INCORPORATING
APPENDIX 4E
Annual Report
Australia’s
leading energy
company
ANNUAL REPORT 2024
This Annual Report 2024 is a summary of Woodside’s operations
and activities for the 12-month period ended 31 December 2024
and financial position as of 31 December 2024. 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.
This report contains references to woodside.com. 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
conversion factors for definitions of terms used in this report.
On the cover
In late 2024, the Pluto Train 2 module program was successfully
completed, following the arrival of 51 modules, weighing a
combined 56,000 metric tonnes.
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.
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). Further details are available in 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.
SUSTAINABILITY
Sustainability considerations are factored into Woodside’s
business activities and investment decisions. Further information
regarding Woodside’s approach to sustainability and sustainability
performance is included in section 3.8 - Sustainability Report and
the sustainability section of our website.
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.
Significant progress on the Pluto Train 2 foundation as the Scarborough Energy Project prepares for first LNG cargo in 2026
Appendix 4E
2024
2023
Results for announcement to the market
Revenue from ordinary activities
Decreased 6% to US$13,179 million
US$13,994 million
Profit from ordinary activities after tax attributable to members
Increased 115% to US$3,573 million
US$1,660 million
Net profit for the period attributable to members
Increased 115% to US$3,573 million
US$1,660 million
Dividends
Amount
Franked amount per security
Final dividend (US cents per share)
Ordinary 53c
Ordinary 53c
Interim dividend (US cents per share)
Ordinary 69c
Ordinary 69c
None of the dividends are foreign sourced
Previous corresponding period:
Final dividend (US cents per share)
Ordinary 60c
Ordinary 60c
Interim dividend (US cents per share)
Ordinary 80c
Ordinary 80c
Ex-dividend date for final dividend (Australian Securities Exchange)
6 March 2025
Ex-dividend date for final dividend (New York Stock Exchange)
7 March 2025
Record date for determining entitlements to the final dividend
7 March 2025
Payment date for the final dividend
2 April 2025
31 December 2024
31 December 2023
Net tangible assets per ordinary security1,2
$16.10
$15.91
1. Includes lease assets of $1,291 million and lease liabilities of $1,623 million (2023: $1,230 million and $1,615 million) as a result of AASB 16 Leases.
2. Net tangible assets per ordinary security is a non-IFRS measure. Refer to section 6.6 - Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
In 2024, the Karratha Gas Plant in Western
Australia celebrated 40 years of operations
IV WOODSIDE ENERGY GROUP LTD
Contents
1. Overview
6
1.1 About Woodside
6
1.2 2024 summary
7
1.3 Chair’s report
10
1.4 Chief Executive Officer’s report
12
1.5 Global portfolio
14
2. Strategy and Financial Performance
16
2.1 Woodside’s strategy
17
2.2 Capital management
18
2.3 Financial overview
22
2.4 Energy markets
24
2.5 Business model and value chain
25
3. Our Business
27
3.1 Australian operations
27
3.2 International operations
30
3.3 Marketing and trading
32
3.4 Projects
34
3.5 Decommissioning
36
3.6 Developments and exploration
38
3.7 New energy opportunities
41
3.8 Sustainability Report
44
3.9 Risk factors
70
3.10 Reserves and Resources Statement
82
4. Governance
88
4.1 Corporate Governance Statement
88
Corporate governance at Woodside
89
Board of Directors
90
Board Committees
99
Executive Leadership Team
102
Promoting responsible and ethical behaviour
104
Risk management and internal control
106
Inclusion and diversity
108
Other governance disclosures
110
Shareholders
112
4.2 Directors’ report
113
4.3 Remuneration Report
118
5. Financial Statements
145
5.1 Financial Statements
145
6. Additional Information
215
6.1 Supplementary information on oil and gas - unaudited
215
6.2 Three-year financial analysis
221
6.3 Additional disclosures
225
6.4 Shareholder statistics
238
6.5 Asset facts
246
6.6 Alternative performance measures
250
6.7 Glossary, units of measure and conversion factors
254
6.8 Information about this report
258
6.9 Ten-year comparative data summary
260
2024 ANNUAL REPORT V
About Woodside
From our beginnings in Australia 70 years ago, we are now a global energy company
providing reliable and affordable energy to help people lead better lives.
1. Targets and aspiration are for net equity Scope 1 and 2 GHG 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 GHG 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.
