,399
13,443
6,498
(147)
3,381
6,498
34
t
s
e
r
e
t
n
i
g
n
i
l
l
o
r
t
n
o
c
-
n
o
N
E.8
US$m
791
62
-
62
-
-
-
-
(82)
771
786
77
-
y
t
i
u
q
e
l
a
t
o
T
US$m
37,127
1,722
655
2,377
-
(57)
-
58
(4,335)
35,170
14,229
6,575
(147)
796
-
(1)
(1)
-
-
-
-
-
795
793
-
3
(586)
-
674
674
-
-
-
-
-
88
(400)
-
(186)
3,541
-
-
-
4,830
-
-
-
(4,253)
4,118
58
-
-
2
-
(32)
(32)
-
-
-
-
-
(30)
-
-
2
3
-
(186)
-
-
5,553
2
-
6,532
(5,553)
6,351
-
77
-
6,428
-
-
-
-
-
-
-
-
-
-
796
793
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(586)
(71)
-
(329)
(329)
-
-
-
-
-
793
(400)
-
-
-
-
-
-
-
(2,070)
-
3,541
462
-
-
-
-
-
-
-
(404)
58
-
-
-
-
-
-
-
-
-
2
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,018)
(144)
476
19,265
18
(45)
-
65
(3,088)
-
(5)
3,342
1,398
1,983
-
1,983
-
-
-
-
-
36,336
12,075
1,983
(316)
1,667
112
(47)
-
40
(404)
-
-
-
-
-
-
-
(72)
-
791
800
53
-
53
-
-
-
-
(67)
(144)
476
19,265
18
(45)
-
65
(3,160)
(5)
37,127
12,875
2,036
(316)
1,720
112
(47)
-
40
(471)
3,381
13,443
786
14,229
Consolidated statement of changes in equity
for the year ended 31 December 2023
i
d
a
p
y
l
l
u
f
d
n
a
d
e
u
s
s
I
s
e
r
a
h
s
s
e
r
a
h
s
d
e
v
r
e
s
e
R
s
t
fi
e
n
e
b
e
e
y
o
p
m
E
l
e
v
r
e
s
e
r
e
v
r
e
s
e
r
n
o
i
t
a
l
s
n
a
r
t
y
c
n
e
r
r
u
c
n
g
e
r
o
F
i
l
s
t
fi
o
r
p
e
b
a
t
u
b
i
r
t
s
i
D
e
v
r
e
s
e
r
e
v
r
e
s
e
r
g
n
g
d
e
H
i
s
e
v
r
e
s
e
r
r
e
h
t
O
Notes
C.3
US$m
C.3
US$m
C.4
US$m
C.4
US$m
C.4
US$m
C.4
US$m
C.4
US$m
At 1 January 2023
Profit for the period
Other comprehensive income/(loss)
Total comprehensive income/(loss) for the
period
Transfers
Employee share plan purchases
Employee share plan redemptions
Share-based payments (net of tax)
Dividends paid
At 31 December 2023
At 1 January 2022
Profit for the period
Other comprehensive income/(loss)
Total comprehensive income/(loss) for the
period
Transfers
Shares purchased for Dividend Reinvestment
Plan
Dividend Reinvestment Plan
Shares issued for acquisition of BHPP
Replacement employee share plan issued for
acquisition of BHPP
Employee share plan purchases
Employee share plan redemptions
Share-based payments (net of tax)
Dividends paid
Transaction costs associated with the issue of
shares
At 31 December 2022
At 1 January 2021
Profit for the period
Other comprehensive income/(loss)
Total comprehensive income/(loss) for the
period
Dividend Reinvestment Plan
Employee share plan purchases
Employee share plan redemptions
Share-based payments (net of tax)
Dividends paid
29,001
-
-
-
-
-
-
-
-
29,001
9,409
-
-
-
-
(38)
-
-
-
-
(57)
46
-
-
(49)
(30)
-
-
-
-
-
332
19,265
(144)
144
-
-
-
-
-
-
(5)
29,001
9,297
-
-
-
112
-
-
-
-
-
(45)
37
-
-
-
(38)
(23)
-
-
-
-
(47)
40
-
-
(30)
278
-
-
-
-
-
(46)
58
-
290
232
-
-
-
-
-
-
-
18
-
(37)
65
-
-
278
219
-
13
13
-
-
(40)
40
-
232
At 31 December 2021
9,409
The accompanying notes form part of the Financial Statements.
110
ANNUAL REPORT 2023
Notes to the financial statements
Notes to the financial statements
for the year ended 31 December 2023
ABOUT THESE STATEMENTS
Woodside Energy Group Ltd and its controlled entities (Woodside
or the Group) is a for-profit entity limited by shares, incorporated
and domiciled in Australia. Its shares are publicly traded on
the Australian Securities Exchange (ASX), on the Main Market
for listed securities of the London Stock Exchange (LSE) (with
trades settled in the form of UK Depository Interests) and on
the New York Stock Exchange (NYSE) (in the form of Woodside
American Depositary Shares). The nature of the operations and
the principal activities of the Group are described in the Directors’
Report and in the segment information in Note A.1.
The financial statements were authorised for issue in accordance
with a resolution of the Directors on 27 February 2024.
Statement of compliance
The financial statements are general purpose financial
statements, which have been prepared in accordance with
the requirements of the Corporations Act 2001, Australian
Accounting Standards and other authoritative pronouncements
of the Australian Accounting Standards Board (AASB).
The financial statements comply with International Financial
Reporting Standards (IFRS) as issued by the International
Accounting Standards Board. They also include additional
disclosures required for foreign registrants by the United States
Securities and Exchange Commission (US SEC).
The Group’s accounting policies are consistent with those
disclosed in the Group’s 2022 Financial Statements.
Adoption of new or amended standards and interpretations
effective 1 January 2023 did not result in any significant changes
to the Group’s accounting policies.
Estimates have been revised, where required, to reflect current
market conditions including the impact of climate change.
Updated assumptions used for depreciation methodology
and asset useful lives, impairment assessments, business
combinations and restoration obligations are disclosed in
Notes B.3, B.4, B.5 and D.5 respectively; these assumptions
could change in the future. New estimates and judgements
relating to the sell-down of the Scarborough joint venture and
an embedded commodity derivative are disclosed in Notes B.8
and D.6 respectively.
Currency
The functional and presentation currency of Woodside and
all its material subsidiaries is the US dollar.
Transactions in foreign currencies are initially recorded in the
functional currency of the transacting entity at the exchange
rates ruling at the date of transaction. Monetary assets and
liabilities denominated in foreign currencies at the reporting
date are translated at the rates of exchange ruling at that date.
Exchange differences in the consolidated financial statements
are taken to the income statement.
Rounding of amounts
The amounts contained in these financial statements have been
rounded to the nearest million dollars under the option available
to the Group under Australian Securities and Investments
Commission (ASIC) Corporations (Rounding in Financial/
Directors’ Reports) Instrument 2016/191, unless otherwise stated.
Basis of preparation
The financial statements have been prepared on a historical cost
basis, except for derivative financial instruments and certain
other financial assets and financial liabilities, which have been
measured at fair value or amortised cost adjusted for changes
in fair value attributable to the risks that are being hedged in
effective hedge relationships. Where not carried at fair value,
if the carrying value of financial assets and financial liabilities
does not approximate their fair value, the fair value has been
included in the notes to the financial statements.
The financial statements comprise the financial position and
results of the Group as at and for the year ended 31 December
2023 (refer to Note E.8).
Subsidiaries are fully consolidated from the date on which
control is obtained by the Group and cease to be consolidated
from the date at which the Group ceases to have control.
The material subsidiaries of the Group apply the same reporting
period and accounting policies as the parent company in
their financial statements. All intercompany balances and
transactions, including unrealised profits and losses arising from
intra-group transactions, have been eliminated in full.
Non-controlling interests are allocated their share of the net
profit after tax in the consolidated income statement and
their share of other comprehensive income net of tax in the
consolidated statement of comprehensive income, and are
presented within equity in the consolidated statement of
financial position, separately from parent shareholders’ equity.
The consolidated financial statements provide comparative
information in respect of the previous periods. Where required,
a reclassification of items in the financial statements of the
previous periods has been made in accordance with the
classification of items in the financial statements of the
current period.
CLIMATE CHANGE AND ENERGY TRANSITION
Climate considerations
Woodside has considered the impact of climate and the energy
transition in assessing the carrying values of its assets and
liabilities. This note describes climate-related assumptions that
underpin key areas of the financial statements and the potential
short-term and long-term impacts differing scenarios could have
on the financial results and financial position of Woodside.
111
WOODSIDE ENERGY GROUP LTD Notes to the financial statements
for the year ended 31 December 2023
CLIMATE CHANGE AND ENERGY TRANSITION (CONT.)
Financial planning and assumptions
Woodside considers a range of climate and macroeconomic
scenarios to help benchmark our long-term price assumptions
and inform our decision-making to maintain a resilient financial
position. These scenarios are informed by a wide range of
externally published data, including Paris-aligned and non-
Paris-aligned outcomes, and are part of a broad consideration
of risks, opportunities, competitiveness and resilience. The
assumptions applied in assessing amounts within the financial
statements require significant judgement and are in each case
calculated in accordance with the requirements of the applicable
accounting standards.
Our long-term price assumptions reflect management’s current
‘best estimate’ scenario in which global governments pursue
decarbonisation goals as well as other goals such as energy
security and economic development. Price assumptions consider
current legislation in the locations where Woodside operates and
place some weight on scenarios in which the transition to a lower
carbon energy system is sufficiently rapid to meet the goals of
the Paris Agreement, as well as scenarios in which the transition
is not, or may not be, sufficiently rapid. They also place some
weight on a range of other assumptions which can drive prices
(e.g. inflation) and which are not related to the Paris goals.
Woodside’s facilities are subject to physical risks such as oceanic
conditions and are located in regions that experience tropical
cyclones, hurricanes and high ambient temperatures. Woodside
has significant experience designing and operating facilities
located in challenging environments.
The high degree of uncertainty around the nature, timing and
magnitude of climate-related risks, and the uncertainty as
to how the energy transition will evolve, makes it difficult to
determine the risks and their potential impacts with precision.
Woodside continues to monitor the uncertainty around
climate change risks and expects to take into account ongoing
developments into its assumptions, including assumptions
concerning commodity and carbon pricing, as considered
appropriate. Oil and gas investment cases include a carbon price
assumption which takes into consideration uncertainty around
the impact of climate change. Commodity pricing assumptions
are key value drivers with greater significance to assets and
liabilities than carbon pricing.
Impairment of exploration and evaluation,
oil and gas properties and goodwill
In accordance with the Group's accounting policies and
applicable accounting standards, elements of Woodside’s
financial statements are based on reasonable and supportable
assumptions that represent management’s current best estimate
of the range of economic conditions that may exist in the
foreseeable future.
The estimation of recoverable amounts for impairment testing
includes estimating what an independent market participant
would pay to acquire the asset as at the reporting date. Market
participants will be guided by their own views on future
economic and technical conditions and therefore Woodside
considers a range of data sources in determining a future price
forecast, including industry and market benchmarks along with
asset sales transaction data to support the recoverable amount.
The sale of the 10% non-operating participating interest in the
Scarborough Joint Venture to LNG Japan announced in August
2023 is a clear example of an independent market valuation fully
supporting the carrying value of the multi-decade asset.
Price forecasts are adjusted for premiums and discounts based
on the nature and quality of the product. Commodity oil price
estimates have considered the impacts of climate policies along
with other factors such as industry investment and cost trends.
There remains significant uncertainty around how society will
respond to the climate challenge.
The energy transition is expected to bring volatility and there
is uncertainty as to how commodity prices will develop. The
IEA’s World Energy Outlook 2023 (WEO) explores three main
climate change scenarios. The IEA scenarios are not predictions
and the IEA does not have a single view on the future of the
energy system. There is significant uncertainty as to whether
any of these scenarios will eventuate. Because Woodside
considers what a market participant would pay to acquire an
asset in assessing impairments, these external scenarios are not
necessarily consistent with the pricing assumptions used for the
Group’s impairment assessment as disclosed in Table A below
and Note B.4.
112
ANNUAL REPORT 2023 Notes to the financial statements
for the year ended 31 December 2023
CLIMATE CHANGE AND ENERGY TRANSITION (CONT.)
Impairment of exploration and evaluation,
oil and gas properties and goodwill (cont.)
The WEO explores three main scenarios1:
• The Net Zero Emissions by 2050 Scenario (NZE)
• The Announced Pledges Scenario (APS)
• The Stated Policies Scenario (STEPS)
Table A: Average real terms 2022 oil price (US$/bbl, Brent)2,
North Asian LNG price (US$/MMbtu)2 and carbon price
(US$/tCO₂-e)3 consistent with IEA dataset compared against
Woodside’s assumptions:
Average Brent
(RT US$/bbl)
NZE
APS
STEPS
Woodside
2024-2027
2028-2032
2033-2036
2037-2040
52
76
84
73
41
74
85
70
34
72
84
70
31
69
84
70
Average North Asian
LNG (RT US$/MMbtu)
2024-2027
2028-2032
2033-2036
2037-2040
NZE
APS
STEPS
Woodside
Average Carbon
(RT US$/tonne)
8
10
11
11
5
8
9
9
5
7
9
9
5
7
8
9
2024-2027
2028-2032
2033-2036
2037-2040
NZE
APS
STEPS
Woodside
1.
139
133
80
80
IEA 2023. ‘World Energy Outlook 2023’. All rights reserved.
101
100
80
80
169
153
80
80
195
169
80
80
2. Based on data from IEA 2023. ‘World Energy Outlook 2023’ as modified by Woodside analysis.
Woodside used interpolation techniques to estimate Brent annual price points in between
the years that the IEA disclose prices for. For gas pricing assumptions all non-contracted LNG
volumes were assessed at IEA’s Japan import price, as a proxy for North Asian LNG spot price.
Woodside used interpolation techniques to estimate annual gas price points in between the
years that the IEA disclose prices for. For oil linked LNG contracts, prices are derived from the
Brent forecasts and the terms of the contracts.
3. Based on data from IEA 2023. ‘World Energy Outlook 2023’ as modified by Woodside analysis.
The IEA only provide carbon prices from 2030 onwards. As a result, Woodside used a starting
point of US$80/tCO₂-e consistent with internal carbon pricing. Woodside used the 2022
starting price point and the IEA’s published 2030 and 2040 carbon prices for each scenario
to interpolate annual price points through to 2040.
Refer to Note B.4 for the sensitivity analysis performed on
Woodside’s commodity pricing assumptions and the potential
impact on the carrying value of Woodside’s non-current assets.
The benchmarked pricing above has limitations and is based
on a wide range of assumptions. The impact of the benchmark
pricing assumptions may be addressed to varying degrees
by decisions Woodside could make in response such as
acquisitions, divestments or cost reductions as well as other
consequential changes. The scenarios must therefore not be
interpreted as Woodside’s investment guidance. These are
scenarios, not forecasts, and no likelihood is assigned to any
of these scenarios eventuating.
Impact on remaining life of assets
Oil and gas properties relating to transferred exploration and
evaluation and offshore plant and equipment are depreciated
using the unit of production basis over either proved or proved
plus probable reserves. The energy transition may result in
changes to the expected useful life of oil and gas properties
and economically recoverable reserves and resources thereby
accelerating depreciation charges or resulting in an impairment.
Restoration and other provisions
The energy transition may result in restoration activities
occurring earlier than expected. 55% (2022: 54%) of the Group’s
non-current restoration liabilities are expected to be settled
more than 10 years in the future.
Restoration cost estimates require judgemental assumptions
regarding removal date, environmental legislation and
regulations and the extent of restoration activities required.
These cost estimates may change in the future, as a result of
increased regulatory scrutiny and the energy transition. This
includes the demand and related costs for offshore services
which can be influenced by renewable energy construction.
Woodside continues to monitor the uncertainty around climate
change risks to assess if additional changes to restoration
provisions should be recognised.
Long-term contracts
Climate risks may impact underlying assumptions used to
assess the forecast cash flows of long-term contracts. These
judgemental assumptions include pricing forecast and discount
rate adjustments based on the nature of the product.
As at 31 December 2023, the Corpus Christi contract has a positive
value and therefore is not currently onerous (2022: not onerous).
This and other contractual arrangements could be impacted by
adverse market conditions arising from climate-related factors.
Given the uncertainty in climate events, Woodside continues to
review the forecast cash flows of long-term contracts.
Deferred tax assets
The Group has determined that it is probable that sufficient
future taxable income will be available to utilise the deferred
tax assets relating to carry forward unused tax losses and
credits recognised as at 31 December 2023. The recoverability of
deferred tax assets is dependent on the Group’s future taxable
income which can be impacted by the uncertainty of commodity
and carbon pricing.
Regulatory environment
Regulation of climate-related emissions can change over time.
The Australian Government has passed reforms to its Safeguard
Mechanism which applies to regulatory limits on greenhouse gas
emissions from Woodside’s Australian facilities. Some elements
of the reform, such as the method for determining limits at
new facilities, continue to be developed. In December 2023, the
United States Environmental Protection Agency (EPA) issued a
final rule to establish performance standards for methane and
other emissions from existing and new oil and gas operations.
Woodside is not aware of any proposal that would materially
affect the information in these financial statements.
113
WOODSIDE ENERGY GROUP LTD Notes to the financial statements
for the year ended 31 December 2023
Financial and capital risk management
The Board of Directors has overall responsibility for the
establishment and oversight of the Group’s risk management
framework, including review and approval of the Group’s risk
management strategy, policy and key risk parameters. The Board
of Directors and the Audit and Risk Committee have oversight of
the Group’s internal control system and risk management process,
including oversight of the internal audit function.
The Group’s management of financial and capital risks is aimed
at ensuring that available capital, funding and cash flows are
sufficient to:
• meet the Group’s financial commitments as and when they
fall due;
• maintain the capacity to fund its committed project
developments;
• pay a reasonable dividend; and
• maintain a long-term credit rating of not less than
‘investment grade’.
The Group monitors and tests its forecast financial position against
these criteria and, in general, will undertake hedging activity when
necessary to ensure that these objectives are achieved.
Other circumstances that may lead to hedging include the
management of exposures relating to trading activities. It
is, and has been throughout the period, the Group Treasury
policy that no speculative trading in financial instruments shall
be undertaken. Refer to section 3.9 - Risk factors for more
information on the Group’s objectives, policies and processes
for managing financial risk.
The below risks arise in the normal course of the Group’s business.
Risk information can be found in the following sections:
Section A Commodity price risk management
Section A Foreign exchange risk management
Section C Capital risk management
Section C Liquidity risk management
Section C Interest rate risk management
Section D Credit risk management
Page 115
Page 115
Page 140
Page 140
Page 140
Page 144
Key estimates and judgements
In applying the Group’s accounting policies, management
regularly evaluates judgements, estimates and assumptions
based on experience and other factors, including expectations
of future events that may have an impact on the Group.
All judgements, estimates and assumptions made are believed
to be reasonable based on the most current set of circumstances
known to management, and actual results may differ. Significant
judgements, estimates and assumptions made by management
in the preparation of these financial statements are found in the
following notes:
Note A.1
Revenue from contracts with customers
Page 116
Note A.5
Taxes
Note B.2
Exploration and evaluation
Note B.3
Oil and gas properties
Note B.4
Impairment of exploration and evaluation,
oil and gas properties and goodwill
Note B.5
Business combination
Note B.6
Goodwill
Note B.7
Significant production and growth asset
acquisitions
Note B.8
Disposal of assets
Note D.5
Provisions
Note D.6
Other financial assets and liabilities
Note D.7
Leases
Note E.6
Joint arrangements
Page 121
Page 127
Page 128
Page 130
Page 136
Page 137
Page 137
Page 138
Page 146
Page 148
Page 151
Page 158
114
ANNUAL REPORT 2023 Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
IN THIS SECTION
This section addresses financial performance of the Group for the reporting period including, where applicable, the accounting policies
applied and the key estimates and judgements made. This section also includes the tax position of the Group for and at the end of the
reporting period.
A. Earnings for the year
A.1 Segment revenue and expenses
A.2 Finance costs
A.3 Dividends paid and proposed
A.4 Earnings per share
A.5 Taxes
Page 116
Page 120
Page 120
Page 120
Page 121
KEY FINANCIAL AND CAPITAL RISKS IN THIS SECTION
Commodity price risk management
The Group’s revenue is exposed to commodity price fluctuations through the sale of hydrocarbons. Commodity price risks are
measured by monitoring and stress testing the Group’s forecast financial position to sustained periods of low oil and gas prices.
This analysis is regularly performed on the Group’s portfolio and as required for discrete projects and transactions.
The Group’s management of commodity price risk includes the use of commodity derivatives to hedge its exposure (refer to Note
D.6). The hedged exposure includes oil-linked revenue related to produced volumes and revenues derived from trading operations.
Commodity derivatives protect the Group against downside price risk within its corporate and trading portfolios.
As at the reporting date, the Group held commodity hedging financial instruments with a net asset carrying value of $123 million
(2022: $557 million net liability) exposed to commodity price risk. An increase in relevant commodity prices of 10% would decrease the
instruments’ carrying value by $172 million, the effect of which would be recognised within reserves and/or the income statement in
accordance with hedge accounting application. A 10% decrease would have the same but opposite effect. This analysis assumes that
all other variables remain constant (including the price on underlying physical exposures).
Foreign exchange risk management
Foreign exchange risk arises from future commitments, financial assets and financial liabilities that are not denominated in US dollars.
The majority of the Group’s revenue is denominated in US dollars. The Group is exposed to foreign currency risk arising from operating
and capital expenditure incurred in currencies other than US dollars, particularly Australian dollars.
The Group’s management of foreign exchange risk relating to capital expenditure includes the use of forward exchange contract
derivatives to hedge its exposure (refer to Note D.6).
The Group entered into foreign exchange forward contracts to fix the Australian dollar to US dollar exchange rate in relation to
a portion of the Australian dollar denominated capital expenditure incurred or expected to be incurred under the Scarborough
development (refer to Note D.6). Through the use of foreign exchange forward contracts, the Group also hedged its Australian dollar
to US dollar exchange rate exposure in relation to the Australian dollar denominated tax payments which have matured.
As at the reporting date, the Group held hedging foreign currency financial instruments with a net asset carrying value of $8 million
(2022: net liability carrying value of $17 million) exposed to foreign exchange risk.
Measuring the exposure to foreign exchange risk is achieved by regularly monitoring and performing sensitivity analysis on the Group’s
financial position.
A reasonably possible change in the exchange rate of the US dollar to the Australian dollar (+12%/-12% (2022: +12%/-12%)), with all
other variables held constant, would not have a material impact on the Group’s equity or the income statement. Refer to Notes C1,
C2, D2, D4 and D7 for details of the denominations of cash and cash equivalents, interest-bearing liabilities, receivables, payables and
lease liabilities held at 31 December 2023.
115
WOODSIDE ENERGY GROUP LTD Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.1 SEGMENT REVENUE AND EXPENSES
Operating segment information
The Group has identified its operating segments based on
the internal reports that are reviewed and used by the Chief
Executive Officer (Chief Operating Decision Maker) in assessing
performance and determining the allocation of resources.
The disclosed operating segments in 2023 remain consistent
to 2022. In the prior reporting period, the 2021 amounts were
restated to be presented on the same basis.
Operating segments outlined below are identified by
management based on the nature and geographical location
of the business and venture.
Australia:
Exploration, evaluation, development, production and sale
of liquified natural gas, pipeline gas, crude oil and condensate
and natural gas liquids in Australia.
International:
Exploration, evaluation, development, production and sale
of pipeline gas, crude oil and condensate and natural gas
liquids in international jurisdictions outside of Australia.
Marketing:
Marketing, Shipping and Trading of Woodside’s oil and gas
portfolio (including purchased volumes) and optimisation
activities attributed to Marketing which generate incremental
value.
Corporate/Other items:
Corporate/Other items comprise primarily corporate non-
segmental items of revenue and expenses and associated
assets and liabilities not allocated to operating segments
as they are not considered part of the core operations of
any segment.
Customer concentration
The Group has two major customers which respectively account
for 8% and 7% of the Group’s external revenue. The sales are
generated by the Australia and Marketing operating segments
(2022: two major customers; 12% and 9% generated by the
Australia and Marketing operating segments and 2021: two major
customers; 8% and 6% generated by the Australia operating
segment).
Geographical information
Geographical
information
Revenue from external
customers1
Non-current assets2
Asia Pacific
Americas
Africa
Europe
2023
US$m
9,823
2,564
-
1,607
2022
US$m
12,521
1,545
-
2,751
2021
US$m
6,342
-
-
620
2023
US$m
36,060
7,171
5,295
-
2022
US$m
36,966
7,057
4,049
-
Consolidated
13,994
16,817
6,962
48,526
48,072
1. Revenue is attributable to geographic location based on the location of the customers.
2. Non-current assets exclude deferred tax of $1,717 million (2022: $1,959 million).
Recognition and measurement
Revenue from contracts with customers
Revenue is recognised when or as the Group transfers control
of products or provides services to a customer at the amount
to which the Group expects to be entitled. If the consideration
includes a variable component, the Group estimates the amount
of the expected consideration receivable. Variable consideration
is estimated throughout the contract and is recognised to the
extent that it is highly probable a significant reversal will
not occur.
• Revenue from sale of hydrocarbons – Revenue from the sale
of hydrocarbons is recognised at a point in time when control
of the product is transferred to the customer. Revenue from
take or pay contracts is recorded as unearned revenue until
the product has been drawn by the customer (transfer of
control), at which time it is recognised in earnings.
• Other operating revenue – Revenue earned from LNG
processing and other services is recognised over time as
the services are rendered.
Expenses
• Royalties, excise and levies – Royalties, excise and levies are
considered to be production-based taxes and are therefore
accrued on the basis of the Group’s entitlement to physical
production.
• Depreciation and amortisation – Refer to Note B.3.
• Impairment and impairment reversals – Refer to Note B.4.
• Leases – Refer to Note D.7.
• Employee benefits – Refer to Note E.2.
Key estimates and judgements
(a) Revenue from contracts with customers
The transaction price at the date control passes for sales made
subject to provisional pricing periods in oil and condensate
contracts is determined with reference to quoted commodity prices.
Judgement is also used to determine if it is highly probable that a
significant reversal will not occur in relation to revenue recognised
during open pricing periods in LNG contracts. The Group estimates
variable consideration based on available information from contract
negotiations and market indicators.
116
ANNUAL REPORT 2023 Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
Liquefied natural gas
Pipeline gas
Crude oil and condensate
Natural gas liquids
Revenue from sale of hydrocarbons
Intersegment revenue1
Processing and services revenue
Shipping and other revenue
Other revenue
Operating revenue2
Production costs
Royalties, excise and levies
Insurance
Inventory movement
Costs of production
Land and buildings
Transferred exploration and evaluation
Plant and equipment
Oil and gas properties depreciation and amortisation
Shipping and direct sales costs
Trading costs
Other hydrocarbon costs
Other cost of sales
Movement in onerous contract provision
Other cost of sales
Cost of sales
Gross profit
Other income3
Exploration and evaluation expenditure4
Amortisation of permit acquisition
Write-offs
Exploration and evaluation
General, administrative and other costs
Depreciation of other plant and equipment
Depreciation of lease assets
Restoration movement
Other5
Other costs
Other expenses
Impairment losses6
Impairment reversals
Profit/(loss) before tax and net finance costs
1.
Australia
International
Marketing
Corporate/
Other
Consolidated
2023
US$m
6,867
1,088
1,611
218
9,784
(166)
184
-
18
9,802
(1,173)
(462)
(41)
(40)
(1,716)
(62)
(101)
(2,591)
(2,754)
(164)
(12)
(7)
(7)
-
(190)
(4,660)
5,142
160
(24)
-
(31)
(55)
-
-
(50)
(125)
(51)
(226)
(281)
(534)
-
4,487
2023
US$m
-
286
2,246
32
2,564
(15)
-
-
(15)
2,549
(389)
(41)
(11)
3
(438)
(5)
(24)
(1,139)
(1,168)
(83)
-
-
-
-
(83)
(1,689)
860
54
(253)
(4)
(46)
(303)
-
-
(14)
(22)
-
(36)
(339)
(1,383)
-
(808)
2023
US$m
1,298
-
124
31
1,453
181
-
9
190
1,643
-
-
-
-
-
-
-
-
-
(54)
(1,056)
-
-
-
(1,110)
(1,110)
533
26
-
-
-
-
-
-
(75)
-
(109)
(184)
(184)
-
-
2023
US$m
-
-
-
-
-
-
-
-
-
-
-
-
(8)
-
(8)
-
-
(34)
(34)
(18)
-
-
-
-
(18)
(60)
(60)
82
(2)
-
-
(2)
(453)
-
(40)
-
(274)
(767)
(769)
-
-
375
(747)
2023
US$m
8,165
1,374
3,981
281
13,801
-
184
9
193
13,994
(1,562)
(503)
(60)
(37)
(2,162)
(67)
(125)
(3,764)
(3,956)
(319)
(1,068)
(7)
(7)
-
(1,401)
(7,519)
6,475
322
(279)
(4)
(77)
(360)
(453)
-
(179)
(147)
(434)
(1,213)
(1,573)
(1,917)
-
3,307
Intersegment revenue comprises the incremental income net of all associated expenses generated by the Marketing segment’s optimisation of the oil and gas portfolio. The value is incremental
income net of incremental costs.
2. Operating revenue includes revenue from contracts with customers of $13,985 million and sub-lease income of $9 million disclosed within shipping and other revenue.
3. Includes fees and recoveries, foreign exchange gains and other income not associated with the ongoing operations of the business.
4. Includes seismic and general permit activities and other exploration costs.
5. Includes losses on hedging activities, fair value losses on embedded derivatives and other expenses not associated with the ongoing operations of the business.
6. Impairment on oil and gas properties. Refer to Note B.4 for more details.
117
WOODSIDE ENERGY GROUP LTD Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
Liquefied natural gas
Pipeline gas
Crude oil and condensate
Natural gas liquids
Revenue from sale of hydrocarbons
Intersegment revenue1
Processing and services revenue
Shipping and other revenue
Other revenue
Operating revenue2
Production costs
Royalties, excise and levies
Insurance
Inventory movement
Costs of production
Land and buildings
Transferred exploration and evaluation
Plant and equipment
Oil and gas properties depreciation and amortisation
Shipping and direct sales costs
Trading costs
Other hydrocarbon costs
Other cost of sales
Movement in onerous contract provision3
Other cost of sales
Cost of sales
Gross profit
Other income4
Exploration and evaluation expenditure5
Amortisation of permit acquisition
Write-offs6
Exploration and evaluation
General, administrative and other costs7
Depreciation of other plant and equipment
Depreciation of lease assets
Restoration movement
Other8
Other costs
Other expenses
Impairment losses
Impairment reversals9
Profit/(loss) before tax and net finance costs
1.
Australia
International
Marketing
Corporate/
Other
Consolidated
2022
US$m
8,855
1,086
2,467
171
12,579
(455)
175
-
(280)
12,299
(975)
(540)
(35)
44
(1,506)
(51)
(107)
(2,168)
(2,326)
(312)
(14)
(19)
(4)
-
(349)
(4,181)
8,118
722
(20)
(1)
-
(21)
(13)
-
(49)
(234)
(8)
(304)
(325)
-
900
9,415
2022
US$m
-
276
1,273
26
1,575
(5)
-
-
(5)
1,570
(313)
(39)
(7)
(3)
(362)
(3)
-
(436)
(439)
(36)
-
-
-
-
(36)
(837)
733
4
(277)
(9)
(164)
(450)
(21)
-
(11)
(46)
(84)
(162)
(612)
-
-
125
2022
US$m
2,434
-
18
9
2,461
460
-
27
487
2,948
-
-
-
-
-
-
-
-
-
(73)
(1,763)
-
-
216
(1,620)
(1,620)
1,328
5
-
-
-
-
(10)
-
-
-
(475)
(485)
(485)
-
-
2022
US$m
-
-
-
-
-
-
-
-
-
-
7
(17)
(1)
-
(11)
-
-
(33)
(33)
142
-
-
-
-
142
98
98
4
1
-
-
1
(747)
-
(80)
8
(486)
(1,305)
(1,304)
-
-
848
(1,202)
2022
US$m
11,289
1,362
3,758
206
16,615
-
175
27
202
16,817
(1,281)
(596)
(43)
41
(1,879)
(54)
(107)
(2,637)
(2,798)
(279)
(1,777)
(19)
(4)
216
(1,863)
(6,540)
10,277
735
(296)
(10)
(164)
(470)
(791)
-
(140)
(272)
(1,053)
(2,256)
(2,726)
-
900
9,186
Intersegment revenue comprises the incremental income net of all associated expenses generated by the Marketing segment’s optimisation of the oil and gas portfolio. The value is incremental
income net of incremental costs.
2. Operating revenue includes revenue from contracts with customers of $16,790 million and sub-lease income of $27 million disclosed within shipping and other revenue.
3. Comprises changes in estimates of $245 million offset by provisions used of $29 million. Refer to Note D.5 for further details.
4. Includes initial gain on Train 2 sell-down of $427 million, revaluation gain on the remeasurement of the Train 2 sell-down variable consideration of $71 million, fees and recoveries, foreign exchange
gains and other income not associated with the ongoing operations of the business.
5. Includes $142 million for various costs relating to the Group’s exit from the Orphan Basin exploration licences in Canada.
6. $125 million relates to costs of unsuccessful wells that have been written off. Refer to Note B.2.
7. Transaction costs of $419 million incurred as a result of the BHPP merger on 1 June 2022 are included in the Corporate/Other segment. Refer to Note B.5 for details.
8. Includes losses on hedging activities and changes in fair value of derivative financial instruments of $960 million in the Marketing and Corporate/Other segments and other expenses not associated
with the ongoing operations of the business.
9. Impairment reversals on oil and gas properties. Refer to Note B.4 for more details.
118
ANNUAL REPORT 2023 Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
Liquefied natural gas
Pipeline gas
Crude oil and condensate
Natural gas liquids
Revenue from sale of hydrocarbons
Intersegment revenue1
Processing and services revenue
Shipping and other revenue
Other revenue
Operating revenue2
Production costs
Royalties, excise and levies
Insurance
Inventory movement
Costs of production
Land and buildings
Transferred exploration and evaluation
Plant and equipment
Oil and gas properties depreciation and amortisation
Shipping and direct sales costs
Trading costs
Other hydrocarbon costs
Other cost of sales
Movement in onerous contract provision3
Other cost of sales
Cost of sales
Gross profit/(loss)
Other income4
Exploration and evaluation expenditure
Amortisation of permit acquisition
Write-offs5
Exploration and evaluation
General, administrative and other costs
Depreciation of other plant and equipment
Depreciation of lease assets
Restoration movement
Other6
Other costs
Other expenses
Impairment losses
Impairment reversals7
Profit/(loss) before tax and net finance costs
1.
Australia
International
Marketing
Corporate/
Other
Consolidated
20218
US$m
3,910
43
1,316
60
5,329
(236)
143
4
(89)
5,240
(489)
(218)
(32)
17
(722)
(51)
(79)
(1,419)
(1,549)
(197)
(3)
(6)
(11)
-
(217)
(2,488)
2,752
97
(16)
-
-
(16)
(5)
-
(28)
(80)
(57)
(170)
(186)
(10)
1,058
3,711
20218
US$m
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(2)
(27)
(2)
(265)
(294)
(1)
-
-
12
(32)
(21)
(315)
-
-
20218
US$m
1,449
-
-
-
1,449
236
-
37
273
1,722
-
-
-
-
-
-
-
-
-
(45)
(1,492)
-
-
140
(1,397)
(1,397)
325
1
-
-
-
-
-
-
-
-
28
28
28
-
-
20218
US$m
-
-
-
-
-
-
-
-
-
-
8
-
1
-
9
-
-
-
-
32
-
-
(1)
-
31
40
40
43
(11)
(1)
-
(12)
(152)
(30)
(80)
-
(64)
(326)
(338)
-
-
(317)
354
(255)
2021
US$m
5,359
43
1,316
60
6,778
-
143
41
184
6,962
(481)
(218)
(31)
17
(713)
(51)
(79)
(1,419)
(1,549)
(210)
(1,495)
(6)
(12)
140
(1,583)
(3,845)
3,117
139
(54)
(3)
(265)
(322)
(158)
(30)
(108)
(68)
(125)
(489)
(811)
(10)
1,058
3,493
Intersegment revenue comprises the incremental income net of all associated expenses generated by the Marketing segment’s optimisation of the oil and gas portfolio. The value is incremental
income net of incremental costs.
2. Operating revenue includes revenue from contracts with customers of $6,923 million and sub-lease income of $39 million disclosed within shipping and other revenue.
3. Comprises provisions used of $45 million and changes in estimates of $95 million.
4. Includes other income of $67 million relating to Pluto volumes delivered into Wheatstone’s sales commitments and net foreign exchange gains of $44 million.
5. $56 million relates to costs of unsuccessful wells. $209 million relates to capitalised costs written off due to the Group’s decision to withdraw from its interests in Myanmar.
6. Includes net loss on hedging activities of $91 million, various costs relating to Woodside’s exit from the Kitimat LNG development of $33 million and other expenses not associated with the ongoing
operations of the business.
Impairment reversals on oil and gas properties.
7.
8. In the prior reporting period, the 2021 amounts were restated to reflect the changes in operating segments and portfolio reporting for LNG revenue.
119
WOODSIDE ENERGY GROUP LTD Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.2 FINANCE COSTS
A.4 EARNINGS PER SHARE
Profit attributable to equity
holders of the parent (US$m)
Weighted average number
of shares on issue for basic
earnings per share
Effect of dilution from
contingently issuable shares
Weighted average number of
shares on issue adjusted for
the effect of dilution
Basic earnings per share
(US cents)
Diluted earnings per share
(US cents)
2023
1,660
2022
2021
6,498
1,983
1,896,498,169
1,511,257,404
962,604,811
14,444,802
13,061,376
9,023,439
1,910,942,971
1,524,318,780 971,628,250
87.5
86.9
430.0
206.0
426.3
204.1
Earnings per share is calculated by dividing the profit for the
year attributable to ordinary equity holders of the parent by
the weighted average number of ordinary shares on issue
during the year. The weighted average number of shares makes
allowance for shares reserved for employee share plans. Diluted
earnings per share is calculated by adjusting basic earnings per
share by the number of ordinary shares that would be issued
on conversion of all the dilutive potential ordinary shares into
ordinary shares. At 31 December 2023, 14,444,802 awards (2022:
13,061,376 awards and 2021: 9,023,439 awards) granted under
Woodside employee share plans are considered dilutive.
There have been no significant transactions involving ordinary
shares between the reporting date and the date of completion
of these financial statements.
Interest on interest-bearing liabilities
Interest on lease liabilities
Accretion charge
Other finance costs
Less: Finance costs capitalised
against qualifying assets
2023
US$m
2022
US$m
2021
US$m
229
102
238
49
(311)
307
212
103
110
36
(294)
167
201
97
29
26
(123)
230
A.3 DIVIDENDS PAID AND PROPOSED
Woodside Energy Group Ltd, the parent entity, paid and
proposed dividends set out below:
2023
US$m
2022
US$m
2021
US$m
2,734
1,018
1,519
4,253
2,070
3,088
115
289
404
1,139
2,734
1,018
1,813
1,406
1,744
140
253
135
(a) Dividends paid during the financial
year
Prior year fully franked final
dividend1
Current year fully franked interim
dividend2
(b) Dividend declared subsequent
to the reporting period (not recorded
as a liability)
Final dividend3
(c) Other information
Franking credits available for
subsequent periods
Current year dividends per share
(US cents)
1. 2023: US$1.44, paid on 5 April 2023
2022: US$1.05, paid on 23 March 2022
2021: US$0.12, paid on 24 March 2021
2. 2023: US$0.80, paid on 28 September 2023
2022: US$1.09, paid on 6 October 2022
2021: US$0.30, paid on 24 September 2021
3. 2023: US$0.60, to be paid on 4 April 2024
2022: US$1.44, paid on 5 April 2023
2021: US$1.05, paid on 23 March 2022
The Dividend Reinvestment Plan (DRP) was approved by
the shareholders at the Annual General Meeting in 2003 for
activation as required to fund future growth. The DRP was
reactivated in 2019 and suspended by the Board of Directors
on 27 February 2023.
120
ANNUAL REPORT 2023 Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.5 TAXES
(a) Tax expense comprises
Petroleum resource rent tax (PRRT)
Current tax expense
Deferred tax expense/(benefit)
PRRT expense/(benefit)
Income tax
Current year
2022
2023
US$m US$m
2021
US$m
367
531
898
501
(814)
(313)
-
297
297
Current tax expense
Deferred tax (benefit)/expense
1,872
(1,255)
2,256
701
Adjustment to prior years
Current tax benefit
Deferred tax expense
Income tax expense
Tax expense
(b) Reconciliation of income tax expense
Profit before tax
PRRT (expense)/benefit
Profit before income tax
Income tax expense calculated at 30%
Effect of tax rate differentials
Effect of deferred tax assets not recognised
Effect of tax losses and credits previously
unrecognised1
Effect of goodwill impairment2
Reduction in deferred tax liability due to
held for sale basis3
Foreign exchange impact on tax benefit
Adjustment to prior years
Integration and transaction costs non-
deductible
Other
Income tax expense
(c) Reconciliation of PRRT expense
Profit before tax
Non-PRRT assessable profit
PRRT projects profit before tax
PRRT expense calculated at 40%
Derecognition/(recognition) of Pluto general
expenditure4
Recognition of transferred exploration spend
Augmentation
Other
PRRT expense/(benefit)
(d) Deferred tax income statement
reconciliation
PRRT
Production and growth assets
Augmentation for current year
Provisions
Other
PRRT expense/(benefit)
Income tax
Oil and gas properties
Exploration and evaluation assets
Lease assets and liabilities
Provisions
PRRT assets and liabilities
Unused tax losses and tax credits
Assets held for sale
Derivatives
Other
Income tax deferred tax (benefit)/expense
Deferred tax (benefit)/expense
14
22
653
1,551
3,273
(898)
2,375
712
91
155
(332)
109
(78)
(58)
36
4
14
653
3,273
(1,780)
1,493
598
611
(18)
(292)
(1)
898
1,206
(292)
(372)
(11)
531
(529)
38
(20)
(232)
(175)
(221)
(86)
(21)
13
(1,233)
(702)
(276)
231
2,912
2,599
9,174
313
9,487
2,847
(141)
150
-
-
-
(44)
(45)
142
3
2,912
9,174
(6,197)
2,977
1,191
(1,362)
-
(175)
33
(313)
(710)
(175)
(12)
83
(814)
292
14
25
151
236
19
205
21
(31)
932
118
658
301
(20)
18
957
1,254
3,290
(297)
2,993
898
(42)
114
-
-
-
(18)
(2)
-
7
957
3,290
(2,134)
1,156
462
-
-
(166)
1
297
455
(166)
(29)
37
297
674
(204)
1
(10)
(88)
149
(205)
(11)
13
319
616
(e) Deferred tax other comprehensive
income reconciliation
Income tax
Derivatives
Other
Deferred income tax expense/(benefit) via
other comprehensive income
(f) Effective income tax rate: Australian and
global operations
Effective income tax rate1,5
2022
2021
2023
US$m US$m US$m
77
7
84
(64)
(2)
(66)
5
5
10
Australia
Global
30.2%
27.5%
30.0%
30.7%
30.6%
32.0%
1. As a result of the FID to develop the Trion resource in 2023, the Group has recognised
deferred tax assets of $319 million.
2. Tax effect of the non-deductible impairment of goodwill relating to Shenzi.
3. Recognition of the tax base associated with the expected sale of Woodside's 10% share in the
Scarborough Project. This will offset future assessable income on the completion of the sale.
4. In 2023, the $637 million decrease of the Pluto PRRT deferred tax asset is due to the
derecognition of previously recognised deductible expenditure that is now not considered
to be recoverable on the basis of future taxable profits not being available to utilise the
expenditure. In 2022, the $1,362 million increase of the Pluto PRRT deferred tax asset was due
to the recognition of previously unrecognised deductible expenditure that is now expected to
be utilised to offset future taxable profits.
5. The global operations effective income tax rate (ETR) is calculated as the Group’s income
tax expense divided by profit before income tax. The Australian operations ETR is calculated
with reference to all Australian companies and excludes foreign exchange on settlement
and revaluation of income tax liabilities. The global effective income tax rate is lower in 2023
primarily as a result of the deferred tax asset recognised upon taking FID on Trion.
(g) Deferred tax balance sheet reconciliation
Deferred tax assets
PRRT
Production and growth assets
Augmentation for current year
Provisions
Other
PRRT deferred tax assets
Income tax
Oil and gas properties
Exploration and evaluation assets
Lease assets and liabilities
Unused tax losses and tax credits
Derivatives
Provisions
Other
Income tax deferred tax assets
Deferred tax assets
Deferred tax liabilities
PRRT
Production and growth assets
Augmentation for current year
Provisions
Other
PRRT deferred tax liabilities
Income tax
Oil and gas properties
Exploration and evaluation assets
Lease assets and liabilities
Provisions
PRRT assets and liabilities
Assets held for sale
Derivatives
Other
Income tax deferred tax liabilities
Deferred tax liabilities
2022
2023
US$m US$m
455
231
445
(30)
1,101
(1,388)
60
40
1,686
-
227
(9)
616
1,460
113
271
(23)
1,821
(1,496)
30
23
1,464
23
60
34
138
1,717
1,959
1,309
(38)
(995)
113
389
2,939
127
(48)
(1,856)
118
36
(2)
(76)
1,238
1,627
1,281
(62)
(743)
137
613
2,857
67
(22)
(1,280)
347
-
(36)
(89)
1,844
2,457
121
WOODSIDE ENERGY GROUP LTD Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.5 TAXES (CONT.)
Tax transparency code
Woodside participates in the Australian Board of Taxation’s
voluntary Tax Transparency Code (TTC). To increase public
confidence in the contributions and compliance of corporate
taxpayers, the TTC recommends public disclosure of tax
information. Part A of the recommended disclosures is
addressed within this Taxes note and Part B disclosed
within the Sustainability section on our website.
Recognition and measurement
Current tax assets and liabilities are measured at the amount
expected to be recovered from or paid to the taxation
authorities. Deferred tax assets and liabilities are measured at
the tax rates that are expected to apply in the period in which
the liability is settled or the asset is realised. The tax rates and
laws used to determine the amount are based on those that
have been enacted or substantially enacted by the end of the
reporting period. Income taxes relating to items recognised
directly in equity are recognised in equity.