Our strategy is to thrive through the energy transition by developing
a low-cost, lower-carbon, profitable, resilient and diversified
portfolio. This strategy is underpinned by three goals: providing
energy; creating and returning value to shareholders; and
conducting our business sustainably.
Driven by a spirit of innovation and determination, we established
the liquefied natural gas (LNG) industry in Australia in the 1980s
and remain one of the nation’s largest suppliers of LNG to major
regional trading partners.
We have safely and reliably delivered natural gas to homes and
businesses in Australia for decades and continue to provide reliable
energy to support Australia’s mining, manufacturing and electricity
sectors.
We are leveraging this track record of world-class project execution
and operational excellence as we build a diverse global portfolio to
meet the world’s growing energy needs.
We are executing major projects today, while pursuing growth
opportunities that will deliver long-term value for our shareholders.
We maintain a strong balance sheet and a disciplined investment
approach, focused on strategic rationale and financial returns.
We are playing our part in the global transition to a lower-carbon
future by supplying vital energy for the world’s needs today and
investing in new energy for tomorrow.
Our core product of LNG is expected to play a sustained role
through the energy transition. In particular, LNG can help
customers in major economies meet their energy security and
decarbonisation goals, including by displacing coal and backing up
and supplementing energy from renewable sources.
We are also investing in new products and services, such as lower-
carbon ammonia and carbon capture and storage (CCS), that can
help customers reduce or avoid their emissions.
We are on track to meeting our 2025 and 2030 net equity Scope
1 and 2 greenhouse gas (GHG) emissions targets, towards our
aspiration of net zero by 2050 or sooner.1
Our values guide all that we do and underpin our continued focus
on safety, environmental and social performance.
We are proud of our meaningful relationships with communities
and the significant contributions we make, our management of
biodiversity and the natural environment where we operate and
believe our skilled workforce provides the foundation to deliver
these outcomes.
Production increased from
Pluto LNG in Western Australia
1.1
6 WOODSIDE ENERGY GROUP LTD
6 WOODSIDE ENERGY GROUP LTD
Overview • About Woodside
2024 summary
FREE
CASH FLOW1
$0.1
BILLION
NET EQUITY SCOPE
1 AND 2 GHG EMISSIONS2
14%
BELOW STARTING BASE
UNDERLYING NET
PROFIT AFTER TAX1
$2.9
BILLION
DIVIDENDS
DETERMINED
$2.3
BILLION
NET PROFIT
AFTER TAX
$3.6
BILLION
DELIVERING OUR
COMMITMENTS
PRODUCTION
VOLUME
194
MMBOE
1.
Outstanding
performance of
world-class assets
delivering safe,
reliable operations
2.
Exceptional startup
and performance
at Sangomar,
achieving nameplate
capacity in July
2024
3.
Realised near-term
value and positioned
for long-term
profitability through
acquisition and
divestment activity
4.
On track to deliver
our net equity
Scope 1 and 2 GHG
emissions reduction
targets
1. 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.
2. Targets and aspiration are for net equity Scope 1 and 2 GHG 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 GHG 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
2024 ANNUAL REPORT 7
2024 ANNUAL REPORT 7
Overview • 2024 summary
CREATING VALUE
We delivered a reported NPAT of
$3,573 million, reflecting our strong
operational performance amid a lower
pricing environment.
Our full-year fully franked total dividend
was 122 US cps which represents
approximately 80% of underlying NPAT,
the top end of our targeted dividend
payout range.
FINANCIAL STRENGTH
Our gearing of 17.9% is within our target
gearing range of 10-20%.
Net debt increased in line with planned
major capital expenditure and strategic
acquisitions.
We maintained our investment grade
credit rating and ended the period with
liquidity of $6.7 billion.
OUTSTANDING OPERATIONS
We maintained world-class reliability
of 97.8% at our operated LNG assets.
Our production cost decreased in 2024 as
there was reduced turnaround activity.
We achieved a 14% reduction in our net
equity Scope 1 & 2 emissions reductions.2
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
$ million
MMboe
%
Tier 1 and 2 Process Safety Events
$ million
%
Gearing1
LNG reliability
Operating revenue
Production
Liquidity1
Process safety events
1. 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.
2. Targets and aspiration are for net equity Scope 1 and 2 GHG 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 GHG 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.