Current taxes
Current tax expense is the expected tax payable on the taxable
income for the current year and any adjustment to tax paid in
respect of previous years.
Deferred taxes
Deferred tax expense represents movements in the temporary
differences between the carrying amount of an asset or liability
in the consolidated statement of financial position and its
tax base.
With the exception of those noted below, deferred tax liabilities
are recognised for all taxable temporary differences.
Deferred tax assets are recognised for deductible temporary
differences, unused tax losses and tax credits only if it is
probable that sufficient future taxable income will be available
to utilise those temporary differences and losses.
Deferred tax is not recognised if the temporary difference arises
from goodwill or from the initial recognition (other than in a
business combination) of assets and liabilities in a transaction
that affects neither accounting profit nor the taxable profit.
In relation to PRRT, the impact of future augmentation on
expenditure is included in the determination of future taxable
profits when assessing the extent to which a deferred tax
asset can be recognised in the consolidated statement of
financial position.
Offsetting deferred tax balances
Deferred tax assets and liabilities are offset only if there is a
legally enforceable right to offset current tax assets and liabilities
and when they relate to income taxes levied by the same
taxation authority on either the same taxable entity or different
taxable entities that the Group intends to settle its current tax
assets and liabilities on a net basis. Refer to Notes E.8 and E.9
for detail on the tax consolidated groups.
122
Key estimates and judgements
(a) Income tax classification
Judgement is required when determining whether a particular
tax is an income tax or another type of tax. PRRT is considered,
for accounting purposes, to be an income tax. Accounting for
deferred tax is applied to income taxes as described above, but is
not applied to other types of taxes, e.g. North West Shelf royalties,
excise and levies which are recognised in cost of sales in the
income statement.
(b) Deferred tax asset recognition
The Group has two separate USA Tax Consolidation Groups (USA
TCG) as at 31 December 2023.
Income tax losses and credits: Deferred tax assets (DTAs) relating to
carry forward unused tax losses and credits arising from the USA TCG
of $1,248 million (2022: $1,371 million) and $333 million (2022: $93
million) arising from countries other than Australia and the USA have
been recognised. The Group has determined that it is probable that
sufficient future taxable income will be available to utilise those losses
and credits within those countries. Refer to Note E.9(a) for details of
tax consolidated groups.
DTAs relating to carry forward unused tax losses and credits of
$232 million (2022: $250 million) from the USA TCG, $189 million
(2022: $146 million) from USA entities outside of the USA TCG
and $763 million (2022: $1,061 million) from countries other
than Australia and the USA have not been recognised as it is not
currently probable that the losses and credits will be utilised based
on current planned activities in those countries.
As a result of the FID to develop the Trion resource in 2023, the
Group has recognised deferred tax assets of $319 million.
PRRT: The recoverability of PRRT deferred tax assets is primarily
assessed with regard to future oil price assumptions impacting
forecast future taxable profits. During the year ended 31 December
2023, the Group reduced the Pluto PRRT DTA by $637 million
($446 million post-tax) on the basis of future taxable profits
not being available to utilise the deductible expenditure. This is
primarily driven by decreases in forecast pricing assumptions and
actual pricing realised during the year ended 31 December 2023.
In determining the amount of DTA that is considered probable
and eligible for recognition, forecast future taxable profits are
risk-adjusted where appropriate by a market premium risk rate to
reflect uncertainty inherent in long-term forecasts. A long-term
bond rate of 3.2% (31 December 2022: 3.2%) was used for the
purposes of augmentation.
Certain deferred tax assets on deductible temporary differences
have not been recognised on the basis that deductions from future
augmentation of the recognised deductible temporary difference
will be sufficient to offset future taxable profits. $7,428 million
(2022: $6,523 million) relates to the North West Shelf Project,
$872 million (2022: $189 million) relates to remaining Pluto
quarantined exploration expenditure and $758 million (2022:
$831 million) relates to Wheatstone. A long-term bond rate of
3.2% (31 December 2022: 3.2%) was used for the purposes of
augmentation.
Had an alternative approach been used to assess recovery of
the deferred tax assets, whereby future augmentation was not
included in the assessment, additional deferred tax assets would
be recognised, with a corresponding benefit to tax expense. It
was determined that the approach adopted provides the most
meaningful information on the implications of the PRRT regime,
whilst ensuring compliance with AASB 112/IAS 12 Income Taxes.
ANNUAL REPORT 2023 Notes to the financial statements A. Earnings for the year
for the year ended 31 December 2023
A.5 TAXES (CONT.)
Key estimates and judgements (cont.)
(c) Uncertain tax positions
The Group has tax matters, litigation and other claims, for which
the timing of resolution and potential economic outflows are
uncertain. Where the Group assesses an outcome for any tax
matter, litigation or other claim as more likely than not to be
accepted by the relevant tax authority, the position is adopted in
the reported tax balances.
Because of the complexity of some of these positions, the ultimate
outcome may differ from the current estimate of the position.
These differences will be reflected as increases or decreases to tax
expense in the period in which new information is available. Tax
matters without a probable economic outflow and/or presently
cannot be measured reliably are contingent liabilities and disclosed
in Note E.1 Contingent liabilities and assets.
123
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
IN THIS SECTION
This section addresses the strategic growth (exploration and evaluation), core producing and development (oil and gas properties)
assets position of the Group at the end of the reporting period including, where applicable, the accounting policies and key estimates
and judgements applied. This section also includes the impairment position of the Group at the end of the reporting period.
B. Production and growth assets
B.1 Segment production and growth assets
B.2 Exploration and evaluation
B.3 Oil and gas properties
B.4 Impairment of exploration and evaluation, oil and gas properties and goodwill
B.5 Business combination
B.6 Goodwill
B.7 Significant production and growth asset acquisitions
B.8 Disposal of assets
Page 125
Page 127
Page 128
Page 130
Page 136
Page 137
Page 137
Page 138
124
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.1 SEGMENT PRODUCTION AND GROWTH ASSETS
Balance as at 31 December
Asia Pacific
Americas
Africa
Total exploration and evaluation
Balance as at 31 December
Land and buildings
Transferred exploration and evaluation
Plant and equipment
Projects in development
Total oil and gas properties
Balance as at 31 December
Land and buildings
Plant and equipment1
Total lease assets
Additions to exploration and evaluation:
Exploration
Evaluation
Restoration2
Additions to oil and gas properties:
Oil and gas properties
Capitalised borrowing costs3
Restoration2
Additions to lease assets:
Land and buildings
Plant and equipment
Australia
International
Marketing
Corporate/
Other
Consolidated
2023
US$m
2023
US$m
2023
US$m
2023
US$m
2023
US$m
568
-
-
568
669
360
16,498
7,825
25,352
96
194
290
29
55
(5)
79
3,127
188
779
4,094
-
6
6
-
76
24
100
32
417
6,893
7,655
14,997
89
60
149
59
108
-
167
2,000
123
188
2,311
-
-
-
-
-
-
-
-
-
-
-
-
-
539
539
-
-
-
-
-
-
-
-
-
114
114
-
-
-
-
-
-
198
244
442
245
7
252
-
-
-
-
190
-
-
190
8
-
8
568
76
24
668
701
777
23,589
15,724
40,791
430
800
1,230
88
163
(5)
246
5,317
311
967
6,595
8
120
128
1.
In 2023, certain shipping activities, previously understaken by the Corporate/Other segment, are now undertaken by the Marketing segment. As a result of this change, $539 million of lease assets
are now reported within the Marketing segment as at 31 December 2023.
2. Relates to changes in restoration provision assumptions.
3. Borrowing costs capitalised were at a weighted average interest rate of 4.0%.
Refer to Note A.1 for descriptions of the Group’s segments and geographical regions.
125
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.1 SEGMENT PRODUCTION AND GROWTH ASSETS (CONT.)
Balance as at 31 December
Asia Pacific
Americas
Africa
Total exploration and evaluation
Balance as at 31 December
Land and buildings
Transferred exploration and evaluation
Plant and equipment
Projects in development1
Total oil and gas properties
Balance as at 31 December
Land and buildings
Plant and equipment
Total lease assets
Additions to exploration and evaluation2:
Exploration
Evaluation
Restoration3
Additions to oil and gas properties2:
Oil and gas properties
Capitalised borrowing costs4
Restoration3
Additions to lease assets2:
Land and buildings
Plant and equipment
Australia
International
Marketing
Corporate/
Other
Consolidated
2022
US$m
529
-
-
529
802
481
18,249
5,623
25,155
93
214
307
1
19
(1)
19
2,252
115
(346)
2,021
4
139
143
2022
US$m
-
240
38
278
37
-
4,647
9,795
14,479
107
131
238
121
100
-
221
1,560
179
(28)
1,711
-
90
90
2022
US$m
2022
US$m
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
161
123
285
264
455
719
-
-
-
-
92
-
-
92
-
9
9
2022
US$m
529
240
38
807
840
481
23,057
15,541
39,919
464
800
1,264
122
119
(1)
240
3,904
294
(374)
3,824
4
238
242
1. Projects in development include the fair value ascribed to future phases of certain projects acquired through business combinations.
2. Additions exclude acquisitions through business combinations.
3. Relates to changes in restoration provision assumptions.
4. Borrowing costs capitalised were at a weighted average interest rate of 3.8%.
126
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.2 EXPLORATION AND EVALUATION
Year ended 31 December 2023
Carrying amount at 1 January 2023
Additions
Amortisation of licence acquisition costs
Expensed1
Transferred exploration and evaluation2
Carrying amount at 31 December 2023
Year ended 31 December 2022
Carrying amount at 1 January 2022
Acquisitions through business combination3
Additions
Disposals
Amortisation of licence acquisition costs
Expensed1
Transferred exploration and evaluation
Carrying amount at 31 December 2022
Exploration commitments
Year ended 31 December 2023
Year ended 31 December 2022
Asia Pacific
US$m
Americas
US$m
Africa
US$m
529
79
-
(31)
(9)
568
546
-
19
-
-
-
(36)
529
3
1
240
161
(2)
(28)
(295)
76
-
180
204
(10)
(8)
(126)
-
240
1
1
38
6
(2)
(18)
-
24
68
-
17
-
(2)
(45)
-
38
35
27
Total
US$m
807
246
(4)
(77)
(304)
668
614
180
240
(10)
(10)
(171)
(36)
807
39
29
1. $77 million (2022: $125 million) relates to costs of unsuccessful wells.
2. On 20 June 2023, the Group made a final investment decision to develop the Trion resource in Mexico. Related exploration and evaluation assets of $274 million were transferred to oil and gas
properties.
3. Refer to Note B.5 for details of business combination.
Recognition and measurement
Expenditure on exploration and evaluation is accounted for in
accordance with the area of interest method.
Areas of interest are based on a geographical area for which
the rights of tenure are current. All exploration and evaluation
expenditure, including general permit activity, geological and
geophysical costs and new venture activity costs, is expensed
as incurred except for the following:
• where the expenditure relates to an exploration discovery
for which the assessment of the existence or otherwise of
economically recoverable hydrocarbons is not yet complete; or
• where the expenditure is expected to be recouped through
successful exploitation of the area of interest, or alternatively,
by its sale.
The costs of acquiring interests in new exploration and
evaluation licences are capitalised. The costs of drilling
exploration wells are initially capitalised pending the results
of the well.
Costs are expensed where the well does not result in the
successful discovery of economically recoverable hydrocarbons
and the recognition of an area of interest.
Subsequent to the recognition of an area of interest, all further
evaluation costs relating to that area of interest are capitalised.
Upon approval for the commercial development of an area of
interest, accumulated expenditure for the area of interest is
transferred to oil and gas properties.
In the consolidated statement of cash flows, those cash
flows associated with capitalised exploration and evaluation
expenditure, including unsuccessful wells, are classified as cash
flows used in investing activities.
Exploration commitments
The Group has exploration expenditure obligations which
are contracted for, but not provided for in the financial
statements. These obligations may be varied from time to time
and are expected to be fulfilled in the normal course of the
Group’s operations.
Impairment
Refer to Note B.4 for details on impairment, including any
write-offs.
Key estimates and judgements
(a) Area of interest
Typically, an area of interest (AOI) is defined by the Group
as an individual geographical area whereby the presence of
hydrocarbons is considered favourable or proved to exist. The
Group has established criteria to recognise and maintain an AOI.
(b) Transfer to projects in development
Development activities commence after project sanctioning
by the appropriate level of management. Judgement is applied
by management in determining when the project is technically
feasible and economically viable to transfer to projects in
development.
127
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.3 OIL AND GAS PROPERTIES
Year ended 31 December 2023
Carrying amount at 1 January 2023
Additions1
Disposals at written down value
Depreciation and amortisation
Impairment losses2
Completions and transfers
Transfer to assets held for sale3
Carrying amount at 31 December 2023
At 31 December 2023
Historical cost
Accumulated depreciation and impairment
Net carrying amount
Year ended 31 December 2022
Carrying amount at 1 January 2022
Acquisitions through business combinations4
Additions
Disposals at written down value
Depreciation and amortisation
Impairment reversal2
Completions and transfers
Carrying amount at 31 December 2022
At 31 December 2022
Historical cost
Accumulated depreciation and impairment
Land and
buildings
US$m
Transferred
exploration and
evaluation
US$m
Plant and
equipment
US$m
Projects in
development
US$m
840
-
(8)
(67)
(64)
-
-
701
1,745
(1,044)
701
739
64
-
(3)
(54)
87
7
840
1,765
(925)
481
-
-
(125)
(20)
441
-
777
1,979
(1,202)
777
526
-
-
(10)
(107)
30
42
481
1,538
(1,057)
23,057
836
(2)
(3,764)
(1,028)
4,496
(6)
23,589
50,272
(26,683)
23,589
12,465
11,952
(508)
(32)
(2,637)
783
1,034
23,057
45,273
(22,216)
15,541
5,759
-
-
(328)
(4,633)
(615)
15,724
16,443
(719)
15,724
4,919
7,337
4,332
-
-
-
(1,047)
15,541
15,937
(396)
23,057
Includes $5,317 million of capital additions, $311 million of capitalised borrowing costs and $967 million following changes in restoration provision.
Net carrying amount
1.
2. Refer to Note B.4 for details on impairment losses and impairment reversals.
3. Refer to Note B.8 for details of the sell-down of the Scarborough Joint Venture.
4. Refer to Note B.5 for details of business combination. Projects in development include the fair value ascribed to future phases of certain projects acquired through business combinations.
15,541
840
481
Total
US$m
39,919
6,595
(10)
(3,956)
(1,440)
304
(621)
40,791
70,439
(29,648)
40,791
18,649
19,353
3,824
(45)
(2,798)
900
36
39,919
64,513
(24,594)
39,919
128
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
Key estimates and judgements
(a) Reserves
The estimation of reserves requires significant management
judgement and interpretation of complex geological and
geophysical models in order to make an assessment of the size,
shape, depth and quality of reservoirs, and their anticipated
recoveries.
Estimates of oil and natural gas reserves are used to calculate
depreciation and amortisation charges for the Group’s oil and
gas properties. Judgement is used in determining the economic
reserve base applied to each asset.
Estimates are reviewed at least annually or when there are
changes in the economic circumstances impacting specific
assets or asset groups. These changes may impact depreciation,
asset carrying values, restoration provisions and deferred tax
balances. If reserves estimates are revised downwards, earnings
could be affected by higher depreciation expense
or an immediate write-down of the asset’s carrying value.
(b) Depreciation and amortisation
Judgement is required to determine when assets are
available for use to commence depreciation and amortisation.
Depreciation and amortisation generally commences on first
production.
(c) Change in depreciation methodology and asset
useful lives
The Group has undertaken a review of the depreciation
methodology and asset useful lives for oil and gas properties
in accordance with its accounting policies and the accounting
standards, considering the scale and diversity of the post-
merger portfolio.
In assessing useful lives of certain oil and gas assets, these have
been determined with reference to either their proved (1P) or
proved plus probable (2P) reserves, which is then used in the
units of production depreciation calculation.
From 1 January 2023, upstream oil and conventional gas assets
have been depreciated over proved reserves (previously
proved plus probable, except for certain assets considered late
life). Upstream LNG assets have continued to be depreciated
over proved plus probable reserves. Multi-product assets are
assessed on a case-by-case basis and aligned to the most
appropriate representation of useful life.
The changes in depreciation methodology and asset useful lives
have been applied from 1 January 2023, resulting in an increase
in depreciation expense of $416 million for the year ended
31 December 2023.
B.3 OIL AND GAS PROPERTIES (CONT.)
Recognition and measurement
Oil and gas properties are stated at cost less accumulated
depreciation and impairment charges. Oil and gas properties
include the costs to acquire, construct, install or complete
production and infrastructure facilities such as pipelines and
platforms, capitalised borrowing costs, transferred exploration
and evaluation assets, development wells and the estimated cost
of dismantling and restoration.
Subsequent capital costs, including major maintenance, are
included in the asset’s carrying amount only when it is probable
that future economic benefits associated with the item will flow
to the Group and the cost of the item can be reliably measured.
Depreciation and amortisation
Oil and gas properties are depreciated to their estimated residual
values at rates based on their expected useful lives.
Upstream oil and conventional gas assets have been depreciated
using the unit of production basis over proved reserves (2022:
proved plus probable, except for certain assets considered
late life). Upstream LNG assets are depreciated over proved
plus probable reserves. Multi-product assets are assessed on
a case-by-case basis and aligned to the most appropriate
representation of useful life.
The depreciable amount for the unit of production basis excludes
future development costs necessary to bring probable reserves
into production. Downstream assets (primarily onshore plant and
equipment) are depreciated using a straight-line basis over the
lesser of useful life and the life of proved plus probable reserves.
On a straight-line basis the assets have an estimated useful life
of 5-50 years.
All other items of oil and gas properties are depreciated
using the straight-line method over their useful life. They are
depreciated as follows:
• Buildings – 24-50 years;
• Plant and equipment – 2-40 years; and
• Land is not depreciated.
Impairment
Refer to Note B.4 for details on impairment.
Capital commitments
The Group has capital expenditure commitments contracted
for, but not provided for in the financial statements, of
$4,245 million as at 31 December 2023 (revised 20221:
$6,469 million). Capital expenditure commitments relate
predominantly to the Scarborough and Sangomar projects.
1. The 2022 Financial Statements disclosed capital expenditure commitments of $7,762 million
which duplicated certain amounts post-merger. This has now been revised to reflect the
Group's share of commitments.
129
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL
Exploration and evaluation
Impairment testing
The recoverability of the carrying amount of exploration
and evaluation assets is dependent on successful development
and commercial exploitation, or alternatively sale of the
respective AOI.
Each AOI is reviewed half-yearly to determine whether economic
quantities of hydrocarbons have been found, or whether further
exploration and evaluation work is underway or planned to
support continued carry forward of capitalised costs. Where
a potential impairment is indicated for an AOI, an assessment
is performed using a fair value less costs to dispose (FVLCD)
method to determine its recoverable amount. Upon approval for
commercial development, exploration and evaluation assets are
assessed for impairment before they are transferred to oil and
gas properties.
Impairment calculations
If the carrying amount of an AOI exceeds its recoverable
amount, the AOI is written down to its recoverable amount
and an impairment loss is recognised in the consolidated
income statement.
Oil and gas properties
Impairment testing
The carrying amounts of oil and gas properties are assessed half-
yearly to determine whether there is an indicator of impairment
or impairment reversal for those assets which have previously
been impaired. Indicators of impairment and impairment
reversals include changes in reserves, expected future sales
prices or costs.
Oil and gas properties are assessed for impairment indicators
and impairments on a cash-generating unit (CGU) basis. CGUs
are determined as offshore and onshore facilities, infrastructure
and associated oil and/or gas fields.
If there is an indicator of impairment or impairment reversal
for a CGU, its recoverable amount is calculated and compared
with the CGU’s carrying value (refer to impairment calculations
below).
Goodwill
For the purpose of impairment testing, goodwill acquired in a
business combination is, from the acquisition date, allocated
to each of the Group’s cash-generating units (CGUs) that are
expected to benefit from the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to
those units. Goodwill is tested for impairment at least annually
and more frequently if events or changes in circumstances
indicate that it might be impaired. Impairment of goodwill is
determined by assessing the recoverable amount of each CGU
to which the goodwill relates and comparing it with its carrying
value, which includes deferred taxes (refer to impairment
calculations below and Note B.5).
When part of an operation is disposed of, any goodwill
associated with the disposed operation is included in the
carrying amount of the operation in determining the gain
or loss on disposal.
Goodwill and oil and gas impairment calculations
The recoverable amount of an asset or CGU is determined as the
higher of its value in use (VIU) and FVLCD.
VIU is determined by estimating future cash flows after taking
into account the risks specific to the asset and discounting to
present value using an appropriate discount rate.
FVLCD is the price that would be received to sell the asset in an
orderly transaction between market participants and does not
reflect the effects of factors that may be specific to the Group.
In determining FVLCD, recent market transactions are
considered. If no such transactions can be identified, an
appropriate valuation model, such as discounted cash flow
techniques, is applied on a post-tax basis using an appropriate
discount rate and estimates are made about the assumptions
market participants would use when pricing the asset or CGU.
If the carrying amount of an asset or CGU, including any
allocated goodwill, exceeds its recoverable amount, the asset
or CGU is written down to its recoverable amount and an
impairment loss is recognised in the consolidated income
statement. Any impairment losses are first allocated to reduce
the carrying amount of any goodwill allocated, with the
remaining impairment losses allocated to the relevant assets.
If the recoverable amount of an asset or CGU exceeds its
carrying amount, and that asset has previously been impaired,
the impairment is reversed. The carrying amount of the asset
or CGU is increased to its recoverable amount, but only to
the extent that the carrying amount does not exceed the
value that would have been determined, net of depreciation
or amortisation, if no impairment had been recognised.
Impairments of goodwill are not reversed.
130
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL (CONT.)
For the year ended 31 December 2023
Goodwill allocation
The Group performed its annual goodwill impairment test as at 31 December 2023.
The carrying amount of goodwill allocated to each CGU, or groups of CGUs and excess recoverable amounts are as follows:
Segment
Australia
Australia
International
International
Total
CGU
Goodwill carrying amount
Excess of recoverable amount
over CGU carrying amount1
Pluto-Scarborough2
NWS Gas
Atlantis
Other goodwill
US$m
2,743
442
522
288
3,995
US$m
3,051
784
338
1,176
1. Amounts are with reference to the total CGU value including goodwill.
2. A portion of the goodwill allocated to Pluto-Scarborough was transferred to assets held for sale (refer to Note B.8).
Other goodwill of $288 million (2022: $283 million) has been allocated across a number of CGUs within the International segment.
This represents less than one percent of net assets as at 31 December 2023.
Recognised impairment and impairment reversals
As at 30 June 2023, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment reversal
existed. The Group identified the following indicators of impairment on CGUs where an impairment loss has been recognised:
CGU
Pyrenees
Description
Indicator of impairment
Oil asset consisting of a floating production storage and offloading
(FPSO) facility off the north-west coast of Western Australia.
Reduction in future production volumes, reflecting a lower-than-
expected outcome of drilling activities.
For CGUs where goodwill has been allocated, no impairment was recognised as the recoverable amount exceeds the carrying amount
of the CGU.
An impairment was recognised for the Pyrenees CGU (refer to Note A.1), with results as follows:
Impairment loss
Oil and gas properties
Segment
Australia
CGU
Pyrenees
Recoverable
amount
US$m
159
Land and
buildings
US$m
-
Transferred
exploration and
evaluation
US$m
Plant and
equipment
US$m
Projects in
development
US$m
-
68
-
Total
US$m
68
Following the impairment recognised at 30 June 2023, no further impairment or impairment reversal for Pyrenees was identified.
As at 31 December 2023, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment
reversal existed. The Group identified the following indicators of impairment on CGUs where an impairment loss has been recognised:
CGU
Shenzi
Description
Conventional oil and gas field developed through a tension leg
platform (TLP) located in the US Gulf of Mexico.
Wheatstone
LNG processing facility in Western Australia, comprising an offshore
production platform and two onshore LNG processing trains, a
domestic gas plant and associated infrastructure.
Indicator of impairment
Reduction in future production volumes, reflecting lower-than-expected
performance of infill sidetracks and performance of the Shenzi North
development following start-up.
Updated short-term price assumptions (in particular the Japan/Korea
Marker (JKM)).
An impairment was recognised in the profit and loss, refer to Note A.1. The results as follows:
Goodwill
Goodwill
US$m
477
-
Recoverable
amount
US$m
1,862
2,418
Impairment loss
Oil and gas properties
Land and
buildings
US$m
Transferred
exploration and
evaluation
US$m
Plant and
equipment
US$m
Projects in
development
US$m
-
64
-
20
589
371
317
11
Segment
CGU
International Shenzi
Australia
Wheatstone
Total
US$m
1,383
466
131
WOODSIDE ENERGY GROUP LTD
Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL (CONT.)
For the year ended 31 December 2023 (cont.)
Recognised impairment and impairment reversals (cont.)
For CGUs where goodwill has been allocated, with the exception of Shenzi, no impairment was recognised as the recoverable amount
exceeds the carrying amount of the CGU.
Recoverable amounts have been determined using the FVLCD method using discounted cash flow projections, classified as Level 3 on
the fair value hierarchy. The carrying amount of each CGU includes all assets allocated to the respective CGU. Refer to key estimates
and judgements for further details.
Sensitivity analysis
Recoverable amount valuations are sensitive to changes in certain key accounting estimates and judgements (refer to key estimates
and judgements for further details). Reasonably possible changes to these key assumptions are set out below:
• Post-tax discount rate – plus or minus 1.0% (representing a change of 100 basis points)
• Commodity pricing – plus or minus 10%
• Foreign exchange (FX) rate – plus or minus 12%
• Production volumes – plus or minus 4%
Management’s analysis on the impact of reasonably possible changes to these assumptions on recoverable amounts is detailed below.
CGUs with impairment or impairment reversals
Changes in the following key assumptions have been estimated to result in a higher or lower carrying amount1 than what was
determined as at 31 December 2023:
Sensitivity (US$m)2
CGU
Shenzi
Wheatstone
Discount rate
increase³
(67)
(88)
Discount rate
decrease³
71
94
Commodity
price increase³
359
431
Commodity
price decrease³
(359)
(370)
FX increase³
N/A
(36)
FX decrease³
N/A
87
Production
increase³
47
90
Production
decrease³
(46)
(42)
1.
Increases to carrying amounts are limited to historical impairment losses recognised, net of depreciation and amortisation, that would have been recognised had no impairment taken place.
2. The sensitivities represent the reasonably possible changes to discount rate, commodity price, FX and production volumes assumptions.
3. The relationship between the discount rate, commodity price, FX and production and the carrying amount is non-linear in certain circumstances which may include fixed costs impacts as well as
economic cut off modelling. As such, sensitivities are unlikely to result in a symmetrical impact and should not be interpreted in isolation.
A change in any of the above assumptions would likely have an impact on other assumptions which, when considered together, may
offset. This does not incorporate decisions management may take in order to mitigate the change in assumptions.
CGUs with goodwill
The valuation of CGUs with goodwill are most sensitive to changes in commodity prices and discount rates. Reasonably possible
changes in these estimates which could result in the estimated recoverable amount being equal to the carrying amount, assuming all
other variables are held constant, are as follows:
Oil and gas properties
Oil and gas properties
Oil and gas properties
CGU
Pluto-Scarborough
NWS Gas
Atlantis
Commodity price1
% change
Nominal discount rate
(absolute terms)
N/A²
N/A²
(5%)
N/A²
N/A²
N/A²
1. Brent price applies to Pluto-Scarborough and NWS Gas. WTI price (Brent - $3/bbl) applies to Atlantis.
2. Management considers there to be no reasonably possible change in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.
A change in any of the above assumptions would have an impact on other assumptions which when considered together may offset.
This does not incorporate decisions management may take in order to mitigate the change in assumptions. Management considers
there to be no reasonably possible changes in production volumes, carbon prices or foreign exchange rates that would, in isolation,
result in the estimated recoverable amount being equal to the carrying amount. Analysis of key assumptions which could result in the
carrying value to equal the recoverable value provides a basis to assess the magnitude of a reasonably possible change to the carrying
amounts of respective CGUs.
132
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL (CONT.)
For the year ended 31 December 2022
Goodwill allocation
The Group performed its annual goodwill impairment test as at 31 December 2022.
The carrying amount of goodwill allocated to each CGU, or groups of CGUs and excess recoverable amounts were as follows:
Segment
Australia
Australia
International
International
International
Total
CGU
Pluto-Scarborough
NWS Gas
Shenzi
Atlantis
Other goodwill
1. Carrying amount of goodwill as at 31 December 2021 was nil.
2. Amounts are with reference to the total CGU value including goodwill.
Goodwill carrying amount1
US$m
2,955
Excess of recoverable amount
over CGU carrying amount2
US$m
7,656
394
469
513
283
4,614
1,399
401
189
107
Other goodwill of $283 million (2021: nil) has been allocated across a number of CGUs within the International segment.
This represents less than one percent of net assets as at 31 December 2022.
Recognised impairment and impairment reversals
As at 31 December 2022, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment
reversal existed. The Group identified the following indicators of impairment reversals:
• Wheatstone CGU – revision in short-term and long-term LNG price assumptions and updated cost and production profiles.
For CGUs where goodwill has been allocated, no impairment was recognised as the recoverable amount exceeds the carrying amount
of the CGU.
An impairment reversal was recognised for Wheatstone (refer to Note A.1), with results as follows:
Impairment reversal
Oil and gas properties
Segment
Australia
CGU
Wheatstone
Recoverable
amount
US$m
3,456
Land and
buildings
US$m
87
Transferred
exploration and
evaluation
US$m
30
Plant and
equipment
US$m
783
Total
US$m
900
Recoverable amounts have been determined using the FVLCD method using discounted cash flow projections, classified as Level 3 on
the fair value hierarchy. The carrying amount of each CGU includes all assets allocated to the respective CGU. Refer to key estimates
and judgements for further details.
Sensitivity analysis
Recoverable amount valuations are sensitive to changes in certain key accounting estimates and judgements (refer to key estimates
and judgements for further details). Reasonably possible changes to these key assumptions are set out below:
• Post tax discount rate – plus or minus 1.5% (representing a change of 150 basis points)
• Commodity pricing – plus or minus 10%
• Foreign exchange (FX) rate – plus or minus 12%
• Production volumes – plus or minus 4%
Management’s analysis on the impact of reasonably possible changes to these assumptions on recoverable amounts is detailed below.
133
WOODSIDE ENERGY GROUP LTD
Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL (CONT.)
For the year ended 31 December 2022 (cont.)
Sensitivity analysis (cont.)
CGUs with impairment or impairment reversals
Changes in the following key assumptions have been estimated to result in a higher or lower carrying amount1 than what was
determined as at 31 December 2022:
CGU
Wheatstone
Discount rate
increase³
(117)
Discount rate
decrease³
127
Brent price
increase
294
Brent price
decrease
(294)
FX increase
(79)
FX decrease
79
Production
increase⁴
116
Production
decrease⁴
(43)
1.
Increases to carrying amounts are limited to historical impairment losses recognised, net of depreciation and amortisation, that would have been recognised had no impairment taken place.
2. The sensitivities represent the reasonable possible changes to discount rate, oil price, FX and production volumes assumptions.
3. The relationship between the discount rate and the carrying amount is non-linear and as such, sensitivities are unlikely to result in a symmetrical impact. Due to the non-linear relationship, the impact
of changing the discount rate is likely to be greater at a lower discount rate than at a higher discount rate.
4. The relationship between production and the carrying amount is non-linear due to the proportion of fixed costs. Sensitivities are therefore unlikely to result in a symmetrical impact. A significant
change in production volumes would typically require a reassessment of the asset concept and should not be interpreted in isolation.
Sensitivity (US$m)2
A change in any of the above assumptions would likely have an impact on other assumptions which, when considered together,
may offset. This does not incorporate decisions management may take in order to mitigate the change in assumptions.
CGUs with goodwill
The valuation of CGUs with goodwill are most sensitive to changes in commodity prices and discount rates. Reasonably possible
changes in these estimates which could result in the estimated recoverable amount being equal to the carrying amount, assuming all
other variables are held constant, are as follows:
Oil and gas properties
Oil and gas properties
Oil and gas properties
Oil and gas properties
CGU
Pluto-Scarborough
NWS Gas
Shenzi
Atlantis
Commodity price1
Nominal discount rate
% change
(absolute terms)
N/A²
N/A²
(7%)
(2%)
N/A²
N/A²
N/A²
10%
1. Brent price applies to Pluto-Scarborough and NWS Gas. WTI price (Brent - $3/bbl) applies to Shenzi and Atlantis.
2. Management considers there to be no reasonably possible change in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.
A change in any of the above assumptions would have an impact on other assumptions which when considered together may offset.
This does not incorporate decisions management may take in order to mitigate the change in assumptions. Management considers
there to be no reasonably possible changes in production volumes, carbon prices or foreign exchange rates that would, in isolation,
result in the estimated recoverable amount being equal to the carrying amount. Analysis of key assumptions which could result in the
carrying value to equal the recoverable value provides a basis to assess the magnitude of a reasonable possible change to the carrying
amounts of respective CGUs.
Key estimates and judgements
(a) CGU determination
Identification of a CGU requires management judgement.
Management has determined CGUs based on the smallest group of
assets that generate significant cash inflows that are independent
from other assets or groups of assets.
(b) Allocation of goodwill
Allocation of goodwill to the relevant CGUs requires management
judgement. The goodwill arising from the merger has been allocated
to relevant CGUs which are expected to benefit from the expected
synergies as a result of the merger.
(c) Recoverable amount calculation key assumptions
In determining the recoverable amount of CGUs, estimates are made
regarding the present value of future cash flows when determining
the FVLCD. These estimates require significant management
judgement and are subject to risk and uncertainty, and hence
changes in economic conditions can also affect the assumptions
used and the rates used to discount future cash flow estimates.
The basis for each estimate used to determine recoverable amounts
as at 31 December 2023 and 31 December 2022 is set out below:
• Resource estimates – 2P and a portion of 2C reserves (where
applicable) for oil and gas properties. The reserves are as
disclosed in the Reserves and Resources Statement in the
31 December 2023 and 31 December 2022 Annual Reports.
• Inflation rate – an inflation rate of 2.0% (2022: 2.0%) has been
applied for US based assets and 2.5% (2022: 2.5%) for Australian
based assets.
• Foreign exchange rates – a rate of $0.75 (2022: $0.75) US$:AU$
is based on management’s view of long-term exchange rates.
134
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, OIL AND GAS PROPERTIES
AND GOODWILL (CONT.)
Key estimates and judgements (cont.)
(c) Recoverable amount calculation key assumptions (cont.)
• Discount rates – a range of post-tax discount rates between
8.5% and 10.5% (2022: 8% and 11.5%) for CGUs has been applied.
The discount rate reflects an assessment of the risks specific to
the asset.
• Carbon pricing – a long-term price of US$80/tonne (2022:
US$80/tonne) of emissions (real terms 2022) is based on
management’s assumptions on carbon cost pricing and
incorporates an evaluation of climate risk. This is applicable
to Australian emissions that exceed facility-specific baselines
in accordance with Australian regulations, as well as global
emissions that exceed voluntary corporate net emissions
targets. Woodside continues to monitor the uncertainty around
climate change risks and will revise carbon pricing assumptions
accordingly. Refer to Climate change and energy transition
section within the basis of preparation for further information.
• LNG price – the majority of LNG sales contracts are linked
to an oil price marker and therefore dependent on oil price
assumptions. LNG sold into spot markets is typically based on a
gas-hub linked price (for example the Title Transfer Facility (TTF)
or JKM) and therefore these pricing assumptions are also of
relevance in forecasting future revenues.
• Brent oil prices – derived from long-term views of global supply
and demand, building upon past experience of the industry
and consistent with external sources. Prices are adjusted for
premiums and discounts based on the nature and quality of
the product. Brent oil price estimates have considered the risk
of climate policies along with other factors such as industry
investment and cost trends. There is significant uncertainty
around how society will respond to the climate challenge;
Woodside’s pricing assumptions reflect a ‘best estimate’
scenario in which global governments pursue decarbonisation
goals as well as other goals such as energy security and
economic development. As with carbon pricing, Woodside
continues to monitor this uncertainty and will revise its oil pricing
assumptions accordingly in its transition to a lower carbon
economy. Further information on climate change risk is provided
in the Climate change and energy transition section within the
basis of preparation. The nominal Brent oil prices (US$/bbl) used
for the year ended 31 December 2023 were:
31 December 20231
31 December 20222
1.
2025
80
74
Long-term oil prices are based on US$70/bbl (2022 real terms) from 2026 and
prices are escalated at 2.0% onwards.
2024
82
78
2026
76
76
2028
79
79
2027
77
77
2029
80
80
2. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2025 and
prices are escalated at 2.0% onwards.
The nominal Brent oil prices (US$/bbl) used for the year ended
31 December 2022 were:
31 December 20223
31 December 20214
3. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2025 and
2023
87
71
2024
78
68
2025
74
69
2026
76
70
2027
77
72
2028
79
73
prices are escalated at 2.0% onwards.
4. Long-term oil prices are based on US$65/bbl (2022 real terms) from 2024 and
prices are escalated at 2.0% onwards.
135
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
Shares issued, at fair value
The fair value of 914,768,948 shares issued as part of the
consideration paid to BHP was $19,265 million. This was based
on the published share price on 1 June 2022 of US$21.06
per share.
Locked box payment received
For the year ended 31 December 2022, the Group received
$683 million as part of the merger consideration which includes
the locked box payment of $1,513 million representing the
positive net cash flow generated by BHPP assets from the
effective date of the transaction to completion date offset by
the notional dividend distribution of $830 million paid to BHP.
The initial purchase consideration was subsequently adjusted
by $10 million against the locked box payment received.
Goodwill
Goodwill arising from the acquisition has been recognised
as the excess of consideration paid above the fair value of
the assets acquired and liabilities assumed as part of the
business combination. $2,035 million of the goodwill arises
from the deferred tax liability recognised on acquisition as a
consequence of asset tax bases received in the merger being
lower than the fair value of the assets acquired. The remaining
goodwill of $2,634 million reflects the value expected to be
generated from the Pluto-Scarborough CGU as a result of the
merger. The goodwill is not deductible for tax purposes.
Key estimates and judgements
(a) Fair value determination for net assets acquired
Judgement is required to determine the fair value of assets
acquired and liabilities assumed in a business combination,
which can have a material impact on resultant goodwill. This
includes the use of a cash flow model to estimate the expected
future cash flows of the oil and gas assets acquired, based on
reserves and resources at acquisition date and the discount rate
used. The expected future cash flows are based on estimates
of future production, commodity and carbon prices, operating
costs, and forecast capital expenditures at acquisition date.
Restoration provisions require judgemental assumptions
regarding removal date, environmental legislation and
regulations and the extent of restoration activities required
in determining the cost estimate.
Carry forward tax losses are recognised only if it is probable
that sufficient future taxable income will be available to utilise
the losses.
B.5 BUSINESS COMBINATION
BHP Petroleum merger
Refer to the 2022 Financial Statements for details of the BHPP
merger. Except for changes noted below, the disclosures are
consistent with Note B.5 of the 2022 Financial Statements.
On 1 June 2022, the Group acquired 100% of the issued share
capital of BHP Petroleum International Pty Ltd (subsequently
renamed Woodside Energy Global Holdings Pty Ltd), which held
BHP Group’s (BHP) oil and gas business. In exchange, the Group
issued 914,768,948 new Woodside shares to BHP as part of the
merger consideration. The transaction was accounted for as a
business combination with an acquisition date of 1 June 2022.
The Group had 12 months from the acquisition date to make
adjustments to the fair value of net identifiable assets acquired
and the resultant value of goodwill. As at 1 June 2023, the Group
finalised the purchase price allocation which has resulted in
goodwill of $4,669 million, a net increase of $55 million from
the provisional amount reported at 31 December 2022.
Details of the purchase consideration and the fair value of
goodwill, identifiable assets and liabilities of BHPP acquired
are as follows:
Fair value of net identifiable assets and goodwill arising on
acquisition date
Cash and cash equivalents
Receivables
Inventories
Investments accounted for using the equity method
Other financial assets
Other assets
Exploration and evaluation assets
Oil and gas properties
Lease assets
Payables
Provisions
Tax payable
Deferred tax liabilities
Lease liabilities
Other liabilities
Net identifiable assets acquired
Goodwill arising on acquisition
Purchase consideration
US$m
399
1,164
295
267
59
284
180
19,353
142
(1,035)
(4,827)
(365)
(653)
(268)
(1,054)
13,941
4,669
18,610
Purchase consideration
Shares issued, at fair value
Other reserves (share replacement awards)
Locked box payment received1
Adjustments to locked box payment
Total purchase consideration
1. Represents the positive net cash flow of $1,513 million generated by BHPP assets from the
effective date of the business combination offset by the notional dividend distribution of
$830 million paid to BHP.
US$m
19,265
18
(683)
10
18,610
Analysis of cash flows on acquisition
Cash acquired on acquisition
Locked box payment received
Net cash flow on acquisition
US$m
399
683
1,082
136
ANNUAL REPORT 2023 Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.6 GOODWILL
Year ended 31 December 2023
Carrying amount at 1 January 2023
Adjustment to purchase price allocation1
Impairment2
Transfer to assets held for sale3
Carrying amount at 31 December 2023
At 31 December 2023
Cost
Accumulated impairment
Net carrying amount
Year ended 31 December 2022
Carrying amount at 1 January 2022
Acquisitions through business combinations1
Carrying amount at 31 December 2022
At 31 December 2022
Cost
Accumulated impairment
Net carrying amount
1. Refer to Note B.5 for details on business combination.
2. Refer to Note B.4 for details on impairment.
3. Refer to Note B.8 for details of the sell-down of the Scarborough Joint Venture.
US$m
4,614
55
(477)
(197)
3,995
4,472
(477)
3,995
-
4,614
4,614
4,614
-
4,614
Recognition and measurement
Goodwill is initially measured at cost and is subsequently
measured at cost less any accumulated impairment losses.
For the purposes of impairment testing, goodwill acquired in
a business combination is, from the acquisition date, allocated
to each of the Group’s CGUs or groups of CGUs no larger than
an operating segment that are expected to benefit from the
combination, irrespective of whether other assets or liabilities
of the acquiree are assigned to those units.
Where goodwill has been allocated to a CGU and part of the
operation within that unit is disposed of, the goodwill associated
with the disposed operation is included in the carrying amount
of the operation when determining the gain or loss on disposal.
Goodwill is not amortised but will be assessed at least annually
for impairment and more frequently if events or changes in
circumstances indicate that it might be impaired.
Key estimates and judgements
(a) Goodwill allocation
Judgement is required in the allocation of goodwill to the
Group’s CGUs that are expected to benefit from the synergies of
the business combination. Refer to Note B.4 for the details of the
goodwill allocation.
B.7 SIGNIFICANT PRODUCTION AND
GROWTH ASSET ACQUISITIONS
Sangomar – Acquisition from FAR Senegal RSSD SA
On 7 July 2021, Woodside completed the acquisition of FAR
Senegal RSSD SA’s interest in the RSSD Joint Venture (13.67%
interest in the Sangomar exploitation area and 15% interest in
the remaining RSSD evaluation area), for an aggregate purchase
price of $212 million. The transaction was accounted for as an
asset acquisition.
Additional payments of up to $55 million are contingent on
future commodity prices and timing of first oil. The contingent
payments terminate on the earliest of 31 December 2027, three
years from first oil being sold, and a total contingent payment of
$55 million being reached.
With first oil in Sangomar targeted in mid-2024, the Group has
recognised the additional payments as a provision for the year
ended 31 December 2023. For the years ended 31 December
2022 and 31 December 2021, the contingent payments were
accounted for as contingent liabilities in accordance with the
Group’s accounting policies.
As at 31 December 2021, Woodside held an 82% interest in the
Sangomar exploitation area (2020: 68.33%) and a 90% interest
in the remaining RSSD evaluation area (2020: 75%).
Assets acquired and liabilities assumed
The identifiable assets and liabilities acquired as at the date of
the acquisition inclusive of transaction costs are:
Oil and gas properties
Exploration and evaluation
Cash acquired
Payables
Net other assets and liabilities assumed
Total identifiable net assets at acquisition
Cash flows on acquisition
Purchase cash consideration
Transaction costs
Total purchase consideration
Net cash outflows on acquisition
US$m
205
7
3
(13)
10
212
US$m
212
-
212
212
Key estimates and judgements
(a) Nature of acquisition
Judgement was required to determine if the transaction was the
acquisition of an asset or a business combination. The Sangomar
project was in the early phase of development and a substantive
process that had the ability to convert inputs to outputs was not
present and therefore the acquisition in 2021 was treated as an
asset acquisition.
137
WOODSIDE ENERGY GROUP LTD Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
B.8 DISPOSAL OF ASSETS
(a) Sell-down of Scarborough Joint Venture
On 8 August 2023 the Group entered into a sale and purchase
agreement with LNG Japan for the sale of a 10% non-operating
participating interest in the Scarborough Joint Venture.
As at 31 December 2023, the Group has reclassified
$823 million of assets, being the carrying value of the 10%
interest in the Scarborough Joint Venture within the Australia
segment, to assets held for sale. Liabilities of $94 million have
been reclassified to liabilities directly associated with assets held
for sale. No impairment of assets occurred on reclassification to
held for sale.
The following assets and liabilities were reclassified as held
for sale as at 31 December 2023:
Assets classified as held for sale
Inventories
Oil and gas properties
Lease assets
Goodwill
Other assets
Total assets held for sale
Liabilities directly associated with assets held for sale
Payables
Deferred tax liabilities
Lease liabilities
Total liabilities directly associated with assets held for sale
US$m
4
618
3
197
1
823
(26)
(61)
(7)
(94)
The purchase price is $500 million, subject to adjustments.
The total proceeds from the sale are expected to exceed the
net carrying value of the assets and liabilities classified as held
for sale as LNG Japan will reimburse the Group for its share of
expenditure for the Scarborough project from the effective date
of 1 January 2022. Delays to the first cargo or cost overruns in
specific circumstances may result in payments by Woodside to
LNG Japan of up to a maximum of $50 million. The transaction is
expected to complete in the first quarter of 2024.
Completion of the transaction is subject to the remaining
Western Australian Government approvals.
In addition to the above, a reduction in the deferred tax liability
due to the change to a held for sale basis resulted in a tax
benefit of $78 million being recognised for the year ended
31 December 2023.
Recognition and measurement
The Group classifies assets and liabilities as held for sale if their
carrying amounts will be recovered principally through sale
rather than through continuing use. Such assets and liabilities
classified as held for sale are measured at the lower of their
carrying amount and fair value less costs to dispose. Costs to
dispose are the incremental costs directly attributable to the
sale, excluding finance costs and income tax expense.
The criteria for held for sale classification are considered met
only when the sale is highly probable, and the asset is available
for sale in its present condition. Actions required to complete
the sale should indicate that it is unlikely that significant
changes to the sale will be made or that the decision to sell will
be withdrawn. Management must be committed to the sale,
expected within one year from the date of the classification.
Assets are not depreciated or amortised once classified as
held for sale. Assets and liabilities classified as held for sale
are presented separately as current items in the statement of
financial position.
Assets and liabilities reclassified as held for sale
In addition to the assets and liabilities reclassified as held for sale
for the Scarborough Joint Venture, the Group has reclassified
$3 million for the North West Shelf vessels to assets held for
sale. There are no recognised liabilities associated with the North
West Shelf vessels.
Key estimates and judgements
(a) Goodwill allocation
In accordance with AASB 136/IAS 36 Impairment of assets, if
goodwill has been allocated to a CGU and the entity disposes
of an operation within that unit, the goodwill associated with
the operation disposed shall be included in the carrying value
of the operation when determining the gain or loss on disposal
and measured on the basis of the relative values of the operation
disposed of and the portion of the CGU retained.
The Pluto-Scarborough CGU includes goodwill allocated
from the merger with BHPP in 2022. Judgement is required
to determine the amount of goodwill allocated to the 10%
participating interest in the Scarborough assets being disposed.
The Group used fair value measurements of Pluto and
Scarborough assets within the CGU as basis to allocate goodwill
between the Pluto and Scarborough assets. The goodwill
associated with the participating interest of the Scarborough
assets being disposed of was determined based on the
percentage participating interest disposed of in proportion
to the participating interest being retained.
138
ANNUAL REPORT 2023
Notes to the financial statements B. Production and growth assets
for the year ended 31 December 2023
Key estimates and judgements
(a) Sell-down of Train 2
Given the arrangements include provisions for GIP to sell its
49% interest back to Woodside if the status of key regulatory
environmental approvals materially changes and the
requirement for Woodside to fund up to $822 million of GIP’s
share in the event of a cost overrun, judgement is required to
determine if the sell-down of Train 2 constitutes a sale and if a
portion of the transaction price should be considered as variable
consideration.
Judgement was used to determine that the sell-down of
Train 2 constituted a sale given the various conditions included
in the sale and purchase agreement. The Group determined that
a sale occurred as control of the 49% interest was passed to GIP
on completion date. Control is determined as the ability to direct
the use of, and obtain substantially all of the economic benefits
of, the associated interest.
Judgement was used to determine if it is highly probable that a
significant reversal will not occur in relation to the consideration
received. The Group estimated the variable consideration
based on the construction capital expenditure cost profile,
the development schedule, and assessing the probability and
impact of any event which may result in a significant reversal.
The constraining estimates of variable consideration have been
applied resulting in the initial pre-tax gain on sale of $427 million
for the year ended 31 December 2022.
The variable consideration is remeasured at each reporting
period with any changes recognised through the consolidated
income statement. As at 31 December 2023, the variable
consideration has been reassessed with no revaluation gain
or loss being recognised (2022: $71 million revaluation gain
recognised as other income).
B.8 DISPOSAL OF ASSETS (CONT.)
(b) Sell-down of Train 2
On 15 November 2021 the Group entered into a sale and
purchase agreement with Global Infrastructure Partners (GIP)
for the sale of a 49% non-operating participating interest in the
Pluto Train 2 Joint Venture. As at 31 December 2021, the Group
reclassified the carrying value of the 49% interest in the Pluto
Train 2 assets to assets held for sale. There were no recognised
liabilities associated with the assets held for sale.
The transaction completed on 18 January 2022, reducing the
Group’s participating interest from 100% to 51%. The Group
recognised an initial pre-tax gain on sale of $427 million for the
year ended 31 December 2022.
The arrangements require GIP to fund its 49% share of capital
expenditure from 1 October 2021 and an additional amount of
construction capital expenditure of $822 million on behalf of
the Group. If the total capital expenditure incurred is less than
$5,800 million, GIP will pay Woodside an additional amount
equal to 49% of the under-spend. In the event of a cost overrun,
Woodside will fund up to $822 million of GIP’s share of the
overrun. Delays to the expected start-up of production will result
in payments by Woodside to GIP in certain circumstances. The
arrangements include provisions for GIP to be compensated for
exposure to additional Scope 1 emissions liabilities above agreed
baselines, and to sell its 49% interest back to Woodside if the
status of key regulatory approvals materially changes.
Given judgement was used to determine the consideration
received, the Group is required to remeasure the variable
consideration at each reporting period. As at 31 December 2023,
the variable consideration has been reassessed with no revaluation
gain or loss being recognised (2022: $71 million revaluation gain
recognised as other income, with a corresponding reduction to
other liabilities). The fair value of the remaining unpaid funding
from GIP has been netted against the other liabilities and will be
recognised as oil and gas properties in the future.
139
WOODSIDE ENERGY GROUP LTD Notes to the financial statements C. Debt and capital
for the year ended 31 December 2023
IN THIS SECTION
This section addresses cash, debt and the capital position of the Group at the end of the reporting period including, where applicable,
the accounting policies applied and the key estimates and judgements made.
C. Debt and capital
C.1 Cash and cash equivalents
C.2 Interest-bearing liabilities and financing facilities
C.3 Contributed equity
C.4 Other reserves
Page 141
Page 141
Page 143
Page 143
KEY FINANCIAL AND CAPITAL RISKS IN THIS SECTION
Capital risk management
Group Treasury is responsible for the Group's capital management including cash, debt and equity. Capital management is undertaken
to ensure that a secure, cost-effective and flexible supply of funds is available to meet the Group’s operating and capital expenditure
requirements. A stable capital base is maintained from which the Group can pursue its growth aspirations, whilst maintaining a flexible
capital structure that allows access to a range of debt and equity markets to both draw upon and repay capital.
The Dividend Reinvestment Plan (DRP) was approved by shareholders at the Annual General Meeting in 2003 for activation as
required to fund future growth. The DRP was reactivated in 2019 and suspended by the Board of Directors on 27 February 2023.
A range of financial metrics are monitored, including gearing and cash flow leverage, and Treasury policy breaches and exceptions.
Liquidity risk management
Liquidity risk arises from the financial liabilities of the Group and the Group’s subsequent ability to meet its obligations to repay
financial liabilities as and when they fall due. The liquidity position of the Group is managed to ensure sufficient liquid funds are
available to meet its financial commitments in a timely and cost-effective manner.
The Group’s liquidity is continually reviewed, including cash flow forecasts to determine the forecast liquidity position and maintain
appropriate liquidity levels. At 31 December 2023, the Group had a total of $7,790 million (2022: $10,239 million) of available undrawn
facilities and cash at its disposal. The maturity profile of interest-bearing liabilities is disclosed in Note C.2, trade and other payables are
disclosed in Note D.4 and lease liabilities are disclosed in Note D.7. Financing facilities available to the Group are disclosed in Note C.2.
Interest rate risk management
Interest rate risk is the risk that the Group’s financial position will fluctuate due to changes in market interest rates.
The Group’s exposure to the risk of changes in market interest rates relates primarily to financial instruments with floating interest
rates including long-term debt obligations, cash and short-term deposits. The Group manages its interest rate risk by maintaining an
appropriate mix of fixed and floating rate debt. To manage the ratio of fixed rate debt to floating rate debt, the Group may enter into
interest rate swaps. The Group holds interest rate swaps to hedge the interest rate risk associated with the $600 million syndicated
facility. Refer to Notes C.2 and D.6 for further details.
At the reporting date, the Group was exposed to various benchmark interest rates that were not designated in cash flow hedges,
primarily through $1,605 million (2022: $6,143 million) on cash and cash equivalents, nil (2022: $83 million) on interest-bearing
liabilities (excluding transaction costs), nil (2022: $167 million) of other financial assets and nil (2022: $5 million) on cross-currency
interest rate swaps.
A reasonably possible change in the Secured Overnight Financing Rate (SOFR) (+2.0%/-2.0% (2022: USD London Interbank Offered
Rate (USD LIBOR) +1.5%/-1.5%)), with all variables held constant, would not have a material impact on the Group’s equity or the
income statement in the current period.
During the period, the Group has completed the transition of its financial liabilities from USD LIBOR to SOFR. The transition during the
year ended 31 December 2023 did not result in a material impact to the Group.
140
ANNUAL REPORT 2023 Notes to the financial statements C. Debt and capital
for the year ended 31 December 2023
C.1 CASH AND CASH EQUIVALENTS
Cash and cash equivalents
Cash at bank
Term deposits
Restricted cash
Total cash and cash equivalents
2023
US$m
1,198
542
-
1,740
2022
US$m
1,222
4,967
12
6,201
Recognition and measurement
Cash and cash equivalents in the consolidated statement of
financial position comprise cash at bank and short-term deposits
with an original maturity of three months or less. Cash and
cash equivalents are stated at face value in the consolidated
statement of financial position. There are no cash and cash
equivalents (2022: $12 million) restricted by legal or contractual
arrangements.
Foreign exchange risk
The following table summarises the Group’s cash and cash
equivalents by currency.
US dollar
Australian dollar
Other
Total cash and cash equivalents
2023
US$m
1,480
112
148
1,740
2022
US$m
5,886
182
133
6,201
C.2 INTEREST-BEARING LIABILITIES AND FINANCING FACILITIES
Liquidity
Facilities
US$m
Bilateral
Facilities
US$m
Syndicated
Facilities
JBIC Facility
US Bonds
Medium Term
Notes
US$m
US$m
US$m
US$m
Year ended 31 December 2023
At 1 January 2023
Repayments1
Fair value adjustment and foreign
exchange movement
Transaction costs capitalised and
amortised
Carrying amount at 31 December 2023
Current2
Non-current
Carrying amount at 31 December 2023
Undrawn balance at 31 December 2023
Year ended 31 December 2022
At 1 January 2022
Repayments1
Fair value adjustment and foreign
exchange movement
Transaction costs capitalised and
amortised
Carrying amount at 31 December 2022
Current
Non-current
Carrying amount at 31 December 2022
Undrawn balance at 31 December 2022
-
-
-
(1)
(1)
(1)
-
(1)
(5)
-
-
(1)
(6)
(2)
(4)
(6)
591
-
-
3
594
(3)
597
594
1,800
2,250
2,000
-
-
-
-
-
-
-
-
-
(4)
-
-
(1)
(5)
(2)
(3)
(5)
595
-
-
(4)
591
(3)
594
591
2,050
2,000
83
(83)
-
-
-
-
-
-
-
166
(83)
-
-
83
83
-
83
-
4,084
-
-
3
4,087
(3)
4,090
4,087
-
4,081
-
-
3
4,084
(3)
4,087
4,084
-
385
(201)
16
-
200
-
200
200
-
592
(200)
(7)
-
385
185
200
385
-
Total
US$m
5,138
(284)
16
4
4,874
(9)
4,883
4,874
6,050
5,430
(283)
(7)
(2)
5,138
260
4,878
5,138
4,050
Included in cash flows classified within financing activities in the consolidated statement of cash flows.
1.
2. The balance relates to capitalised costs to be amortised within the next 12 months. This balance has been reclassified to other assets (current) for presentation on the statement of financial position.
Recognition and measurement
All borrowings are initially recognised at fair value less
transaction costs. Borrowings are subsequently carried at
amortised cost. Any difference between the proceeds received
and the redemption amount is recognised in the income
statement over the period of the borrowings using the effective
interest method.
Borrowings designated as a hedged item are measured at
amortised cost adjusted to record changes in the fair value of
risks that are being hedged in fair value hedges. The changes in
the fair value risks of the hedged item resulted in a loss of
$16 million being recorded (2022: gain of $7 million), and a loss
of $6 million being recorded on the hedging instrument (2022:
loss of $7 million).
All bonds, notes and facilities are subject to various covenants
and negative pledges restricting future secured borrowings,
subject to a number of permitted lien exceptions. Neither the
covenants nor the negative pledges have been breached at any
time during the reporting period.
141
WOODSIDE ENERGY GROUP LTD Notes to the financial statements C. Debt and capital
for the year ended 31 December 2023
C.2 INTEREST-BEARING LIABILITIES AND FINANCING FACILITIES (CONT.)
Fair value
The carrying amount of interest-bearing liabilities approximates
their fair value, with the exception of the Group’s unsecured bonds
and the medium term notes. The unsecured bonds have a carrying
amount of $4,087 million (2022: $4,084 million) and a fair value of
$3,936 million (2022: $3,852 million). The medium term notes have
a carrying amount of $200 million (2022: $385 million) and a fair
value of $188 million (2022: $372 million). Fair value is calculated
based on the present value of future principal and interest cash
flows, discounted at the market rate of interest at the reporting date
and classified as Level 1 on the fair value hierarchy. Where these cash
flows are in a foreign currency, the present value is converted to US
dollars at the foreign exchange spot rate prevailing at the reporting
date. The Group’s repayment obligations remain unchanged.
Foreign exchange risk
All interest-bearing liabilities are denominated in US dollars,
excluding the CHF175 million medium term note which was
settled in December 2023.
Maturity profile of interest-bearing liabilities
The table below presents the contractual undiscounted
cash flows associated with the Group’s interest-bearing
liabilities, representing principal and interest. The figures will
not necessarily reconcile with the amounts disclosed in the
consolidated statement of financial position.
Due for payment in:
1 year or less
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
Amounts exclude transaction costs.
2023
US$m
2022
US$m
212
1,181
962
907
883
1,534
5,679
483
206
1,181
962
908
2,416
6,156
Liquidity facilities
In October 2023, the Group obtained 12-month liquidity facilities
to the value of $1,800 million in aggregate. Interest rates are
based on daily SOFR plus credit adjustment spread (CAS) and
margins, fixed at the commencement of the drawdown period.
Bilateral facilities
The Group has 15 bilateral loan facilities totalling $2,250 million
(2022: 14 bilateral loan facilities totalling $2,050 million). Details
of bilateral loan facilities at the reporting date are as follows:
Number of
facilities
1
5
4
5
Term (years)
Currency
Extension option
5-6
4-5
3-4
3 years or less
US$
US$
US$
US$
Evergreen
Evergreen
Evergreen
Evergreen
Interest rates are based on SOFR plus CAS and margins are fixed
at the commencement of the drawdown period. Interest is paid
at the end of the drawdown period. Evergreen facilities may be
extended continually by a year subject to the bank’s agreement.
142
Syndicated facility
During the year ended 31 December 2022, Woodside refinanced
and increased the existing facilities to $2,000 million, with
$800 million expiring on 11 October 2024, $600 million expiring
on 12 July 2025 and $600 million expiring on 12 July 2027.
Interest rates are based on SOFR plus CAS and margins are fixed
at the commencement of the drawdown period.
On 17 January 2020, the Group completed a $600 million
syndicated facility with a term of seven years. Interest is based
on SOFR plus CAS plus 1.2%. Interest is paid on a quarterly basis.
Japan Bank for International Cooperation (JBIC)
facility
On 24 June 2008, the Group entered into a two tranche committed
loan facility of $1,000 million and $500 million respectively. The
$500 million tranche was repaid in 2013. There is a prepayment
option for the remaining balance. Interest rates are based on
LIBOR. Interest is payable semi-annually in arrears and the principal
amortises on a straight-line basis, with equal instalments of
principal due on each interest payment date (every six months).
Under this facility, 90% of the receivables from designated Pluto
LNG sale and purchase agreements are secured in favour of the
lenders through a trust structure, with a required reserve amount
of $30 million.
To the extent that this reserve amount remains fully funded
and no default notice or acceleration notice has been given, the
revenue from Pluto LNG continues to flow directly to the Group
from the trust account.
This facility was settled in July 2023. During the period, the
Group repaid $83 million on the JBIC facility.
Medium term notes
On 28 August 2015, the Group established a $3,000 million
Global Medium Term Notes Programme listed on the Singapore
Stock Exchange. One note is currently issued under this
programme as set out below:
Maturity date
29 January 2027
Currency
US$
Carrying amount
(million)
Nominal
interest rate
200
3.07%
The unutilised program is not considered to be an unused facility.
The CHF medium term note was settled in December 2023.
During the period, the Group repaid $201 million of the CHF
medium term note.
US bonds
The Group has four series of unsecured bonds issued in reliance
on Rule 144A of the US Securities Act of 1933 as set out below:
Maturity date
5 March 2025
15 September 2026
15 March 2028
4 March 2029
Carrying amount
US$m
1,000
800
800
1,500
Nominal
interest rate
3.65%
3.70%
3.70%
4.50%
Interest on the bonds is payable semi-annually in arrears.
ANNUAL REPORT 2023 Notes to the financial statements C. Debt and capital
for the year ended 31 December 2023
C.3 CONTRIBUTED EQUITY
(b) Reserved shares
Recognition and measurement
Issued capital
Ordinary shares are classified as equity and recorded at the value
of consideration received. The cost of issuing shares is shown in
share capital as a deduction, net of tax, from the proceeds.
Reserved shares
Reserved shares are the Group’s own equity instruments, which
are used in employee share-based payment arrangements or
the Dividend Reinvestment Plan (DRP). The DRP was suspended
on 27 February 2023. These shares are deducted from equity.
No gain or loss is recognised in the income statement on the
purchase, sale, issue or cancellation of the Group’s own equity
instruments.
(a) Issued and fully paid shares
Year ended 31 December 2023
Opening balance
Amounts as at 31 December 2023
Year ended 31 December 2022
Opening balance
DRP – ordinary shares issued at
US$23.14 (2021 final dividend)1
Ordinary shares issued at US$21.06
for the acquisition of BHPP2
Transaction costs associated to the
issue of shares
Amounts as at 31 December 2022
Number of
shares
1,898,749,771
1,898,749,771
US$m
29,001
29,001
969,631,826
9,409
14,348,997
332
914,768,948
19,265
-
1,898,749,771
(5)
29,001
962,225,814
Year ended 31 December 2021
Opening balance
DRP – ordinary shares issued at
US$19.03 (2020 final dividend)
DRP – ordinary shares issued at
US$14.21 (2021 interim dividend)
Amounts as at 31 December 2021
1. Relates to ordinary shares issued for the DRP as part of the 2021 final dividend. The Group
purchased on-market shares for the issuance of DRP as part of the 2022 interim dividend.
Refer to Note C.3(b) for details of the on-market purchases and allocation.
6,051,940
969,631,826
1,354,072
86
9,409
9,297
26
2. 914,768,948 new Woodside shares were issued as consideration for the BHPP merger.
Refer to Note B.5 for details.
All shares are a single class with equal rights to dividends,
capital, distributions and voting. Woodside does not have
authorised capital nor par value in relation to its issued shares.
Employee share
plans
Dividend
reinvestment plan
Number
of shares US$m
Number
of shares US$m
Year ended 31 December 2023
Opening balance
1,873,777
Purchases during the year
2,332,121
Vested/allocated during the year (2,064,971)
Amounts at 31 December 2023
2,140,927
Year ended 31 December 2022
Opening balance
Purchases during the year
Vested during the year
Amounts at 31 December 2022
Year ended 31 December 2021
Opening balance
Purchases during the year
Vested during the year
Amounts at 31 December 2021
1,766,099
2,683,469
(2,629,824)
1,819,744
1,819,744
2,232,589
(2,178,556)
1,873,777
(38)
(57)
46
(49)
(30)
(45)
37
(38)
(23)
(47)
40
(30)
-
-
-
-
-
-
-
-
-
6,823,092
(6,823,092)
-
-
(144)
144
-
-
-
-
-
-
-
-
-
C.4 OTHER RESERVES
Other reserves
Employee benefits reserve
Foreign currency translation reserve
Hedging reserve1
Distributable profits reserve2
Other reserves
2023
US$m
2022
US$m
2021
US$m
290
795
88
4,118
(30)
278
796
(586)
3,541
2
232
793
(400)
58
-
683
1. For the year ended 31 December 2023, the portion of the hedging reserve relating to settled
5,261
4,031
hedges is $80 million (2022: $226 million).
2. For the year ended 31 December 2023, the Group transferred $4,830 million (2022:
$5,553 million) of retained earnings to the distributable profits reserve. The increase was
offset by the 2022 final and 2023 interim dividend payments of $4,253 million (2022 interim
dividend payment: $2,070 million).
Nature and purpose
Employee benefits reserve
Used to record share-based payments associated with the
employee share plans.
Foreign currency translation reserve
Used to record foreign exchange differences arising from the
translation of the financial statements of foreign entities from
their functional currency to the Group’s presentation currency.
Hedging reserve
Used to record gains and losses on effective portion of hedges
designated as cash flow hedges, and foreign currency basis
spread arising from the designation of a financial instrument as
a hedging instrument. Gains and losses accumulated in the cash
flow hedge reserve for qualifying assets are capitalised against
the carrying amount of that asset and recognised in the income
statement as the asset is depreciated.
Distributable profits reserve
Used to record distributable profits generated by the Parent
entity, Woodside Energy Group Ltd.
Other reserves
Used to record gains and losses on financial instruments at fair
value through other comprehensive income.
143
WOODSIDE ENERGY GROUP LTD Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
IN THIS SECTION
This section addresses the other assets and liabilities position at the end of the reporting period including, where applicable,
the accounting policies applied and the key estimates and judgements made.
D. Other assets and liabilities
D.1 Segment assets and liabilities
D.2 Receivables
D.3 Inventories
D.4 Payables
D.5 Provisions
D.6 Other financial assets and liabilities
D.7 Leases
Page 145
Page 145
Page 145
Page 146
Page 146
Page 148
Page 151
KEY FINANCIAL AND CAPITAL RISKS IN THIS SECTION
Credit risk management
Credit risk is the risk that a counterparty will not meet its payment obligation under a financial instrument or customer contract,
leading to a financial loss to the Group. Credit risk arises from the financial assets of the Group, which comprise trade and other
receivables, loans receivables and deposits with banks and financial institutions.
The Group manages its credit risk on trade receivables and financial instruments by predominantly dealing with counterparties with
an investment grade credit rating. Sufficient financial security is obtained to mitigate the risk of financial loss when transacting with
counterparties with below investment grade credit ratings. Customers who wish to trade on unsecured credit terms are subject to
credit assessment procedures. Receivable balances are monitored on an ongoing basis. As a result, the Group’s exposure to bad debts
is not significant. The Group’s maximum credit exposure is limited to the carrying amount of its financial assets.
Customer credit risk is managed by the Treasury function subject to the Group’s established policy, procedures and controls relating
to customer credit risk management. The credit quality of a customer is assessed based on various credit metrics, including its credit
rating, and individual credit limits and requirements are defined in accordance with this assessment. Outstanding customer receivables
are regularly monitored.
At 31 December 2023, the Group had nineteen customers (2022: nineteen customers) that owed the Group more than $10 million
each and accounted for approximately 82% (2022: 79%) of product-related trade receivables. Depending on the product, standard
settlement terms are 7 to 30 days from the date of invoice or bill of lading.
The Group considers the probability of default upon initial recognition of the asset and whether there has been a significant
depreciation in credit quality on an ongoing basis. A significant decrease in credit quality is defined as a debtor being greater than
30 days past due in making a contractual payment. Credit losses for trade receivables (including lease receivables) and contract
assets are determined by applying the simplified approach and are measured at an amount equal to lifetime expected loss. Under the
simplified approach, determination of the loss allowance provision and expected loss rate incorporates past experience and forward-
looking information, including the outlook for market demand and forward-looking interest rates. A default on other financial assets is
considered to be when the counterparty fails to make contractual payments within 60 days of when they fall due.
At 31 December 2023, the Group had a provision for credit losses of nil (2022: nil). Subsequent to 31 December 2023, 97% (2022: 99%)
of product-related trade receivables balance of $885 million (2022: $1,067 million) has been received.
Credit risk from balances with banks is managed by the Treasury function in accordance with the Group’s policy. The Group
places funds from time to time as short-term deposits with reputable financial institutions with investment grade credit ratings.
At 31 December 2023 and 31 December 2022, there were no significant concentrations of credit risk within the Group and financial
instruments are spread amongst a number of financial institutions to minimise the risk of counterparty default. The maximum
exposure to financial institution credit risk is represented by the sum of all cash deposits plus accrued interest, bank account balances
and fair value of derivative assets. The Group’s counterparty credit policy limits this exposure to commercial and investment banks,
according to approved credit limits based on the counterparty’s credit rating.
144
ANNUAL REPORT 2023 Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.1 SEGMENT ASSETS AND LIABILITIES
(a) Segment assets
Australia
International
Marketing1
Corporate/Other1
(b) Segment liabilities
Australia2
International
Marketing1
Corporate/Other1,2
2023
US$m
31,602
17,923
835
5,001
55,361
2023
US$m
7,833
2,624
751
8,983
20,191
2022
US$m
31,240
18,084
182
9,815
59,321
2022
US$m
7,552
2,677
561
11,404
22,194
1.
In 2023, certain shipping activities are now undertaken by the Marketing segment. As a
result of this change, $539 million of lease assets and $677 million of lease liabilities are now
reported within the Marketing segment as at 31 December 2023. The impact of this change
on revenue and expenses is not material.
2. 2022 comparatives have been revised to reflect the appropriate allocation of intercompany
liabilities between Australia and Corporate/Other segments post-merger. As a result of this
change, $552 million has been reclassified to the Corporate/Other segment.
Refer to Note A.1 for descriptions of the Group’s segments.
Corporate/Other assets mainly comprise cash and cash
equivalents, deferred tax assets and lease assets. Corporate/
Other liabilities mainly comprise interest-bearing liabilities,
deferred tax liabilities and lease liabilities.
D.2 RECEIVABLES
(a) Receivables (current)
Trade receivables1
Other receivables1
Loans receivable
Lease receivables
Interest receivable
(b) Receivables (non-current)
Other receivables
Loans receivable
Lease receivables
2023
US$m
2022
US$m
D.3 INVENTORIES
963
456
73
24
1
1,517
21
771
47
839
1,067
381
76
35
19
1,578
75
724
46
845
1.
Interest-free and settlement terms are usually between 14 and 30 days.
Recognition and measurement
Trade receivables are initially recognised at the transaction price
determined under AASB 15/IFRS 15 Revenue from Contracts with
Customers. Other receivables are initially recognised at fair value.
Receivables that satisfy the contractual cash flow and business
model tests are subsequently measured at amortised cost less
an allowance for uncollectable amounts. Uncollectable amounts
are determined using the expected loss impairment model.
Collectability and impairment are assessed on a regular basis.
Subsequent recoveries of amounts previously written off are
credited against other expenses in the consolidated income
statement. Certain receivables that do not satisfy the contractual
cash flow and business model tests are subsequently measured
at fair value (refer to Note D.6).
The Group’s customers are required to pay in accordance with
agreed payment terms. Depending on the product, settlement
terms are 7 to 30 days from the date of invoice or bill of lading
and customers regularly pay on time. There are no significant
overdue product-related trade receivables as at the end of the
reporting period (2022: nil).
Fair value
The carrying amount of trade and other receivables
approximates their fair value.
Foreign exchange risk
The Group held $305 million of receivables at 31 December
2023 (2022: $174 million) in currencies other than US dollars
(predominantly Australian dollars).
Loans receivable
On 9 January 2020, Woodside Energy Finance (UK) Ltd entered
into a secured loan agreement with Petrosen (the Senegal
National Oil Company), to provide up to $450 million for the
purpose of funding Sangomar project costs. The facility has a
maximum term of 12 years and semi-annual repayments of the
loan are due to commence at the earlier of 12 months after RFSU
or 30 June 2025. The carrying amount of the loan receivable is
$435 million at 31 December 2023 (2022: $408 million), which
approximates its fair value. The remaining balance of loans
receivable is due from non-controlling interests.
(a) Inventories (current)
Petroleum products
Goods in transit
Finished stocks
Warehouse stores and materials
Carbon credits1
2023
US$m
2022
US$m
41
93
476
6
616
95
103
480
-
678
(b) Inventories (non-current)
Warehouse stores and materials
Carbon credits1
11
54
65
Inventories include carbon credits which were previously presented within other assets (non-
current). The 2022 amounts have been reclassified to be presented on the same basis.
3
117
120
1.
Recognition and measurement
Inventories include hydrocarbon stocks, consumable supplies,
maintenance spares and carbon credits expected to be utilised
to offset future emissions. Inventories are valued at the lower of
cost and net realisable value. Cost is determined on a weighted
average basis and includes direct costs and an appropriate
portion of fixed and variable production overheads where
applicable. Inventories determined to be obsolete or damaged
are written down to net realisable value, being the estimated
selling price less selling costs.
145
WOODSIDE ENERGY GROUP LTD Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.4 PAYABLES
Trade and other payables1
Interest payable2
2023
US$m
1,655
69
1,724
2022
US$m
2,029
65
2,094
Interest-free and normally settled on 30 day terms.
1.
2. Details regarding interest-bearing liabilities are contained in Note C.2.
Recognition and measurement
Trade and other payables are carried at amortised cost and are
recognised when goods and services are received, whether or
not billed to the Group, prior to the end of the reporting period.
Fair value
The carrying amount of payables approximates their fair value.
Foreign exchange risk
The Group held $534 million of payables at 31 December 2023
(2022: $657 million) in currencies other than US dollars
(predominantly Australian dollars).
Maturity profile of payables
The Group’s payables balances at 31 December 2023 and
31 December 2022 are due for payment within 12 months.
D.5 PROVISIONS
Year ended 31 December 2023
At 1 January 2023
Change in provision
Unwinding of present value discount
Carrying amount at 31 December 2023
Current
Non-current
Net carrying amount
Year ended 31 December 2022
At 1 January 2022
Acquisitions through business combination2
Change in provision
Unwinding of present value discount
Carrying amount at 31 December 2022
Current
Non-current
Restoration1 Employee benefits Onerous contracts
US$m
US$m
US$m
6,253
664
237
7,154
1,011
6,143
7,154
2,218
4,310
(382)
107
6,253
575
5,678
517
5
-
522
351
171
522
286
329
(98)
-
517
331
186
-
-
-
-
-
-
-
214
-
(216)
2
-
-
-
Other
US$m
409
(128)
-
281
144
137
281
106
165
137
1
409
313
96
Total
US$m
7,179
541
237
7,957
1,506
6,451
7,957
2,824
4,804
(559)
110
7,179
1,219
5,960
7,179
Net carrying amount
1. 2023 change in provision is due to increase in estimates of $1,111 million and accretion of $237 million offset by provisions used of $447 million. Changes in estimates are due to new activities, revisions
6,253
409
517
-
to cost and removal scope assumptions and rate escalations, supported by the most recent estimates and benchmarks and the alignment of the 'expected value approach' across all assets.
2. Refer to Note B.5 for details of business combination.
Recognition and measurement
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event,
it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
Over time, the liability is increased for the change in the present
value based on a pre-tax discount rate appropriate to the risks
inherent in the liability. The unwinding of the discount is recorded
as an accretion charge within finance costs. The carrying amount
capitalised in oil and gas properties is depreciated over the
useful life of the related asset (refer to Note B.3).
Costs incurred that relate to an existing condition caused by
past operations, and which do not have a future economic
benefit, are expensed.
Restoration
The restoration provision is first recognised in the period in which
the obligation arises. The nature of restoration activities includes
the removal of facilities, abandonment of wells and restoration
of affected areas. Restoration provisions are updated annually,
with the corresponding movement recognised against the related
exploration and evaluation assets or oil and gas properties or
expensed for late life projects with no corresponding asset.
146
ANNUAL REPORT 2023 Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.5 PROVISIONS (CONT.)
Employee benefits
Provision is made for employee benefits accumulated as a result
of employees rendering services up to the end of the reporting
period. These benefits include wages, salaries, annual leave and
long service leave.
Liabilities in respect of employees’ services rendered that are not
expected to be wholly settled within one year after the end of the
period in which the employees render the related services
are recognised as long-term employee benefits.
These liabilities are measured at the present value of the
estimated future cash outflow to the employees using the
projected unit credit method. Liabilities expected to be wholly
settled within one year after the end of the period in which the
employees render the related services are classified as short-term
benefits and are measured at the amount due to be paid.
Onerous contract provision
Provision is made for loss-making contracts at the present value
of the lower of the net cost of fulfilling and the cost arising from
failure to fulfill each contract.
Key estimates and judgements
(a) Restoration obligations
The Group estimates the future decommissioning and remediation
costs of offshore oil and gas platforms, offshore and onshore
production facilities, wells and pipelines at different stages of
the development and construction of assets or facilities. In many
instances, decommissioning of assets occurs many years into
the future.
The Group’s restoration obligations are based on compliance with
the requirements of relevant regulations which vary for different
jurisdictions. For example Australian regulations require full
removal for offshore assets unless regulator approval is received
to decommission in-situ. It is currently the Group’s assumption
that in some regulatory jurisdictions and environments, certain
infrastructures are decommissioned in-situ where it can be
demonstrated that this will deliver equal or better environmental
outcomes than full removal and that regulatory approval is obtained
where arrangements are satisfactory to the regulator. The Group
maintains technical expertise to ensure that industry learnings,
scientific research and local and international guidelines are
reviewed in assessing its restoration obligations.
The restoration obligation requires judgemental assumptions
regarding removal date, environmental legislation and regulations,
the extent of restoration activities required, the engineering
methodology for estimating cost, technologies used in determining
the decommissioning cost, and liability-specific discount rates to
determine the present value of these cash flows.
For the year ended 31 December 2022, the Group applied either
the ‘expected outcome’ approach or ‘expected value’ approach in
assessing the cost estimate. Both approaches are supported by
AASB137/IAS 37 Provisions, Contingent Liabilities and Contingent
Assets, produce reliable estimates and are widely used in practice.
The ‘expected outcome’ approach was used for heritage Woodside
assets (assets held by the Group prior to the BHPP merger)
and those assets commonly held by both heritage entities. The
’expected value’ approach was used for heritage BHPP assets
(assets acquired from BHP) but excludes assets held by both
heritage entities.
For the year ended 31 December 2023, the Group has aligned to
the ‘expected value’ approach and consistently applied it across
all assets. This has not resulted in a material change to the prior
estimate. The alignment reflects a change to the estimate and not a
policy change, therefore no retrospective restatement is required.
Expected value approach
For both onshore and offshore assets, provision has been made
taking into consideration a risked range of possible removal
outcomes, including full removal of certain assets or project-specific
risks (where applicable). Individual site provisions are an estimate of
the expected value of future cash flows required to rehabilitate the
relevant site using current restoration standards and techniques and
taking into account risks and uncertainties. Individual site provisions
are discounted to their present value using risk free country-specific
discount rates aligned to the estimated timing of cash outflows. This
approach takes into consideration the possibility that full removal of
all assets may be required.
Inherent uncertainties
The basis of the restoration obligation provision for assets with
approved decommissioning plans or general directions issued by
the regulator can differ from the assumptions disclosed above.
Whilst the provisions reflect the Group’s best estimate based on
current knowledge and information, further studies and detailed
analysis of the restoration activities for individual assets will be
ongoing to ensure that the most accurate information is available
when detailed decommissioning plans are required to be submitted
to the relevant regulatory authorities. Actual costs and cash
outflows can materially differ from the current estimate as a result
of changes in regulations and their application, prices, analysis of
site conditions, further studies, timing of restoration and changes
in removal technology. These uncertainties may result in actual
expenditure differing from amounts included in the provision
recognised as at 31 December 2023.
A range of pre-tax discount rates between 3.7% and 5.0% (2022:
3.4% to 4.7%) has been applied. If the discount rates were decreased
by 0.5% then the provision would be $365 million higher. If the cost
estimates were increased by 10% then the provision would be
$718 million higher. The proportion of the non-current balance
not expected to be settled within 10 years is 55% (2022: 54%).
147
WOODSIDE ENERGY GROUP LTD Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.5 PROVISIONS (CONT.)
D.6 OTHER FINANCIAL ASSETS AND
LIABILITIES
(b) Onerous contracts
The onerous contract provision assessment requires management
to make certain estimates regarding the unavoidable costs and the
expected economic benefits from the contract. These estimates
require significant management judgement and are subject to risk
and uncertainty, and hence changes in economic conditions can
affect the assumptions.
As at 31 December 2023, the Corpus Christi contract has a positive
value and therefore is not currently onerous (2022: nil onerous
contract provision). Changes in assumptions predominantly relating
to the narrowing of the spread between the sales price and purchase
price could result in the contract becoming onerous in the future.
Assumptions used to determine the present value as at
31 December 2023 are set out below:
Other financial assets
Financial instruments at fair value through
profit and loss
Derivative financial instruments designated
as hedges
Other financial assets
Financial instruments at amortised cost
Hedge collateral (including interest)
Other financial assets
Financial instruments at fair value through
other comprehensive income
• Discount rate – a pre-tax, risk free US government bond rate
Other financial assets
2023
US$m
2022
US$m
248
53
-
-
28
329
209
120
329
74
35
109
67
42
109
207
22
509
30
29
797
677
120
797
721
-
721
654
67
721
Total other financial assets
Current
Non-current
Net carrying amount
Other financial liabilities
Financial instruments at fair value through
profit and loss
Derivative financial instruments designated
as hedges
Embedded derivative
Total other financial liabilities
Current
Non-current
Net carrying amount
Recognition and measurement
Other financial assets and liabilities
Receivables subject to provisional pricing adjustments are
initially recognised at the transaction price and subsequently
measured at fair value with movements recognised in the
consolidated income statement.
Derivative financial instruments
Derivative financial instruments that are designated within
qualifying hedge relationships are initially recognised at fair
value on the date the contract is entered into. For relationships
designated as fair value hedges, subsequent fair value
movements of the derivative are recognised in the consolidated
income statement.
For relationships designated as cash flow hedges, subsequent
fair value movements of the derivative for the effective portion
of the hedge are recognised in other comprehensive income
and accumulated in reserves in equity; fair value movements
for the ineffective portion are recognised immediately in the
consolidated income statement. Costs of hedging have been
separated from the hedging arrangements and deferred to
other comprehensive income and accumulated in reserves in
equity. Amounts accumulated in equity are reclassified to the
consolidated income statement in the periods when the hedged
item affects profit or loss.
of 4.04% (2022: 4.10%) has been applied.
• LNG pricing – forecast sales and purchase prices are subject to
a number of price markers. Price assumptions are based on the
best information on the market available at measurement date
and derived from short- and long-term views of global supply
and demand, building upon past experience of the industry and
consistent with external sources. The forecasted sales are linked
to gas hub prices (Title Transfer Facility (TTF)) at which physical
sales are expected to occur and incorporate known sales pricing
information1. The long-term gas sales price is estimated on the
basis of the Group’s Brent price forecast. The estimated purchase
price is linked to US gas hub prices (Henry Hub (HH)) at which
physical purchases are expected to occur. The nominal TTF, Brent
oil prices and HH gas prices used at 31 December 2023 were:
TTF (US$/MMBtu)
Brent (US$/bbl)
HH (US$/MMBtu)
2024
13.9
82
3.4
2025
14.2
80
3.5
2026
8.8
76
3.5
2027
8.9
77
3.5
2028
9.1
79²
3.63
1. For committed volumes, contracted pricing has been applied.
2. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2026 and prices are
escalated at 2.0% onwards.
3. Long-term gas prices are based on US$3.2/MMBtu (2022 real terms) from 2026 and
US$3.8/MMBtu (2022 real terms) from 2030. All long-term prices are escalated at 2.0%.
148
ANNUAL REPORT 2023 Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.6 OTHER FINANCIAL ASSETS AND LIABILITIES (CONT.)
The fair values of other financial assets and other financial
liabilities are predominantly determined based on observable
quoted forward pricing and are predominantly classified as
Level 2 on the fair value hierarchy.
Embedded commodity derivatives are classified as Level 3 on
the fair value hierarchy with no market observable inputs.
Foreign exchange
The derivative financial instruments include foreign exchange
forward contracts that are denominated in Australian dollars.
The Group had no material other financial assets and liabilities
denominated in currencies other than US dollars.
Hedging activities
During the period, the following hedging activities were
undertaken:
• As at 31 December 2023, the Group hedged approximately
29.3 MMboe of 2024 production at an average price of
approximately $75.7 per barrel.
• Through the use of foreign exchange forward contracts, the
Group hedged its Australian dollar to US dollar exchange rate
in relation to a portion of the Australian dollar denominated
capital expenditure expected to be incurred under the
Scarborough development.
• In 2022, the Group placed $506 million (excluding interest)
as collateral against the oil hedge positions to reduce
counterparty credit risk exposure. The collateral was returned
to the Group in 2023.
• Through the use of foreign exchange forward contracts, the
Group also hedged its Australian dollar to US dollar exchange
rate in relation to the Australian dollar denominated tax
payments which have matured.
Derivative financial instruments (cont.)
Hedge effectiveness is determined at the inception of the hedge
relationship, and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists
between the hedged exposure and the hedging instrument.
The Group assesses whether the derivative designated in each
hedging relationship has been, and is expected to be, effective in
offsetting changes in cash flows of the hedged exposure using
the hypothetical derivative method.
Ineffectiveness is recognised where the cumulative change in
the designated component value of the hedging instrument on
an absolute basis exceeds the change in value of the hedged
exposure attributable to the hedged risk.
Ineffectiveness may arise where the timing of the transaction
changes from what was originally estimated such as delayed
shipments or changes in timing of forecast sales. This may also
arise where the commodity swap pricing terms do not perfectly
match the pricing terms of the revenue contracts.
Fair value
Except for the other financial assets and other financial liabilities
set out in this note, there are no material financial assets or
financial liabilities carried at fair value.
The fair value of commodity derivative financial instruments
is determined based on observable quoted forward pricing
and swap models and is classified as Level 2 on the fair value
hierarchy. The most frequently applied valuation techniques
include forward pricing and swap models that use present value
calculations. The models incorporate various inputs including the
credit quality of counterparties and forward rate curves of the
underlying commodity.
The fair value of interest rate swaps is calculated by discounting
estimated future cash flows based on the terms of maturity of
each contract, using market interest rates for a similar instrument
at the reporting date, and is classified as Level 2 on the fair value
hierarchy.
The fair value of foreign exchange forward contracts is
determined using quoted forward exchange rates at the
reporting date and present value calculations based on high
credit quality yield curves in the respective currencies and is
classified as Level 2 on the fair value hierarchy.
149
WOODSIDE ENERGY GROUP LTD Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.6 OTHER FINANCIAL ASSETS AND LIABILITIES (CONT.)
Interest Rate Benchmark Reform
A fundamental reform of major interest rate benchmarks is
being undertaken globally, including the replacement of some
interbank offered rates (IBORs) with alternative nearly risk-free
rates (referred to as ‘IBOR reform’). In 2020, the Federal Reserve
announced that the three-month and six-month LIBOR will be
phased out and eventually replaced by June 2023. The Group
had exposures to IBORs on its financial instruments that were
impacted as part of these market-wide initiatives.
During the period, the Group has transitioned its financial
liabilities from USD London Inter-Bank Offered Rate (USD
LIBOR) to SOFR. The transition of a number of the Group’s
financial liabilities from USD LIBOR to SOFR during the year
ended 31 December 2023 did not result in a material impact to
the Group.
Embedded commodity derivative
In 2023, the Group entered into a revised long-term gas sale
and purchase contract (GSPA) with Perdaman with conditions
precedent being satisfied during the year, where a component
of the selling price is linked to the price of urea. The contract has
been assessed to contain an embedded commodity derivative
that is required to be separated and recognised at fair value
through profit and loss. The carrying value of the embedded
derivative at 31 December 2023 amounted to a net liability of
$35 million (31 December 2022: nil). The derivative is remeasured
to fair value at each reporting date in accordance with the Urea
price at that date. As at 31 December 2023, the unrealised loss of
$35 million has been recognised through other expenses.
Hedging activities (cont.)
Oil swaps (cash flow hedges)
Carrying amount (US$m)
Notional amount (MMbbl)1
Maturity date
Hedge ratio
Weighted average hedged rate (US$/MMbbl)
HH Corpus Christi commodity swaps
(cash flow hedges)
Carrying amount (US$m)
Notional amount (TBtu)1
Maturity date
Hedge ratio
Weighted average hedged rate (US$/MMBtu)
TTF Corpus Christi commodity swaps
(cash flow hedges)
Carrying amount (US$m)
Notional amount (TBtu)1
Maturity date
Hedge ratio
Weighted average hedged rate (US$/MMBtu)
Interest rate swap (cash flow hedges)
Carrying amount (US$m)
Notional amount (US$m)1
Maturity date
Hedge ratio
Weighted average hedged rate
Cross currency interest rate swap
(cash flow and fair value hedges)
Carrying amount (US$m)
Notional amount (Swiss Franc)1
Maturity date
Hedge ratio
Weighted average hedged rate
FX forwards (cash flow hedges)
Carrying amount (US$m)
Notional amount (AUD$m)1
Maturity date
Hedge Ratio
2023
2022
(14)
29
2024
1:1
76
(114)
18
2023
1:1
79
(44)
38
2024-2025
1:1
4
26
58
2023-2024
1:1
4
181
32
2024-2025
1:1
18
(469)
50
2023-2024
1:1
16
43
600
2027
1:1
1.7%
55
600
2027
1:1
1.7%
-
-
-
-
-
5
175
2023
1:1
Three month
USD LIBOR
+2.8%
8
1,834
2024-2025
1:1
(17)
1,037
2023-2025
1:1
0.68
Weighted average hedged rate (AUD:USD)
1. The notional amounts relate to unrealised volumes of the hedge item included in the cash flow
0.68
hedge reserve.
Hedge ineffectiveness loss of $15 million (2022: $72 million loss)
has been recognised in the profit and loss.
150
ANNUAL REPORT 2023 Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.6 OTHER FINANCIAL ASSETS
AND LIABILITIES (CONT.)
Hedging activities (cont.)