3,600
100.3
97.6
1
2
6,704
24.4
6,962
91.1
97.7
0
6,125
21.9
16,817
157.7
98.5
1
1
10,239
1.6
13,994
187.2
98.0
2
7,790
12.1
13,179
193.9
97.8
2
6,723
17.9
Tier 1
Tier 2
8 WOODSIDE ENERGY GROUP LTD
FULL YEAR DIVIDEND
122
US CPS
EARNINGS PER SHARE
188.5
US CPS
BBB+
S&P GLOBAL
BAA1
MOODY’S
RETURN ON EQUITY1
10.1%
RETURN ON AVERAGE
CAPITAL EMPLOYED1
8.7%
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2022
2023
2024
2025
2030
target
target
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
$ million
Dividends
per share
(US cps)
$ million
Mt CO2-e
Unit production
cost ($/boe)
$ million
$ million
Net debt1
Production cost
Dividends determined
Earning before income tax, deprecation
and amortisation (EBITDA) excluding
impairment1
Shareholder outcomes
Credit ratings
Net equity Scope 1 and 2 emissions2
All footnotes related to this page are displayed on the previous page.
363
38
1,922
5.60
3,888
478
4.8
1,307
135
4,135
5.53
3,772
481
5.3
4,179
625
253
11,234
5.44
583
1,281
8.1
2,658
140
9,363
5.37
4,749
1,562
8.3
122
2,316
9,276
4.43
7,697
1,579
8.1
Allowance for BHP asset emissions (pre-merger)
BHP merger completion payment
2024 ANNUAL REPORT 9
Chair’s
report
Supplying the world with reliable,
affordable and lower-carbon energy is
one of the great global challenges of
our time.
Woodside is accepting this challenge in a way that keeps our people
safe, delivers value to our stakeholders and positions our business
to thrive through the energy transition.
Creating and returning value
Our shareholders continue to benefit from the Board’s track
record of disciplined investment decisions and strategic oversight
of Woodside’s outstanding project delivery and operational
performance.
In 2024 we delivered an annual net profit after tax (NPAT) of
$3.6 billion and underlying NPAT of $2.9 billion. Based on this, the
Board has determined a fully franked final dividend of 53 US cents
per share, resulting in a total full-year dividend of 122 US cents
per share.
Woodside’s success also positively impacts a broad range of
stakeholders who benefit from the substantial economic and social
contributions flowing from our activities. In 2024, we spent
$7.9 billion globally on goods and services, including almost
$5.1 billion with Australian suppliers. This provides opportunities
for local businesses and generates thousands of jobs in local
communities.
Our strong financial performance also delivers billions of dollars in
revenue to governments that underpin investments in community
services and infrastructure. Since 2011, Woodside has paid more
than A$22 billion in Australian taxes, royalties and levies, and on
the latest Australian Government figures we are the country’s
fifth-largest taxpayer. In addition, we continue to make significant
voluntary social investments into local communities, highlighted
by our recent A$50 million commitment to education and cultural
infrastructure in Western Australia.
Delivering disciplined growth
The Board takes a long-term perspective to ensure Woodside can
reward our shareholders today while investing in targeted, strategic
opportunities to deliver growth and value creation.
The decisions that translated into outstanding production
performance at our Sangomar Project, and world-class execution
of our Scarborough and Trion projects, are set to reward our
shareholders for years to come. We are confident of similar value
creation from our two major project acquisitions in 2024 – Louisiana
LNG and the Beaumont New Ammonia Project.
Louisiana LNG leverages Woodside’s proven strengths in project
execution, operational excellence, marketing and customer
relationships to offer significant cash generation and drive
long-term shareholder value. By adding a high-quality, fully
permitted US LNG development option to Woodside’s portfolio,
we are further strengthening our ability to serve global customers
and expanding Woodside’s position as a leading independent
LNG company.
Beaumont New Ammonia is a competitively advantaged, de-risked
investment offering strong commercial and strategic rationale.
This acquisition forms the centrepiece of our new energy business,
offering attractive returns that exceed our capital allocation
framework and a significant contribution towards our
Scope 3 investment and abatement targets.