D.7 LEASES
Land and
buildings
US$m
Plant and
equipment
US$m
Total
US$m
Key estimates and judgements
(a) Embedded commodity derivative
The fair value of the Perdaman embedded derivative has
been estimated using a Monte Carlo simulation model. The
assessment requires management to make certain assumptions
about the model inputs, including forecast cash flows, discount
rate, credit risk and volatility. These assumptions require
significant management judgement and are subject to risk and
uncertainty. The present value of the embedded derivative was
estimated using the assumptions set out below.
• Inflation rate – 2.5% has been applied.
• Discount rate – a pre-tax interest rate curve (range: 5.39%
to 7.12%).
• Domestic gas pricing – forecast sales are subject to urea
pricing. Price assumptions are based on the best market
information available at measurement date and derived from
short- and long-term views of global supply and demand,
building upon past experience of the industry and consistent
with external sources. The long-term urea price is determined
with reference to the prevailing gas hub (Title Transfer Facility
(TTF)) prices available in the market at reporting date.
The embedded derivative is most sensitive to changes in
discount rates and pricing, which may result in unrealised gains
or losses recognised in other income/expenses in the future.
The nominal impact of the effects of changes to discount rate
and long-term price assumptions are estimated as follows:
Change in assumption1
US$m
Urea sales price: increase of 10%
145
Urea sales price: decrease of 10%
(145)
Discount rate: increase of 1.5%2
(208)
258
Discount rate: decrease of 1.5%2
1. Amounts shown represent the change of the present value of the contract keeping
all other variables constant.
2. A change of 1.5% represents 150 basis points.
Lease assets
Year ended 31 December 2023
Carrying amount at 1 January 2023
Additions
Transfer to assets held for sale1
Lease remeasurements
Depreciation
Carrying amount at 31 December 2023
At 31 December 2023
Historical cost and remeasurements
Accumulated depreciation, impairment
and disposals
Net carrying amount
Lease liabilities
Year ended 31 December 2023
At 1 January 2023
Additions
Transfer to liabilities directly associated
with assets held for sale1
Repayments (principal and interest)
Accretion of interest
Lease remeasurements
Carrying amount at 31 December 2023
Current
Non-current
Carrying amount at 31 December 2023
Lease assets
Year ended 31 December 2022
Carrying amount at 1 January 2022
Acquisitions through business
combination2
Additions
Lease remeasurements
Depreciation
Carrying amount at 31 December 2022
At 31 December 2022
Historical cost and
remeasurements
Accumulated depreciation, impairment
and disposals
Net carrying amount
Lease liabilities
Year ended 31 December 2022
At 1 January 2022
Acquisitions through business
combination2
Additions
Repayments (principal and interest)
Accretion of interest
Lease remeasurements
Carrying amount at 31 December 2022
Current
464
8
-
7
(49)
430
800
120
(3)
184
(301)
800
1,264
128
(3)
191
(350)
1,230
600
1,612
2,212
(170)
430
(812)
800
(982)
1,230
623
24
-
(78)
27
11
607
54
553
607
377
120
4
5
(42)
464
1,011
121
(7)
(391)
75
199
1,008
244
764
1,008
1,634
145
(7)
(469)
102
210
1,615
298
1,317
1,615
703
1,080
22
238
103
(266)
800
142
242
108
(308)
1,264
591
1,311
1,902
(127)
464
437
245
1
(60)
25
(25)
623
48
(511)
800
(638)
1,264
930
1,367
23
189
(305)
78
96
1,011
276
268
190
(365)
103
71
1,634
324
1,310
1,634
151
735
Non-current
1,011
Carrying amount at 31 December 2022
1. Refer to Note B.8 for details of the sell-down of the Scarborough Joint Venture.
2. Refer to Note B.5 for details of business combination.
575
623
WOODSIDE ENERGY GROUP LTD Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
Foreign exchange risk
The Group held $447 million of lease liabilities at 31 December
2023 (2022: $441 million) in currencies other than the US dollar
(predominantly Australian dollars).
Maturity profile of lease liabilities
The table below presents the contractual undiscounted cash
flows associated with the Group’s lease liabilities, representing
principal and interest. The figures will not necessarily reconcile
with the amounts disclosed in the consolidated statement of
financial position.
Due for payment in:
1 year or less
1-2 years
2-3 years
3-4 years
4-5 years
More than 5 years
2023
US$m
415
240
194
180
181
1,032
2,242
2022
US$m
433
272
199
186
176
966
2,232
Lease commitments
The table below presents the contractual undiscounted cash
flows associated with the Group’s future lease commitments for
non-cancellable leases not yet commenced, representing
principal and interest.
Due for payment:
Within one year
After one year but not more than five years
Later than five years
2023
US$m
2022
US$m
33
889
1,242
2,164
67
263
1,288
1,618
Payments of $121 million (2022: $162 million) for short-term
leases (lease term of 12 months or less) and payments of
$12 million (2022: $12 million) for leases of low value assets were
expensed in the consolidated income statement. Total payments
for leases in the consolidated statement of cash flows are
$575 million (2022: $525 million), with $361 million (2022:
$258 million) included in financing activities.
The Group has short-term and/or low value lease commitments
for marine vessels and carriers, property, drill rigs and plant and
equipment contracted for, but not provided for in the financial
statements, of $232 million (2022: $60 million).
D.7 LEASES (CONT.)
Recognition and measurement
When a contract is entered into, the Group assesses whether
the contract contains a lease. A lease arises when the Group
has the right to direct the use of an identified asset which is not
substitutable and to obtain substantially all economic benefits
from the use of the asset throughout the period of use. The
leases recognised by the Group predominantly relate to LNG
vessels, property and drilling rigs.
The Group separates the lease and non-lease components of the
contract and accounts for these separately. The Group allocates
the consideration in the contract to each component on the
basis of their relative stand-alone prices.
Leases as a lessee
Lease assets and lease liabilities are recognised at the lease
commencement date, which is when the assets are available
for use. The assets are initially measured at cost, which is the
present value of future lease payments adjusted for any lease
payments made at or before the commencement date, plus any
make-good obligations and initial direct costs incurred.
Lease assets are depreciated using the straight-line method
over the shorter of their useful life and the lease term. Refer
to Note B.3 for the useful lives of assets. Periodic adjustments
are made for any re-measurements of the lease assets and for
impairment losses, assessed in accordance with the Group’s
impairment policies.
Lease liabilities are initially measured at the present value of
future minimum lease payments, discounted using the Group’s
incremental borrowing rate if the rate implicit in the lease cannot
be readily determined, and are subsequently measured at
amortised cost using the effective interest rate. Minimum lease
payments are fixed payments or index-based variable payments
incorporating the Group’s expectations of extension options and
do not include non-lease components of a contract. A portfolio
approach was taken when determining the implicit discount rate
for LNG vessels with similar terms and conditions on transition.
The lease liability is remeasured when there are changes in
future lease payments arising from a change in rates, index or
lease terms from exercising an extension or termination option.
A corresponding adjustment is made to the carrying amount of
the lease assets, with any excess recognised in the consolidated
income statement.
There are no restrictions placed upon the lessee by entering into
these leases.
Short-term leases and leases of low value
Short-term leases (lease term of 12 months or less) and leases of
low value assets are recognised as incurred as an expense in the
consolidated income statement. Low value assets comprise plant
and equipment.
152
ANNUAL REPORT 2023 Notes to the financial statements D. Other assets and liabilities
for the year ended 31 December 2023
D.7 LEASES (CONT.)
Key estimates and judgements
(a) Control
Judgement is required to assess whether a contract is or contains
a lease at inception by assessing whether the Group has the right
to direct the use of the identified asset and obtain substantially all
the economic benefits from the use of that asset.
(b) Lease term
Judgement is required when assessing the term of the lease and
whether to include optional extension and termination periods.
Option periods are only included in determining the lease term
at inception when they are reasonably certain to be exercised.
Lease terms are reassessed when a significant change in
circumstances occurs. On this basis, possible additional lease
payments amounting to $2,000 million (2022: $2,323 million)
were not included in the measurement of lease liabilities.
(c) lnterest in joint arrangements
Judgement is required to determine the Group’s rights and
obligations for lease contracts within joint operations, to
assess whether lease liabilities are recognised gross (100%) or
in proportion to the Group’s participating interest in the joint
operation. This includes an evaluation of whether the lease
arrangement contains a sublease with the joint operation.
(d) Discount rates
Judgement is required to determine the discount rate, where the
discount rate is the Group’s incremental borrowing rate if the rate
implicit in the lease cannot be readily determined. The incremental
borrowing rate is determined with reference to the Group’s
borrowing portfolio at the inception of the arrangement or
the time of the modification.
153
WOODSIDE ENERGY GROUP LTD Notes to the financial statements E. Other items
for the year ended 31 December 2023
IN THIS SECTION
This section addresses information on items which require disclosure to comply with Australian Accounting Standards and the
Corporations Act 2001, however are not considered critical in understanding the financial performance or position of the Group.
This section includes Group structure information and other disclosures.
E. Other items
E.1 Contingent liabilities and assets
E.2 Employee benefits
E.3 Related party transactions
E.4 Auditor remuneration
E.5 Events after the end of the reporting period
E.6 Joint arrangements
E.7 Parent entity information
E.8 Subsidiaries
E.9 Other accounting policies
Page 155
Page 155
Page 158
Page 158
Page 158
Page 158
Page 160
Page 160
Page 164
154
ANNUAL REPORT 2023 Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.1 CONTINGENT LIABILITIES AND ASSETS
Contingent liabilities at reporting date
Contingent liabilities
Guarantees
2023
US$m
2022
US$m
260
2
262
161
2
163
Contingent liabilities relate predominantly to possible obligations
whose existence will only be confirmed by the occurrence or
non-occurrence of uncertain future events, and therefore the
Group has not provided for such amounts in these financial
statements. The Group operates in complex tax and legislative
regimes. The amounts disclosed above include estimates made
in relation to ongoing disputes with various tax and government
authorities. Assessing a value of contingent liabilities requires
a high degree of judgement. The contingent liabilities relating
to tax matters are estimated based on notices received from
authorities before interest and penalties. The possibility of
further claims related to the same matters cannot be ruled
out and the judicial processes may take extended periods to
conclude. Additionally, there are a number of other claims and
possible claims that have arisen in the course of business against
entities in the Group, the outcome of which cannot be estimated
at present and for which no amounts have been included in the
table above.
The Group has contingent assets of $47 million as at
31 December 2023 (2022: $199 million).
E.2 EMPLOYEE BENEFITS
Employee benefits
Share-based payments
Defined contribution plan costs
Defined benefit plan expense
2023
US$m
2022
US$m
2021
US$m
494
39
53
17
603
415
26
41
9
491
217
12
26
1
256
(a) Employee benefits
Employee benefits for the reporting period are as follows:
Recognition and measurement
The Group’s accounting policy for employee benefits other than
superannuation is set out in Note D.5. The policy relating to
share-based payments is set out in Note E.2(c).
All employees of the Group are entitled to benefits on
retirement, disability or death from the Group’s retirement plans.
The Group operates a number of pension schemes throughout
the world. Employees entitled to defined contribution schemes
receive fixed contributions from Group companies and the
Group’s legal or constructive obligation is limited to these
contributions. Contributions to defined contribution funds are
recognised as an expense as they become payable. Prepaid
contributions are recognised as an asset to the extent that a cash
refund or a reduction in the future payment is available.
(b) Compensation of key management personnel
Key management personnel (KMP) compensation for the
financial year was as follows:
Short-term employee benefits1
Post-employment benefits1
Share-based payments2
Long-term employee benefits
Termination benefits
2023
US$
2022
US$
2021
US$
5,245,763
215,856
3,693,072
213,562
-
9,368,253
5,730,340
155,086
3,114,043
4,300
152,531
9,156,300
6,626,354
88,396
5,697,529
717,223
2,447,525
15,577,027
1.
In the prior reporting period, the 2021 comparatives for short-term employee benefits and
post-employment benefits were restated to include the superannuation component of the
2021 EIS cash and other cash bonuses for three key management personnel, increasing the
short-term employee benefits expense by $26,676 to $6,626,354 and the post-employee
benefits expense by $10,881 to $88,396.
2. In the prior reporting period, the 2021 comparative for share-based payments was restated
to include amortisation of the fair value of 2021 performance rights for two key management
personnel, increasing the expense by $88,507 to $5,697,529.
(c) Share plans
The Group provides benefits to its employees (including KMP)
in the form of share-based payments (equity-settled
transactions).
Woodside equity plan (WEP) and
supplementary Woodside equity plan (SWEP)
The WEP is available to all permanent employees, but since
1 January 2018 has excluded Executive Incentive Scheme (EIS)
participants. The number of Equity Rights (ERs) offered to
each eligible employee is determined by the Board, and based
on individual performance as assessed under the performance
review process. The linking of performance to an allocation
allows the Group to recognise and reward eligible employees
for high performance. The ERs have no further ongoing
performance conditions after allocation, and do not require
participants to make any payment in respect of the ERs at grant
or at vesting. Each ER entitles the participant to receive
a Woodside share on the vesting date three years after the
grant date.
For awards made in 2023 and 2022, participants are entitled to
receive a Woodside share on the vesting date, three years after
the grant date. Awards made in 2021 will vest under the terms of
the plan at that time, which provided for 75% vesting of the ERs
three years after the grant date and the remaining 25% of the
ERs five years after the grant date.
In October 2011, the Board approved the establishment of the
SWEP to enable the offering of targeted retention awards of ERs
for key capability. The SWEP was updated in 2022 to broaden
eligibility to all employees of a subsidiary of Woodside Energy
Group Ltd and ensure compliance in all jurisdictions in which
Woodside operates. This facilitated the offer of replacement
unvested incentives, as required under transitional arrangements
for eligible heritage BHP employees transitioning from BHP
Group Long-Term Incentive (LTI) plans to VAR offered under
Woodside’s VAR arrangements.
155
WOODSIDE ENERGY GROUP LTD Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.2 EMPLOYEE BENEFITS (CONT.)
Woodside equity plan (WEP) and supplementary
Woodside equity plan (SWEP) (cont.)
Each ER entitles the participant to receive a Woodside share on
vesting date. Participants do not make any payment in respect of
the ERs at grant or at vesting.
Executive Incentive Scheme (EIS)
The EIS was introduced for the 2018 performance year for
all Executives including Executive KMP. The EIS is delivered
in the form of a cash incentive, Restricted Shares and
Performance Rights. The grant date of the Restricted Shares
and Performance Rights has been determined to be subsequent
to the performance year, being the date of the Board of
Directors’ approval. Accordingly, the 2022 Restricted Shares
and Performance Rights were granted on 27 February 2023
for Executives and 28 April 2023 for the CEO and have been
included in the table below. The expense estimated as at
31 December 2022 in relation to the 2022 performance year
was updated to the fair value on grant date during the period.
The 2023 Restricted Shares and Performance Rights have
not been included in the table below as they have not been
approved as at 31 December 2023. An expense related to the
2023 performance year has been estimated for the Restricted
Shares and Performance Rights, using fair value estimates based
on inputs at 31 December 2023.
Performance Based Pay Plus (PBP Plus)
PBP Plus is available to senior, permanent employees who
are not Executives. Participants receive an annual award of
cash and Restricted Shares based on corporate and individual
performance, recognising and rewarding eligible employees for
high performance.
The grant date of the Restricted Shares has been determined to
be subsequent to the performance year, being the date of the
Board of Directors’ approval. Accordingly, the 2022 Restricted
Shares were granted on 27 February 2023 and have been
included in the table below. The expense estimated as at
31 December 2022 in relation to the 2022 performance year
was updated to the fair value on grant date during the period.
The 2023 Restricted Shares have not been included in the table
below as they have not been approved as at 31 December 2023.
An expense related to the 2023 performance year has been
estimated for the Restricted Shares, using fair value estimates
based on inputs at 31 December 2023.
Recognition and measurement
All compensation under WEP, SWEP, PBP Plus and EIS Restricted
Shares and Performance Rights is accounted for as share-based
payments to employees for services provided. The cost of equity-
settled transactions with employees is measured by reference
to the fair values of the equity instruments at the date at which
they are granted. The fair value of share-based payments is
recognised, together with the corresponding increase in equity,
over the period in which the vesting conditions are fulfilled,
ending on the date on which the relevant employee becomes
fully entitled to the shares. At each balance sheet date, the Group
reassesses the number of awards that are expected to vest based
on service conditions. The expense recognised each year takes
into account the most recent estimate.
The fair value of the benefit provided for the WEP and SWEP is
estimated using the Black-Scholes option pricing technique.
The fair value of the Restricted Shares is estimated as the
closing share price at grant date. The fair value of the benefit
provided for the relative total shareholder return Performance
Rights is calculated using the Binomial or Black-Scholes option
pricing technique combined with a Monte Carlo simulation
methodology, where relevant, using historical volatility to
estimate the volatility of the share price in the future.
156
ANNUAL REPORT 2023 Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.2 EMPLOYEE BENEFITS (CONT.)
The number of awards and movements for all share plans are summarised as follows:
Year ended 31 December 2023
Opening balance
Granted during the year1,2,3
Vested during the year
Forfeited during the year
Awards at 31 December 2023
Fair value of awards granted during the year
Year ended 31 December 2022
Opening balance
Granted during the year1,2,3
Vested during the year
Forfeited during the year
Awards at 31 December 2022
Number of performance awards
Employee plans
Executive plans
WEP
SWEP
STA4
LTA4
6,629,681
3,445,234
(600,271)
(349,204)
9,125,440
US$m
60
2,884,076
100,811
(1,071,291)
(357,023)
1,556,573
US$m
2
993,197
420,429
(286,979)
(60,410)
1,066,237
US$m
10
2,554,422
658,969
(106,430)
(410,409)
2,696,552
US$m
12
Number of performance awards
Employee plans
Executive plans
WEP
SWEP
STA4
LTA4
5,649,783
3,017,366
(1,498,065)
(539,403)
6,629,681
-
3,046,963
(38,146)
(124,741)
2,884,076
994,436
495,800
(450,609)
(46,430)
993,197
2,379,220
764,171
(191,736)
(397,233)
2,554,422
US$m
US$m
US$m
US$m
Fair value of awards granted during the year
49
1. For the purpose of valuation, the share price on grant date for the 2023 WEP allocations was $17.54 (2022: $16.30).
2. For the purpose of valuation, the share price on grant date for the 2023 SWEP allocations was $20.78 (2022: $19.74).
3. For the purpose of valuation, the share price on grant date for Restricted Shares was $23.48 and $23.33 (2022: $19.20 and $19.27) and Performance Rights was $15.96 (2022: $13.08 and $13.71).
4. Includes awards issued under Executive Incentive Plan (EIP), EIS and PBP Plus.
60
9
For more detail on these share plans and Performance Rights issued to KMPs, refer to the Remuneration Report.
13
157
WOODSIDE ENERGY GROUP LTD Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.3 RELATED PARTY TRANSACTIONS
The Group’s related party transactions are predominantly
with associates of the Group. During the period, the transactions
with related parties include purchases of goods/services of
$71,407 thousand (2022: $60,730 thousand), sale of goods/
services of $27,142 thousand (2022: $18,527 thousand) and
dividend income of $15,296 thousand (2022: $8,294 thousand).
As at 31 December 2023, the total amounts owing to related
parties is $1,559 thousand (2022: $1,686 thousand) and amounts
owing from related parties is $1,960 thousand (2022: $2,200
thousand). All transactions to/from related parties are made at
arm’s length (normal market rates and on normal commercial
terms).
E.5 EVENTS AFTER THE END OF THE
REPORTING PERIOD
On 23 February 2024, Woodside and JERA Scarborough Pty
Ltd (JERA) entered into a Sale and Purchase agreement for
JERA to acquire 15.1% participating interest in the Scarborough
Joint Venture. The purchase price is $740 million. JERA will
also reimburse Woodside for its share of expenditure for the
Scarborough project from the effective date of 1 January 2022.
Subject to the satisfaction of conditions precedent, the transaction
is expected to complete in the second half of 2024. The full
financial effect of the transaction is still being assessed. The
Scarborough Joint Venture is included in the Australia segment.
There were no transactions with directors during the year.
Key management personnel compensation is disclosed in
Note E.2(b).
E.6 JOINT ARRANGEMENTS
(a) Interest percentage in joint ventures
Principal activity
Contract administration
services for venturers
for LNG sales to
Japan. Marketing and
administration services
for venturers for gas
processing.
Liaison for venturers in the
sale of LNG to the Japanese
market.
Contract administration
services for venturers for
LNG sales to China.
LNG vessel fleet advisor.
Allocating, scheduling and
administering the lifting of
LNG and pipeline gas.
Group Interest %
2023
33.33
2022
33.33
33.33
33.33
33.33
33.33
33.33
33.33
33.33
33.33
E.4 AUDITOR REMUNERATION
For the year ended 31 December 2023 and 31 December 2022, the
auditor of Woodside Energy Group Ltd is PricewaterhouseCoopers
Australia (PwC) (2021: Ernst & Young (EY)).
Entity
North West Shelf Gas Pty
Ltd
North West Shelf Liaison
Company Pty Ltd
China Administration
Company Pty Ltd
North West Shelf Shipping
Service Company Pty Ltd
North West Shelf Lifting
Coordinator Pty Ltd
(a) Auditors of the Group
Amounts received or due and
receivable to:
PricewaterhouseCoopers (Australia)
Audit and review of financial reports
Assurance services
Other assurance and agreed upon
procedures services
Tax services
Other services
Other overseas member firms of
PricewaterhouseCoopers (Australia)
Audit of the financial reports of
controlled entities
Other assurance and agreed upon
procedures services
Tax services
Other services
(b) Other auditors and their related
network firms
Ernst & Young1
Audit and review of financial reports
Assurance services
Other assurance and agreed upon
procedures services
Tax services
Other services
2023
2022
2021
US$000
US$000
US$000
6,510
138
332
-
-
2,878
129
832
-
41
1,557
1,274
-
1,081
-
9,618
-
-
-
-
-
-
-
258
-
5,412
48
611
2,335
-
-
2,994
-
-
-
-
-
-
-
-
-
-
1,732
2,687
33
129
19
4,600
1. The disclosure of auditor remuneration is not required as EY is no longer bound by auditor
independence requirements for the year ended 31 December 2023.
158
ANNUAL REPORT 2023 Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.6 JOINT ARRANGEMENTS (CONT.)
(b) Interest percentage in joint operations
Producing and developing assets
Australia
North West Shelf
Greater Enfield and Vincent
Balnaves
Pluto
Wheatstone
Bass Strait
Macedon
Pyrenees
Griffin
Minerva
International
Sangomar
Atlantis
Mad Dog
Shenzi
Trion
Greater Angostura
Calypso
Exploration and evaluation assets
Oceania
Browse Basin
Carnarvon Basin
Bonaparte Basin
Africa
Congo
Senegal
Egypt
Americas
US Gulf of Mexico1
Kitimat
Asia
Republic of Korea2
Myanmar3
Caribbean
Barbados
Trinidad and Tobago4
Other joint operations
Angel
Bonaparte Basin
Group Interest %
2023
2022
25.0 - 66.7
25.0 - 66.7
60.0
65.0
90.0
60.0
65.0
90.0
13.0 - 65.0
13.0 - 65.0
25.0 - 50.0
25.0 - 50.0
71.4
71.4
40.0 - 71.4
40.0 - 71.4
45.0 - 71.0
45.0 - 71.0
90.0
90.0
82.0
44.0
23.9
72.0
60.0
82.0
44.0
23.9
72.0
60.0
45.0 - 68.5
45.0 - 68.5
70.0
70.0
30.6
30.6
31.6 - 70.0
31.6 - 70.0
26.7 - 35.0
26.7 - 35.0
22.5
90.0
22.5
90.0
25.0 - 45.0
25.0 - 45.0
23.9 - 75.0
23.9 - 75.0
50.0
50.0
-
50.0
45.0
40.0 - 45.0
60.0
70.0
60.0
65.0 - 70.0
20.0
21.0
20.0
21.0
1. The Group relinquished permits GC 520, GC564, AC 39, AC 127 and AC170 in 2023.
2. The Group relinquished permits 8 and 6-1N in 2023.
3. The Group relinquished permit A-6 in 2023.
4. The Group relinquished permit TTDA-5 in 2023.
The principal activities of the joint operations are exploration,
development and production of hydrocarbons.
Key estimates and judgements
(a) Accounting for interests in other entities
Judgement is required in assessing the level of control
obtained in a transaction to acquire an interest in another
entity. Depending upon the facts and circumstances in each
case, Woodside may obtain control, joint control or significant
influence over the entity or arrangement. Judgement is applied
when determining the relevant activities of a project and if joint
control is held over it.
Relevant activities include, but are not limited to, work program
and budget approval, investment decision approval, voting
rights in joint operating committees, amendments to permits
and changes to joint arrangement participant holdings.
Transactions which give Woodside control of a business are
business combinations. If Woodside obtains joint control of an
arrangement, judgement is also required to assess whether the
arrangement is a joint operation or a joint venture. If Woodside
has neither control nor joint control, it may be in a position
to exercise significant influence over the entity, which is then
accounted for as an associate.
Recognition and measurement
Joint arrangements are arrangements in which two or more
parties have joint control. Joint control is the contractual agreed
sharing of control of the arrangement which exists only when
decisions about the relevant activities require unanimous
consent of the parties sharing control. Joint arrangements are
classified as either a joint operation or joint venture, based
on the rights and obligations arising from the contractual
obligations between the parties to the arrangement.
To the extent the joint arrangement provides the Group with
rights to the individual assets and obligations arising from
the joint arrangement, the arrangement is classified as a joint
operation, and as such the Group recognises its:
• assets, including its share of any assets held jointly;
• liabilities, including its share of any liabilities incurred jointly;
• revenue from the sale of its share of the output arising from
the joint operation;
• share of revenue from the sale of the output by the joint
operation; and
• expenses, including its share of any expenses incurred jointly.
To the extent the joint arrangement provides the Group with
rights to the net assets of the arrangement, the investment
is classified as a joint venture and accounted for using the
equity method.
Joint arrangements acquired which are deemed to be carrying
on a business are accounted for applying the principles of
AASB 3/IFRS 3 Business Combinations. Joint arrangements
which are not deemed to be carrying on a business are treated
as asset acquisitions.
159
WOODSIDE ENERGY GROUP LTD Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.7 PARENT ENTITY INFORMATION
Woodside Energy Group Ltd:
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Issued and fully paid shares
Reserved shares
Employee benefits reserve
Foreign currency translation reserve
Distributable profits reserve
Retained earnings
Total shareholders equity
Profit of parent entity
Total comprehensive income of parent entity
2023
US$m
236
35,151
(743)
(527)
34,117
29,001
(49)
156
296
4,118
595
34,117
5,340
5,340
2022
US$m
312
34,734
(1,530)
(481)
33,035
29,001
(38)
150
296
3,541
85
33,035
6,665
6,665
Guarantees
For the year ended 31 December 2022, Woodside Energy Group
Ltd and Woodside Energy Ltd were parties to a Deed of Cross
Guarantee. In November 2023, Revocations Deeds were entered
into with respect to the previous Deed of Cross Guarantee
(with the revocation to take effect in May 2024). In December
2023, a new Deed of Cross Guarantee (Deed) was entered into
between Woodside Energy Group Ltd, Woodside Energy Ltd,
Woodside Energy Global Holdings Pty Ltd, Woodside Burrup
Pty Ltd, Woodside Energy Julimar Pty Ltd, Woodside Energy
Scarborough Pty Ltd, Woodside Energy Holdings Pty Ltd,
Woodside Energy Global Pty Ltd, Woodside Energy (Australia)
Pty Ltd, Woodside Energy (Bass Strait) Pty Ltd and Woodside
Energy (North West Shelf) Pty Ltd as disclosed in Note E.8(c).
The effect of the Deed is that each company has guaranteed to
pay any deficiency in the event of winding up of any of the other
companies that are party to the Deed under certain provisions of
the Corporations Act 2001.
Woodside Energy Group Ltd has guaranteed the discharge by
a subsidiary company of its financial obligations under debt
facilities disclosed in Note C.2. Woodside Energy Group Ltd
has guaranteed certain obligations of subsidiaries to unrelated
parties on behalf of their performance in contracts. No liabilities
are expected to arise from these guarantees.
Name of entity
Pluto LNG Pty Ltd
Woodside Burrup Train 2 A Pty Ltd
Woodside Burrup Train 2 B Pty Ltd
Woodside Energy (LNG Fuels and Power) Pty Ltd
Woodside Energy (Domestic Gas) Pty Ltd
Woodside Energy (Algeria) Pty Ltd
Woodside Energy Australia Asia Holdings Pte Ltd
Woodside Energy Holdings International Pty Ltd
Woodside Energy International (Canada) Limited
Woodside Energy (Canada LNG) Limited
Woodside Energy (Canada PTP) Limited
KM LNG Operating General Partnership
KM LNG Operating Ltd
Woodside Energy Holdings Pty Ltd
Woodside Energy Holdings (USA) Inc
Woodside Energy (USA) Inc
Gryphon Exploration Company
PT Woodside Energy Indonesia
Woodside Energy (Cameroon) SARL
Woodside Energy (Gabon) Pty Ltd
Woodside Energy (Indonesia) Pty Ltd
Woodside Energy (Indonesia II) Pty Ltd
Woodside Energy (Malaysia) Pty Ltd
Woodside Energy (Ireland) Pty Ltd
Woodside Energy (Korea) Pte Ltd
Woodside Energy (Korea II) Pte Ltd
Woodside Energy (Myanmar) Pte Ltd
Woodside Energy (Morocco) Pty Ltd
Country of
incorporation19 Notes
(5)
Australia
Australia
Australia
Australia
Australia
(2,4)
(2,4)
(2,4)
(2,4)
Australia
(2,4)
Singapore
(4)
Australia
(2,4)
Canada
Canada
Canada
Canada
Canada
(4)
(4)
(4)
(9)
(4)
Australia (2,3,4)
United States
United States
United States
Indonesia
Cameroon
(4)
(4)
(4)
(6)
(4)
Australia
(2,4)
Australia
Australia
Australia
(2,4)
(2,4)
(2,4)
Australia
(2,4)
Singapore
Singapore
Singapore
(4)
(4)
(4)
Australia
(2,4)
Woodside Energy (New Zealand) Limited
Woodside Energy Holdings (New Zealand) Limited
New Zealand
New Zealand
Woodside Energy (Peru) Pty Ltd
Woodside Energy (Senegal) Pty Ltd
Woodside Energy (Tanzania) Limited
Woodside Energy Holdings II Pty Ltd
Woodside Power Pty Ltd
Woodside Power (Generation) Pty Ltd
Woodside Energy Holdings (South America) Pty Ltd
Woodside Energia (Brasil) Apoio Administrativo Ltda
Woodside Energy Holdings (UK) Pty Ltd
Woodside Energy (UK) Limited
Woodside Energy Finance (UK) Limited
Woodside Energy (Congo) Limited
Woodside Energy (Bulgaria) Limited
Woodside Energy Holdings (Senegal) Limited
Woodside Energy (Senegal) B.V.
Woodside Energy (France) SAS
Woodside Energy Iberia S.A.
Woodside Energy (N.A.) Limited
Woodside Energy Services (Qingdao) Co Ltd
Woodside Energy Julimar Pty Ltd
Woodside Energy (Norway) Pty Ltd
Woodside Energy Technologies Pty Ltd
Woodside Technology Solutions Pty Ltd
Woodside Energy Scarborough Pty Ltd
Woodside Energy Carbon Holdings Pty Ltd
Woodside Energy Carbon (Assets) Pty Ltd
Country of
incorporation19 Notes
Australia
(1,2,3)
Woodside Energy Carbon (Services) Pty Ltd
Woodside Energy (Financial Advisory Services) Pty Ltd
Australia (2,3,4)
Australia
(2,4)
Australia (2,3,4)
Australia
Australia
(5)
(5)
Woodside Energy Trading Singapore Pte Ltd
WelCap Insurance Pte Ltd
Woodside Energy Shipping Singapore Pte Ltd
Metasource Pty Ltd
Mermaid Sound Port and Marine Services Pty Ltd
Woodside Finance Limited
Woodside Petroleum (Timor Sea 19) Pty Ltd
(4)
(4)
(2,4)
(2,4)
(7)
(2,4)
(2,4)
(2,4)
Australia
Australia
Tanzania
Australia
Australia
Australia
Australia
(2,4)
Brazil
(8)
Australia
(2,4)
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Netherlands
France
Spain
United Kingdom
China
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
Australia (2,3,4)
Australia
(2,4)
Australia (2,4,14)
Australia
(2,4)
Australia (2,3,4)
Australia
Australia
Australia
Australia
Singapore
Singapore
Singapore
Australia
Australia
Australia
Australia
(2,4)
(2,4)
(2,4)
(2,4)
(4)
(4)
(4)
(2,4)
(2,4)
(2,4)
(2,4)
E.8 SUBSIDIARIES
(a) Subsidiaries
Name of entity
Ultimate Parent Entity
Woodside Energy Group Ltd
Subsidiaries
Company name
Woodside Energy Ltd
Woodside Browse Pty Ltd
Woodside Burrup Pty Ltd
Burrup Facilities Company Pty Ltd
Burrup Train 1 Pty Ltd
160
ANNUAL REPORT 2023
United States
(4,16)
10. As at 31 December 2023, Woodside Energy Global Holdings Pty Ltd held a 99.99% interest in
Notes to the financial statements E. Other items
for the year ended 31 December 2023
Woodside Energy (Great Britain) Limited
United Kingdom
E.8 SUBSIDIARIES (CONT.)
Name of entity
Woodside Petroleum (Timor Sea 20) Pty Ltd
Woodside Petroleum Holdings Pty Ltd
Woodside Energy Global Holdings Pty Ltd
Woodside Energy Global Pty Ltd
Perdido Mexico Pipeline Holdings, S.A. de C.V.
Perdido Mexico Pipeline, S. de R.L. de C.V.
Woodside Energy Investments Pty Ltd
Woodside Energia Brasil Investimentos Ltda.
Woodside Energia Brasil Exploração e Produção Ltda.
Woodside Energy (North West Shelf) Pty Ltd
Woodside Energy (Trinidad) Holdings Ltd
Woodside Energy (Trinidad-3A) Ltd
Woodside Energy USA Operations Inc
Hamilton Brothers Petroleum Corporation
Hamilton Oil Company LLC
Woodside Energy Boliviana Inc.
Woodside Energy (North America) LLC
Woodside Energy (Americas) Inc.
Woodside Energy (GOM) Inc.
Woodside Energy Hawaii Inc.
Woodside Energy Resources Inc.
Woodside Energy Holdings (Resources) Inc.
Woodside Energy USA Services Inc.
Woodside Energy Marketing Inc.
Woodside Energy (Deepwater) Inc.
Woodside Energy (USA New Energy Holdings) LLC
Woodside Energy (H2 Oklahoma) LLC
Woodside Energy (Foreign Exploration Holdings) LLC
Woodside Energy (Trinidad Block 3) Limited
Woodside Energy (Trinidad Block 5) Limited
Woodside Energy (Trinidad Block 6) Limited
Woodside Energy (Trinidad Block 7) Limited
Woodside Energy (Trinidad Block 14) Limited
Woodside Energy (Trinidad Block 23A) Limited
Woodside Energy (Trinidad Block 23B) Limited
Woodside Energy (Trinidad Block 28) Limited
Woodside Energy (Trinidad Block 29) Limited
Woodside Energy (Bimshire) Limited
Woodside Energy (South Africa 3B/4B) Limited
Woodside Energy (Egypt) Limited
Woodside Energy (Carlisle Bay) Limited
Woodside Energy (Mexico) Limited
Country of
incorporation19 Notes
(2,4)
Australia
Australia (2,4,15)
Australia (2,3,4)
Australia (2,3,4)
Mexico
Mexico
(10)
(10)
Australia
(2,4)
Brazil
Brazil
(11)
(11)
(4)
Australia (2,3,4)
Saint Lucia
(4)
R. of Trinidad
and Tobago
United States
United States
United States
United States
United States
United States
United States
(4)
(12)
(4)
(4)
(4)
(4)
(4)
(4)
United States
United States
United States
United States
United States
United States
United States
United States
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
(4)
(4)
(4)
(4)
(4,17)
(4,18)
(4,18)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(4)
(13)
(13)
(4)
(13)
(13)
(13)
Woodside Energía Servicios Administrativos, S. de R.L. de C.V.
Woodside Energía Servicios de México, S. de R.L. de C.V.
Mexico
Mexico
Woodside Energy (Mexico Holdings) LLC
United States
Operaciones Conjuntas, S. de R.L. de C.V.
Woodside Energía Holdings de México, S. de R.L. de C.V.
Woodside Petróleo Operaciones de México, S. de R.L. de C.V.
Mexico
Mexico
Mexico
Woodside Energy (Australia) Pty Ltd
Woodside Energy (International Exploration) Pty Ltd
Woodside Energy (Bass Strait) Pty Ltd
Woodside Energy (Victoria) Pty Ltd
Woodside Energy Holdings LLC
Woodside Energy (Trinidad-2C) Ltd
Woodside Energy (Canada) Corporation
Australia (2,3,4)
Australia
(2,4)
Australia (2,3,4)
Australia
(2,4)
United States (2,4,19)
Canada
Canada
(4)
(4)
1. Woodside Energy Group Ltd is the ultimate holding company and the head entity within the
tax consolidated group.
2. These companies were members of the Australian tax consolidated group at 31 December
2023.
3. For the year ended 31 December 2022, Woodside Energy Group Ltd and Woodside Energy
Ltd were parties to a Deed of Cross Guarantee. In November 2023, Revocations Deeds were
entered into with respect to the previous Deed of Cross Guarantee (with the revocation to
take effect in May 2024). In December 2023, a new Deed of Cross Guarantee was entered
into between Woodside Energy Group Ltd, Woodside Energy Ltd, Woodside Energy Global
Holdings Pty Ltd, Woodside Burrup Pty Ltd, Woodside Energy Julimar Pty Ltd, Woodside
Energy Scarborough Pty Ltd, Woodside Energy Holdings Pty Ltd, Woodside Energy Global
Pty Ltd, Woodside Energy (Australia) Pty Ltd, Woodside Energy (Bass Strait) Pty Ltd and
Woodside Energy (North West Shelf) Pty Ltd.
4. All subsidiaries are wholly owned except those referred to in Notes 5 to 13.
5. Kansai Electric Power Australia Pty Ltd and Tokyo Gas Pluto Pty Ltd each hold a 5% interest in
the shares of these subsidiaries. These subsidiaries are controlled.
6. As at 31 December 2023, Woodside Energy Holdings Pty Ltd held a 99% interest in the shares
of PT Woodside Energy Indonesia. Woodside Energy Ltd held the remaining 1% interest.
7. As at 31 December 2023, Woodside Energy Holdings Pty Ltd held >99.99% interest in the
shares of Woodside Energy (Tanzania) Limited and Woodside Energy Ltd held the remaining
interest.
8. As at 31 December 2023, Woodside Energy Holdings (South America) Pty Ltd held >99.99%
interest in the shares of Woodside Energia (Brasil) Apoio Administrativo Ltda and Woodside
Energy Ltd held the remaining interest.
9. As at 31 December 2023, Woodside Energy International (Canada) Limited and Woodside
Energy (Canada LNG) Limited were the general partners of the KM LNG Operating General
Partnership holding a 99.99% and 0.01% partnership interest, respectively.
shares of Perdido Mexico Pipeline Holdings, S.A. de C.V. and Perdido Mexico Pipeline, S. de R.L.
de C.V. Woodside Energy Investments Pty Ltd held the remaining 0.01% interest.
11. As at 31 December 2023, Woodside Energy Investments Pty Ltd held a 99.97% interest in
shares of Woodside Energia Brasil Investimentos Ltda. Woodside Energy Global Holdings
Pty Ltd held the remaining 0.03% interest. As at 31 December 2023, Woodside Energia Brasil
Investimentos Ltda. held >99.99% interest in shares of Woodside Energia Brasil Exploração e
Produção Ltda. Woodside Energy Global Holdings Pty Ltd held the remaining interest.
12. As at 31 December 2023, Woodside Energy Global Holdings Pty Ltd held 90% voting interest
and 37.67% interest in shares of Woodside Energy USA Operations Inc. Woodside Energy
Holdings LLC held the remaining 10% voting interest and 62.33% interest in shares.
13. As at 31 December 2023, Woodside Energy (Mexico) Limited held a 99% interest in shares of
Woodside Energía Servicios Administrativos, S. de R.L. de C.V., Woodside Energía Servicios
de México, S. de R.L. de C.V., Operaciones Conjuntas, S. de R.L. de C.V. and Woodside Petróleo
Operaciones de México, S. de R.L. de C.V. and 99.99% interest in shares of Woodside Energía
Holdings de México, S. de R.L. de C.V. Woodside Energy (Mexico Holdings) LLC held the
remaining 0.01%-1% interest.
14. As at 31 December 2023, Woodside Energy Technologies Pty Ltd held 28.5% of the shares in
Blue Ocean Seismic Services Limited which is accounted for as an investment in associate.
15. As at 31 December 2023, Woodside Energy (North West Shelf) Pty Ltd and Woodside
Petroleum Holdings Pty Ltd each held 16.67% of the shares in International Gas Transportation
Company Limited. This investment has been accounted for as an investment in associate.
16. As at 31 December 2023, Woodside Energy Hawaii Inc held 14.96% of the shares in Iwilei
District Participating Parties LLC which is accounted for as an investment in associate.
17. As at 31 December 2023, Woodside Energy (Deepwater) Inc held 25% of the shares in Caesar
Oil Pipeline Company LLC, 22% of the shares in Cleopatra Gas Gathering Company LLC and
10% of the shares in Marine Well Containment Company LLC. These are accounted for as
investments in associates.
18. Woodside Energy (USA New Energy Holdings) LLC and Woodside Energy (H2 Oklahoma) LLC
were incorporated on 1 August 2023.
19. All subsidiaries are tax residents in their place of incorporation.
Classification
Subsidiaries are all the entities over which the Group has the
power over the investee such that the Group is able to direct
the relevant activities, has exposure, or rights, to variable returns
from its involvement with the investee and has the ability to
use its power over the investee to affect the amount of the
investor’s returns.
161
WOODSIDE ENERGY GROUP LTD
Notes to the financial statements E. Other items
for the year ended 31 December 2023
(c) Deed of Cross Guarantee and Closed Group
For the year ended 31 December 2022, Woodside Energy Group
Ltd and Woodside Energy Ltd were parties to a Deed of Cross
Guarantee and represented a Closed Group. In November 2023,
this Deed of Cross Guarantee was revoked (with the revocation
to take effect in May 2024) and replaced by a new Deed of Cross
Guarantee entered into by the following entities under which
each company guarantees the debts of the other:
• Woodside Energy Group Ltd
• Woodside Energy Ltd
• Woodside Energy Global Holdings Pty Ltd
• Woodside Burrup Pty Ltd
• Woodside Energy Julimar Pty Ltd
• Woodside Energy Scarborough Pty Ltd
• Woodside Energy Holdings Pty Ltd
• Woodside Energy Global Pty Ltd
• Woodside Energy (Australia) Pty Ltd
• Woodside Energy (Bass Strait) Pty Ltd
• Woodside Energy (North West Shelf) Pty Ltd
These entities represent a Closed Group for the purposes of the
Instrument for the year ended 31 December 2023.
For the year ended 31 December 2023, the above entities with
the exception of Woodside Energy Group Ltd, Woodside Energy
Ltd and Woodside Energy Global Holdings Pty Ltd, have relied
on the relief from the Corporations Act 2001 requirements for the
preparation, audit and publication of accounts, pursuant to ASIC
Corporations (Wholly-owned Companies) Instrument 2016/785
and the Deed of Cross Guarantee.
The consolidated income statement and consolidated statement
of financial position of the members of the Closed Group for the
year ended 31 December 2023 are set out below:
E.8 SUBSIDIARIES (CONT.)
(b) Subsidiaries with material non-controlling
interests
The Group has two Australian subsidiaries with material
non-controlling interests (NCI).
Name of entity
Burrup Facilities Company Pty Ltd
Burrup Train 1 Pty Ltd
Principal place
of business
Australia
Australia
% held
by NCI
10%
10%
The NCI in both subsidiaries is 10% held by the same parties
(refer to Note E.8(a) footnote 5 for details).
The summarised financial information (including consolidation
adjustments but before intercompany eliminations) of
subsidiaries with material NCI is as follows:
Burrup Facilities Company Pty Ltd
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Accumulated balance of NCI
Revenue
Profit
Profit allocated to NCI
Dividends paid to NCI
Operating
Investing
Financing
2023
US$m
2022
US$m
2021
US$m
513
5,020
(58)
(568)
4,907
491
839
400
40
(51)
570
(58)
(512)
567
5,047
(68)
(528)
518
5,038
(71)
(528)
5,018
4,957
502
889
489
49
(43)
601
(45)
(556)
496
858
328
33
(40)
633
(111)
(522)
Net increase/(decrease) in cash and cash
equivalents
-
-
-
Burrup Train 1 Pty Ltd
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Accumulated balance of NCI
Revenue
Profit
Profit allocated to NCI
Dividends paid to NCI
Operating
Investing
Financing
453
2,806
(121)
(341)
429
2,900
(119)
(325)
435
2,915
(110)
(345)
2,797
2,885
2,895
280
1,393
222
22
(31)
321
(80)
(241)
289
1,471
282
28
(29)
391
(55)
(336)
290
1,421
200
20
(27)
393
(4)
(389)
Net increase/(decrease) in cash and cash
equivalents
-
-
-
162
ANNUAL REPORT 2023 Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.8 SUBSIDIARIES (CONT.)
(c) Deed of Cross Guarantee and Closed Group
(cont.)
Closed Group Consolidated Income Statement
and Statement of Retained Earnings
Profit before tax
Tax expense
Profit after tax
Retained earnings at the beginning of the financial year
Transfer of retained earnings to distributable profits reserve
Retained earnings at the end of the financial year
Closed Group Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
Receivables
Inventories
Other financial assets
Assets held for sale
Tax receivable
Other assets
Total current assets
Non-current assets
Receivables
Other financial assets
Exploration and evaluation assets
Oil and gas properties
Deferred tax assets
Lease assets
Goodwill
Other assets
Total non-current assets
Total assets
Current liabilities
Payables
Other financial liabilities
Liabilities directly associated with assets held for sale
Provisions
Tax payable
Lease liabilities
Other liabilities
Total current liabilities
Non-current liabilities
Payables
Deferred tax liabilities
Other financial liabilities
Provisions
Lease liabilities
Other liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued and fully paid shares
Reserved shares
Other reserves
Retained earnings
Total equity
2023
US$m
3,915
(1,390)
2,525
2,177
(4,830)
(128)
375
3,325
308
186
826
57
12
5,089
283
30,122
63
18,382
1,037
488
3,185
161
53,721
58,810
2,687
94
94
1,237
893
108
169
5,282
12,977
395
42
4,454
559
648
19,075
24,357
34,453
29,001
(49)
5,629
(128)
34,453
For the year ended 31 December 2023, results for Woodside
Energy Group Ltd and Woodside Energy Ltd (which comprised
the Closed Group under the previous Deed of Cross Guarantee
that is currently in the process of being revoked) have been
included within the new Closed Group as they are parties to the
new Deed of Cross Guarantee. The consolidated income statement
and consolidated statement of financial position of the members
of the Closed Group under the previous Deed of Cross Guarantee
for the year ended 31 December 2022 are set out below:
Closed Group Consolidated Income Statement
and Statement of Retained Earnings
Profit before tax
Tax expense
Profit after tax
Retained earnings at the beginning of the financial year
Other comprehensive income
Transfer of retained earnings to distributable profits reserve
Dividends
Retained earnings at the end of the financial year
Closed Group Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
Receivables
Inventories
Other financial assets
Other assets
Total current assets
Non-current assets
Receivables
Other financial assets
Exploration and evaluation assets
Oil and gas properties
Deferred tax assets
Lease assets
Other assets
Total non-current assets
Total assets
Current liabilities
Payables
Other financial liabilities
Provisions
Tax payable
Lease liabilities
Other liabilities
Total current liabilities
Non-current liabilities
Payables
Other financial liabilities
Provisions
Lease liabilities
Other liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued and fully paid shares
Reserved shares
Other reserves
Retained earnings
Total equity
2022
US$m
6,586
(314)
6,272
1,660
1
(5,553)
(1,018)
1,362
116
675
56
653
21
1,521
2,171
57,844
28
2,424
421
315
67
63,270
64,791
483
675
328
1,556
36
38
3,116
25,524
68
1,121
325
11
27,049
30,165
34,626
29,001
(38)
4,301
1,362
34,626
163
WOODSIDE ENERGY GROUP LTD
Notes to the financial statements E. Other items
for the year ended 31 December 2023
E.9 OTHER ACCOUNTING POLICIES
(a) Summary of other material accounting policies
Australia tax consolidation
The parent and its wholly owned Australian controlled entities
have elected to enter a tax consolidation, with Woodside Energy
Group Ltd as the head entity of the tax consolidated group.
The members of the Australian tax consolidated group are
identified in Note E.8(a).
The tax expense/benefit, deferred tax liabilities and deferred tax
assets arising from temporary differences of the members of the
tax consolidated group are recognised in the separate financial
statements of the members of the tax consolidated group, using
the stand-alone approach.
Entities within the tax consolidated group have entered into a
tax funding arrangement and a tax sharing agreement with the
head entity. Under the tax funding agreement, Woodside Energy
Group Ltd and each of the entities in the tax consolidated group
have agreed to pay or receive a tax equivalent payment to or
from the head entity, based on the current tax liability or current
tax asset of the entity.
The tax sharing agreement entered into between members
of the tax consolidated group provides for the determination
of the allocation of income tax liabilities between the entities,
should the head entity default on its tax payment obligations.
No amounts have been recognised in the financial statements in
respect of this agreement as payment of any amounts under the
tax sharing agreement is considered remote.
US tax consolidation
Woodside Energy USA Operations Inc and its wholly owned USA
controlled entities have elected to file a consolidated tax return,
with Woodside Energy USA Operations Inc as the parent of the
tax consolidated group.
The tax expense/benefit, deferred tax liabilities and deferred
tax assets arising from temporary differences of the members
of the tax consolidated group are computed on a separate
company basis.
Entities within the tax consolidated group have entered into a
tax sharing agreement. Under the tax sharing agreement, the
tax liability for the consolidated group or the utilisation of tax
attributes are settled periodically between the members of
the group. No amounts have been recognised in the financial
statements in respect of this agreement as payment of any
amounts under the tax sharing agreement is considered remote.
(b) New standards and interpretations
New and amended accounting standards adopted
A number of amended standards became applicable for
the current reporting period. The Group did not make any
significant changes to its accounting policies and did not make
retrospective adjustments as a result of adopting these amended
standards. These amendments did not materially impact the
accounting policies or amounts disclosed in the year end
financial statements of the Group.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting
standards and interpretations have been published that are
not mandatory for the 31 December 2023 reporting period and
have not been early adopted by the Group. These standards,
amendments or interpretations are not expected to have a
material impact to the Group in the current or future reporting
periods and on foreseeable future transactions with the
exception of the amendments to AASB 112/IAS 12 Income Taxes
where the impact is under assessment.
Pillar Two reforms
In December 2021, the Organisation for Economic Co-operation
and Development (OECD) published its Pillar Two model rules.
The Pillar Two model rules:
• aim to ensure that large multinational groups pay a minimum
amount of tax on income arising in each jurisdiction in which
they operate; and
• would achieve a minimum effective tax rate in each jurisdiction
of 15% from the reporting period commencing
1 January 2024.
For the year ended 31 December 2023, the Group paid
$2,916 million of income tax and PRRT and reported a global
effective income tax rate of 27.5%.
The Group’s impact assessment will depend on the extent to
which the Pillar Two legislation has been enacted in the various
jurisdictions the Group operates in and when it comes into effect.
The Group will continue to monitor and assess the expected
impact of the Pillar Two reform.
164
ANNUAL REPORT 2023
Directors’ declaration
In accordance with a resolution of directors of Woodside Energy Group Ltd, we state that:
1. In the opinion of the directors:
(a) the financial statements and notes thereto, and the disclosures included in the audited 2023 Remuneration Report, comply with
Australian Accounting Standards and the Corporations Act 2001;
(b) the financial statements and notes thereto give a true and fair view of the financial position of the Group as at 31 December 2023
and of the performance of the Group for the financial year ended 31 December 2023;
(c) the financial statements and notes thereto also comply with International Financial Reporting Standards as disclosed in the
‘About these statements’ section within the notes to the 2023 Financial Statements;
(d) there are reasonable grounds to believe that Woodside Energy Group Ltd will be able to pay its debts as and when they become
due and payable; and
(e) there are reasonable grounds to believe that the members of the Closed Group identified in Note E.8 will be able to meet any
obligations or liabilities which they are or may become subject to, by virtue of the Deed of Cross Guarantee.
2. This declaration has been made after receiving the declarations required to be made to the directors in accordance with section
295A of the Corporations Act 2001 for the year ended 31 December 2023.
For the purposes of the UK Disclosure Guidance and Transparency Rules, the directors confirm that to the best of their knowledge:
(a) the financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets,
liabilities, financial position and profit or loss of Woodside Energy Group Ltd (and the undertakings included in the consolidation
as a whole); and
(b) the management report includes a fair review of the development and performance of the business and the position of
Woodside Energy Group Ltd (and the undertakings included in the consolidation taken as a whole), together with a description
of the principal risks and uncertainties they face.
For and on behalf of the Board
R J Goyder, AO
Chair of the Board
Perth, Western Australia
27 February 2024
M E O’Neill
Chief Executive Officer and Managing Director
Sydney, New South Wales
27 February 2024
165
WOODSIDE ENERGY GROUP LTD Independent auditor's report
Independent auditor’s report
To the members of Woodside Energy Group Ltd
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Woodside Energy Group Ltd (the Company) and its controlled
entities (together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 31 December 2023 and of its
financial performance for the year then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
●
●
●
●
●
●
●
the consolidated statement of financial position as at 31 December 2023
the consolidated income statement for the year then ended
the consolidated statement of comprehensive income for the year then ended
the consolidated statement of cash flows for the year then ended
the consolidated statement of changes in equity for the year then ended
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards and International Standards
on Auditing. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) and the International Code of Ethics for Professional Accountants (including
International Independence Standards) issued by the International Ethics Standards Board for
Accountants (IESBA Code) that are relevant to our audit of the financial report in Australia. We have
also fulfilled our other ethical responsibilities in accordance with the Code and the IESBA Code.
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, 125 St Georges Terrace, PERTH WA 6000, GPO Box D198, PERTH WA 6840
T: +61 8 9238 3000, F: +61 8 9238 3999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
166
ANNUAL REPORT 2023
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Audit scope
Key audit matters
● Our audit focused on where the Group made
● Amongst other relevant topics, we
subjective judgements; for example,
significant accounting estimates involving
assumptions and inherently uncertain future
events.
● The Group has major business units in
Australia and the United States of America. In
establishing the overall approach to the
Group audit, we determined the type of work
that needed to be performed by us, as the
Group engagement team, and by component
auditors under our instruction.
communicated the following key audit matters
to the Audit & Risk Committee:
− Carrying value of cash generating units
(CGUs) with goodwill and oil and gas
properties – Shenzi and Wheatstone,
− Valuation of the Petroleum Resource
Rent Tax (PRRT) deferred tax assets
(DTAs) – Pluto.
● These are further described in the Key audit
matters section of our report.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
Key audit matter
How our audit addressed the key audit matter
Carrying value of cash generating units
(CGUs) with goodwill and oil and gas
properties – Shenzi and Wheatstone
As described in Note B.4 to the Group financial
report, the Group conducted its annual goodwill
impairment testing for CGUs with goodwill and
estimated the recoverable amount of CGUs with
an impairment indicator at 31 December 2023.
This resulted in the recognition of pre-tax
impairment charges of $1,383 million for the
Shenzi CGU and $466 million for the Wheatstone
CGU. The recoverable amounts for the Shenzi
and Wheatstone CGUs were estimated using the
fair value less costs of disposal approach utilising
Our procedures included, among others:
(i)
testing the effectiveness of controls relating
to the Group’s assessment of the significant
estimates and assumptions included within
the impairment models,
(ii) assessing the appropriateness of significant
estimates and assumptions applied by the
Group,
167
WOODSIDE ENERGY GROUP LTD
How our audit addressed the key audit matter
(iii) evaluating the work of the Group’s experts
involved in the determination of significant
estimates and assumptions,
(iv) evaluating the disclosures made regarding
the impairment of goodwill and oil and gas
properties in the Group financial report
against the requirements of Australian
Accounting Standards, and
(v) professionals with specialised skill and
knowledge were used to assist in evaluating
the appropriateness of the Group’s
recoverable amount estimates.
Key audit matter
cash flow models. The Group’s cash flow models
included significant judgements and assumptions
relating to oil and gas reserves and resources,
estimates of future production and commodity
prices, forecast expenditures incorporating
expected inflation and foreign exchange rates,
discount rate assumptions, and estimates of
carbon costs.
The principal considerations for our determination
that performing procedures relating to the
assessment of the carrying value of the Shenzi
and Wheatstone CGUs is a key audit matter are:
there is a significant level of judgement
(i)
applied by the Group, including the use of
the Group’s experts, in the determination of
the significant estimates and assumptions
included in the impairment models,
(ii) this in turn led to a high degree of auditor
judgement, effort and subjectivity in
performing procedures and evaluating the
Group’s significant assumptions and
estimates, and
(iii) the nature and extent of audit effort required
to perform the procedures and evaluate the
Group’s significant assumptions and
estimates required the use of professionals
with specialised skill and knowledge.
Valuation of the Petroleum Resource Rent Tax
(PRRT) deferred tax assets (DTAs) – Pluto
As described in Note A.5 to the Group financial
report, the Group has recognised deferred tax
assets of $1,717 million as of 31 December 2023,
of which $1,101 million relates to PRRT, including
the Pluto PRRT DTA which reduced by $637
million during the year on the basis of future
taxable profits not being available to utilise the
deductible expenditure. PRRT is considered, for
accounting purposes, to be an income tax. PRRT
DTAs are based on estimates of future taxable
profits available to recover incurred general and
exploration expenditure.
Our procedures included, among others:
(i)
testing the effectiveness of controls relating
to the Group’s assessment of the significant
judgements and assumptions included
within the PRRT modelling and
recoverability assessment,
(ii) assessing the appropriateness of significant
judgements and assumptions applied by the
Group to estimate the recoverable amount
of DTAs,
(iii) evaluating the work of the Group’s experts
involved in the determination of significant
judgements and estimates,
168
ANNUAL REPORT 2023
How our audit addressed the key audit matter
(iv) evaluating the disclosures made regarding
the PRRT DTAs recognised in the Group
financial report against the requirements of
Australian Accounting Standards, and
(v) professionals with specialised skill and
knowledge were used to assist in evaluating
the appropriateness of the Group’s
assessment of recoverability of the PRRT
DTAs including certain significant
assumptions.
Key audit matter
The Group’s estimation of the PRRT DTAs
involves significant judgements and assumptions
including assessing the forecast future taxable
profits (which are risk-adjusted where appropriate
by a market premium risk rate to reflect
uncertainty inherent in long-term forecasts)
generated from the Australian assets, which have
regard to the future commodity price
assumptions, and forecast assessable revenues,
exploration and general expenditure.
The principal considerations for our determination
that performing procedures relating to valuation of
the Pluto PRRT DTAs is a key audit matter are:
there is a significant level of judgement
(i)
applied by the Group in determining the
recoverability of the PRRT DTAs, including
having regard to the judgements and
assumptions mentioned above, and
considering the specialised knowledge and
input of the Group’s experts informing
significant estimates and assumptions,
(ii) this in turn led to a high degree of auditor
judgement, effort and subjectivity in
performing procedures and evaluating the
Group’s methodology, significant
assumptions and estimates, and
(iii) the nature and extent of audit effort required
to perform the procedures and evaluate the
Group’s methodology, significant
assumptions and estimates, required the use
of professionals with specialised skill and
knowledge.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the year ended 31 December 2023, but does not include
the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
169
WOODSIDE ENERGY GROUP LTD
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards and International Standards
on Auditing will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 31
December 2023.
In our opinion, the remuneration report of Woodside Energy Group Ltd for the year ended 31
December 2023 complies with section 300A of the Corporations Act 2001.
170
ANNUAL REPORT 2023
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
N M Henry
Partner
Perth 27 February 2024
A G B Hodge
Partner
Perth 27 February 2024
171
WOODSIDE ENERGY GROUP LTD
6
Additional Information
6.1
ADDITIONAL INFORMATION
Supplementary information
on oil and gas - unaudited
In accordance with the requirements of the Financial Accounting Standards Board (FASB) Accounting Standard Codification
‘Extractive Activities-Oil and Gas’ (Topic 932) and SEC requirements set out in Subpart 1200 of Regulation S-K, the Group is
presenting certain disclosures about its oil and gas activities. These disclosures are presented below as supplementary oil and
gas information, in addition to information relating to the reserves and production disclosed in section 3.10 of this report.
The information set out in this section is referred to as unaudited as it is not included in the scope of the audit opinion of the
independent auditor on Woodside’s Financial Statements.
RESERVES
Proved oil and gas reserves information is included in section 3.10 - Reserves and Resources Statement.
CAPITALISED COSTS RELATING TO OIL AND GAS PRODUCTION ACTIVITIES
The following table shows the aggregate capitalised costs related to oil and gas exploration and production activities and the related
accumulated depreciation, depletion, amortisation and valuation provisions.
2023
Unproved properties
Proved properties1
Total costs
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
Net capitalised costs
2022
Unproved properties
Proved properties1
Total costs
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
Net capitalised costs
2021
Unproved properties
Proved properties1
Total costs
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
Net capitalised costs
1 Proved properties include the fair value ascribed to future phases of certain projects acquired through business combinations.
Australia
US$m
International
US$m
Total
US$m
1,193
52,563
53,756
(27,548)
26,208
1,154
49,190
50,344
(24,353)
25,991
1,172
38,352
39,524
(22,738)
16,786
1,109
18,039
19,148
2,302
70,602
72,904
(3,994)
(31,542)
15,154
41,362
1,834
15,546
17,380
(2,491)
2,988
64,736
67,724
(26,844)
14,889
40,880
1,703
2,517
4,220
(1,958)
2,262
2,875
40,869
43,744
(24,696)
19,048
172172
6.1 ANNUAL REPORT 2023ANNUAL REPORT 2023 COSTS INCURRED RELATING TO OIL AND GAS PROPERTY ACQUISITION, EXPLORATION
AND DEVELOPMENT ACTIVITIES
The following table shows the costs incurred related to oil and gas property acquisition, exploration and development activities
(expensed and capitalised). Amounts shown include interest capitalised.
2023
Acquisitions of proved property
Acquisitions of unproved property
Exploration1
Development2
Total costs3
2022
Acquisitions of proved property
Acquisitions of unproved property
Exploration1
Development2
Total costs3
2021
Acquisitions of proved property
Acquisitions of unproved property
Exploration1
Development2
Total costs3
Australia
US$m
International
US$m
-
-
103
3,315
3,418
8,488
-
39
2,365
10,892
-
-
459
1,141
1,600
-
-
420
2,124
2,544
11,098
180
541
1,740
13,559
205
7
84
935
1,231
Total
US$m
-
-
523
5,439
5,962
19,586
180
580
4,105
24,451
205
7
543
2,076
2,831
1 Represents gross exploration expenditure, including capitalised exploration expenditure, geological and geophysical expenditure and development evaluation costs charged to income as incurred.
2 Total development costs includes $5,128 million of expenditure and $311 million of capitalised interest in 2023.
3 Total costs include $5,683 million (2022: $23,991 million, 2021: $2,777 million) capitalised during the year.
173
WOODSIDE ENERGY GROUP LTD RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCTION ACTIVITIES
Australia
US$m
International
US$m
2023
Oil and gas revenue
Production costs
Exploration expenses
Depreciation, depletion, amortisation and valuation provision1
Production taxes2
Accretion expense3
Income taxes
Royalty-related taxes4
Results of oil and gas producing activities5
2022
Oil and gas revenue
Production costs
Exploration expenses
Depreciation, depletion, amortisation and valuation provision1
Production taxes2
Accretion expense3
Income taxes
Royalty-related taxes4
Results of oil and gas producing activities5
2021
Oil and gas revenue
Production costs
Exploration expenses
Depreciation, depletion, amortisation and valuation provision1
Production taxes2
Accretion expense3
Income taxes
Royalty-related taxes4
Results of oil and gas producing activities5
9,699
(1,396)
(55)
(3,288)
(363)
(179)
(1,449)
(367)
2,602
12,453
(1,277)
(20)
(1,476)
(429)
(85)
(2,707)
(501)
5,958
5,624
(504)
(6)
(501)
(218)
(23)
(1,312)
-
3,060
2,564
(402)
(299)
(2,555)
(29)
(58)
-
-
(779)
1,575
(353)
(440)
(460)
(16)
(23)
(151)
-
132
-
-
(48)
(268)
-
(1)
-
-
(317)
Total
US$m
12,263
(1,798)
(354)
(5,843)
(392)
(237)
(1,449)
(367)
1,823
14,028
(1,630)
(460)
(1,936)
(445)
(108)
(2,858)
(501)
6,090
5,624
(504)
(54)
(769)
(218)
(24)
(1,312)
-
2,743
Includes valuation provision recognition of $1,917 million (2022: reversal of $900 million; 2021: reversal of $1,048 million).
Includes royalties and excise duty.
1
2
3 Represents the unwinding of the discount on the closure and rehabilitation provision.
4
5 This table reflects the results of our oil and gas activities as reported in note A.1 ‘Segment revenue and expenses’ in section 5 – Financial Statements. Other income, other expenses, general and
Includes petroleum resource rent tax and petroleum revenue tax where applicable. Excludes deferred tax expense/(benefit) of $531 million (2022: $(814) million; 2021: $297 million).
administrative costs and amounts relating to the marketing and corporate/other segments within the note are excluded.
174
ANNUAL REPORT 2023 STANDARDISED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL
AND GAS RESERVES (STANDARDISED MEASURE)
The following tables set out the standardised measure of discounted future net cash flows, and changes therein, related to the Group’s
estimated proved reserves as presented in Reserves, and should be read in conjunction with that disclosure.
The analysis is prepared in compliance with FASB Oil and Gas Disclosure requirements, applying certain prescribed assumptions under
Topic 932 including the use of unweighted average first-day-of-the-month market prices for the previous 12-months, year-end cost
factors, currently enacted tax rates and an annual discount factor of 10% to year-end quantities of net proved reserves.
Certain key assumptions prescribed under Topic 932 are arbitrary in nature and may not prove to be accurate. The reserve estimates
on which the Standard measure is based are subject to revision as further technical information becomes available or economic
conditions change.
Discounted future net cash flows like those shown below are not intended to represent estimates of fair value. An estimate of fair value
would also take into account, among other things, the expected recovery of reserves in excess of proved reserves, anticipated future
changes in commodity prices, exchange rates, development and production costs as well as alternative discount factors representing
the time value of money and adjustments for risk inherent in producing oil and gas.
Woodside standardised measure year ended 31 December
2023
Future cash inflows
Future production costs
Future development costs1
Future income taxes
Future net cash flows
Discount at 10% per annum
Standardised measure
2022
Future cash inflows
Future production costs
Future development costs1
Future income taxes
Future net cash flows
Discount at 10% per annum
Standardised measure
2021
Future cash inflows
Future production costs
Future development costs1
Future income taxes
Future net cash flows
Discount at 10% per annum
Standardised measure
1 Future development costs include decommissioning.
Australia
US$m
International
US$m
114,168
(31,945)
(10,758)
(27,527)
43,938
(20,024)
23,914
197,194
(31,157)
(12,259)
(62,182)
91,596
(48,924)
42,672
76,202
(22,193)
(8,296)
(16,266)
29,447
(14,793)
14,654
41,307
(11,344)
(8,216)
(5,375)
16,372
(8,133)
8,239
38,256
(9,698)
(4,487)
(4,823)
19,248
(7,777)
11,471
5,695
(899)
(2,481)
(90)
2,225
(1,142)
1,083
Total
US$m
155,475
(43,289)
(18,974)
(32,902)
60,310
(28,157)
32,153
235,450
(40,855)
(16,746)
(67,005)
110,844
(56,701)
54,143
81,897
(23,092)
(10,777)
(16,356)
31,672
(15,935)
15,737
175
WOODSIDE ENERGY GROUP LTD Changes in the standardised measure are presented in the following table:
Changes in the standardised measure
Standardised measure at the beginning of the year
54,143
15,737
5,084
2023
US$m
2022
US$m
2021
US$m
Revisions:
Prices, net of production costs
Changes in future development costs
Revisions of reserves quantity estimates
Accretion of discount
Changes in production timing and other
Sales of oil and gas, net of production costs
Acquisitions of reserves-in-place
Sales of reserves-in-place
Previously estimated development costs incurred
Extensions, discoveries, and improved recoveries, net of future costs
Changes in future income taxes
Standardised measure at the end of the year
Changes in reserves quantities are shown in section 3.10 - Reserves and Resources Statement.
(41,132)
(2,288)
3,156
8,039
(707)
(10,500)
-
-
5,276
1,174
14,992
32,153
22,558
(873)
5,898
4,051
2,371
(10,202)
28,309
-
3,339
-
(17,045)
54,143
7,741
20
2,109
430
3,485
(5,698)
-
-
565
8,346
(6,345)
15,737
ACCOUNTING FOR SUSPENDED EXPLORATORY WELL COSTS
Expenditure on exploration and evaluation is accounted for in accordance with the area of interest method. Areas of interest are based
on a geographical area for which the rights of tenure are current. All exploration and evaluation expenditure, including general permit
activity, geological and geophysical costs and new venture activity costs, is expensed as incurred except for the following:
• where the expenditure relates to an exploration discovery for which the assessment of the existence or otherwise of economically
recoverable hydrocarbons is not yet complete; or
• where the expenditure is expected to be recouped through successful exploitation of the area of interest, or alternatively, by its sale.
The costs of acquiring interests in new exploration and evaluation licences are capitalised. The costs of drilling exploration wells are
initially capitalised pending the results of the well. Costs are expensed where the well does not result in the successful discovery of
economically recoverable hydrocarbons and the recognition of an area of interest. Subsequent to the recognition of an area of interest,
all further evaluation costs relating to that area of interest are capitalised.
Upon approval for the commercial development of an area of interest, accumulated expenditure for the area of interest is transferred
to oil and gas properties.
In the consolidated statement of cash flows, those cash flows associated with capitalised exploration and evaluation expenditure,
including unsuccessful wells, are classified as cash flows used in investing activities.
The following table provides the changes to the capitalised exploratory well costs that were pending the determination of proved
reserves for the three years ended 31 December 2023, 31 December 2022 and 31 December 2021.
Movement in capitalised exploratory well costs1
At the beginning of the year
Acquisitions to the capitalised exploratory well costs
pending the determination of proved reserves
Additions to the capitalised exploratory well costs
pending the determination of proved reserves
Capitalised exploratory well costs expensed2
Capitalised exploratory well costs reclassified to wells, equipment
and facilities based on the determination of proved reserves
Sale of suspended wells
At the end of the year
1 Suspended exploratory well costs represent capitalised exploration, evaluation and permit acquisition costs.
2
Includes amortisation of licence acquisition costs.
176
2023
US$m
807
-
169
(4)
(304)
-
668
2022
US$m
614
180
111
(62)
(36)
-
807
2021
US$m
2,045
-
501
(268)
(1,664)
-
614
ANNUAL REPORT 2023 The following table provides an ageing of capitalised exploratory well costs, based on the date the drilling was completed, and the
number of projects for which exploratory well costs has been capitalised for a period greater than one year since the completion of
drilling.
Exploration activity typically involves drilling multiple wells, over a number of years, to fully evaluate and appraise a project. The term
‘project’ as used in this disclosure refers primarily to individual wells and associated exploratory activities.
Ageing of capitalised exploratory well costs
Exploratory well costs capitalised for a period of one year or less
Exploratory well costs capitalised for a period greater than one year
At the end of the year
Number of projects that have been capitalised for a period
greater than one year
2023
US$m
71
597
668
2023
US$m
17
2022
US$m
-
124
683
807
2022
US$m
21
2021
US$m
-
19
595
614
2021
US$m
25
177
WOODSIDE ENERGY GROUP LTD 6.2
ADDITIONAL INFORMATION
Three-year financial analysis
THREE-YEAR PRICING OVERVIEW
Woodside’s results from operations are significantly influenced
by global energy market conditions. Over the last three years,
oil and gas prices have experienced significant volatility. In
2021, prices began recovering from the COVID-19 pandemic
as economic activity increased. In 2022 gas prices hit record
highs driven by years of underinvestment and the supply shock
caused by Russia’s invasion of Ukraine. In 2022 there was a
significant increase in the scale of Woodside’s production
portfolio, with the completion of the merger with BHP’s
petroleum business on 1 June 2022. In 2023, prices declined
below summer 2021 levels, however remained above historic
averages with the decline triggered by milder weather
conditions and higher stock levels across Europe. After three
years of volatility global energy markets have returned to a
degree of stability reflecting normalising levels of demand
and price, though uncertainty remains, particularly in light
of the ongoing conflict in Ukraine and geopolitical events in
the Middle East.
SEASONALITY
Woodside’s revenue is exposed to commodity price
fluctuations through the sale of hydrocarbons. Commodity
pricing can be affected by seasonal energy demand
movements in different markets.
Financial results
Operating revenue
Cost of sales
Gross profit
Other income
Other expenses
Impairment losses
Impairment reversals
Profit before tax and net finance costs
Net finance costs
Total tax expense
Profit after tax
Attributable to equity holders of the parent
Attributable to non-controlling interests
Profit for the period
2023
US$m
13,994
(7,519)
6,475
322
(1,573)
(1,917)
-
3,307
(34)
(1,551)
1,722
1,660
62
1,722
2022
US$m
16,817
(6,540)
10,277
735
(2,726)
-
900
9,186
(12)
(2,599)
6,575
6,498
77
6,575
2021
US$m
6,962
(3,845)
3,117
139
(811)
(10)
1,058
3,493
(203)
(1,254)
2,036
1,983
53
2,036
Woodside’s profit after tax attributable to equity holders of the
parent decreased to $1,660 million in 2023 from $6,498 million
in 2022 and $1,983 million in 2021.
Operating revenue of $13,994 million decreased by $2,823 million,
or -17%, from 2022. The decrease was driven by lower average
Brent, TTF and JKM price markers and planned turnaround
activities at Ngujima-Yin, North West Shelf and Pluto, designed
to support future asset reliability. This decrease was partly offset
by an additional five months of production from BHP’s petroleum
business acquired on 1 June 2022. Operating revenue increased
by $9,855 million, or 142% from 2021 to 2022, driven primarily by
the merger with BHP’s petroleum business which completed on
1 June 2022, the Pluto-KGP interconnector, strong operational
performance and higher realised prices across all products.
Cost of sales increased by $979 million, or 15%, to
$7,519 million compared to 2022. The increase was driven by
planned turnaround activity at Pluto, Ngujima-Yin and North
West Shelf, which is intended to form a solid base for increased
future asset reliability, combined with additional five months
activity from the assets acquired as part of the merger with
178178
BHP’s petroleum business. Cost of sales increased by
$2,695 million from 2021 to 2022 primarily due to an additional
seven months of volumes as a result of the merger with BHP
Petroleum and the Pluto-KGP Interconnector, as well as higher
costs related to Corpus Christi and Pluto cargoes.
Other income decreased by $413 million, or 56%, to $322 million
from 2022, primarily due to profit on the sell-down of Pluto Train
2 in 2022, which was also the primary reason for the increase of
$596 million, or 429% from 2021 to 2022.
Other expenses decreased by $1,153 million, or 42%, to
$1,573 million from 2022, primarily due to lower losses on
hedging activities and the incurrence of merger transaction
costs in 2022. Other expenses increased $1,915 million, or 236%
from 2021 to 2022, driven by higher losses on hedging activities
and repurchase agreements and transaction and integration
costs relating to the merger with BHP Petroleum. The increased
activity that comes with a larger, more diverse portfolio of assets
also led to an increase in expenses associated with exploration
activity and restoration movements from 2021 to 2022.
6.1 ANNUAL REPORT 2023ANNUAL REPORT 2023 In 2023, an impairment loss totalling $1,917 million was
recognised for the Shenzi, Wheatstone and Pyrenees assets,
compared to an impairment reversal of $900 million for the
Wheatstone asset in 2022. For more information on impairment
refer to Note B.4 Impairment of exploration and evaluation,
oil and gas properties and goodwill in section 5 - Financial
Statements.
Net finance costs increased by $22 million, or 183%, from 2022,
to $34 million. This was primarily due to higher restoration
accretion, driven by an additional five months activity from the
assets acquired as part of the merger with BHP’s petroleum
business, offset by higher interest rates on cash deposits. Net
finance costs decreased $191 million, or 94% from 2021 to 2022
as a result of higher interest income generated from higher
interest rates and cash balances and a reduction in finance costs
due to higher capitalised borrowing costs.
Total tax expense comprises income tax and petroleum resource
rent tax (PRRT). Income tax expense decreased in 2023 primarily
due to lower assessable income and the recognition of a DTA on
the Trion FID. PRRT expense increased from 2022 to 2023 due to
the partial de-recognition of the Pluto PRRT DTA. Both income
tax expense and PRRT expense increased from 2021 to 2022
before recognising additional PRRT deferred tax assets. Higher
realised prices in 2022 led to additional PRRT payments but also
supported the recognition of additional Pluto deferred tax assets
($1,362 million) which resulted in a 2022 net PRRT tax benefit.
PRRT expense therefore decreased from 2021 by $610 million due
to the Pluto deferred tax asset recognition and the impairment
reversal in 2021 not present in 2022.
Income tax decreased by $2,259 million, or 78%, to $653 million.
The decrease is primarily related to lower profits driven by lower
prices. Income tax expense increased $1,955 million, or 204%
from 2021 to 2022, primarily due to higher profits driven by
higher prices and additional production.
VOLUMES, REALISED PRICES AND OPERATING
REVENUES BY PRODUCT
The following describes movements in Woodside’s operating
revenues including a discussion of production volumes, sales
volumes and realised prices for the years ended 31 December
2023, 2022 and 2021.
Units
2023
2022
2021
Production volumes
LNG
Pipeline gas
Crude oil and condensate
NGLs
Total production volumes
Sales volumes
LNG
Pipeline gas
Crude oil and condensate
NGLs
MMboe
MMboe
MMboe
MMboe
MMboe
88.6
39.7
51.8
7.1
187.2
MMboe
104.5
MMboe
MMboe
MMboe
39.6
50.3
7.1
85.1
28.6
38.7
5.3
157.7
96.6
28.4
39.3
4.6
Total sales volumes
MMboe
201.5
168.9
70.8
2.5
17.3
0.5
91.1
91.2
2.5
17.2
0.7
111.6
Units
2023
2022
2021
Average realised prices
LNG
Pipeline gas
Crude oil and condensate
NGLs
$/boe
$/boe
$/boe
$/boe
Volume – weighted average
$/boe
78.2
34.7
79.0
39.5
68.6
116.9
47.8
95.8
44.4
98.4
58.8
17.0
76.4
82.4
60.7
Operating revenue
LNG
Pipeline gas
Crude oil and condensate
NGLs
Other revenue
Operating revenue
$m
$m
$m
$m
$m
$m
8,165
11,289
5,359
1,374
3,981
281
193
1,362
3,758
206
202
43
1,316
60
184
13,994
16,817
6,962
LNG
Revenue from the sale of LNG in 2023 decreased by
$3,124 million, or 28%, to $8,165 million for 2023 from 2022,
primarily due to gas prices which decreased in the second half of
2022 which continued in the first half of 2023 before stabilising
in the second half of 2023 (TTF price markers decreased by 62%
from 31 December 2022 to 31 December 2023). Lower prices
were partially offset by five additional months of increased
volumes following the merger with BHP Petroleum.
Revenue from the sale of LNG in 2022 increased by $5,930 million,
or 111%, to $11,289 million from 2021, primarily due to seven
months of increased volumes following the merger with BHP
Petroleum and the contribution of the Pluto-KGP interconnector
during a period of higher average realised prices.
Pipeline gas
Revenue from the sale of pipeline gas in 2023 increased by
$12 million, or 1%, to $1,374 million for 2023 from 2022, primarily
due to five months of increased pipeline gas volumes as a result of
the merger with BHP Petroleum offset by lower average prices.
Revenue from the sale of pipeline gas in 2022 increased by
$1,319 million, or 3,067%, to $1,362 million from 2021, primarily
due to seven months of increased pipeline gas volumes as a
result of the merger with BHP Petroleum and higher average
realised prices.
Crude oil and condensate
Revenue from the sale of crude oil and condensate in 2023
increased by $223 million, or 6%, to $3,981 million for 2023 from
2022, due to five months of increased crude oil and condensate
volumes as a result of the merger with BHP Petroleum, however
was offset by lower average realised prices.
Revenue from the sale of crude oil and condensate in 2022
increased by $2,442 million, or 186%, to $3,758 million for 2022
from 2021, due to increased crude oil and condensate volumes
primarily as a result of the merger with BHP Petroleum as well as
higher average realised prices.
179
WOODSIDE ENERGY GROUP LTD NGLs
Revenue from the sale of NGLs in 2023 increased by $75 million,
or 36%, to $281 million for 2023 from 2022, due to five months
of increased NGLs volumes as a result of the merger with BHP
Petroleum.
Operating revenue increased by $7,059 million in 2022 from 2021
underpinned by strong operational reliability, increased volumes
and higher realised prices across all products. The increase
in volumes was primarily as a result of the merger with BHP
Petroleum and the contribution of the Pluto-KGP interconnector.
Revenue from the sale of NGLs in 2022 increased by $146 million,
or 243%, to $206 million for 2022 from 2021, due to increased
NGLs volumes as a result of the merger with BHP Petroleum,
offset by a decreased average realised price.
Other Revenue
Other revenue comprises of processing and services tariff revenue
received from non-controlling interests and plant processing fees.
PERFORMANCE BY SEGMENT
Woodside has identified its operating segments based on the
internal reports that are reviewed and used by the Chief Executive
Officer in assessing performance and are based on the nature and
geographical location of the related activity. For more information
on our reportable segments, please refer to Note A.1 Segment
revenue and expenses in section 5 - Financial Statements.
The disclosed operating segments in 2023 remain consistent
to 2022. The 2021 amounts have been restated to be presented
on the same basis.
The performance of operating segments is evaluated based
on profit before tax and net finance costs and is measured in
accordance with Woodside’s accounting policies. Financing
requirements, including cash and debt balances, finance income,
finance costs and taxes for Woodside and its subsidiaries are
managed at a Group level.
Australia
Detailed below is the financial and operating information for our
Australian operations comparing 2023, 2022 and 2021.
Key metric
Units
2023
2022
2021
Operating revenue
Profit before tax and net
finance costs
$m
$m
9,802
12,299
5,240
4,487
9,415
3,711
Profit before tax and net finance costs in 2022 increased by
$5,704 million, or 154%, from 2021 primarily due to increased
operating revenue and the profit on the sell-down of Pluto Train
2 ($427 million) and an impairment reversal recognised on
Wheatstone ($900 million), partially offset by increased cost
of sales ($1,693 million) and increased restoration provisions
($154 million). The increased cost of sales was driven by
production and price-linked costs ($808 million) and increased
depreciation ($777 million) primarily relating to the assets
acquired as a result of the merger with BHP’s petroleum business.
Production
The Australia segment achieved an increase in production
volumes of 8.5 MMboe in 2023 compared to 2022, primarily due
to strong reliability of Pluto, additional interconnector cargoes
and five additional months of increased volumes following the
merger with BHP Petroleum.
Production volumes for the Australia segment increased by
45.5 MMboe in 2022 compared to 2021 primarily due to the
merger with BHP Petroleum and the Pluto-KGP Interconnector
along with strong operational performance.
International
Financial and operating information for our international
operations comparing 2023, 2022 and 2021 is detailed below.
Key metric
Operating revenue
(Loss) before tax and net
finance costs
Units
$m
$m
2023
2,549
2022
1,570
2021
-
(808)
125
(317)
Total production
MMboe
42.1
21.1
Average realised prices
Pipeline gas
Crude oil and condensate
$/boe
$/boe
$/boe
24.7
76.8
21.1
49.0
88.7
31.3
-
-
-
-
Total production
MMboe
145.1
136.6
91.1
Natural gas liquids
Average realised prices
LNG
Pipeline gas
Crude oil and condensate
Natural gas liquids
$/boe
$/boe
$/boe
$/boe
76.4
38.9
80.0
39.1
108.5
47.6
99.9
47.2
56.3
17.0
76.4
82.4
Financial results
Operating revenue of $9,802 million decreased by $2,497 million,
or 20%, from 2022 primarily due to lower realised prices and
planned turnaround activities, partially offset by five additional
months of increased volumes following the merger with BHP
Petroleum. Refer to the section entitled ‘Three-year pricing
overview’ for more information.
Profit before tax and net finance costs of $4,487 million
decreased by $4,928 million, or 52%, from 2022 primarily due
to lower prices and the pre-tax impairment of Wheatstone and
Pyrenees assets of $534 million.
180
Financial results
Operating revenue of $2,549 million in 2023 increased by
$979 million in 2023 from 2022 primarily due to five additional
months of increased volumes following the merger with BHP
Petroleum and the start of production at Argos in the Gulf of
Mexico. For more information refer to Note A.1 Segment revenue
and expenses in section 5 - Financial Statements.
Loss before tax and net finance costs of $808 million primarily
due to the pre-tax impairment of the Shenzi asset $1,383 million.
Operating revenue increased by $1,570 million in 2022 from 2021
primarily due to the introduction of sales volumes as a result
of the merger with BHP Petroleum. There was no operating
revenue reported in this segment for 2021.
ANNUAL REPORT 2023 Profit before tax and net finance costs increased by $442 million,
or 139%, in 2022 from 2021 primarily due to increased operating
revenue, offset by increased cost of sales ($837 million) and
other expenses ($297 million). Increased cost of sales is driven
primarily by production and price-linked costs ($352 million)
and depreciation ($439 million) as a result of the merger with
BHP Petroleum. The increased other expenses primarily relate to
increased exploration and evaluation expenditure ($250 million)
and increased restoration provision movements ($58 million),
offset by Myanmar write-offs in 2021 not present in 2022
($265 million).
Production
The International segment achieved an increase in production
volumes of 21 MMboe in 2023 compared to 2022, primarily
due to five additional months of increased volumes following
the merger with BHP Petroleum and the Argos asset starting
production in April 2023.
The International segment achieved production of 21.1 MMboe in
2022 due to the introduction of volume as a result of the merger
with BHP Petroleum. There was no production recorded within
this segment in 2021.
Marketing
Financial and operating information for our marketing operations
comparing 2023, 2022 and 2021 is detailed below.
Key metric
Units
2023
2022
Operating revenue
Profit before tax and net
finance costs
Average realised prices
$m
$m
1,643
2,948
375
848
2021
1,722
354
LNG
Liquids
$/boe
$/boe
76.2
78.9
165.6
165.6
66.6
66.6
Corporate/Other Items
Financial information for our Corporate/Other Items comparing
2023, 2022 and 2021 is detailed below.
Key metric
Units
2023
2022
2021
Loss before tax and net
finance costs
$m
(747)
(1,202)
(255)
Loss before tax and net finance costs of $747 million decreased
by $455 million, or 38%, from 2022 primarily due to the absence
of merger cost in 2023.
Loss before tax and net finance costs increased by $947 million
in 2022 from 2021 due to an increase in other expenses
($966 million) driven by increased general, administrative and
other costs primarily as a result of transaction and other costs
associated with the merger with BHP Petroleum ($595 million)
and increased losses on hedging activities ($422 million).
Capital and exploration expenditure
Woodside’s capital expenditures vary from year to year
depending on the projects that it is undertaking, their stage
of development and Woodside’s participating share in these
projects. Woodside’s business does not generally require
significant sustaining capital in order to maintain production.
Woodside’s exploration expenditures vary from year to year
depending on its strategic priorities and the exploration projects
which it undertakes.
For more information, refer to notes B.1 Segment production and
growth assets, B.2 Exploration and evaluation and B.3 Oil and
gas properties in section 5 - Financial Statements.
Capital and exploration expenditure geographical
split1
Financial results
Operating revenue of $1,643 million, decreased by
$1,305 million, or 44%, from 2022 primarily due to lower average
realised price and fewer third-party trades.
Australia2
International3
2023
$m
3,515
2,588
6,103
2022
$m
2,440
2,093
4,533
2021
$m
1,607
1,121
2,728
Profit before tax and net finance costs of $375 million, decreased
by $473 million, or 56%, from 2022 primarily due to lower
average realised price.
Operating revenue increased by $1,226 million, or 71%, in 2022
from 2021 primarily due to higher trading revenue driven by higher
realised prices and optimisation of scheduling and shipping, offset
by fewer third-party trades as a result of tight market conditions.
Profit before tax and net finance costs increased by $494 million,
or 140%, in 2022 from 2021 primarily due to increased operating
revenue and movements in onerous contract provisions
($76 million), offset by higher shipping and trading costs
($299 million) and increased other expenses predominantly due
to attributable hedging losses and movement on repurchase
agreements ($503 million).
1
Includes capital additions on other corporate spend. The 2022 amounts have been
restated to be presented on the same basis. The 2021 capital expenditure information has
not been restated to include other corporate spend.
2 Capital and exploration expenditure incurred in Australia.
3 Capital and exploration expenditure incurred in all other locations excluding Australia.
Australian capital and exploration expenditure increased by
$1,075 million, or 44%, to $3,515 million from 2022 to 2023 and
$833 million from 2021 to 2022 primarily due to continued
investment into the Scarborough and Pluto Train 2 assets.
International capital and exploration expenditure increased by
$495 million, or 24%, to $2,588 million from 2022, primarily due
to continued investment into the Sangomar and Trion assets.
The increased expenditure of $972 million from 2021 to 2022 was
primarily due to continued investment into Sangomar and the
introduction of spending in the Gulf of Mexico as a result of the
merger with BHP Petroleum.
181
WOODSIDE ENERGY GROUP LTD Cash flow analysis
The following section describes movements in Woodside’s cash
flows for the years ending 31 December 2023, 2022 and 2021.
Net cash from operating
activities
Net cash used in investing
activities
Net cash used in financing
activities
2023
$m
6,145
2022
$m
8,811
2021
$m
3,792
(5,585)
(2,265)
(2,941)
(5,000)
(3,364)
(1,424)
Net increase/(decrease) in cash
(4,440)
3,182
(573)
Net cash from operating activities
Net cash from operating activities in 2023 decreased
$2,666 million, or 30%, to $6,145 million from 2022, primarily
due to lower EBITDA ($1,871 million) as a result of lower revenue
driven by lower realised price; higher income tax and PRRT paid
for record 2022 profits ($1,698 million); higher payments for
restoration ($184 million); offset in part by return of collateral
on Brent hedges vs payment in 2022 ($1,012 million); and higher
receipts from interest ($156 million) due to higher interest rates
from 2022 to 2023, despite reduction in deposits.
Net cash from operating activities in 2022 increased
$5,019 million, or 132%, to $8,811 million from 2022, primarily due
to increased cash generated from operations ($6,515 million)
offset in part by higher taxes paid due to the higher profits
($947 million), additional restoration payments made as a result
of increased decommissioning activities ($225 million) and
increased collateral payments made relating to the Brent hedges
($506 million).
Net cash used in investing activities
Net cash used in investing activities in 2023 increased
$3,320 million, or 147%, to $5,585 million from 2022, primarily
due to investments in major projects Scarborough, Sangomar
and Trion. These new investments are intended to generate
future operating cash flows and returns across the price cycle.
Net cash used in investing activities in 2022 decreased
$676 million, or 23%, to $2,265 million from 2021, primarily
due to cash receipts from the merger with BHP Petroleum
($1,082 million), payments made to acquire joint arrangements
in 2021 not present in 2022 ($212 million), higher proceeds from
the disposal of property, plant and equipment ($123 million)
and lower payments made to Petrosen under a loan facility
($158 million) offset in part by higher capital expenditure
predominantly related to Scarborough and Pluto Train 2,
excluding the effect of GIP additional contribution to Pluto Train 2.
Net cash used in financing activities
Net cash used in financing activities in 2023 increased
$1,636 million, or 49%, to $5,000 million from 2022, primarily
due to higher final prior year dividend paid to shareholders
($1,695 million) due to the higher 2022 NPAT; and higher
repayment of the principal portion of lease liabilities ($92 million)
predominantly due to Sangomar.