Providing energy security
Through operational excellence and a growing global portfolio,
Woodside provides reliable and affordable energy that underpins
quality of life and supports economic prosperity. The role that gas
plays in energy security and economic development for Australia
and the region should not be understated – as a source of electricity
and also as a feedstock for industry and essential ingredient in
products we rely on in our daily lives.
Gas accounted for 60% of Western Australia’s electricity generation
in 2023, and provides almost 40% of the energy used by Australia’s
manufacturing sector. About 50% of the gas supplied by Woodside
to WA customers is used by the state’s mining industry that
generates so much of Australia’s wealth. This critical role of gas will
continue as Australia builds out its renewable energy network, with
the Australian Energy Market Operator forecasting an additional
13 gigawatts of new gas fired electricity will be required over the
next 25 years.
Globally, LNG is set to play an equally important role in
underpinning energy security as populations grow, living standards
improve and decarbonisation goals are pursued. While alternative
energy sources such as hydrogen are technically feasible, their
outlook remains uncertain. In contrast, respected market forecasts
show global LNG demand continuing to increase out to 2050, as
developing economies seek to reduce their reliance on coal.
This presents a tremendous opportunity for secure, reliable LNG
suppliers such as Woodside to support regional energy security.
Richard Goyder, AO
Chair of the Board
1.3
10 WOODSIDE ENERGY GROUP LTD
10 WOODSIDE ENERGY GROUP LTD
Overview • Chair’s report
For example, switching 20 per cent of Asia’s coal-fired power
stations to gas would require 310 billion cubic metres of gas
per year - roughly three times the volume of Australia’s annual
LNG exports. According to S&P Global Commodity Insights analysis,
this fuel source switch would also reduce carbon emissions by an
estimated 680 million tonnes a year.
Supporting a stable energy transition
For these reasons, we are confident in an ongoing role for
Woodside’s products through the energy transition. We believe the
diverse global portfolio we are building today will stand the test of
time and deliver enduring shareholder value.
While the precise nature of the energy transition is uncertain,
we do know that demand for reliable, affordable, and increasingly
lower-carbon energy will continue as populations increase and
economies develop.
Importantly, Woodside does not seek simple solutions to the
complex challenge of climate change. We continue to develop a
considered, pragmatic and action-oriented approach to successfully
navigate the energy transition. We only commit to targets where we
have identified a viable pathway to achieving them.
Our core product of LNG is well suited for the world’s current and
future energy needs because it is flexible, reliable and lower-carbon
than coal when used for power generation. At the same time, we
are developing new products and services our customers will need
to decarbonise, such as lower-carbon ammonia and carbon capture
and storage.
The Board recognises the complexity of the energy transition, its
potential impacts on our business and the diverse views of our
investors. We take very seriously the concerns expressed through
our shareholder vote on Woodside’s Climate Transition Action Plan.
While confident in our strategy and proud of our progress, we will
continue to engage deeply and frequently with all investors to
ensure your feedback informs our approach.
Providing strong leadership
During 2024 Woodside continued to refresh its Board membership
to ensure the company’s strategic leadership and governance
capabilities keep pace with our growing global footprint and broader
range of business activities. We were pleased to welcome Ashok
Belani and Tony O’Neill as Non-Executive Directors, bringing new
experience and expertise in areas including decarbonisation and
sustainability.
The Board will continue our focus on succession planning. We will
maintain the right balance of skills and experience to provide the
corporate governance and strategic oversight that our shareholders
rightly expect. In this regard, I would like to thank former Directors
Frank Cooper and the late Gene Tilbrook for their outstanding and
dedicated service to Woodside.
You have my assurance that I will continue, and wherever possible
expand, my engagement with shareholders, to ensure we continue
to meet your expectations as a successful and responsible energy
company. I would like to thank the entire Woodside leadership
team for another outstanding year. Reflecting on our proud history
and achievements during our 70-year milestone, the Board has
never been more confident in Woodside’s ability to deliver reliable,
affordable and lower-carbon energy to a world that needs it today
and into the future.
Richard Goyder, AO
Chair of the Board
25 February 2025
Woodside Chair Richard Goyder travelled to Senegal in October 2024 to meet with his Excellency, President Bassirou Diomaye Faye, and discuss our
partnership in developing the Sangaomar field, which quickly achieved nameplate production capacity of 100,000 barrels of oil per day
2024 ANNUAL REPORT 11
1.4
Chief Executive
Officer’s report
Seventy years after our founding,
Woodside’s determination to provide
energy the world needs while
delivering value for our shareholders
is stronger than ever.