Net cash used in financing activities increased $1,940 million,
or 136%, to $3,364 million from 2021 to 2022, primarily due to
higher dividends paid to shareholders as a result of the increased
NPAT in the current year ($2,269 million), higher repayments
for the purchase of shares under the dividend reinvestment
plan ($144 million) and lower repayments of borrowings
predominantly due to the repayment of the 2021 US bond in
2021 ($501 million).
182
ANNUAL REPORT 2023 6.3
ADDITIONAL INFORMATION
Additional disclosures
DRILLING AND OTHER EXPLORATORY AND DEVELOPMENT ACTIVITIES
The number of crude oil and natural gas wells drilled and completed for each of the last three years was as follows:
Year ended 31 December 2023
Australia
International1
Total
Year ended 31 December 20222
Australia
International3
Total
Year ended 31 December 2021
Australia
International4
Total
Net exploratory wells
Net development wells
Productive
Dry
Total
Productive
Dry
Total
Total
-
0.2
0.2
-
0.9
0.9
-
-
-
0.7
0.4
1.1
-
2.0
2.0
-
1.5
1.5
0.7
0.7
1.3
-
2.9
2.9
-
1.5
1.5
0.7
6.3
7.0
0.9
1.2
2.1
0.6
-
0.6
-
0.4
0.4
-
-
-
-
-
-
0.7
6.7
7.4
0.9
1.2
2.1
0.6
-
0.6
1.4
7.4
8.8
0.9
4.0
4.9
0.6
1.5
2.1
1
2
3
4
International is primarily US and Trinidad and Tobago.
Includes BHP Petroleum from 1 June to 31 December 2022.
International is primarily US and Sangomar.
International is primarily Myanmar.
As set out in this section, the number of wells drilled refers to the number of wells completed at any time during the respective year,
regardless of when drilling was initiated. Completion refers to the installation of permanent equipment for production of oil or gas, or,
in the case of a dry well, to reporting to the appropriate authority that the well has been abandoned.
An exploratory well is a well drilled to find oil or gas in a new field or to find a new reservoir in a field previously found to be productive
of oil or gas in another reservoir. A development well is a well drilled within the limits of a known oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive.
A productive well is an exploratory, development or extension well that is not a dry well. Productive wells include wells in which
hydrocarbons were encountered and the drilling or completion of which, in the case of exploratory wells, has been suspended
pending further drilling or evaluation. A dry well (hole) is an exploratory, development, or extension well that proves to be incapable of
producing either oil or gas in sufficient quantities to justify completion as an oil or gas well.
During 2023, productive development wells included a sidetrack and dual lateral at Pyrenees in Australia, the Mad Dog Phase 2
development wells in the US Gulf of Mexico (GOM), an Atlantis infill well, the Shenzi North development wells and the conversion
of injection wells to production wells in Trinidad and Tobago. A successful appraisal well was drilled at Mad Dog Southwest. Dry
exploratory wells included the Spinel well in the GOM and Gemtree in Australia and a dry infill well was drilled at Atlantis.
PRESENT DEVELOPMENT ACTIVITIES CONTINUING AS OF 31 DECEMBER 2023
The number of wells in the process of drilling and/or completion as of 31 December 2023 was as follows:
Exploratory wells
Development wells
Total
Gross
Net
Gross
-
-
-
-
-
-
-
19
19
Net
-
12.1
12.1
Gross
-
19
19
Net
-
12.1
12.1
Australia
International1
Total
1
International is primarily US and Senegal.
Development wells in progress include Sangomar wells in Senegal, Mad Dog Phase 2 wells, Atlantis wells, and a Mad Dog A spar well
in the GOM. The Sangomar development is installing a waterflood recovery scheme as part of the ongoing project, and in the Gulf of
Mexico a waterflood recovery scheme is included in the Mad Dog Phase 2 project.
183183
6.2 WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD
OIL AND GAS PROPERTIES, WELLS, OPERATIONS AND ACREAGE
The following tables show the number of gross and net productive crude oil and natural gas wells and total gross and net developed
and undeveloped oil and natural gas acreage as at 31 December 2023. A gross well or acre is one in which a working interest is owned,
while a net well or acre exists when the sum of fractional working interests owned in gross wells or acres equals one.
Productive wells are producing wells and wells mechanically capable of production. Developed acreage is comprised of leased acres
that are within an area by or assignable to a productive well. Undeveloped acreage is comprised of leased acres on which wells have
not been drilled or completed to a point that would permit the production of economic quantities of oil and gas, regardless of whether
such acres contain proved reserves.
The number of productive crude oil and natural gas wells in which Woodside held an interest at 31 December 2023 was as follows:
Australia
International1
Total
1
International is primarily US and Trinidad and Tobago.
Crude oil wells
Natural gas wells
Total
Gross
223
87
310
Net
116.2
41.7
157.9
Gross
198
16
214
Net
93.0
7.7
100.7
Gross
421
103
524
Net
209.2
49.4
258.6
Of the productive crude oil and natural gas wells, 156 (net: 75) wells had multiple completions. The number of wells with multiple
completions refers to wells that have downhole equipment installed that allows zonal insolation or controlled commingling of
production as permitted and approved by the applicable regulator.
Developed and undeveloped acreage (including both leases and concessions) held at 31 December 2023 was as follows:
Thousands of acres
Australia
International1,2
Total
Developed acreage
Undeveloped acreage
Gross
2,441
141
2,582
Net
1,217
68
1,285
Gross
3,767
17,215
20,982
Net
3,192
7,077
10,269
1 Developed acreage in International primarily comprises US and Trinidad and Tobago.
2 Undeveloped acreage in International primarily comprises Barbados, Canada, Congo, Egypt, Ireland, Mexico, Myanmar, Senegal, Timor-Leste and Trinidad and Tobago.
Woodside has initiated exits from our Myanmar, Peru and Ireland positions, totalling approximately 8,426 thousand acres gross
(3,670 thousand acres net). Approximately 248 thousand acres gross (200 thousand acres net), 1,333 thousand acres gross
(615 thousand acres net) and 784 thousand acres gross (452 thousand acres net) of undeveloped acreage will expire in the years
ending 31 December 2024, 2025 and 2026 respectively if Woodside does not establish production or take any other action to extend
the terms of the licences and concessions.
DELIVERY COMMITMENTS
Woodside has contracts that require delivery of fixed volumes of crude oil, condensate, natural gas and NGL. Woodside intends to
fulfill its short-term and long-term obligations with its production or from purchases of third-party volumes.
As at 31 December 2023, delivery commitments were as follows:
Natural gas (MMboe)
Crude oil (MMbbl)
Condensate (MMbbl)
NGLs (MMbbl)
Year ended 31 December
2024 to 2028
Thereafter
Total oil and gas delivery commitments
336.5
327.6
664.1
7.2
-
7.2
2.2
-
2.2
3.8
-
3.8
184
ANNUAL REPORT 2023
PRODUCTION
The following table details production by product and geographic location for each of the three years ended 31 December 2023,
2022 and 2021. The volumes are marketable production after deduction of applicable royalties, fuel and flare. Average production
costs per unit of production and average sales prices per unit of production has also been included for each of these periods.
20231
20221
20212
Production volumes (MMboe)
LNG
Australia
International
Total LNG
Pipeline gas
Australia
International
Total pipeline gas
Crude oil and condensate
Australia
International
Total crude oil and condensate
Natural gas liquids (NGLs)
Australia
International
Total NGLs
Total petroleum products
Australia
International
Total production
Average sales price per produced boe (US$/boe)
LNG
Australia
International
Total LNG
Pipeline gas
Australia
International
Total pipeline gas
Crude oil and condensate
Australia
International
Total crude oil and condensate
Natural gas liquids (NGLs)
Australia
International
Total NGLs
Total average production cost per produced boe (US$/boe)
Australia
International
Total average production cost per produced boe3
87.6
-
87.6
28.0
11.5
39.5
22.7
29.1
51.8
5.7
1.4
7.1
144.0
42.1
186.1
76.3
-
76.3
38.6
24.8
34.6
70.8
77 .0
74.3
38.3
22.9
35.2
(11.2)
(8.5)
(10.6)
84.4
-
84.4
22.9
5.6
28.5
24.0
14.7
38.7
4.4
0.8
5.2
135.7
21.1
156.8
104.0
-
104.0
47.3
48.9
47.6
103.3
86.7
97.0
40.6
34.5
39.7
10.4
16.9
11.2
70.8
-
70.8
2.5
-
2.5
17.3
-
17.3
0.5
-
0.5
91.1
-
91.1
55.4
-
55.4
18.0
-
18.0
75.8
-
75.8
121.2
-
121.2
7.9
-
7.9
1
Includes production of 186.1 MMboe from Woodside reserves and excludes 1.1 MMboe from feed gas purchased from Pluto non-operating participants processed through the Pluto-KGP
Interconnector.
2 Production volumes for 2021 has been restated to present marketable production after deduction of applicable royalties, fuel and flare.
3 Average production costs per produced boe includes direct and indirect costs relating to production of total hydrocarbons and the foreign exchange effect of translating local currency denominated
costs into US dollars but excludes cost to transport produced hydrocarbons to the point of sale, ad valorem and severance taxes.
185
WOODSIDE ENERGY GROUP LTD NPAT RECONCILIATION
The following table summarises the variance between the 2022 and 2023 results for the contribution of each line item to NPAT.
2022 reported NPAT
6,498
Revenue from sale of hydrocarbons
Million Primary reasons for variance
Price
Volume
(4,442) Lower average prices across all products.
1,628
Primarily due to the additional contribution from the BHP Petroleum assets, partially offset
by the turnaround activities on Ngujima-Yin, NWS and Pluto.
Other operating revenue
(9) Primarily due to a decrease in shipping and other revenue.
Cost of sales
Other income
(979)
Primarily due to higher depreciation expense, partially offset by lower trading costs driven
by lower commodity prices.
(413) Primarily the profit on sale of 49% of the Pluto Train 2 Joint Venture recognised in 2022.
General administrative costs
338 Primarily due to merger transaction and integration costs recognised in 2022.
Other
808 Primarily driven by lower commodity hedge losses.
Income tax and PRRT
1,048
Primarily due to lower revenues and recognition of the Trion deferred tax asset (DTA),
offset by derecognition of the Pluto PRRT DTA.
Impairment and impairment reversals
(2,817) Due to impairments recognised on Shenzi, Wheatstone and Pyrenees.
2023 reported NPAT
2023 NPAT adjustments
2023 underlying NPAT
1,660
1,660
3,320
Adjustments for Shenzi, Wheatstone and Pyrenees impairment, net of tax ($1,533 million)
and derecognition of Pluto PRRT DTA offset by the recognition of the Trion DTA.
EMPLOYEES
As at 31 December 2023, Woodside had approximately
4,667 employees, the majority of whom are located in Australia
and the United States of America (USA). The increase in the
number of employees from 2022 was due to general workforce
growth to support Woodside’s operations and projects.
Woodside regularly engages with our workforce and supports
freedom of association. Our employees are free to join or not
to join a labour union. Woodside strives to maintain a positive
relationship with employees and labour unions. Woodside
believes that the relationship between its management and
labour unions is generally positive.
Employment region (number of staff by region)1,2
Australia
Africa and Middle East
Asia
Caribbean3
Europe
Americas4
Total
Total number of contractors (TPCs)
2023
3,563
57
77
105
24
841
4,667
474
2022
3,338
50
71
108
11
849
4,427
394
2021
3,660
35
48
NPR
8
13
3,764
267
1 Vacation students, cadets and scholarship students are included in relevant metrics where
appropriate.
‘Secondees in’ are excluded from these metrics; ‘secondees out’ are included.
2
3 NPR stands for ‘not previously reported’.
4 The United States and Canada region has been renamed to Americas. This region captures
employees in Mexico.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
In the normal course of business, Woodside is exposed to
commodity price, foreign currency exchange rate and interest
rate risks that could impact Woodside’s financial position and
results of operations. Woodside’s risk management strategy with
respect to these market risks may include the use of derivative
financial instruments. Woodside uses derivative contracts to
manage commodity price volatility, foreign exchange rate
volatility on capital expenditure plans and interest rate exposure
on financing activities.
Actual gains and losses in the future may differ materially from
the sensitivity analyses based on changes in the timing and
amount of commodity price, foreign currency exchange rate
and interest rate movements and Woodside’s actual exposures
and derivatives in place at the time of the change, as well as the
effectiveness of the derivative to hedge the related exposure.
Commodity price risk management
Woodside’s revenues are primarily derived from sales of LNG,
crude oil, condensate, pipeline gas and NGLs. Consequently,
Woodside’s results of operations are strongly influenced by the
prices it receives for these products, which in the case of oil
and condensate are primarily determined by prevailing crude
oil prices and in the case of pipeline gas, NGLs and LNG are
primarily determined by prevailing crude oil prices as well as
some fixed pricing and other price indexes (such as Henry Hub
and the Japan Korea Marker). For the year ended 31 December
2023, the majority (approximately 72%) of Woodside’s
production was attributed to natural gas, comprising LNG, NGLs
and pipeline gas and the remaining portion (approximately 28%)
of Woodside’s production was attributed to oil and condensate.
186
ANNUAL REPORT 2023 LNG market conditions including, but not limited to, supply and
demand, are unpredictable and are beyond Woodside’s control.
In particular, supply and demand for and pricing of LNG, remain
sensitive to energy prices, external economic and political
factors, weather, climate conditions, natural disasters (including
pandemics), timing of FIDs for new operations, construction
and start up and operating costs for new LNG supply, buyer
preferences for LNG, coal or crude oil and evolving buyer
preferences for different LNG price regimes, and the energy
transition. Buyers and sellers of LNG are increasingly more flexible
with the way they transact, and contracts may involve hybrid
pricing that is linked to other indices such as the Intercontinental
Exchange (ICE) Brent Crude deliverable futures contract (oil
price) or the Japanese Crude Cocktail, which is the average price
of customs-cleared crude oil imports into Japan as reported in
customs statistics. Typically, only LNG supplied from the US was
based on a component linked to movements in the US Henry Hub
plus certain fixed and variable components. This type of pricing
structure may become a component of the weighted average
price into Asia and other markets. This is since LNG supply and
trade has globalised and increasingly the lowest cost supply is
setting the floor for long-term average global natural gas prices
with transportation costs accounting for regional differences.
This marginal supply is predominantly from the United States,
indirectly pegging global gas prices and Asian spot LNG prices to
the Henry Hub marker which could adversely affect the pricing of
new LNG contracts and potential future price reviews of existing
LNG contracts. Tenders may also be used by suppliers and
buyers, typically for shorter-term contracts. In addition, long-
term LNG contracts typically contain price review mechanisms
which sometimes need to be resolved by expert determination or
arbitration. The use of these independent resolution mechanisms
is likely to be more prevalent in volatile commodity markets.
Alternatives to fossil fuel-based products for the generation of
electricity, for example nuclear power and renewable energy
sources, are continually under development and, if these
alternatives continue to gain market share, they could also
have a material impact on demand for LNG, which in turn may
negatively impact Woodside’s business, results of operations and
financial condition in the longer-term.
Oil prices can be very volatile, and periods of sustained low
prices could result in changes to Woodside’s carrying value
assumptions and may also reduce the reported net profit for
the relevant period. The price of crude oil may be affected by
factors beyond Woodside’s control. These include worldwide oil
supply and demand, the level of economic activity in the markets
Woodside serves, regional political developments and military
conflicts (including the ongoing Russia-Ukraine conflict), weather
conditions and natural disasters, conservation and environmental
protection efforts, the level of crude oil inventories, the ability of
OPEC and other major oil-producing or oil-consuming nations
to influence global production levels and prices, sanctions on
the production or export of oil, governmental regulations and
actions, including the imposition of taxes, trade restrictions,
market uncertainty and speculative activities by those who buy
and sell oil and gas on the world markets, commodity futures
trading, availability and capacity of infrastructure, supply chain
disruptions, processing facilities and necessary transportation,
the price and availability of new technology, the availability and
cost of alternative sources of energy, and the impact of climate
change considerations and actions towards energy transition on
the demand for key commodities which Woodside produces.
The transition to lower carbon sources of energy in many parts
of the world (driven by ESG and climate change concerns) may
affect demand for Woodside’s products including crude oil,
natural gas and LNG. In turn, this may affect the price received
(or expected to be received) for these products. Material adverse
price impacts (including as a result of the energy transition) may
affect the economic performance (including as to margins and
cash flows) of, and longevity of production from, Woodside’s
existing and future production assets, and ultimately the
financial performance of Woodside.
It is impossible to predict future crude oil, LNG and natural
gas price movements with certainty. A low crude oil price
environment or declines in the price of crude oil, LNG and natural
gas prices, could adversely affect Woodside’s business, results
of operations and financial condition and liquidity. They could
also negatively impact its ability to access sources of capital,
including equity and debt markets. Those circumstances may
also adversely impact Woodside’s ability to finance planned
capital expenditures, including development projects, and may
change the economics of operating certain wells, which could
result in a reduction in the volume of Woodside’s reserves.
Declines in crude oil, LNG and natural gas prices, especially
sustained declines, may also reduce the amount of oil and gas
that it can produce economically, reduce the economic viability
of planned projects or assets that it plans to acquire or has
acquired, and may reduce the expected value and the potential
commerciality of exploration and appraisal assets. Those
reductions may result in substantial downward adjustments to
Woodside’s estimated proved reserves and require additional
write-downs of the value of its oil and gas properties.
Sales contracts with the National Gas Company of Trinidad
and Tobago relating to production from Woodside’s Trinidad
and Tobago operations are partially linked to ammonia pricing.
In addition there is a Western Australian domestic gas sales
contract linked to urea pricing. Similar to crude oil, LNG and
natural gas, it is impossible to predict future ammonia and urea
prices with certainty.
There can be no assurance that Woodside will successfully
manage its exposure to commodity prices. There is also
counterparty risk associated with derivative contracts. If any
counterparty to Woodside’s derivative instruments were to
default or seek bankruptcy protection, it could subject a larger
percentage of Woodside’s future oil and gas production to
price changes and could have a negative effect on Woodside’s
financial performance, including its ability to fund future projects.
Whether Woodside engages in hedging and other oil and gas
derivative contracts on a limited basis or otherwise, Woodside
will remain exposed to fluctuations in crude oil prices.
Foreign exchange and interest rate risk
management
Refer to note A and note C in the Notes to the Financial
Statements for further information on foreign exchange and
interest rate risks.
187
WOODSIDE ENERGY GROUP LTD CYBERSECURITY
Our Cyber Resilience Process and Risk
Management
Woodside’s approach to managing material risks from
cybersecurity threats is integrated into our overall risk
management processes as disclosed in section 4.1.6 - Risk
management and internal control.
Woodside’s cybersecurity resilience and risk management
strategy and process are based on the National Institute of
Standards and Technology (NIST) Cybersecurity Framework.
Woodside’s Cyber Resilience Process consists of various
Group-wide policies, procedures and guidelines concerning
cybersecurity matters. These documents are published within
the Woodside Management System (WMS) and aim to:
1. Design, build and maintain Woodside’s Information
Technology (IT), Operational Technology (OT) and Industrial
Internet of Things systems with the right cybersecurity
controls to support confidentiality, integrity and availability.
2. Monitor and strengthen Woodside’s cybersecurity posture
while preventing, detecting, analysing and responding to
cybersecurity incidents.
3. Embed a cyber-safe culture across Woodside and foster
industry collaboration.
4. Enable compliance with all applicable legislation.
The process involves five key activities: identify, protect, detect,
respond and recover.
In addition to the Cyber Resilience Process, the Data, Information
and Systems Management process documented within the
WMS, includes the Woodside Information Technology Systems –
Conditions of Use Procedure. This procedure sets out Woodside’s
mandatory conditions applicable to the use of Woodside’s IT,
OT and digital Systems.
Woodside manages cybersecurity risks utilising the same
Woodside risk management process as described in section
3.9 - Risk factors.
Our Cyber Resilience Process Assurance
Woodside’s Cybersecurity team engages third-party vendors
as part of our Cyber Resilience Process to perform a variety
of technical assessments such as penetration testing. As part
of these assessments, the third parties test our internal and
external defenses, and help us with identifying any weaknesses
and vulnerabilities within our environment. These assessment
findings are risk ranked and prioritised for remediation.
Woodside internal audit team conducts audits on cybersecurity
on a biennial basis. The internal audit function engages external
expertise to conduct the audits. The most recent cybersecurity
audit concluded in 2023.
Third Party Cybersecurity Risk Management
Woodside identifies and manages risks from cybersecurity
threats associated with third parties accessing, storing and
processing Woodside data, through up-front cybersecurity
assessment processes that leverage independently verified
security programs including ISO 27001 certification and SOC 2
compliance, and through contractual terms and conditions.
188
Woodside manages risk of third-party access to Woodside systems
through on-boarding and induction processes for personnel
including mandatory training. Third-party personnel accessing
Woodside systems are subject to the same cyber security controls
as Woodside staff. This includes the requirement to complete
annual cybersecurity training. Higher risk scenarios such as direct
network connectivity from third-party networks are not permitted.
Material Impact from cybersecurity risks,
threats or previous cybersecurity incidents
Risk from cybersecurity threats have the potential to materially
affect Woodside’s business strategy, results of operations and
financial conditions. This risk is described in section 3.9 - Risk
factors.
Woodside continuously monitors its digital information
landscape and has various threat detection measures in place.
Woodside is not aware of any cybersecurity incidents or
threats that have materially affected or are reasonably likely to
materially affect our business strategy, results of operations or
financial conditions.
GOVERNMENT REGULATIONS
Woodside’s assets and exploration, development, extraction and
production operations are subject to a wide range of laws and
regulations imposed by governments and regulatory bodies.
These regulations touch all aspects of our assets, including
how we extract, process and explore for oil and natural gas and
how we conduct our business, including regulations governing
matters such as environmental protection, land rehabilitation
and facilities decommissioning, occupational health and safety,
human rights, the rights and interests of First Nations peoples,
competition, foreign investment, export, marketing of oil and
natural gas, royalties and taxes.
The ability to extract and process oil and natural gas is
fundamental to our business. In most jurisdictions, the rights
to explore for and extract petroleum deposits are owned by
the government. We obtain the right to access the land and
extract the product by entering into licences or leases with
the government that owns the oil or natural gas deposit.
Usually, the right to explore for oil and natural gas carries with
it the obligation to spend a defined amount of money on the
exploration, or to undertake particular exploration activities.
We also rely on governments to grant the rights necessary to
transport and treat the extracted petroleum to prepare it for sale.
The terms of the right, including the time period of the right,
vary depending on the laws of the relevant government or terms
negotiated with the relevant government.
In certain jurisdictions where we have assets, such as Trinidad
and Tobago and Senegal, a production sharing contract (PSC)
governs the relationship between the government and companies
(typically referred to as ‘Contractor’) concerning, among other
things, how much of the oil and gas extracted from the country
each party will receive. Under PSCs, the government awards
exclusive rights for the execution of exploration, development
and production activities to the Contractor in accordance with the
PSC’s terms. Generally speaking, the Contractor bears the financial
risk of the initiative to explore, develop and ultimately produce the
field. When successful, the Contractor is permitted to use a certain
ANNUAL REPORT 2023 set percentage of produced oil and gas to recover its capital and
operational expenditures, often called ‘cost oil.’ The remaining
production is split between the government and the Contractor at
a rate determined by the government and set out in the PSC.
The PSC may also include additional fiscal terms such as
royalties, production bonuses and tax treatment, and other
contractual terms addressing domestic supply obligations, local
content, measurement and valuation. PSCs are bilateral contracts
negotiated between the Contractor and the government and so
each is necessarily on different terms.
Applicable laws and regulations, and any permits that Woodside
is required to obtain under these laws, may obligate Woodside
to identify, avoid, mitigate and disclose environmental risks in
various operational practices, including, among others, through
pursuing and obtaining permits before commencing activities,
restricting air and water emissions and waste discharges, limiting
the type, quantity and concentration of various substances that
can be utilised or released into the environment, addressing
potential or actual impacts to protected species or cultural
resources, monitoring or remediating contamination under
certain circumstances, establishing and following certain
inspection, testing, maintenance and decommissioning
protocols, and disclosing certain operational practices. Moreover,
environmental permits required for our operations may be
subject to legal challenges by third parties, and such challenges
can materially and adversely affect our operations to the extent
they delay or prevent obtaining approvals or permits required
for our operations, or otherwise require incurring increased
costs in order to obtain such approvals or permits. Applicable
environmental laws and regulations may also dictate worker
health and safety and community notification procedures.
In addition, from time to time, certain trade sanctions are
adopted by the United Nations (UN) Security Council and/
or various governments, including in the United Kingdom, the
United States, the European Union (EU), China and Australia
against certain countries, entities or individuals, that may restrict
our ability to sell extracted minerals, oil or natural gas to, and/or
our ability to purchase goods or services from, these countries,
entities or individuals.
This summary focuses on the Australian and United States
regulatory regimes, as well as certain regulations in Senegal.
It is not a full summary of the regulatory regimes in those
jurisdictions nor is it a complete list of the legislation and
regulation that applies to Woodside. Woodside is also subject to
environmental and other regulations to varying degrees in each
of the jurisdictions in which it has assets and operations.
Australia
In Australia, petroleum exploration and development takes
place within a legal framework characterised by a division of
responsibilities between the federal and the state or territory
governments. Exploration and production activities conducted
onshore and within three nautical miles of the territorial sea
baseline of the relevant state or territory are the responsibility
of the individual state or territory governments. The Australian
Federal government has legislative responsibility for Australian
offshore petroleum exploration and production beyond the
three nautical mile territorial sea, which encompasses the area
of most relevance to Woodside’s offshore activities. In addition,
Woodside has certain onshore operations in Victoria and
Western Australia which are subject to various state legislation.
Environmental regulation
Woodside’s Australian operations are subject to federal, state
and local environmental laws and regulations. For offshore
petroleum activities, these laws and regulations generally require
the acquisition of an approval before an activity commences,
and require that for an activity, environmental risks are identified
and controls put in place to reduce or eliminate the risks.
For exploration drilling and seismic activities in the federal
jurisdiction, this is outlined in an Environment Plan accepted
by the National Offshore Petroleum Safety and Environmental
Management Authority (NOPSEMA), an independent statutory
authority; as an operation goes into construction, commissioning
and production, a whole offshore project proposal and new or
revised environment plan is required as the initial document to
be submitted for approval. Subsequent environment plans for
each activity are required to be submitted after the offshore
project proposal has been approved. These laws and regulations
also restrict the type, quantity and concentration of various
substances that can be utilised or released into the environment
in connection with marine and land-based activities; limit or
prohibit drilling and seismic or production activities in and near
certain environmentally sensitive or protected areas; and impose
criminal and civil liabilities for pollution or other unauthorised
impacts to the environment resulting from oil, natural gas and
petrochemical operations.
The National Greenhouse and Energy Reporting Act 2007 (Cth)
requires corporations that meet certain reporting thresholds
to report company information about greenhouse gas (GHG)
emissions and energy production and consumption as part of a
single, national reporting scheme and establishes the Safeguard
Mechanism which aims to keep certain GHG emissions at or
below legislated limits, known as baselines, for Australia’s largest
industrial facilities. In March 2023, the Safeguard Mechanism
(Crediting) Amendment Bill 2023 was passed, which applied
reforms to the Safeguard Mechanism from 1 July 2023 intended
to reduce Scope 1 GHG emissions from Australia’s largest
industrial facilities on a trajectory consistent with achieving
Australia’s GHG emission reduction targets of 43% below 2005
levels by 2030 and net zero by 2050. There is ongoing public
pressure in Australia on the government to accelerate its carbon
emissions reduction program. As such, there remains significant
uncertainty regarding the future of climate change regulation in
Australia and the effect it may have on Woodside’s business.
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WOODSIDE ENERGY GROUP LTD In addition, Australian environmental laws and regulations
also include restrictions on air emissions and water discharges
resulting from the operation of drilling equipment, processing
facilities, pipelines and transport vessels. These laws also
regulate the use, management and disposal of hazardous
materials and general waste; prohibit the clearing of native
vegetation without approval; manage biodiversity and manage
and authorise impacts to Aboriginal heritage; and require
Woodside to prepare and implement safety and environmental
management plans.
Woodside is required to provide bonds or maintain other
forms of financial assurance for rehabilitation, clean-up or
pollution prevention work that may be necessary as a result
of the construction, operation, decommissioning or removal
of a pipeline or other infrastructure and to report, monitor
or remediate contamination under certain circumstances.
Woodside is subject to ‘strict liability’ for oil spills, rendering it
liable without regard to potential negligence or fault and may
be subject to fines and other penalties for breaches of laws,
regulations, licences or other approvals.
The requirements imposed by environmental laws and
regulations are subject to change and have tended to become
increasingly restrictive over time. The modification of existing
foreign or domestic laws or regulations or the adoption of new
laws or regulations curtailing exploratory or development drilling
for oil and gas for economic, political, social, environmental
or other reasons could have a material adverse effect on
Woodside’s business, financial condition or results of operations.
Fair Work Act and other related amendments
A significant number of changes to the Fair Work Act 2009 (Cth)
(FW Act) and other related laws have been introduced over the
past year.
In December 2022, the Australian Federal Government passed
the Fair Work Legislation Amendment (Secure Jobs, Better
Pay) Act 2022 (Cth) (SJBP Act) which introduced a raft of
amendments into the FW Act with phased commencement
dates over the course of 2023. All key provisions of the SJBP Act
have now become effective.
Key material employment changes to the FW Act arising
from the SJBP Act included expanded rights for employees
to enforce flexible working arrangements, new restrictions on
the use of fixed term (including ‘maximum term’) employment
contracts, prohibitions against pay secrecy, expanding the
protected attributes (namely gender identity, intersex status
and breastfeeding) against which discriminatory and other
conduct are prohibited, broadening the ability of employees
to extend and enforce unpaid parental leave, and providing
additional avenues for workers to seek recourse against sexual
harassment. The sexual harassment-related amendments in
particular complement the commencement in December 2022
of a new positive duty to prevent sexual harassment in the Sex
Discrimination Act 1984 (Cth) which the Australian Human Rights
Commission can enforce from 12 December 2023. Additionally,
the Australian Human Rights Commission Amendment (Costs
Protection) Bill 2023 (Cth) is currently before Parliament and,
if passed, will reduce the financial barriers for sexual harassment
complainants to bring claims.
190
The SJBP Act also introduced a series of significant industrial
relations changes to enterprise bargaining, including expanding
the ability of employees and unions to seek multi-employer
enterprise agreements, broadening the power of the Fair Work
Commission to resolve (through mediation or conciliation)
bargaining disputes before industrial action is taken and to
intervene and make workplace determinations where bargaining
becomes ‘intractable’. Other changes to bargaining introduced
by the SJBP Act included amendments making it easier for
employee bargaining representatives to commence bargaining
to renew existing single-enterprise agreements, changes to the
Fair Work Commission’s enterprise agreement approval-related
requirements (including consideration of whether a proposed
agreement has been genuinely agreed to and passes the
‘better-off-overall’ test) and substantially restricting the ability of
employers to terminate nominally-expired enterprise agreements.
In June 2023, the Fair Work Legislation Amendment (Protecting
Worker Entitlements) Act 2023 (Cth) was introduced, bringing
further changes to the FW Act. Key changes arising from this
Act include the expansion of unpaid parental leave rights (from
1 July 2023) and enshrining superannuation payments as an
enforceable National Employment Standard under the FW Act
(from 1 January 2024).
A further package of significant reforms is contained in
the Australian Federal Government’s Fair Work Legislation
Amendment (Closing Loopholes) Act 2023 (Cth) (Closing
Loopholes Act). While various key aspects of the Closing
Loopholes Act are the subject of a Senate Committee Inquiry
(to be concluded from February 2024 onwards), numerous
reforms contained in this reform package passed both houses
of Parliament on 7 December 2023. Key provisions that have
passed include new ‘same job, same pay’ provisions which give
the Fair Work Commission the ability to make orders upon
application requiring employers (excluding service contractors)
to pay their employees who perform work for a ‘regulated host’
the same rate of pay as employees of that host (provided that
the host’s employees perform work of the same kind). Among
other provisions, new rights for workplace delegates to paid time
off to attend training as well as reasonable time and access to
employer facilities to communicate with eligible union members
have also passed, as has a new criminal wage theft offence in
respect of intentional underpayments.
The Closing Loopholes Act received Royal Assent on 14 December
2023. As such, many of the amendments from the Closing
Loopholes Act – excluding the provisions relating to wage theft
– commenced on 15 December 2023 (although same job, same
pay-related regulated labour hire arrangement orders can only
take effect on and after 1 November 2024). Proposed outstanding
amendments that are the subject of the Senate Committee
Inquiry, include changes to the definition of employment
(including casual employment), increased civil penalties for
underpayment contraventions, new right of entry rights relating to
suspected underpayments and further limitations to the Fair Work
Commission’s powers to reduce employee entitlements in the
context of intractable bargaining disputes.
ANNUAL REPORT 2023 Woodside believes that it is well placed to confirm its compliance
with the numerous new employment and industrial relations
obligations that have been introduced over the past year. Moving
forward, increased compliance-related demands are expected,
especially given the further reforms that are anticipated in 2024.
Decommissioning liability amendments
On 2 September 2021, the Australian Federal parliament
passed the Offshore Petroleum and Greenhouse Gas Storage
Amendment (Titles Administration and Other Measures) Act
2021 (Cth) which, among other changes, amends the Offshore
Petroleum and Greenhouse Gas Storage Act (Cth) (OPGGSA)
to expand the trailing liability provisions. The amendments took
effect from 2 March 2022. The expanded trailing liability regime
gives NOPSEMA and the responsible Commonwealth Minister
the ability to recall any titleholders, former titleholders and
their respective related bodies corporate and ‘related persons’
to undertake decommissioning activities on a title area. These
powers are retrospective in their application and apply to titles
that are currently in force as well as to titles that ceased to be in
force on or after 1 January 2021.
Santos Barossa decision and Environment Plans
In December 2022, the Full Court of the Federal Court of
Australia handed down its decision in Santos NA Barossa Pty
Ltd v Tipakalippa [2002] FCAFC 193 (Appeal Decision). The
Appeal Decision decided certain aspects of the requirements for
consultation associated with the acceptance of environment plans
for offshore petroleum activities by NOPSEMA, as required under
the OPGGSA. Subsequently, NOPSEMA published a guideline
for industry entitled “Consultation in the course of preparing an
environment plan”. As a consequence of these events, Woodside
has experienced delays in obtaining Environment Plans for
petroleum activities in Commonwealth waters.
In September 2023, the Federal Court of Australia, in Cooper
v National Offshore Petroleum Safety and Environmental
Management Authority (No. 2) [2023] FCA 1158, found that
NOPSEMA’s decision to accept, with conditions, Woodside’s
environment plan for seismic surveys associated with the
Scarborough project was invalid. Woodside was a party to this
matter. Woodside submitted a revised environment plan for
this activity in October 2023. Woodside’s revised environment
plan was accepted by NOPSEMA in December 2023 and
work was completed under the accepted environment plan in
December 2023.
Refer to section 3.9 – Risk factors for further information on risks
related to government regulations and other legal developments.
Domestic gas reservation policy
Under a Western Australian State Government policy (WA
Domestic Gas Policy), introduced in 2006, gas equivalent to
15% of LNG production from LNG export projects is required to
be reserved for domestic use as a condition of State approvals
required for LNG projects. The policy is typically implemented
through domestic gas commitment agreements entered into
between project proponents and the State, allowing negotiations
to occur on a case-by-case basis regarding the method by
which the LNG project proponents fulfil their domestic gas
commitments, including from alternative sources.
Woodside and (where applicable) its joint venture participants
have domestic gas contractual commitments in place with the
Western Australian State Government in respect to the North
West Shelf (NWS), Pluto LNG, Scarborough and Wheatstone
projects. In 2015, the NWS State Agreement (North West Gas
Development (Woodside) Agreement 1979) was amended
to include a new domestic gas commitment of 15% (or lesser
approved amount) of total LNG quantity approved for use,
supply or sale overseas to bring the NWS Project in line with the
WA Domestic Gas Policy. In 2006, in connection with the final
investment decision taken in respect of the Pluto LNG project,
Woodside entered into an arrangement with the Western
Australian State Government to market and make available for
supply a quantity of domestic gas from Pluto, provided that
Woodside was not required to supply domestic gas if it is not
commercially viable to do so. In January 2021, Woodside signed a
further agreement with the Western Australian State Government
in which Woodside agreed to market and make available 45.6
PJ of additional domestic gas from its share of NWS Project
gas, separate and in addition to the 2015 commitment from
the NWS Joint Venture. In November 2021, Woodside signed a
further domestic gas commitment agreement with the Western
Australian State Government with respect to the Scarborough
project pursuant to which, consistent with the WA Domestic
Gas Policy, the Scarborough Joint Venture will make gas
equivalent to 15% of its LNG exports available to the domestic
market. In January 2021, Woodside signed a further domestic
gas commitment agreement with the Western Australian State
Government with respect to the Pluto acceleration project
pursuant to which, consistent with the WA Domestic Gas Policy,
Woodside will make gas equivalent to 15% of its LNG exports
processed at the NWS Project as part of the Pluto acceleration
project available to the domestic market. Woodside also has
domestic gas commitments in respect to its interest in the
Wheatstone LNG Project under a 2011 agreement with the
Western Australian State Government.
Additional major legislation and regulations
Woodside’s Australian offshore operations beyond coastal
waters are primarily governed by the OPGGSA and related
legislation, which establishes a joint authority (Joint Authority)
whereby relevant Australian state, territory and federal
governments cooperate in the administration and supervision
of petroleum activities in offshore areas beyond coastal waters.
The OPGGSA provides for the grant of exploration permits,
retention leases, production licences, pipeline licences and
facilities licences within the areas of the OPGGSA’s jurisdictional
operation. Within the coastal waters, petroleum operations are
covered by the relevant state or Northern Territory legislation
that is substantively similar to the OPGGSA.
The Offshore Petroleum and Greenhouse Gas Storage (Resource
Management and Administration) Regulations 2011 (Cth) contain
resource management provisions, including a requirement
for the holder of a production licence to have in place a Field
Development Plan approved by the Joint Authority before
petroleum production can commence.
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WOODSIDE ENERGY GROUP LTD Many of Woodside’s operations rely on pipeline licences to
transport oil and gas from the point of production to processing
facilities and relevant markets. As mentioned above, the
OPGGSA also provides for the grant of pipeline licences within
the areas of the OPGGSA’s jurisdictional operation. Pipelines
within the coastal waters of Western Australia are licensed
under the Petroleum (Submerged Lands) Act 1982 (WA) and
pipelines within the coastal waters of Victoria are licensed under
the Offshore Petroleum and Greenhouse Gas Storage Act 2010
(Vic). Onshore pipelines in Western Australia are licensed under
the Petroleum Pipelines Act 1969 (WA) and onshore pipelines in
Victoria are licensed under the Pipelines Act 2005 (Vic).
Woodside is also subject to the following laws, among others:
• Various petroleum taxes, including royalties, excise taxes,
temporary levies, and the Petroleum Resource Rent Tax (PRRT).
In May 2023, the Australian Government announced rules
aimed at ensuring offshore LNG projects make minimum PRRT
payments once 7 years from first production have elapsed.
The rules are intended to be effective from 1 July 2023. The
related amendments to PRRT legislation were introduced into
the Federal parliament on 16 November 2023. It is not yet clear
when these amendments will receive Royal Assent. Subject
to becoming law, these rules are expected to apply to the
Pluto LNG Project from 1 July 2023 and the Wheatstone LNG
Project from 1 July 2024. The announcement also included
a commitment to remake the Petroleum Resource Rent Tax
Assessment Regulation 2015 (Cth) (GTP Regulation). The price
of sales gas, which is processed into LNG, and the treatment of
tolling arrangements are determined under the GTP Regulation.
On 22 December 2023, the Australian Government released an
Exposure Draft of a remade GTP Regulation for consultation.
• Australia’s competition laws contained in the Competition
and Consumer Act 2010 (Cth), which prohibit, among other
things, engaging in conduct with the purpose or effect
of substantially lessening competition, price fixing, cartel
conduct, market sharing, concerted practices or bid rigging.
The Act was also recently amended by the Competition and
Consumer (Gas Market Code) Regulations 2023 (Cth) (Gas
Code), which became effective on 11 July 2023, to allow for
the imposition of gas price controls in the eastern Australian
gas market. Currently, the price of gas produced by Woodside
and supplied into the eastern Australian gas market is capped
at $12/ GJ until 1 July 2025. The price cap may be updated by
the Australian Competition and Consumer Commission every
two years. The Gas Code also introduces a mandatory code
of conduct that establishes minimum conduct and process
standards for commercial negotiations for wholesale gas
contracts, including good faith obligations and a ‘reasonable
pricing’ provision.
• The Australian Domestic Gas Security Mechanism (ADGSM),
established pursuant to the Customs (Prohibited Exports)
Regulations 1958 (Cth) and the Customs (Prohibited Exports)
(Operation of the Australian Domestic Gas Security Mechanism)
Guidelines 2023 (Cth), by which the Australian Government
can require LNG projects to prohibit exports or find offsetting
sources of gas, to ensure that there are sufficient supplies of
natural gas for domestic use. The ADGSM is intended to be a
measure of last resort where market based solutions and other
regulatory interventions have failed.
192
• Laws protecting the rights and interests of First Nations
Australians and their cultural heritage. Since 1992, Australian
common law has recognised that, in certain circumstances,
First Nations Australians may have rights and interests over
land and waters in accordance with their traditional laws
and customs. The Native Title Act 1993 (Cth) (NTA) and
complimentary state legislation recognise and protect the
native title rights and interests of native title holders and
registered native title claimants. Multiple pieces of Australian
state and federal government legislation protect Aboriginal
cultural heritage, rights and access to land in Australia and
many of these laws are subject to review and change to ensure
a greater level of involvement of First Nations Australians in
decisions that may impact cultural heritage and other rights
and interests.
• The Greater Sunrise Special Regime (GSSR), established
pursuant to the Maritime Boundaries Treaty which came into
force on 30 August 2019. Woodside holds production sharing
contracts and retention leases covering its petroleum interests
within GSSR under joint Australian/Timor-Leste administrative
control.
• The Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA),
regulations under the FATA and Australia’s Foreign Investment
Policy, which are intended to encourage foreign investment in
Australia that is not contrary to the Australian national interest.
As Woodside is a reporting entity of a critical gas asset within
the meaning of the Security of Critical Infrastructure Act 2018
(Cth), it is considered a ‘national security business’ under the
FATA, meaning that certain investments by foreign investors
(including foreign government investors) must be notified to
the Australian Government and require prior approval from the
Australian Treasurer in accordance with the FATA.
• There is legislation covering work health and safety (WHS) in
both state and federal jurisdictions, with separate onshore and
offshore regulation. WHS laws aim to protect workers’ health
and safety by imposing obligations on all parties who are in
a position to contribute to the management of workplace
risks, including manufacturers and suppliers of equipment
and substances, as well as employers and workers (including
employees and contractors). Among other things, Woodside,
as operator of both onshore and offshore facilities, is required
to develop and comply with a comprehensive ‘safety case’
which describes the facility and provides details on the
hazards and risks associated with the facility, the risk controls
and the safety management system that will be used to
minimise relevant risks.
• State legislation regulates matters such as long service leave,
workers’ compensation, as well as anti-discrimination and
equal opportunity.
• The OPGGSA also provides the legislative framework for CCS
and CCUS projects in offshore areas beyond coastal waters
and the grant of assessment permits, holding leases and
injection licences. Within Western Australian coast waters,
on 29 November 2023, the Western Australian Government
recently introduced the Petroleum Legislation Amendment
Bill 2023 (WA) to enable the transportation and geological
storage of GHG in Western Australia.
ANNUAL REPORT 2023 United States
In the United States, numerous federal agencies regulate specific
portions of the industry and Woodside’s US operations. The
US Federal Government directly regulates the development of
hydrocarbon interests on federal lands, including those in the US
Gulf of Mexico (GOM) and elsewhere in the Outer Continental
Shelf (OCS). Federal leasing activities in recent years have been
subject to political scrutiny and motivations, material uncertainties,
delays, and legal challenges relating to potential impacts from
climate change related to new offshore exploration and production
or the adequacy of federal environmental reviews performed in
connection with GOM lease auctions. Woodside is also subject to
the following laws and regulatory agencies, among others.
OCS regulation
The Outer Continental Shelf Lands Act (OCSLA) governs
Woodside’s hydrocarbon activities on federal offshore oil and
natural gas leases in the GOM. The OCSLA empowers the
Department of the Interior (DOI), through its agencies the
Bureau of Safety and Environmental Enforcement (BSEE), the
Bureau of Ocean Energy Management (BOEM) and the Office
of Natural Resources Revenue (ONRR), to administer and create
regulations concerning the exploration and development of
minerals in the OCS.
Leases on the OCS, which contain relatively standardised terms, are
awarded under OSCLA authority through scheduled lease sales by
BOEM based on competitive bidding and require compliance with
detailed BSEE and BOEM regulations and orders issued pursuant
to various federal laws, including the National Environmental Policy
Act (NEPA) and the Coastal Zone Management Act (CZMA). For
certain exploration and development activities, lessees are also
required to obtain environmental permits from agencies such as
the US Environmental Protection Agency (EPA).
Certain OCS activities are also subject to regulation under US
Maritime Law by the US Coast Guard. In addition, offshore
pipelines, including those located in the GOM, are subject to
federal regulation including under the jurisdiction of the Federal
Energy Regulatory Commission (FERC) and the Pipeline and
Hazardous Materials Safety Administration (PHMSA), under the US
Department of Transportation. BSEE has also adopted regulations
for offshore pipelines under its jurisdiction covering similar matters.
Moreover, our US operations in the GOM are subject to extensive
requirements related to the plugging and abandonment of wells
and decommissioning of offshore structures and equipment. We
may be required to post substantial financial assurance, such as
surety bonds, or to otherwise demonstrate financial capability
to support these decommissioning obligations, such as through
access to insurance, the costs of which could be material. Further,
BOEM is currently considering, through proposed updated
financial assurance regulations, increasing its supplemental
bonding requirements. Any such increase could generally drive
up our operating costs by increasing the amount of security
we are required to post and, in turn, stress the capacity of the
surety bond market to provide sufficient bonds to meet resulting
demands from the offshore oil and gas industry.
Environmental regulation
The Clean Air Act and comparable state laws and regulations
govern emissions of various air pollutants through the issuance
of permits and other authorisation requirements. Since 2009,
the EPA has been monitoring and regulating GHG emissions,
including carbon dioxide and methane, from certain sources in the
oil and gas sector due to their association with climate change.
In addition, international climate efforts, including the 2015 Paris
Agreement and the 2021 and 2022 Conferences of the Parties of
the UN Framework Convention on Climate Change have resulted
in commitments from many countries to reduce GHG emissions
and have called for parties to eliminate certain fossil fuel subsidies
and pursue further action on non-carbon dioxide GHGs.
In August 2022, President Biden signed into law the Inflation
Reduction Act of 2022 (IRA), which expands policy support and
incentives for deployment of CCUS, hydrogen and other low-
carbon projects, including several enhancements to federal tax
credits. The IRA also establishes a charge on methane emissions
above a certain methane intensity threshold for facilities that
report their GHG emissions under the EPA’s GHG Emissions
Reporting Program Part 98 regulations. The methane emissions
charge will be imposed beginning with respect to emissions
reported for calendar year 2024. The methane emissions charge
could increase our operating costs, which could adversely impact
our business, financial condition and cash flows.
In December 2023, the EPA published a final rule to reduce
methane and other pollution from oil and natural gas operations.
Among other things, the final rule will phase out routine flaring
of natural gas from new oil wells, require all well sites and
compressor stations to be routinely monitored for leaks and
provide companies greater flexibility to use innovative and cost-
effective methane detection technologies. The IRA and the final
rule will impact Woodside’s Shenzi asset and any future acquired
GOM-operated assets.
The exploration, production, and transportation of crude oil and
natural gas involves risk that hazardous liquids or flammable gases
may be released into the environment and may cause substantial
harm to the environment, natural resources, or human health and
safety. Such incidents, as well as failure to comply with applicable
environmental laws and regulations, may result in material
expenditures for response actions, significant government civil or
criminal fines and penalties, liability to government agencies for
natural resources damages, and significant business interruption.
In addition, a spill on or related to our properties and operations
could expose us to joint and several and strict liability, without
regard to fault. Existing and new laws and regulations could
require us to evaluate and upgrade existing infrastructure and
operational practices on an accelerated basis or pursue additional
capital projects, any or all of which could result in increased
operating costs, which in turn could have a material adverse effect
on our business, financial condition or results of operations.
Laws and regulations are frequently subject to change, and the
general trend in the United States has been for these governmental
agencies to continue to evaluate and, as necessary, develop and
implement new, more restrictive permitting, performance and
disclosure requirements, particularly with respect to the protection
of the environment, GHG emissions, natural resources, and
worker health and safety. The 2024 US election cycle (including
a presidential election) contributes to uncertainty on the future
193
WOODSIDE ENERGY GROUP LTD direction of regulatory change. In addition, offshore wind and
carbon sequestration have the potential to increase competing
uses of the OCS, which may limit future opportunities for offshore
oil and gas operations. The modification of existing laws or
regulations or the adoption of new laws or regulations curtailing
or imposing greater restrictions on exploratory or development
drilling for oil and gas for economic, political, social, environmental
or other reasons could have a material adverse effect on our
business, financial condition or results of operations.
Senegal
In Senegal, Woodside’s PSC and the prospecting, exploration,
exploitation and transportation of hydrocarbons, as well as the
tax rules for such activities, are primarily governed by Law no. 98-
05 dated 8 January 1998 (Petroleum Code) and its implementing
decree no. 98-810 dated 6 October 1998. The Petroleum Code
determines that the Senegalese Ministry of Petroleum and
Energy is the competent authority for its implementation and is
responsible for authorising activities for oil and gas prospecting,
exploration, exploitation and transportation. While a revised
Petroleum Code was introduced in 2019, the terms of that
legislation state that any PSC issued prior to the introduction of
the 2019 Petroleum Code retain their legal regime, and as such,
the 1998 Petroleum Code continues to apply to Woodside’s
PSC. There is also other legislation and regulation that applies to
Woodside’s activities in Senegal including, without limitation, in
respect of the environment and local content requirements.
MATERIAL LIMITATIONS
Woodside has certain obligations as part of its operations
in Western Australia to provide natural gas into the Western
Australian domestic market. Please refer to ‘Government
regulations - Domestic gas reservation policy’ in this section
for further information.
Woodside is subject to ordinary course production sharing
contract limitations in Senegal. Refer to ‘Government regulations
- Other jurisdictions’ in this section for further information.
SUMMARY OF MATERIAL LEGAL PROCEEDINGS
Woodside is involved from time to time in legal proceedings and
governmental investigations of a character normally incidental
to its business, including claims and pending actions against it
seeking damages, or clarification or prosecution of legal rights
and regulatory inquiries regarding business practices. Insurance
or other indemnification protection may offset the financial
impact on Woodside of a successful claim.
Except as set forth below, there are no governmental, legal or arbitral
proceedings (including any such proceedings which are pending or
threatened and of which Woodside is aware) which may have, or
have had during the 12 months prior to the date of this report,
a significant effect on Woodside’s financial position or profitability:
• In June 2022, the Australian Conservation Foundation
Incorporated (ACF) (represented by the Environmental
Defenders Office Ltd) commenced Federal Court of Australia
proceedings in relation to the environmental assessment of the
Scarborough project. The ACF is seeking a final injunction to
restrain Woodside from carrying out offshore project activities
for the Scarborough project. The trial has been set down for an
estimate of three weeks, commencing on 2 September 2024.
• In addition, the proceedings arising from the application filed by
the Conservation Council of Western Australia (CCWA) seeking
judicial review of a decision by the CEO of the Western Australian
Department of Water and Environmental Regulation to grant
Woodside a works approval for the Pluto Train 2 project were
settled in 2023.
194
ANNUAL REPORT 2023 6.4
ADDITIONAL INFORMATION
Shareholder statistics
Information in this section is current as at 13 February 2024, unless otherwise stated. References to ‘the company’ or ‘Woodside’ on
pages 195-202 are to Woodside Energy Group Ltd and references to shareholdings and other equity on those pages are to equity in
Woodside Energy Group Ltd.
NUMBER OF SHAREHOLDINGS
There were 620,891 shareholders.
DISTRIBUTION OF SHAREHOLDINGS
The following table shows the distribution of Woodside Energy Group Ltd shareholders by size of shareholding and number of
shareholders and shares as of 13 February 2024.
Size of shareholding
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
Greater than 100,000
Total
1 All issued shares carry voting rights on a one-for-one basis.
Number of holders
Number of shares1
% of issued capital
503,618
100,451
11,202
5,462
158
620,891
118,595,289
211,804,045
77,790,076
110,913,590
1,379,646,771
1,898,749,771
6.25
11.15
4.10
5.84
72.66
100.00
UNMARKETABLE PARCELS
There were 62,107 members holding less than a marketable parcel of shares in the company (based on the closing market price of
$31.13 on 13 February 2024).
Geographical distribution of shareholders and shareholding
Registered address
Australia
New Zealand
United Kingdom
United States of America
Other
Total
US shareholdings
Number of holders
Number of shares
% of issued capital
602,134
1,886,776,367
7,530
3,225
1,885
6,117
6,333,881
2,130,124
1,122,322
2,387,077
99.37
0.33
0.11
0.06
0.13
620,891
1,898,749,771
100.00
Classification of holder
Registered holders of voting securities
ADR holders
Number of holders
Number of shares
% of issued capital
1,885
2,338
1,122,322
47,844,455
0.06
2.52
Distribution of rights holdings
The following table shows the distribution of Woodside Energy Group Ltd rights by size of holding and number of holders and rights
as of 13 February 2024.
Size of holding
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
Greater than 100,000
Total
Number of holders
Number of rights
% of rights on issue
705
3,275
243
142
7
4,372
414,060
7,512,825
1,589,691
3,475,465
1,452,761
14,444,802
2.87
52.01
11.00
24.06
10.06
100.00
195195
6.2 WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD TWENTY LARGEST SHAREHOLDERS
The following table sets out the 20 largest shareholders of ordinary shares listed on the Woodside Energy Group Ltd share register and
the details of their shareholding as of 13 February 2024.
Shareholders
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMS PTY LTD
COMPUTERSHARE CLEARING PTY LTD
BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM
BNP PARIBAS NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
BNPP NOMS PTY LTD HUB24 CUSTODIAL SERV LTD
NETWEALTH INVESTMENTS LIMITED
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
ARGO INVESTMENTS LIMITED
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
NETWEALTH INVESTMENTS LIMITED
MUTUAL TRUST PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
Shares
Held
% of issued
capital
565,630,320
341,304,362
173,343,239
48,744,455
38,168,780
36,196,274
31,200,312
19,941,977
13,561,156
13,363,475
9,617,598
8,617,134
7,606,775
3,816,348
3,571,455
2,954,652
2,837,416
2,798,294
2,518,358
2,455,728
29.79
17.98
9.13
2.57
2.01
1.91
1.64
1.05
0.71
0.70
0.51
0.45
0.40
0.20
0.19
0.16
0.15
0.15
0.13
0.13
1,328,248,108
69.95
SUBSTANTIAL SHAREHOLDERS
Substantial shareholders as disclosed in substantial shareholder notices given to the company are as follows:
Date of last notice
Substantial shareholder
Title of class
Date received
Date of change
Shares held1
BlackRock Group (BlackRock Inc. and
subsidiaries)
BlackRock Group (BlackRock Inc. and
subsidiaries)
Vanguard Group (The Vanguard Group, Inc.
and its controlled entities)
Ordinary shares
8 February 2024
5 February 2024
133,581,277
ADR 1:1
8 February 2024
5 February 2024
1,992,368
Ordinary shares
23 June 2022
17 June 2022
95,642,3122
State Street Corporation and subsidiaries
Ordinary shares
6 September 2022
1 September 2022
95,780,835
1 These figures quoted are based on the number owned and voting rights provided in the latest applicable substantial shareholder notice.
2 As stated in its latest substantial shareholder notice, Vanguard Group also holds 42,270 shares of Woodside ADR.
% of total
voting rights1
7.03
0.11
5.037
5.04
BUY BACKS
There are currently no on-market buy backs.
ESCROWED AND RESTRICTED SECURITIES
Woodside Energy Group Ltd does not have any restricted securities or securities subject to voluntary escrow on issue.
ON-MARKET PURCHASES FOR WOODSIDE EMPLOYEE INCENTIVE PLANS1,2
Period
February 2023
March 2023
August 2023
Total
Total shares
purchased
399,500
399,500
1,533,121
2,332,121
Average price paid
per share (A$)
Average price paid
per share (US$)
Number of shares purchased
for employee plans
35.99
36.57
37.66
37.33
24.22
24.67
24.21
24.42
399,500
399,500
1,533,121
2,332,121
1 These shares were purchased to satisfy employee incentive plan requirements.
2 The on-market purchases for Woodside employee incentive plans total 0.12% of total share capital.
196
ANNUAL REPORT 2023 ANNUAL GENERAL MEETING
The 2024 Annual General Meeting (AGM) of Woodside Energy
Group Ltd will be held on 24 April 2024. Details of the business
of the meeting will be provided in the AGM notice. The AGM
will be webcast live on the internet. An archived version of the
webcast will be placed on the Woodside website to enable the
proceedings to be viewed at a later time. The closing date for
receipt of director nominations was 19 February 2024.
Shareholders who reside outside the USA, the UK, Australia and
NZ may elect to receive their dividend electronically in their local
currency using the share registry’s Global Wire Payment Service.
For a list of currencies offered and how to subscribe to the
service, please contact the share registry.
For more information on this topic, refer to Woodside’s
website for the history of dividends paid by the company
at woodside.com
CHANGE OF ADDRESS OR BANKING DETAILS
Shareholders should immediately notify the share registry of any
change to their address or banking arrangements for dividends
electronically credited to a bank account.
For more information on this topic, refer to the share registry
website to change details at investorcentre.com/wds
AUSTRALIAN SECURITIES EXCHANGE
Investors who hold Woodside shares listed on the ASX seeking
information about their shareholdings should contact Woodside’s
Australian share registry:
Computershare Investor Services Pty Limited
Address:
Postal address:
Telephone:
Email:
Website:
Level 17, 221 St Georges Terrace
Perth WA 6000
GPO Box D182
Perth WA 6840
1300 558 507 (within Australia)
+61 3 9415 4632 (outside Australia)
web.queries@computershare.com.au
investorcentre.com/wds
The share registry can assist with queries on share transfers,
dividend payments, the dividend reinvestment plan, notification
of tax file numbers and changes of name, address or bank account
details.
For security reasons, you will need your Security Reference
Number (SRN) or Holder Identification Number (HIN) when
communicating with the share registry. The share registry website
allows shareholders to make changes to address and banking
details online.
For more information on this topic, refer to the share registry
website to change details at investorcentre.com/wds.
DOCUMENTS ON DISPLAY
Documents filed by Woodside on the ASX are available at
asx.com.au and documents filed with the Financial Conduct
Authority (FCA) in the UK, including copies of announcements
made to the LSE, are available at data.fca.org.uk/#/nsm/
nationalstoragemechanism. Woodside files Annual Reports
and other reports and information with the US Securities and
Exchange Commission (SEC). These filings are available on the
SEC’s website at sec.gov.
Documents filed on the ASX or with the FCA or SEC are not
incorporated by reference into this report. The documents
referred to in this report as being available on our website,
woodside.com, are not incorporated by reference and do not
form part of this report.
WOODSIDE ENERGY GROUP LTD
Woodside was registered under Australian corporate law in 1971
and listed on the ASX on 18 November 1971. Woodside’s shares
are currently listed on the ASX and LSE under the ticker symbol
‘WDS’ and its American Depositary Shares (ADS) are listed on
the NYSE under the symbol ‘WDS’. Following the approval of
Woodside shareholders at Woodside’s Annual General Meeting
on 19 May 2022, Woodside changed its name from ‘Woodside
Petroleum Ltd.’ to ‘Woodside Energy Group Ltd’ effective
20 May 2022.
Woodside’s registered office is Mia Yellagonga, 11 Mount Street,
Perth, Western Australia 6000, Australia, telephone
+61 8 9348 4000. Additional information about Woodside
can be found on its website at woodside.com.
DIVIDEND PAYMENTS
Woodside determines its dividends in US dollars as this is
our functional and presentation currency. Woodside pays its
dividends in Australian dollars, unless a shareholder’s registered
address is in the United Kingdom (UK), where they are paid in
UK pounds sterling, or in the United States of America (USA),
where they are paid in US dollars, or in New Zealand (NZ), where
they are paid in NZ dolllars.
Shareholders may have their dividends paid directly into any bank
or building society account in Australia, the USA, the UK or NZ.
Payments are electronically credited on the dividend payment
date and confirmed by payment advice. To request direct crediting
of dividend payments, please contact the share registry or visit the
share registry website (investorcentre.com/wds).
Shareholders must make an election to alter their dividend
currency by the business day after the record date for the
dividend.
197
WOODSIDE ENERGY GROUP LTD LONDON STOCK EXCHANGE
Woodside shares are traded on the Main Market for listed
securities of the London Stock Exchange (with trades settled in
the form of UK Depository Interests) under the symbol ‘WDS’.
Woodside has appointed Computershare Investor Services PLC
as its registrar.
If you have a query regarding your shareholding, please contact
Computershare in the United Kingdom:
Computershare Investor Services Pty Limited
Postal address:
Computershare Investor Services PLC
The Pavilions, Bridgwater Road
Bristol BS99 6ZZ
Telephone:
+44 (0) 370 703 6075
Email:
Website:
WebCorres@computershare.co.uk
computershare.com/uk
AMERICAN DEPOSITARY RECEIPTS
We have an American Depositary Receipts (ADR) program. The
ADR program has a 1:1 ordinary share to American Depositary
Share (ADS) ratio.
Depositary fees
Citibank serves as the depositary bank for our ADR program.
ADR holders agree to the terms in the deposit agreement filed
with the SEC for depositing ADSs or surrendering the ADSs for
cancellation and for certain services as provided by Citibank.
Holders are required to pay all fees for general depositary
services provided by Citibank in each of our ADR programs, as
set forth in the table below.
Service
Fees
Issuance of ADSs upon deposit
of shares.
Up to $0.05 per ADS issued.
has further agreed to waive certain fees in connection with
Woodside’s ADR program. These waived expenses currently
include, but are not limited to, standard costs associated with
the administration of the ADR program and certain fees in
connection with issuance of ADRs under Woodside’s equity
compensatory plans. For the year ended 31 December 2023,
direct reimbursements and waived fees totalled approximately
US$1,633,000. Under certain circumstances, including
termination of our ADS program or removal of our Depositary,
we may be required to repay to the Depositary a portion of the
amounts reimbursed in prior periods.
The ADSs issued under our ADR programs trade on the NYSE
under the stock ticker WDS. As of 13 February 2024, there were
47,844,455 ADSs on issue and outstanding in the Woodside ADS
program.
ADR holders should deal directly with Citibank on all matters
related to their ADRs, using the details below.
Enquiries should be directed to:
Citibank Shareholder Services
Address:
PO Box 43077
Providence Rhode Island
02940-3077
USA Toll Free:
1-877-CITI-ADR
International:
+1 781 575 4555
Email:
citibank@shareholders-online.com
Investor Relations enquiries
Address:
Woodside Energy Group Ltd
Mia Yellagonga
11 Mount Street
Perth WA 6000
Postal address:
GPO Box D188 Perth WA 6840
Cancellation of ADSs.
Up to $0.05 per ADS cancelled.
Telephone:
+61 8 9348 4000
Up to $0.05 per ADS held.
Up to $0.05 per ADS held.
Email:
Website:
investor@woodside.com
woodside.com
Distribution of cash dividends or
other cash distributions.
Distribution of securities other
than ADSs or rights to purchase
additional ADSs.
ADS Services.
Up to $0.05 per ADS held on
the applicable record date(s)
established by the Depositary.
Registration of ADS transfers.
Up to $0.05 per ADS transferred.
Conversion of ADSs of one series
for ADSs of another series.
Up to $0.05 per ADS converted.
FEES PAYABLE BY THE DEPOSITARY TO THE
ISSUER
Citibank reimburses Woodside for certain expenses Woodside
incurs in connection with its ADR program, subject to certain
ceilings. These reimbursable expenses currently include, but
are not limited to, legal, accounting and reserve engineer fees,
listing fees, expenses related to investor relations in the United
States, fees payable to service providers for the distribution of
material to ADR holders and expenses to remain in compliance
with applicable US laws and NYSE listing standards. Citibank
198
EXCHANGE CONTROLS
Under Australian foreign exchange controls currently in effect,
transfers of capital to and from Australia are not subject to prior
government approval and, except as described below, Australia
does not restrict the flow of currency into or out of the country.
Regulations may be made under the Anti-Money Laundering
and Counter-Terrorism Financing Act 2006 (Cth) of Australia
(AML/CTF Act) prohibiting the entering into of transactions
involving prescribed foreign countries. As of the date of this
report, no such regulations are in place. To control tax evasion
and money laundering, the AML/CTF Act also requires certain
transactions to be reported to the Australian Transaction Reports
and Analysis Centre (AUSTRAC) and prohibits reporting entities
from providing certain ‘designated services’ to customers
without having complied with certain obligations under the
AML/CTF Act (for example ‘know your customer’ checks). In
addition, the Financial Transaction Reports Act 1988 (Cth) (FTR
Act) imposes certain obligations on solicitors and ‘cash dealers’
to report ‘significant cash transactions’. The Autonomous
ANNUAL REPORT 2023 Sanctions Regulations 2011 (Cth) promulgated under the
Autonomous Sanctions Act 2011 (Cth) of Australia, the Charter
of the United Nations Act 1945 (Cth) of Australia and other
acts and regulations in Australia restrict or prohibit payments,
transactions or other dealings with assets having a proscribed
connection with certain countries or named individuals or
entities subject to financial sanctions or identified with terrorism.
The Australian Department of Foreign Affairs and Trade (DFAT)
maintains a list of all persons and entities subject to financial
sanctions or having a proscribed connection with terrorism
which is available to the public at DFAT’s website. There are
no specific restrictions regarding the remittance of profits,
dividends or capital.
TAXATION
This section describes the material United States and Australian
Federal income tax consequences to a US holder (as defined
below) of owning shares or ADSs (together, ‘Woodside
Securities’). It applies to you only if you acquire your shares or
ADSs and you hold your shares or ADSs as capital assets for
tax purposes. This discussion addresses only United States and
Australian Federal income taxation and does not discuss all of
the tax consequences that may be relevant to you in light of
your individual circumstances, including foreign, state or local
tax consequences, estate and gift tax consequences, and tax
consequences arising under the Medicare contribution tax on net
investment income or the alternative minimum tax. This section
does not apply to you if you are a member of a special class of
holders subject to special rules, including:
• a dealer in securities,
• a trader in securities that elects to use a mark-to-market
method of accounting for securities holdings,
• a tax-exempt organisation,
• a life insurance company,
• a person that actually or constructively owns 10% or more of
the combined voting power of our voting stock or of the total
value of our stock,
• a person that holds shares or ADSs as part of a straddle or a
hedging or conversion transaction,
• a person that purchases or sells shares or ADSs as part of a
wash sale for tax purposes, or
• a person whose functional currency is not the US dollar.
This section is based on the Internal Revenue Code of 1986,
as amended, its legislative history, existing and proposed
regulations, published rulings and court decisions, all as
currently in effect, as well as on the Convention Between
the United States of America and Australia (the ‘Treaty’).
These authorities are subject to change, possibly on a
retroactive basis. In addition, this section is based in part upon
the representations of the Depositary and the assumption that
each obligation in the Deposit Agreement will be performed
in accordance with its terms.
You are a US holder if you are a beneficial owner of shares
or ADSs and you are, for United States Federal income tax
purposes:
• a citizen or resident of the United States,
• a domestic corporation,
• an estate whose income is subject to United States Federal
income tax regardless of its source, or
• a trust if a United States court can exercise primary
supervision over the trust’s administration and one or more
United States persons are authorised to control all substantial
decisions of the trust.
If an entity or arrangement that is treated as a partnership for
United States Federal income tax purposes holds the shares
or ADSs, the United States Federal income tax treatment of a
partner will generally depend on the status of the partner and
the tax treatment of the partnership. A partner in a partnership
holding the shares or ADSs should consult its tax advisor with
regard to the United States Federal income tax treatment of an
investment in the shares or ADSs.
You should consult your own tax advisor regarding the United
States Federal, state and local and Australian Federal tax
consequences of owning and disposing of shares and ADSs in
your particular circumstances. In particular, you should confirm
whether you qualify for the benefits of the Treaty and the
consequences of failing to do so.
In general, and taking into account the earlier assumptions, for
United States Federal income tax purposes, if you hold ADRs
evidencing ADSs, you will be treated as the owner of the shares
represented by those ADRs.
Exchanges of shares for ADRs, and ADRs for shares, generally
will not be subject to United States Federal income tax.
Material United States Federal Income Tax
Consequences
The tax treatment of your shares or ADSs will depend in part on
whether or not we are classified as a passive foreign investment
company, or PFIC, for United States Federal income tax
purposes. Except as discussed below under ‘PFIC Classification’,
this discussion assumes that we are not classified as a PFIC for
United States Federal income tax purposes.
Taxation of Distributions
Under the United States Federal income tax laws, the gross
amount of any distribution we pay out of our current or
accumulated earnings and profits (as determined for United
States Federal income tax purposes), other than certain pro-rata
distributions of our shares, will be treated as a dividend that
is subject to United States Federal income taxation. If you are
a non-corporate US holder, dividends that constitute qualified
dividend income will be taxable to you at the preferential rates
applicable to long-term capital gains provided that you hold the
shares or ADSs for more than 60 days during the 121-day period
beginning 60 days before the ex-dividend date and meet other
holding period requirements.
Dividends we pay with respect to the shares or ADSs generally
will be qualified dividend income provided that, in the year that
you receive the dividend, we are eligible for the benefits of the
Treaty. We believe that we are currently eligible for the benefits
of the Treaty and we therefore expect that dividends on the
shares and ADS will be qualified dividend income, but there
can be no assurance that we will continue to be eligible for the
benefits of the Treaty.
You must include any Australian tax withheld from the dividend
payment in this gross amount even though you do not in fact
receive it. The dividend is taxable to you when you, in the case
199
WOODSIDE ENERGY GROUP LTD of shares, or the Depositary, in the case of ADSs, receive the
dividend, actually or constructively. The dividend will not be
eligible for the dividends-received deduction generally allowed
to United States corporations in respect of dividends received
from other United States corporations. The amount of the
dividend distribution that you must include in your income will
be the US dollar value of the Australian dollar payments made,
determined at the spot Australian dollar/US dollar rate on the date
the dividend is distributed, regardless of whether the payment
is in fact converted into US dollars. Generally, any gain or loss
resulting from currency exchange fluctuations during the period
from the date the dividend is distributed to the date you convert
the payment into US dollars will be treated as ordinary income
or loss and will not be eligible for the special tax rate applicable
to qualified dividend income. The gain or loss generally will be
income or loss from sources within the United States for foreign
tax credit limitation purposes. Distributions in excess of current
and accumulated earnings and profits, as determined for United
States Federal income tax purposes, will be treated as a non-
taxable return of capital to the extent of your basis in the shares
or ADSs and thereafter as capital gain. However, we do not expect
to calculate earnings and profits in accordance with United States
Federal income tax principles. Accordingly, you should expect to
generally treat distributions we make as dividends.
Subject to certain limitations, the Australian tax withheld in
accordance with the Treaty and paid over to Australia will
generally be creditable against your United States Federal
income tax liability. To the extent a reduction or refund of the tax
withheld is available to you under Australian law or under the
Treaty, the amount of tax withheld that could have been reduced
or that is refundable will not be eligible for credit against your
United States Federal income tax liability.
Dividends will generally be income from sources outside the
United States and will generally be ‘passive’ income for purposes
of computing the foreign tax credit allowable to you.
Taxation of Capital Gains
If you are a US holder and you sell or otherwise dispose of your
shares or ADSs, you will recognise capital gain or loss for United
States Federal income tax purposes equal to the difference
between the US dollar value of the amount that you realise and
your tax basis, determined in US dollars, in your shares or ADSs.
Your tax basis would generally equal the cost of your shares or
ADSs, or if you received the shares or ADSs pursuant to a taxable
distribution, the fair market value of the shares or ADSs at the
time of such distribution, reduced by any distributions on the
shares or ADSs that were treated as a return of capital for United
States Federal income tax purposes. Capital gain of a non-
corporate US holder is generally taxed at preferential rates where
the property is held for more than one year. The gain or loss
will generally be income or loss from sources within the United
States for foreign tax credit limitation purposes. Your ability to
deduct capital losses is subject to limitations.
PFIC Classification
We believe that we should not be currently classified as a PFIC
for United States Federal income tax purposes and we do not
expect to become a PFIC in the foreseeable future. However, this
conclusion is a factual determination that is made annually and
thus may be subject to change. It is therefore possible that we
could become a PFIC in a future taxable year.
In general, we will be a PFIC in a taxable year if:
• at least 75% of our gross income for the taxable year is passive
income; or
• at least 50% of the value, determined on the basis of a
quarterly average, of our assets in such taxable year is
attributable to assets that produce or are held for the
production of passive income.
If we were to be treated as a PFIC and you are a US holder, gain
realised on the sale or other disposition of your shares or ADSs
would in general not be treated as capital gain. Instead, you
would generally be treated as if you had realised such gain and
certain ‘excess distributions’ ratably over your holding period for
the shares or ADSs and would be taxed at the highest tax rate
in effect for each previous year to which the gain was allocated
in which we were a PFIC with respect to you, together with
an interest charge in respect of the tax attributable to each
such year. With certain exceptions, your shares or ADSs will be
treated as stock in a PFIC if we were a PFIC at any time during
your holding period in your shares or ADSs. Dividends that
you receive from us will not be eligible for the special tax rates
applicable to qualified dividend income if we are a PFIC or are
treated as a PFIC with respect to you either in the taxable year of
the distribution or the preceding taxable year, but instead will be
taxable at rates applicable to ordinary income. If you own shares
or ADSs during any year that we are a PFIC with respect to you,
you may be required to file Internal Revenue Service (‘IRS’) Form
8621.
Material Australian tax considerations
This section is based on the Income Tax Assessment Act
1936 (Cth) and the Income Tax Assessment Act 1997 (Cth),
as amended, its legislative history, existing and proposed
regulations, published rulings and court decisions, all as currently
in effect, as well as on the Convention Between the United States
of America and Australia (the ‘Treaty’). These authorities are
subject to change, possibly on a retroactive basis.
Dividends (including other distributions treated as dividends
for Australian tax purposes) paid by Woodside to a US Holder
that is not an Australian resident for Australian tax purposes will
generally not be subject to Australian withholding tax if they are
fully franked (broadly, where a dividend is franked, tax paid by
Woodside is imputed to the shareholders).
200
ANNUAL REPORT 2023 Dividends paid to such US Holders, which are not fully franked, will
generally be subject to Australian withholding tax not exceeding
15% only to the extent (if any) that the dividend is neither:
• franked; nor
• declared by Woodside to be conduit foreign income. (Broadly,
this means that the relevant part of the dividend is declared
to have been paid out of foreign source amounts received
by Woodside that are not subject to tax in Australia, such as
dividends remitted to Australia by foreign subsidiaries).
The Australian withholding tax outcome described above
applies to US Holders who are eligible for benefits under the Tax
Convention between Australia and the US as to the Avoidance of
Double Taxation (the Australian Tax Treaty). Otherwise, the rate
of Australian withholding tax may be 30%.
In contrast, dividends (including other distributions treated as
dividends for Australian tax purposes) paid by Woodside to a
US Holder may instead by taxed by assessment in Australia if
the US Holder:
• is an Australian resident for Australian tax purposes (although
tax will generally not exceed 15% where the US Holder is
eligible for benefits under the Australian Tax Treaty as a treaty
resident of the US and any franking credits may be creditable
against their Australian income tax liability); or
• carries on business in Australia through a permanent
establishment as defined in the Australian Tax Treaty, or
performs personal services from a fixed base in Australia, and
the shareholding in respect of which the dividend is paid is
effectively connected with that permanent establishment or
fixed base, (however, in such a case any franking credits may
be creditable against the Australian income tax liability).
The treatment of dividends outlined above may be modified
where the shareholding in Woodside is held through a trust,
limited partnership, limited liability company, pension fund,
sovereign wealth fund or other investment vehicle. Affected
US Holders should seek their own advice in relation to such
arrangements.
Material Australian tax considerations—disposals
of Woodside Securities
Gains made by US Holders on the sale of Woodside Securities
will generally not be taxed in Australia.
However, the precise Australian tax treatment of gains made
by US Holders on the sale of Woodside Securities generally
depends on whether or not the gain is an Australian sourced
gain of an income nature for Australian income tax purposes.
Where the gain is of an income nature, a US Holder will generally
only be liable to Australian income tax on an assessment
basis (whether or not they are also an Australian resident for
Australian tax purposes) if:
• they are not eligible for benefits under the Australian Tax
Treaty and the gain is sourced in Australia for Australian tax
purposes; or
• they are eligible for benefits under the Australian Tax Treaty
but the gain constitutes any of the following (in which case the
gain will be deemed to have an Australian source):
› business profits of an enterprise attributable to a permanent
establishment situated in Australia through which the
enterprise carries on business in Australia; or
›
›
income or gains from the alienation of property that form
part of the business property of a permanent establishment
of an enterprise that the US Holder has in Australia, or
pertain to a fixed base available to the US Holder in Australia
for the purpose of performing independent personal
services; or
income derived from the disposition of shares in a company,
the assets of which consist wholly or principally of real
property (which includes rights to exploit or to explore
for nature resources) situated in Australia, whether such
assets are held directly or indirectly through one or more
interposed entities.
Where the gain is not taxed as Australian sourced income, the
US Holder will generally only be liable to Australian capital gains
tax on an assessment basis if they acquired (or are deemed to
have acquired) their Woodside Securities after 19 September
1985 and one or more of the following applies:
• the US Holder is an Australian resident for Australian tax
purposes; or
• the Woodside Securities have been used by the US Holder in
carrying on a business through permanent establishment in
Australia; or
• the Woodside Securities constitute an ‘indirect Australian
real properly interest’ for Australian CGT purposes – this will
generally be the case if the US Holder (either alone or together
with associates) directly or indirectly owns or owned 10% or
more of the issued share capital of Woodside at the time of
disposal or throughout a 12-month period during the two years
prior to the time of disposal and, at the time of the disposal,
the sum of market values of Woodside’s assets (held directly
or through interposed entities) that are not taxable Australian
real property at that time (which, for these purposes includes
mining, quarrying or prospecting rights in respect of minerals,
petroleum or quarry materials situated in Australia); or
• the US Holder is an individual who is not eligible for benefits
under the Australian Tax Treaty as a treaty resident of the
US and elected on becoming a non-resident of Australia to
continue to have the Woodside Securities subject to Australian
capital gains tax.
In certain circumstances, if the Woodside Securities constitute
an ‘indirect Australian real property interest’ for Australian CGT
purposes, the purchaser may be required to withhold under
the non-resident CGT withholding regime an amount equal to
12.5% of the purchase price in situations including where the
acquisition is undertaken by way of an off-market transfer. It has
been announced this withholding rate will be increased to 15% in
respect of sale contracts entered into on or after 1 January 2025.
Affected US Holders should seek their own advice in relation to
how this withholding regime may apply to them.
The comments above on the sale of Woodside Securities do not
apply:
• to temporary residents of Australia who should seek advice
that is specific to their circumstances; or
• if the Investment Management Regime (IMR) applies to the
US Holder, which exempts from the Australian income tax and
capital gains tax gains made on disposal by certain categories of
non-resident funds – called IMR entities – of (relevantly) portfolio
interests in Australian public companies (subject to a number of
conditions). The IMR exemptions broadly apply to widely held
201
WOODSIDE ENERGY GROUP LTD EVENTS CALENDAR 2024
Key calendar dates for Woodside shareholders in 2024.
Please note dates are subject to review.
27
27
27
27
7
8
4
19
24
30
23
27
16
Full-Year 2023 results and briefing
Annual Report 2023
US Annual Report 2023 (Form 20-F)
Climate Transition Action Plan and 2023
Progress Report
Ex-dividend date for dividend entitlement
Record date for dividend entitlements
Payment date
First quarter 2024 results
Annual General Meeting
Half-Year end 2024
Second quarter 2024 results
Half-Year 2024 results
Third quarter 2024 results
Investor Briefing Day 2024
31
Year-end 2024
February
March
April
June
July
August
October
November
December
IMR entities in relation to their direct investments and indirect
investments made through an independent Australian fund
manager. The exemptions apply to gains made by IMR entities
that are treated as companies for Australian tax purposes as well
as gains made by non-resident investors in IMR entities that are
treated as trusts and partnerships for Australian tax purposes.
THE FOREGOING DISCUSSION IS NOT TAX ADVICE OR A
COMPREHENSIVE DISCUSSION OF ALL US AND AUSTRALIAN
FEDERAL INCOME TAX CONSEQUENCES TO US HOLDERS OF
WOODSIDE SECURITIES. SUCH HOLDERS SHOULD CONSULT
WITH, AND RELY SOLELY UPON, THEIR OWN TAX ADVISERS
TO DETERMINE THE SPECIFIC TAX CONSEQUENCES TO THEM
OF THE OWNERSHIP AND DISPOSITION OF WOODSIDE
SECURITIES, INCLUDING THE EFFECT OF ANY US FEDERAL,
STATE, LOCAL, NON-US, OR OTHER TAX LAWS.
KEY ANNOUNCEMENTS 2023
January
Fourth quarter 2022 results
Annual General Meeting 2023
Line-item guidance and other items
Full-Year 2022 results
US Annual Report 2022 (Form 20-F)
Sustainable Development Report 2022
Climate Report 2022
Changes to Woodside Board
First quarter 2023 results
Appointment – Executive Vice President
Australian Operations
Fatality at North Rankin Complex
Woodside approves investment in Trion
development
Report on payments to governments 2022
Sangomar project update
Second quarter 2023 results
Woodside to sell 10% Scarborough interest
to LNG Japan
Half-Year 2023 results
Trion receives regulatory approval
Third quarter 2023 report
Investor Briefing Day 2023
Woodside and Mexico Pacific sign
LNG supply agreement
Response to media speculation
Fourth quarter 2023 report
Appointment of Director and changes
to Committee Membership
Woodside concludes discussions with Santos
Woodside releases Reserves Statement
and financial updates
Woodside to sell 15.1% Scarborough
interest to JERA
February
March
April
June
July
August
October
November
December
January 2024
February 2024
202
ANNUAL REPORT 2023 6.5
ADDITIONAL INFORMATION
Asset facts
PRODUCING FACILITIES
Australia
Asset
Role
Pluto LNG
Operator
Equity
90%
Infrastructure
Pluto LNG Plant
(onshore gas plant)
North West
Shelf1
Operator
33.33%
Wheatstone2
Non-Operator
13%
Pluto Platform
(steel jacket fixed platform)
Karratha Gas Plant
(onshore gas plant)
North Rankin Complex
(steel jacket fixed platform)
Goodwyn A Platform
(steel jacket fixed platform)
Angel Platform
(steel jacket fixed platform)
Wheatstone LNG Plant
(onshore gas plant)
Wheatstone Platform
(steel gravity structure platform)
Okha FPSO
Operator
50%
FPSO
Ngujima-Yin
FPSO
Operator
60%
FPSO
Capacity (100% project)
Product
LNG: 4.9 Mtpa
Domestic gas: 25 TJ/d
Condensate: 1,140 tonnes/d
LNG, pipeline gas
and condensate
Dry gas: 1,320 MMscf/d
Gas and condensate
LNG: 16.9 Mtpa
Domestic Gas: 630 TJ/d
Condensate: 14,385 tonnes/d
LNG, pipeline gas,
condensate and
NGLs
Dry gas: 60,000 tonnes/d
Gas and condensate
Condensate: 6,200 tonnes/d
Dry gas: 38,000 tonnes/d
Gas and condensate
Condensate: 18,000 tonnes/d
Dry gas: 21,500 tonnes/d
Gas and condensate
Condensate: 8,600 Sm3/d
LNG: 8.9 Mtpa
Domestic gas: 215 TJ/d
Condensate: 8,661 Sm3/d
LNG, pipeline gas
and condensate
Dry gas: 1,970 MMscf/d
Gas and condensate
Condensate: 8,600 Sm3/d
Oil: 60,000 bbl/d
Gas: 82 MMscf/d
Oil: 120,000 bbl/d
Crude oil
Crude oil
Crude oil, pipeline
gas, condensate
and NGLs
Bass Strait
Non-Operator
50%
Longford (onshore gas plant)
Gas: 1,040 TJ/d
Long Island Point (onshore
processing and storage plant)
Crude oil and condensate:
65,000 bbl/d
Liquefied petroleum gas:
5,150 tonnes/d
Ethane: 850 tonnes/d
Barracouta (steel jacket platform
and West Barracouta subsea
tieback)
Snapper (steel jacket platform)
Marlin/Turrum
(steel jacket platform)
Tuna/West Tuna
(steel jacket platform and concrete
gravity structure)
Oil Block (3 steel jacket platforms)
32.5%
Kipper
(subsea tieback to West Tuna)
Pyrenees FPSO Operator
40-71.4%
FPSO
Oil: 96,000 bbl/d
Macedon
Operator
71.4%
Onshore single-train gas plant
Gas: 220 MMscf/d
Crude oil
Pipeline gas
Condensate: 110 bbl/d
1 The North West Shelf consists of a number of active joint ventures. Woodside’s participating interest is 33.33% in all of these apart from the NWS joint ventures with CNOOC. Woodside’s participating
interest in the CLNG JV is 25% and in the Extended Interest JVs is 31.567%.
2 The Wheatstone assets process gas from several offshore gas fields, including the Julimar and Brunello fields, for which Woodside has a 65% participating interest and is the operator.
203203
6.2 WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD International
Asset
Greater
Angostura
Role
Operator
Equity
45%
68.46%
Infrastructure
Capacity (100% project)
Product
Angostura – Block 2(c)
(central processing platform)
Ruby – Block 3(a)
(well protector platform)
Oil: 100,000 bbl/d
Gas: 340 MMscf/d
Crude oil and pipeline
gas
Greater Shenzi
Operator
72%
Tension leg platform
Atlantis
Non-operator
44%
Semi-submersible FPU
Oil: 100,000 bbl/d
Gas: 50 MMscf/d
Oil: 200,000 bbl/d
Gas: 180 MMscf/d
Mad Dog
Non-operator
23.9%
Phase 1 (A-spar) Truss spar
Oil: 100,000 bbl/d
Phase 2 (Argos)
semi-submersible FPU
Gas: 60 MMscf/d
Oil: 140,000 bbl/d
Gas: 75 MMscf/d
Crude oil, pipeline
gas, condensate
and NGLs
Crude oil, pipeline
gas, condensate
and NGLs
Crude oil, pipeline
gas, condensate
and NGLs
Crude oil, pipeline
gas, condensate
and NGLs
PROJECTS
Post FID
Asset
Role
Scarborough
Operator
Sangomar
Trion
Operator
Operator
Equity
100%1
51%
82%
60%
Infrastructure
Capacity (100% project)
Product
Semi-submersible FPU
Dry gas: 1,750 MMscf/d
Pluto Train 2
(onshore gas plant)
FPSO
Semi-submersible FPU
LNG: 5.0 Mtpa
Domestic gas: 225 TJ/d
Oil: 100,000 bbl/d
Oil: 100,000 bbl/d
LNG, pipeline gas
and condensate
Crude oil
Crude oil
1
Following completion of the transactions with LNG Japan and JERA, Woodside will hold a 74.9% interest in the Scarborough Joint Venture and remain as operator. Completion is targeted for the
first quarter of 2024 for the transaction with LNG Japan and the second half of 2024 for the transaction with JERA.
DEVELOPMENTS
Asset
Calypso
Browse
Greater Scarborough1
Liard
Sunrise
Role
Operator
Operator
Operator
Non-operator
Operator
1 Greater Scarborough includes the Jupiter and Thebe fields.
NEW ENERGY OPPORTUNITIES1
Asset
H2OK
H2Perth
Hydrogen Refueller @H2Perth
H2TAS
Woodside Solar
Role
Operator
Operator
Operator
Operator
Proponent2
Equity
70%
30.6%
100%
50%
33.44%
Equity
100%
100%
100%
100%
100%
Product
Gas
LNG, pipeline gas and condensate
Gas
Gas
LNG, pipeline gas and condensate
Product
Hydrogen
Hydrogen and ammonia
Hydrogen
Hydrogen and ammonia
Solar energy
Southern Green Hydrogen3
Preferred partner
-
Hydrogen and ammonia
Capella project
Non-operating partner N/A
Solar energy
1 Subject to FID and regulatory approvals.
2 Solar generation, battery services and transmission access and services will be supplied to Woodside under contracts with third parties.
3 Woodside’s equity in Southern Green Hydrogen is subject to finalising commercial agreements.
204
ANNUAL REPORT 2023 GREENHOUSE GAS ASSESSMENT PERMITS
Asset
Australia
Permit
G-7-AP
Role
Joint Venture
Comment
Non-operator
Bonaparte CCS Assessment Joint Venture
G-8-AP
Operator
Browse Joint Venture
G-10-AP
Operator
Angel CCS Joint Venture
Located in the Bonaparte Basin off the north-
western coast of the Northern Territory
For carbon capture and storage evaluation
for Browse
Located in the Northern Carnarvon Basin off
the north west coast of Western Australia
EXPLORATION
Country
Asia-Pacific
Australia
Myanmar1
Europe
Ireland
Africa
Senegal
Congo
Egypt
Caribbean
Barbados
Latin America
Permit
WA-356-P
WA-536-P
WA-550-P
NT/P86
WA-404-P
WA-28-P
WA-93-R
WA-94-R
A-7
AD-7
AD-1
AD-8
Role
Equity
Product
Operator
Operator
Operator
Operator
Operator
Operator
Operator
Operator
Operator
65%
65%
100%
100%
100%
15.78%
70%
70%
Relinquished,
formalities pending
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Gas prone basin
Non-operator Relinquished,
Gas prone basin
Joint
operator
Joint
operator
formalities pending
Relinquished,
formalities pending
Relinquished,
formalities pending
Gas prone basin
Gas prone basin
FEL 5/13
Operator
Exit initiated
Oil or gas prone basin
Rufisque, Sangomar and Sangomar Deep
Operator
90% - Exit initiated
Oil prone basin
Marine XX
Red Sea Block 1
Red Sea Block 3
Red Sea Block 4
Non-operator
22.5%
Non-operator
45%
Non-operator
30%
Non-operator
25%
Herodotus Block 2 – North Sidi Barani
Non-operator
27%
Herodotus Block 4 – North El Dabaa
Non-operator
27%
Oil or gas prone basin
Oil or gas prone basin
Oil and gas prone basin
Oil and gas prone basin
Oil and gas prone basin
Oil and gas prone basin
Carlisle Bay, Bimshire
Operator
60%
Oil or gas prone basin
Peru
108
Non-operator
Exit initiated
Oil or gas prone basin
1 Woodside announced its decision to withdraw from its interests in Myanmar on 27 January 2022.
205
WOODSIDE ENERGY GROUP LTD Country
Permit
Role
Equity
Product
North America
US Gulf of Mexico
GB 640, GB 641, GB 685, GB 555, GB 726, GB 770,
GB 771, GB 604, GB 605, GB 647, GB 648, GB 772,
GB 728, GB 729, GB 773, GB 774, GB 421, GB 464,
GB 465, GB 508, GB 509, GC 598
Non-operator
40%
Oil prone basin
GB 574, GB 575, GB 619, GB 529, GB 530, GB 531
Operator
GB 630, GB 501, GB 502, GB 545, GB 676, GB 677,
GB 719, GB 720, GB 721, GB 762, GB 753, GB 805,
GB 806, GB 807, GB 851, GB 852, GB 895, GB 672,
GB 716, GB 760
Operator
40%
60%
GC 282, GC 237
GC 210, GC 211, GB 663, GB 664, GB 678
EB 655, EB 656, EB 699, EB 700, EB 701,
AC 34, AC 36, AC 78, AC 80,
EB 566, EB 567, EB 610, EB 611, EB 914
AC 81, AC 82, AC 125, AC 126
MC 798, MC 842
GC 679, GC 768
GC 238
Non-operator
50%
Operator
Operator
100%
70%
Operator
45%
Non-operator
45%
Non-operator
45%
Non-operator
60%
MC 368, MC 369, MC 411, MC 412, MC 455, MC 456
Non-operator
25%
GC 80, GC 123, GC 124, GC 168
GC 738, GC 870
GC 480, GC 436
AT 228, AT 273, AT 274, AT 409, AT 452, AT 453,
AT 454, AT 424, AT 425, AT 469, AT 470
Operator
75%
Non-operator
23.9%
Non-operator
44%
Non-operator
30%
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
Oil prone basin
206
ANNUAL REPORT 2023 6.6
ADDITIONAL INFORMATION
Alternative performance measures
Certain parts of this report contain financial measures that
are not defined in, and have not been prepared in accordance
with, IFRS and are not recognised measures of financial
performance or liquidity under IFRS. In addition to the financial
information contained in this report presented in accordance
with IFRS, certain ‘non-IFRS financial measures’ (which also
constitute non-GAAP financial measures as defined in Item
10(e) of Regulation S-K under the US Securities Act on 1933,
as amended) have been included in this report. These measures
include EBIT, EBITDA, EBITDA excluding impairment, Gearing,
Underlying NPAT, Net debt, Free cash flow, Operating cash
flow, Capital expenditure, Exploration expenditure, return on
equity and return on average capital employed. Net tangible
assets, Net tangible asset per ordinary security. These non-
IFRS financial measures are defined in section 6.7 - Glossary,
units of measure and conversion factors. This section provides
a reconciliation of these measures to the most directly
comparable financial measure calculated and presented in
accordance with IFRS in Woodside’s Financial Statements.
Woodside’s management uses these measures to monitor
Woodside’s financial performance alongside IFRS measures to
improve the comparability of information between reporting
periods and business units and Woodside believes that the
non-IFRS financial measures it presents provide a useful means
through which to examine the underlying performance of its
business. Undue reliance should not be placed on the non-
IFRS financial measures contained in this report. The non-IFRS
financial measures should be considered in addition to, and not
as a substitute for or alternative to, or as superior to, measures of
financial performance, financial position or cash flows reported
in accordance with, or other figures determined in accordance
with IFRS. Non-IFRS financial measures are not uniformly
defined by all companies, including those in Woodside’s industry.
Accordingly, such measures may not be comparable with
similarly titled measures and disclosures by other companies.
Although certain non-IFRS data has been extracted or derived
from Woodside’s Financial Statements, this data has not been
audited or reviewed by Woodside’s independent auditors.
You are urged to read carefully the audited Full-year Financial
Statements and related notes thereto.
DEFINITION AND CALCULATION OF NON-IFRS FINANCIAL INFORMATION
Non-IFRS financial
information
EBIT
EBITDA excluding
impairment
Underlying NPAT
Capital and
exploration
expenditure
Capital expenditure
Exploration
expenditure
Free cash flow
Why is the non-IFRS financial information useful
Used to assess the Group’s operational profitability excluding net finance costs
and taxation expense. This assists management in tracking the performance of
the Group from its operations only.
Used to assess the Group’s operational profitability excluding net finance
costs, taxation expense, depreciation and amortisation and impairment losses/
reversals. This measure assesses the performance of the Group’s segments and
aids decision making of resource allocation.
Used to assess the Group’s financial performance by excluding the impacts of
exceptional items. This measure indicates the performance from the Group’s
core operations only and is used by management to aid decision making of
resource allocation.
Calculation methodology
Calculated as profit before income tax, PRRT and net
finance costs.
Calculated as profit before income tax, PRRT, net finance
costs, depreciation and amortisation, impairment losses,
impairment reversals.
Net profit after tax from the Group’s operations excluding any
exceptional items (refer to the reconciliation in this section for
the list of specific items for each financial year).
Used to assess efficient deployment of capital for oil and gas properties,
evaluation capitalised and exploration and evaluation expenditure. Management
uses this measure as support for decision making to maintain and improve
productive capacity.
Includes capital additions on oil and gas properties,
evaluation capitalised and exploration and evaluation
expenditure less amortisation of licence acquisition costs
and prior year exploration expense written off.
Used to assess efficient deployment of capital for oil and gas properties and
evaluation capitalised. Management uses this measure as support for decision
making to maintain and improve productive capacity.
Includes capital additions on oil and gas properties and
evaluation capitalised.
Used to assess efficient deployment of capital for exploration and evaluation
expenditure. Management uses this measure as support for decision making to
maintain and improve productive capacity.
Includes exploration and evaluation expenditure less
amortisation of licence acquisition costs and prior year
exploration expense written off.
Used to evaluate the cash available for financing activities, including shareholder
distributions and debt servicing, after investment in maintaining and growing
the Group’s operations. This measure is used as a key indicator of the level of
cash the Group has at its disposal.
Cash flow from operating activities and cash flow from
investing activities.
Net debt
Net debt measures how the Group manages our balance sheet and capital
structure. Management uses this measure to track the level of debt of the Group.
Interest-bearing liabilities and lease liabilities less cash and
cash equivalents.
Net tangible assets
Used to assess the Group’s net assets (excluding intangible) to assess how much
risk the Group carries in liquidity, solvency and assets for financing purposes.
The Group’s net assets less goodwill, non-controlling interest
and intangible assets.
Net tangible assets
per ordinary security
Used by management to assess the Group’s investment strategy in comparison
to the Group’s share price.
Net tangible assets divided by the number of issued and
fully paid shares.
Gearing
Return on equity
Return on average
capital employed
Used to monitor the Group’s net debt relative to the Group’s total net debt and
equity. This measure assists management in monitoring the Group’s leverage.
Net debt divided by the total of net debt and equity
attributable to equity holders of the parent.
Used to measure the Group’s earnings as a percentage of shareholders’
investments.
Net profit after tax from the Group’s operations divided by
equity attributable to equity holders of the parent.
Used to assess the efficiency of the Group’s utilisation of the capital employed.
Profit before tax and net finance costs dividend by the total
average non-current liabilities and equity attributable to
equity holders of the parent.
207207
6.2 WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD APMs derived from Consolidated Income Statement
EBIT/EBITDA excluding impairment
Net profit after tax
Adjusted for:
Finance income
Finance costs
PRRT expense/(benefit)
Income tax expense
EBIT
Adjusted for:
Oil and gas properties depreciation and amortisation
Amortisation of licence acquisition costs
Depreciation of lease assets
Depreciation of other plant and equipment
Impairment losses
Impairment reversals
EBITDA excluding impairment
Underlying NPAT
Net profit/(loss) after tax attributable to equity holders of the parent
Adjusted for the following exceptional items:
Add: Impairment losses (post-tax)
Add: Reduction in Pluto PRRT (post-tax)
Add: Merger transaction costs
Add: Orphan Basin exit fee
Add: Myanmar exit
Add: Kitimat exit costs
Add: Joint venture recoveries
Less: Trion DTA recognition
Less: Derecognition of the Corpus Christi onerous contract provision
Less: Impairment reversal (post-tax)
Less: Pluto PRRT DTA recognition
Less: Pluto price adjustment
Underlying NPAT
APMs derived from Consolidated Cash Flow Statement and Other Notes
Capital expenditure1
Capital additions on evaluation
Capital additions on oil and gas properties
Capital additions on other1
Capital expenditure
Exploration expenditure
Exploration and evaluation expenditure
Adjusted for:
Amortisation expense
Prior year expense written off
Exploration capitalised
Exploration expenditure
Capital and exploration expenditure
Free cash flow
Cash flow from operating activities
Cash flow used in investing activities
Free cash flow
2023
US$m
1,722
(273)
307
898
653
3,307
3,956
4
179
-
1,917
-
9,363
1,660
1,533
446
-
-
-
-
-
(319)
-
-
-
-
3,320
2023
US$m
163
5,317
256
5,736
360
(4)
(77)
88
367
6,103
6,145
(5,585)
560
2022
US$m
6,575
(155)
167
(313)
2,912
9,186
2,798
10
140
-
-
(900)
11,234
2021
US$m
2,036
(27)
230
297
957
3,493
1,549
3
108
30
10
(1,058)
4,135
6,498
1,983
-
-
419
142
-
-
-
-
(245)
(630)
(954)
-
5,230
2022
US$m
119
3,904
92
4,115
470
(10)
(164)
122
418
4,533
8,811
(2,265)
6,546
-
-
-
-
209
33
4
-
-
(582)
-
(27)
1,620
2021
US$m
453
2,178
-
2,631
322
(3)
(265)
42
96
2,727
3,792
(2,941)
851
1
Includes capital additions on other corporate spend. The 2022 amounts have been restated to be presented on the same basis. The 2021 capital expenditure information has not been restated to
include other corporate spend.
208
ANNUAL REPORT 2023 2023
US$m
35,170
(3,995)
(771)
(187)
30,217
2022
US$m
37,127
(4,614)
(791)
(55)
31,667
2021
US$m
14,229
-
(786)
(2)
13,441
1,898,749,771
1,898,749,771
969,631,826
15.91
16.68
13.86
APMs derived from Consolidated Balance Sheet
Net tangible assets per ordinary security
Net assets
Adjusted for:
Goodwill
Non-controlling interest
Intangible assets
Net tangible assets
Number of issued and fully paid shares
Net tangible assets per ordinary security
Gearing
Interest-bearing liabilities (Current and non-current)1
Lease liabilities (Current and non-current)
Adjusted for:
Cash and cash equivalents
Add: restricted cash
Net debt
Equity attributable to equity holders of the parent
Total net debt and equity attributable to equity holders of the parent
Gearing (%)
1 The 2023 balance agrees to Note C.2 which includes capitalised costs to be amortised within the next 12 months.
4,874
1,615
(1,740)
-
4,749
34,399
39,148
12.1
APMs derived from Consolidated Income Statement and Consolidated Balance Sheet
Return on equity
Net profit/(loss) after tax attributable to equity holders of the parent
Equity attributable to equity holders of the parent
Return on equity (%)
Return on average capital employed
Profit before tax and net finance costs
Opening non-current liabilities
Closing non-current liabilities
Average non-current liabilities
Opening equity attributable to equity holders of the parent
Closing equity attributable to equity holders of the parent
Average equity attributable to equity holders of the parent
Total average non-current liabilities and equity attributable to equity
holders of the parent
Return on average capital employed (%)
2023
US$m
1,660
34,399
4.8
3,307
15,586
15,209
15,398
36,336
34,399
35,368
50,766
6.5
5,138
1,634
(6,201)
12
583
36,336
36,919
1.6
2022
US$m
6,498
36,336
17.9
9,186
9,623
15,586
12,605
13,443
36,336
24,890
37,495
24.5
5,430
1,367
(3,025)
-
3,772
13,443
17,215
21.9
2021
US$m
1,983
13,443
14.8
3,493
9,654
9,623
9,639
12,075
13,443
12,759
22,398
15.6
209
WOODSIDE ENERGY GROUP LTD 6.7
ADDITIONAL INFORMATION
Glossary, units of measure
and conversion factors
GLOSSARY
Term
$, $m
1P
2C
2P
A$
Definition
US dollars unless otherwise stated, millions of dollars
Term
COP28
Proved reserves
Best Estimate of Contingent resources
Proved plus Probable reserves
Australian dollars
Abate/abatement
Avoidance, reduction or removal of an amount of carbon
dioxide or equivalent.
Decarbonisation
Definition
The 28th Conference of the Parties to the United Nations
Framework Convention on Climate Change, meeting in
Dubai, UAE, November - December 2023.
Condensate
Hydrocarbons that are gaseous in a reservoir but that
condense to form liquids as they rise to the surface.
cps
Cents per share
DRP
EBIT
Woodside uses this term to describe activities or
pathways that have the effect of moving towards a state
that is lower carbon, as defined in this glossary.
Dividend reinvestment plan
Calculated as profit before income tax, PRRT and net
finance costs.
EBITDA excluding
impairment
Calculated as profit before income tax, PRRT, net finance
costs, depreciation and amortisation, impairment losses,
impairment reversals.
Emissions
Environmental
incident
Emissions refers to emissions of greenhouse gases unless
otherwise stated.
Environmental incidents involving hydrocarbon and
hazardous non hydrocarbon spills of greater than
1 bbl released to the environment.
EPS
Earnings per share
Equity greenhouse
gas emissions
Woodside sets its Scope 1 and 2 greenhouse gas
emissions reduction targets on an equity basis. This
ensures that the scope of its emissions reduction targets
is aligned with its economic interest in its investments.
Equity emissions reflect the greenhouse gas emissions
from operations according to Woodside’s share of equity
in the operation. Its equity share of an operation reflects
its economic interest in the operation, which is the extent
of rights it has to the risks and rewards flowing from
the operation.3
Exploration
expenditure
Includes exploration and evaluation expenditure less
amortisation of licence acquisition costs and prior year
exploration expense written off.
FEED
Front-end engineering design
First Nations and
Indigenous Peoples
FID
Flaring
FPIC
FPSO
FPU
First Nations people are the Indigenous people, or earliest
known inhabitants, of a country. A First Nations person
is a person of Indigenous decent, who identifies as a
First Nations person and is accepted by their respective
community.
NOTE: We acknowledge the diversity of the First Nations
communities in the areas where we are present. When
communicating with a wide audience, Woodside uses the
term Indigenous and First Nations interchangeably. On a
local level, Woodside will be guided by the community as
to the appropriate terms of reference.
Final investment decision
The controlled burning of gas found in oil and gas
reservoirs.
Free, Prior and Informed Consent. For further
information, please see Woodside’s First Nations
Communities Policy.
Floating production storage and offloading
Floating production unit
ADR
Aspiration
American Depository Receipts
Woodside uses this term to describe an aspiration to seek
the achievement of an outcome but where achievement
of the outcome is subject to material uncertainties and
contingencies such that Woodside considers there is not
yet a suitable defined plan or pathway to achieve that
outcome.
ASX
Australian Securities Exchange
Biodiversity
Board
Brent
Biological diversity means the variability among living
organisms from all sources including, inter alia, terrestrial,
marine and other aquatic ecosystems and the ecological
complexes of which they are a part; this includes diversity
within species, between species and of ecosystems.1
The Board of Directors of Woodside Energy Group Ltd
Intercontinental Exchange (ICE) Brent Crude deliverable
futures contract (oil price)
Capital expenditure
Includes capital additions on oil and gas properties
and evaluation capitalised.
Carbon credit
Carbon Credit
Integrity
A tradable financial instrument that is issued by a
carbon-crediting program. A carbon credit represents a
greenhouse gas emission reduction to, or removal from,
the atmosphere equivalent to 1 tCO₂-e, calculated as
the difference in emissions from a baseline scenario to a
project scenario. Carbon credits are uniquely serialised,
issued, tracked and retired or administratively cancelled
by means of an electronic registry operated by an
administrative body, such as a carbon-crediting program.
Woodside assesses Greenhouse gas integrity (abatement
that is measurable, verifiable and has a low risk of
being inaccurate, non-additional or impermanent) and
Environmental, Social and Governance integrity (guided
by positive (or no negative) impacts on people and the
environment; and appropriate governance measures to
prevent adverse consequences and impacts).
CCS
CCU
Carbon capture and storage
Carbon capture and utilisation, also referred to as
carbon-to-products
CCUS
Carbon capture utilisation and storage
Cetaceans
Includes whales, dolphins, and porpoises
CHF
CO₂
CO₂-e
210210
Swiss francs
Carbon dioxide
CO₂ equivalent. The universal unit of measurement to
indicate the global warming potential of each of the
seven greenhouse gases, expressed in terms of the global
warming potential of one unit of carbon dioxide. It is
used to evaluate releasing (or avoiding releasing) any
greenhouse gas against a common basis.2
6.1 ANNUAL REPORT 2023ANNUAL REPORT 2023 Term
Definition
Term
Definition
Frequency rates
Frequency rates are calculated per million work hours.
Free cash flow
Cash flow from operating activities and cash flow
from investing activities.
Gearing
Net debt divided by the total of net debt and equity
attributable to equity holders of the parent.
Lower carbon
economy
Lower carbon
portfolio
GHG or
greenhouse gas
The seven greenhouse gases listed in the Kyoto Protocol
are: carbon dioxide (CO₂); methane (CH₄); nitrous oxide
(N₂O); hydrofluorocarbons (HFCs); nitrogen trifluoride
(NF3); perfluorocarbons (PFCs); and sulphur hexafluoride
(SF6).2
Goal
Woodside uses this term to broadly encompass its
targets and aspirations.
Lower carbon
power
A lower carbon economy is an economy that produces
lower levels of greenhouse gas emissions relative to
today’s economy.
For Woodside, a lower carbon portfolio is one from which
the net equity Scope 1 and 2 greenhouse gas emissions,
which includes the use of offsets, are being reduced
towards targets, and into which new energy products and
lower carbon services are planned to be introduced as a
complement to existing and new investments in oil and
gas. Our Climate Policy sets out the principles that we
believe will assist us achieve this aim.
Lower carbon power comes from processes or
technologies that produce electricity with a lower
greenhouse gas emissions intensity relative to electricity
produced from a higher emissions intensity source.
Gross greenhouse
gas emissions
Also referred to as ‘absolute’ emissions, gross emissions
are emissions before any eligible units and certificates
have been accounted for.4
Gross margin
Gross profit divided by operating revenue. Gross
profit excludes income tax, PRRT, net finance costs,
other income and other expenses.
GWF
H1, H2
Greater Western Flank
Halves of the calendar year (H1 is 1 January to 30 June
and H2 is 1 July to 31 December).
Hierarchy of controls The hierarchy of controls is a method of identifying and
ranking safeguards to protect workers from hazards.
They are arranged from the most to least effective and
include elimination (physically removing the hazard),
substitution (replacing the hazard), engineering controls
(isolating people from the hazard), administrative
controls (changing the way people work) and personal
protective equipment (to protect workers directly).
Work-related injury that results in a fatality or in an
injury from which the worker cannot, does not, or is
not expected to recover fully to pre-injury health status
within six months.
Health, safety and environment
International Financial Reporting Standards
Is one, or more, of the following: an unplanned release
of energy that actually resulted in injury, occupational
illness, environmental harm or damage to assets, a
near miss, damage or potential damage to company
reputation, breach of regulatory compliance and/or
legislation, security breach (including cybersecurity
breach).
Includes capital expenditure and exploration expenditure
Internal rate of return
The Japan Customs-cleared Crude is the average price of
customs-cleared crude oil imports into Japan as reported
in customs statistics (also known as ‘Japanese Crude
Cocktail’) and is used as a reference price for long-term
supply LNG contracts.
Joint venture
Karratha Gas Plant
Total cash and cash equivalents and available undrawn
debt facilities.
High-consequence
work-related injury
HSE
IFRS
Incident
Capital and
exploration
expenditure
IRR
JCC
JV
KGP
Liquidity
LNG
Liquified natural gas
Loss of primary
containment (LOPC)
An unplanned or uncontrolled release of any material
from primary containment, including non-toxic and
non-flammable materials (e.g. steam, hot condensate,
nitrogen, compressed CO₂ or compressed air).
Lower carbon
Woodside uses this term to describe the characteristic of
having lower levels of associated potential GHG emissions
when compared to historical and/or current conventions
or analogues, for example relating to an otherwise similar
resource, process, production facility, product or service,
or activity. When applied to Woodside’s strategy, please
see the definition of lower carbon portfolio.
Lower carbon
services
Woodside uses this term to describe technologies, such
as CCUS or offsets, that may be capable of reducing the
net greenhouse gas emissions of our customers.
LSE
London Stock Exchange
Major environmental
incidents
Unplanned or undesired event resulting in a moderate,
medium-term impact on ecosystems, species,
habitat or physical or biological attributes.
Net debt
Interest-bearing liabilities and lease liabilities less cash
and cash equivalents.
Net equity
greenhouse gas
emissions
Net greenhouse
gas emissions
Net profit
attributable to
equity holders
of the parent
Woodside’s equity share of net greenhouse gas
emissions.
Woodside has set its Scope 1 and 2 greenhouse gas
emissions reduction targets on a net basis, allowing for
both direct emissions reductions from its operations
and emissions reduction achieved from the utilisation
of carbon credits as offsets (including credits relating
to avoidance, reduction and / or removal activities). Net
greenhouse gas emissions are equal to an entity’s gross
greenhouse gas emissions reduced by the number of
retired carbon credits.4
Net profit after tax excluding non-controlling interests
from the Group’s operations.
Net tangible assets
The Group’s net assets less goodwill, non-controlling
interest and intangible assets.
Net tangible assets
per ordinary security
Net tangible assets divided by the number of issued
and fully paid shares.
Net zero
New energy
NGLs
NPAT
NWS
NYSE
Offsets
Net zero emissions are achieved when anthropogenic
emissions of greenhouse gases to the atmosphere are
balanced by anthropogenic removals over a specified
period. Where multiple greenhouse gases are involved,
the quantification of net zero emissions depends on
the climate metric chosen to compare emissions of
different gases (such as global warming potential, global
temperature change potential, and others, as well as the
chosen time horizon).5
Woodside uses this term to describe energy
technologies, such as hydrogen and ammonia, that are
emerging in scale but which are expected to grow during
the energy transition due to having lower greenhouse
gas emissions at the point of use than conventional fossil
fuels.
Natural gas liquids
Net profit after tax
North West Shelf
New York Stock Exchange
The compensation for an entity’s greenhouse gas
emissions within its scope by achieving an equivalent
amount of emission reductions or removals outside the
boundary or value chain of that entity.
211
WOODSIDE ENERGY GROUP LTD Definition
Term
Definition
Term
Offtake
Operator, Operated
and non-operated
Paris aligned
scenarios
Potential risks
PRRT
PSC
PSE
Residual levels
of emissions
Retire, Retirement
Offtake refers to the agreement between a seller and
a buyer for the purchase and delivery of a product,
typically a commodity or energy resource.
Scope 3 GHG
emissions
Oil and gas join venture participants will typically appoint
one company as the operator, which will hold the
contractual authority to manage joint venture activities
on behalf of the joint venture participants. Where
Woodside is the operator of a joint venture in which
it holds an equity share, this report refers to that joint
venture as being operated. Where another company is
the operator of a joint venture in which Woodside holds
an equity share, this report refers to that joint venture as
being non-operated.
Consistent with limiting global warming to below 2°C
above pre-industrial levels and pursuing efforts to limit
warming to 1.5°C.2
This is an environmental, social or governance related-
risk, that if it occurs over the next 12 months, could cause
an actual or a perceived negative impact on the business
or on our activities.
Petroleum resources rent tax
Production sharing contract
Process safety event
Residual levels of emissions denotes the goal of reducing
emissions as much as possible, taking into account both
technological capabilities and commercial feasibility,
towards a level that approaches but does not reach zero.
The transfer of a carbon credit to a registry account that
permanently removes the carbon credit from circulation.
The term retirement applies to the use of the carbon
credit by an entity to meet voluntary commitments or
compliance obligations.
Short- and
long-term
Starting base
Sustainably
(including
sustainable
and sustainably)
Revenue from
ordinary activities
Revenue from the sale of hydrocarbons, processing and
services revenue and shipping and other revenue.
Ready for start-up
Rufisque Offshore, Sangomar Offshore and Sangomar
Deep Offshore.
Target
Other indirect GHG emissions. Scope 3 is a reporting
category that allows for the treatment of all other indirect
emissions. Scope 3 emissions are a consequence of the
activities of the company but occur from sources not
owned or controlled by the company. Some examples
of Scope 3 activities are extraction and production of
purchased materials; transportation of purchased fuels;
and use of sold products and services. Please refer to the
data table on page 72 of the Climate Transition Action
Plan and 2023 Progress Report for further information on
the Scope 3 emissions categories reported by Woodside.3
This report refers to ranges of time as follows: short-term
means from now until 2025, long-term means 2046
and beyond.
Woodside uses a starting base of 6.32 Mt CO₂-e which is
representative of the gross annual average equity Scope
1 and 2 greenhouse gas emissions over 2016-2020 and
which may be adjusted (up or down) for potential equity
changes in producing or sanctioned assets with a final
investment decision prior to 2021. Net equity emissions
include the utilisation of carbon credits as offsets.
References to sustainability (including sustainable and
sustainably) are used with reference to Woodside’s
Sustainability Committee and sustainability related Board
policies, as well as in the context of Woodside’s aim
to ensure its business is sustainable from a long-term
perspective, considering a range of factors including
economic (including being able to sustain our business
in the long term by being low cost and profitable),
environmental (including considering our environmental
impact and striving for a lower carbon portfolio), social
(including supporting our license to operate), and
regulatory (including ongoing compliance with relevant
legal obligations). Use of the terms ‘sustainability’,
‘sustainable’ and ‘sustainably’ is not intended to imply
that Woodside will have no adverse impact on the
economy, environment, or society, or that Woodside will
achieve any particular economic, environmental, or social
outcomes.
Woodside uses this term to describe an intention to
seek the achievement of an outcome, where Woodside
considers that it has developed a suitably defined plan
or pathway to achieve that outcome.
Taskforce on Climate-related Financial Disclosures.
For more information see www.fsb-tcfd.org/about
A typical Tier 1 process safety event is loss of
containment of hydrocarbons greater than 500 kg (in any
one-hour period).
A typical Tier 2 process safety event is loss of
containment of hydrocarbons greater than 50 kg but less
than 500 kg (in any one-hour period).
TCFD
Tier 1 PSE
Tier 2 PSE
Direct GHG emissions. These occur from sources that
are owned or controlled by the company, for example,
emissions from combustion in owned or controlled
boilers, furnaces, vehicles, etc.; emissions from chemical
production in owned or controlled process equipment.
Woodside estimates greenhouse gas emissions, energy
values and global warming potentials are estimated in
accordance with the relevant reporting regulations in the
jurisdiction where the emissions occur (e.g. Australian
national Greenhouse and Energy Reporting (nGER), US
EPA Greenhouse Gas Reporting Program (GHGRP)).
Australian regulatory reporting principles have been used
for emissions in jurisdictions where regulations do not
yet exist.3
Electricity indirect GHG emissions. Scope 2 accounts
for GHG emissions from the generation of purchased
electricity consumed by the company. Purchased
electricity is defined as electricity that is purchased or
otherwise brought into the organisational boundary
of the company. Scope 2 emissions physically occur at
the facility where electricity is generated. Woodside
estimates greenhouse gas emissions, energy values
and global warming potentials are estimated in
accordance with the relevant reporting regulations in the
jurisdiction where the emissions occur (e.g. Australian
national Greenhouse and Energy Reporting (nGER), US
EPA Greenhouse Gas Reporting Program (GHGRP)).
Australian regulatory reporting principles have been used
for emissions in jurisdictions where regulations do not
yet exist.3
Total recordable
injury rate (TRIR)
The number of recordable injuries (fatalities + lost
work day cases + restricted workday cases + medical
treatment cases + permanent partial disability) per
million work hours.
Traditional Owners
and Custodians
Members of the local Indigenous group with traditional
rights and responsibilities in relation to the land and
water in which we operate.
Transition case
Woodside uses this term to refer to the methodology
Woodside applies to helps us manage risk by screening
investment opportunities across a range of climate-
related factors.
Underlying NPAT
Net profit after tax from the Group’s operations excluding
any exceptional items
Unit production
costs
Production costs ($ million) divided by production
volume (MMboe)
US, USA
USD, US$
WA
United States of America
US dollars
Western Australia
RFSU
RSSD
Scope 1 GHG
emissions
Scope 2 GHG
emissions
212
ANNUAL REPORT 2023 1 UNEP, 1992. “Convention on Biological Diversity” https://www.cbd.int/doc/legal/cbd-en.pdf.
2 See IFRS Foundation 2021: Climate Related Disclosures Prototype. Appendix A. The IFRS
UNITS OF MEASURE
published a further consultation document subsequent to the 2021 prototype. As it did not
contain a updated definition of Paris-Aligned scenarios Woodside has retained use of the
previous edition.
3 World Resources Institute and World Business Council for Sustainable Development 2004.
“GHG Protocol: a corporate accounting and reporting standard”.
4 Definition as per the Australian Clean Energy Regulator https://www.cleanenergyregulator.
5
gov.au/Infohub/Markets/cert-report/cert-report-2023/cert-2023-glossary
IPCC, 2018: Annex I: Glossary [Matthews, J.B.R. (ed.)]. In: Global Warming of 1.5°C. An
IPCC Special Report on the impacts of global warming of 1.5°C above pre-industrial levels
and related global greenhouse gas emission pathways, in the context of strengthening
the global response to the threat of climate change, sustainable development, and efforts
to eradicate poverty [Masson-Delmotte, V., P. Zhai, H.-O. Pörtner, D. Roberts, J. Skea, P.R.
Shukla, A. Pirani, W. Moufouma-Okia, C. Péan, R. Pidcock, S. Connors, J.B.R. Matthews,
Y. Chen, X. Zhou, M.I. Gomis, E. Lonnoy, T. Maycock, M. Tignor, and T. Waterfield (eds.)].
Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 541-562. https://doi.
org/10.1017/9781009157940.008.
Term
Definition
bbl
bcf
boe
boe/d
CO₂-e
GJ
GW
km
m
m3
Mbbl
Mboe
MMboe
MMBtu
MMscf
Mtpa
MW
scf
Sm3
TJ
tpd
barrel
billion cubic feet of gas
barrel of oil equivalent
barrels of oil equivalent
carbon dioxide equivalent
gigajoule
gigawatt
kilometre
metre
cubic metre
thousand barrels
thousand barrels of oil equivalent
million barrels of oil equivalent
million British thermal units
million standard cubic feet of gas
million tonnes per annum
megawatt
standard cubic feet of gas
Standard cubic metre
terajoule
tonnes per day
CONVERSION FACTORS
Product
Natural gas
Condensate
Oil
Natural gas liquids
(NGL)
Unit
5,700 SCF
1 bbl
1 bbl
1 bbl
Conversion factor
1 boe
1 boe
1 boe
1 boe
Unit
1 tonne
1 tonne
1 tonne
Facility
LNG conversion factor
Karratha Gas Plant
8.08 boe
Pluto Gas Plant
Wheatstone
8.34 boe
8.27 boe
213
WOODSIDE ENERGY GROUP LTD 6.8
ADDITIONAL INFORMATION
Information
about this report
UNREASONABLE PREJUDICE
As permitted by sections 299(3) and 299A(3) of the
Corporations Act 2001, we have omitted certain information
from our operating and financial review and Directors’ report
in relation to our business strategy, future prospects and likely
developments in our operations and the expected results of
those operations in future financial years. We have done this
on the basis that such information, if disclosed, would be likely
to result in unreasonable prejudice to Woodside (for example,
because the information is premature, commercially sensitive,
confidential or could give a third-party a commercial advantage).
The omitted information relates to our internal budgets,
forecasts and estimates, details of our business strategy, and
LNG contractual pricing.
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements with respect to
Woodside’s business and operations, market conditions, results
of operations and financial condition, including, for example, but
not limited to, outcomes of transactions, statements regarding
long-term demand for Woodside’s products, development,
completion and execution of Woodside’s projects, expectations
regarding future capital expenditures, the payment of future
dividends and the amount thereof, future results of projects,
operating activities and new energy products, expectations
and plans for renewables production capacity and investments
in, and development of, renewables projects, expectations and
guidance with respect to production, capital and exploration
expenditure and gas hub exposure, and expectations regarding
the achievement of Woodside’s net equity Scope 1 and 2
greenhouse gas emissions reduction and new energy investment
targets and other climate and sustainability goals.
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’, ‘aspire’, ‘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 report are not guidance,
forecasts, guarantees or predictions of future events or
performance, but are in the nature of future expectations
that are based on management’s current expectations and
assumptions.
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
214214
factors, many of which are beyond the control of Woodside, its
related bodies corporate and their respective officers, directors,
employees, advisers or representatives.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements
include, but are not limited to, fluctuations in commodity prices,
actual demand for Woodside products, currency fluctuations,
geotechnical factors, drilling and production results, gas
commercialisation, development progress, operating results,
engineering estimates, reserve and resource estimates, loss
of market, industry competition, environmental risks, climate
related risks, physical risks, legislative, fiscal and regulatory
developments, changes in accounting standards, economic
and financial markets conditions in various countries and
regions, political risks, the actions of third parties, project delay
or advancement, regulatory approvals, the impact of armed
conflict and political instability (such as the ongoing conflict
in Ukraine) on economic activity and oil and gas supply and
demand, cost estimates, the effect of future regulatory or
legislative actions on Woodside or the industries in which it
operates, including potential changes to tax laws, the impact
of general economic conditions, inflationary conditions,
prevailing exchange rates and interest rates and conditions
in financial markets, and risks associated with acquisitions,
mergers and joint ventures, including difficulties integrating
businesses, uncertainty associated with financial projections,
restructuring, increased costs and adverse tax consequences,
and uncertainties and liabilities associated with acquired and
divested properties and businesses.
A more detailed summary of the key risks relating to Woodside
and its business can be found in section 3.9 - Risk factors. You
should review and have regard to these risks when considering
the information contained in this report.
If any of the assumptions on which a forward-looking statement
is based were to change or be found to be incorrect, this would
likely cause outcomes to differ from the statements made in
this report.
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. None of Woodside nor any
of its related bodies corporate, nor any of their respective
officers, directors, employees, advisers or representatives, nor
any person named in this report or involved in the preparation
of the information in this report, makes any representation,
assurance, guarantee or warranty (either express or implied) as
to the accuracy or likelihood of fulfilment of any forward-looking
statement, or any outcomes, events or results expressed or
implied in any forward-looking statement in this report.
ANNUAL REPORT 2023ANNUAL REPORT 2023 All forward-looking statements contained in this report reflect
Woodside’s views held as at the date of this report and, except
as required by applicable law, neither Woodside, its related
bodies corporate, nor any of their respective officers, directors,
employees, advisers or representatives intends to, undertakes to,
or assumes any obligation to, provide any additional information
or update or revise any of these statements after the date of
this report, either to make them conform to actual results or as a
result of new information, future events, changes in Woodside’s
expectations or otherwise.
Past performance (including historical financial and operational
information) is given for illustrative purposes only. It should
not be relied on as, and is not necessarily, a reliable indicator of
future performance, including future security prices.
CLIMATE STRATEGY AND EMISSIONS DATA
All greenhouse gas emissions data in this report are estimates,
due to the inherent uncertainty and limitations in measuring or
quantifying greenhouse gas emissions, and our methodologies
for measuring or quantifying greenhouse gas emissions may
evolve as best practices continue to develop and data quality
and quantity continue to improve.
Woodside ‘greenhouse gas’ or ‘emissions’ information reported
are net equity Scope 1 GHG emissions, Scope 2 GHG emissions,
and/or Scope 3 GHG emissions, as the context requires.
The glossary and footnotes to this report provide further
clarification of ‘lower carbon’ where applicable. Woodside uses
the term ‘lower-carbon services’ to describe technologies, such
as CCUS or offsets, that may be capable of reducing the net
greenhouse gas emissions of our customers.
For more information on Woodside’s climate strategy, including
references to ‘lower carbon’ as part of that strategy, and
emissions data refer to Woodside’s Climate Transition Action
Plan and 2023 Progress Report available at woodside.com.
INDUSTRY AND MARKET DATA
This report contains industry, market and competitive position
data based on industry publications and studies conducted
by third parties, as well as Woodside’s internal estimates and
research. These industry publications and third-party studies
generally state that the information they contain has been
obtained from sources believed to be reliable, although they do
not guarantee the accuracy or completeness of such information.
While Woodside believes that each of these publications and
third-party studies is reliable and has been prepared by a
reputable source, Woodside has not independently verified
the market and industry data obtained from these third-party
sources and cannot guarantee the accuracy or completeness
of such data. Accordingly, undue reliance should not be placed
on any of the industry, market and competitive position data
contained in this report.
Forecasts and other forward-looking information obtained
from these sources are subject to the same qualifications and
uncertainties as the other forward-looking statements contained
in this report and may differ among third-party sources. These
forecasts and forward-looking information are subject to
uncertainty and risk due to a variety of factors, including those
described in section 3.9 - Risk factors and in this section, section
6.8 - Information about this report. These and other factors
could cause results to differ materially from those expressed in
Woodside’s forecasts or estimates or those of independent third
parties. While Woodside believes its internal research is reliable
and its selection of industry publications and third-party studies
and the description of its market and industry are appropriate,
neither such research nor these descriptions have been verified
by any independent source.
BASIS OF PRESENTATION
Woodside’s Financial Statements are prepared in accordance
with the Australian Accounting Standards and other
authoritative pronouncements of the Australian Accounting
Standards Board (AASB) and comply with the International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
OTHER IMPORTANT INFORMATION
In this report, references to a year are to the calendar and
financial year ended 31 December 2023 unless otherwise stated.
All references to dollars, cents of $ in this report are references
to US currency and are stated in Woodside share, unless
otherwise stated.
Unless otherwise stated, all Woodside results set out in this
Annual Report 2023 include the performance of the interests
acquired as part of the merger with BHP’s petroleum business
from 1 June 2022.
215
WOODSIDE ENERGY GROUP LTD 6.9
ADDITIONAL INFORMATION
Ten-year comparative data summary
Profit and loss
(USDm)1,2
Operating revenues
LNG
Pipeline gas
Natural gas liquids (NGLs)
Crude oil and condensate
Processing and services revenue
Trading revenue
Other hydrocarbon revenue
Shipping and other revenue
Total
EBITDAX excluding impairment
EBITDA excluding impairment
EBIT
Exploration and evaluation (excluding amortisation of permit
acquisition)
Depreciation and amortisation
Amortisation of licence acquisition costs
Impairment/impairment reversal
Net finance costs
Tax expense
Non-controlling interest
Reported NPAT
Reported EPS (cents)3
DPS (cents)
Total assets
Debt
Net debt
Shareholder equity (net of non-controlling interest)
Balance sheet
(USDm)2
Cashflow (USDm)
and capital
expenditure
(USDm)
Cash flow from
Operations
Investing
Financing
Volumes1
Capital expenditure4
ROACE5
Return on equity
Gearing
Sales (million boe)
LNG
Pipeline gas
NGLs
Crude oil and condensate
Total
Production (million boe)6
LNG
Pipeline gas
NGLs
Crude oil and condensate
Other data
Total (million boe)
Reserves (Proved plus Probable) Natural gas (Tcf)7
Reserves (Proved plus Probable) Crude oil and condensate
(MMbbl)7
Reserves (Proved plus Probable) NGLs (MMbbl)7
Other
Employees8
Shares
High (A$)
Low (A$)
Close (A$)
Number (000’s)
Number of shareholders9
Market capitalisation (USD equivalent at reporting date)
Market capitalisation (AUD equivalent at reporting date)
Finding costs ($/boe) (3-year average)10
Reported effective income tax rate (%)
Net debt/total market capitalisation (%)
2023
2022
2021
2020
20192
2018
20171
2016
2015
2014
8,165
1,374
281
3,981
184
-
-
9
13,994
9,719
9,363
3,307
11,289
5,359
2,519
3,664
3,761
2,674
2,751
3,095
1,362
206
3,758
175
-
-
27
16,817
11,694
11,234
9,186
43
60
1,316
143
-
-
41
6,962
4,454
4,135
3,493
73
16
843
142
-
-
7
85
44
946
119
-
-
15
89
25
952
202
210
1
-
153
43
813
192
53
47
-
303
34
715
202
70
-
-
3,600
1,991
1,922
(5,171)
4,873
3,680
3,531
1,091
5,240
4,041
3,814
2,278
3,975
3,095
2,918
1,714
4,075
3,004
2,734
1,388
296
34
1,071
180
354
-
-
5,030
3,443
3,063
441
4,563
377
80
2,056
198
161
-
-
7,435
5,853
5,568
3,672
356
460
319
69
149
227
177
270
380
285
4,135
4
1,917
34
1,551
62
1,660
88
140
55,361
6,498
4,749
34,399
2,938
10
(900)
12
2,599
77
6,498
430
253
59,321
6,772
583
36,336
1,687
3
(1,048)
203
1,254
53
1,983
206
135
26,474
6,797
3,772
13,443
1,812
12
5,269
269
(1,465)
53
(4,028)
(424)
38
24,623
7,492
3,888
12,075
1,688
15
737
229
480
39
343
37
91
29,353
6,849
2,791
16,617
1,451
46
39
183
628
103
1,364
148
144
27,088
4,071
2,397
17,489
1,188
16
-
84
465
96
1,069
123
98
25,399
5,065
4,747
15,081
1,320
26
-
48
367
105
868
104
83
24,753
4,973
4,688
14,839
1,517
22
1,083
85
243
87
26
3
109
23,839
4,441
4,319
14,226
1,441
21
434
163
993
102
2,414
293
255
24,082
2,586
(682)
15,876
6,145
(5,585)
8,811
(2,265)
3,792
(2,941)
1,849
(2,112)
3,305
(1,238)
3,296
(1,772)
2,400
(1,568)
2,587
(2,473)
2,475
(5,555)
4,785
(617)
(5,000)
(3,364)
(1,424)
(203)
317
(159)
(805)
51
(58)
(3,119)
5,736
6.5%
4.8%
12.1%
104.5
39.6
7.1
50.3
201.5
88.6
39.7
7.1
51.8
187.2
16.02
4,115
24.5%
17.9%
1.6%
96.6
28.4
4.6
39.3
168.9
85.1
28.6
5.3
38.7
157.7
16.43
2,638
15.6%
14.8%
21.9%
1,946
(21.0%)
(33.4%)
24.4%
91.2
2.5
0.7
17.2
111.6
70.8
2.5
0.5
17.3
91.1
11.67
81.2
5.3
0.4
19.9
106.8
75.0
5.3
0.5
19.5
100.3
4.50
1,192
4.1%
2.1%
14.4%
75.3
6.2
0.7
15.2
97.4
67.7
6.1
0.5
15.3
89.6
5.65
1,721
9.3%
7.8%
12.1%
69.6
5.8
0.4
13.4
89.2
71.9
5.8
0.6
13.1
91.4
6.05
1,367
7.4%
7.1%
23.9%
2,179
6.2%
5.8%
24.0%
5,614
2.0%
0.2%
23.3%
61.2
7.6
0.7
14.6
84.1
61.7
7.3
0.6
14.8
84.4
6.54
63.6
14.5
0.7
16.2
95.0
63.7
14.5
0.7
16.0
94.9
7.09
57.6
13.4
0.7
21.0
92.7
57.5
13.3
0.7
20.7
92.2
7.59
686
17.5%
15.2%
(4.5%)
58.3
13.3
0.8
20.8
93.2
60.3
13.3
0.8
20.7
95.1
6.65
908.7
710.6
244.4
250.7
222.4
175.9
186.9
198.6
176.1
171.2
37.1
48.0
-
-
-
-
-
-
-
-
4,667
39.00
29.53
31.06
4,376
39.16
21.93
35.44
1,898,750 1,898,750
649,871
45,759
67,292
9.78
30.7%
1.3%
620,891
40,168
58,975
10.19
27.5%
11.8%
3,684
27.40
19.20
21.93
969,632
261,019
15,948
21,264
14.65
32.0%
23.7%
3,670
36.14
15.27
22.74
962,226
276,431
16,817
21,881
30.44
20.5%
23.1%
3,834
37.40
30.49
34.38
942,287
220,065
22,666
32,396
21.71
57.2%
12.3%
3,662
39.00
28.45
31.32
936,152
209,753
20,681
29,320
29.90
31.7%
11.6%
3,597
33.97
28.16
33.08
842,445
209,383
21,762
27,868
26.21
34.0%
21.8%
3,511
31.88
23.94
31.16
842,445
214,350
18,922
26,251
39.06
35.9%
24.8%
3,456
38.33
26.20
28.72
823,911
225,138
17,250
23,663
107.45
49.8%
25.0%
3,803
44.23
33.71
38.01
823,911
227,798
25,664
31,317
44.09
30.1%
(2.7%)
1 2017 has been restated for the impact of AASB 15 Revenue from contracts with customers. Comparative financial information prior to 2016 has not been restated for AASB 15.
2 2019 includes the adoption of AASB 16 Leases.
3 Earnings per share has been calculated using the following weighted average number of shares (2023: 1,896,498,169, 2022: 1,511,257,404, 2021: 962,604,811; 2020: 951,113,086; 2019: 935,833,092; 2018:
921,165,018; 2017: 866,201,877; 2016: 835,011,896; 2015: 822,943,960; 2014: 822,771,118).
4 2023 and 2022 includes other corporate spend. The 2022 capital expenditure has been restated to reflect this. Information prior to 2022 is not available.
5 The calculation for ROACE has been revised in 2014 to use EBIT as the numerator, in addition to a change in the composition of capital employed. ROACE for 2013 has been restated to include this change.
6
Includes production of 186.1 MMboe (2022: 156.8 MMboe) from Woodside reserves and 1.1 MMboe (2022: 0.9 MMboe) from feed gas purchased from Pluto non-operating participants processed through
the Pluto-KGP Interconnector.
7 Reporting of reserves by product changed in 2022 to include natural gas; crude oil and condensate; NGLs. For years prior to 2022, NGLs were included in natural gas and crude oil and condensate
were reported separately. Years prior to 2022 have otherwise not been restated for any other changes in reporting methodology.
8 The number of employees for 2023 includes vacation students. Comparative information prior to 2023 has not been restated to include vacation students.
9 As per the date specified in the relevant Annual Report.
10 Finding cost methodology is in accordance with SEC industry standard. The 2020 outcome excludes the impact of Greater Pluto (WA-404-P) Proved (1P) Undeveloped Reserves of 91 MMboe to Best
Estimate (2C) being reclassified to Contingent Resources, resulting from impairment of Pluto (WA-404-P).
216216
ANNUAL REPORT 2023ANNUAL REPORT 2023 217217
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD 218218
ANNUAL REPORT 2023ANNUAL REPORT 2023 219219
WOODSIDE ENERGY GROUP LTD WOODSIDE ENERGY GROUP LTD Head Office
Woodside Energy Group Ltd
Mia Yellagonga
11 Mount Street
Perth WA 6000
Postal Address
GPO Box D188
Perth WA 6840
Australia
T +61 8 9348 4000
E companyinfo@woodside.com
Woodside Energy Group Ltd
ABN 55 004 898 962
woodside.com