Our outstanding performance in 2024 was underpinned by
operational excellence, financial discipline, world-class project
delivery and strategic partnerships. We also took transformative
decisions during the year that set the foundations for Woodside’s
next chapter of growth and value, supporting our strategy to thrive
through the energy transition.
Safety remains our priority
The death in October 2024 of an OCI contractor employee at our
Beaumont New Ammonia Project is a painful reminder of the need
for constant vigilance and continuous improvement in our safety
performance.
We are taking action to strengthen our safety culture, simplify
our processes and improve our systems. While these initiatives
are aimed at sustainable improvement in our safety performance,
we are already seeing some positive results. With more than
23 million exposure hours worked across our global activities in
2024, we did not record any Tier 1 safety events or permanent
injuries. The outstanding safety record achieved at our Sangomar
Project and during delivery of the Pluto Train 2 modules also
shows what we are capable of and sets the required standard
for Woodside going forward.
Outstanding operations performance
World-class operating performance across our global assets
delivered record full-year production of 194 million barrels of oil
equivalent in 2024, at the top end of our guidance range.
We matched increased production with greater efficiency,
generating strong operating revenue and cash flow. We reduced
our overall unit production cost to $8.1 per barrel of oil equivalent,
an outstanding result in an inflationary environment.
A highlight of 2024 was the production ramp-up at Sangomar, which
achieved nameplate capacity of 100,000 barrels within weeks of
start-up. Reliability reached 94% during the fourth quarter of 2024,
with cargoes delivered to buyers in Europe, Asia and the US.
Our operated Australian LNG projects continued their world-class
performance with reliability maintained at 98%, among the highest
reported globally across the sector.
Delivering for customers
This track record of operational excellence ensures Woodside
remains a supplier of choice for major energy customers in the
region. During 2024 Woodside signed three agreements for the
long-term sale of LNG to customers in Japan, Korea and Taiwan.
These agreements demonstrate the value that regional energy
customers place on security and certainty of supply, and the
ongoing role of LNG in balancing our customers’ energy security
and decarbonisation needs.
In Australia, we remain a key supplier of reliable and affordable
energy to homes and businesses. During the year we made extra
supplies of domestic gas available, supporting energy security and
meeting ongoing customer demand. This included executed sales
of 77 Petajoules (Pj) for delivery across 2025 and 2026 in east coast
Australia for local manufacturing, agribusiness and energy retailers.
In Western Australia, we executed domestic gas sales of 73 Pj
for delivery across 2025 and 2026 to mining, industrial and retail
energy customers.
With ongoing robust LNG demand forecast for the Asia Pacific
region, and near-term structural shortfalls in gas supply forecast
for both the east coast and Western Australian markets, Woodside
will continue to be a reliable supplier of energy to support local and
regional energy security.
Project execution for long-term value
During 2024 we made significant progress on major projects to
deliver Woodside’s next wave of growth and shareholder value.
The Scarborough Energy Project in Western Australia was 78%
complete at year-end and remains on track for first LNG cargo in
2026. Major milestones achieved during the year included delivery
and installation of all 51 Pluto Train 2 modules, and installation
of the 433 km offshore trunkline. We also welcomed LNG Japan
and JERA as participants in the Scarborough Joint Venture,
demonstrating our ability to attract quality, strategic partners to our
world-class projects.
At our Trion Project offshore Mexico, we transitioned into the
construction phase with work commencing on the offshore floating
production unit. Trion was 20% compete at year-end, and is on track
for first oil in 2028.
Meg O’Neill
Chief Executive Officer and
Managing Director
12 WOODSIDE ENERGY GROUP LTD
12 WOODSIDE ENERGY GROUP LTD
Overview • Chief Executive Officer’s report
Woodside CEO and Managing Director Meg O’Neill said 2024 was a year of significant progress at the Pluto Train 2 site, with all 51 modules arriving safely
and being set by year end
We are leveraging these proven project execution and partnering
capabilities to generate long-term value from our Louisiana LNG
Project acquired in 2024. Louisiana LNG is a game-changing
acquisition for Woodside, positioning us as a global LNG
powerhouse with greater capacity to meet customer demand
across both the Pacific and Atlantic basins. We are working towards
readiness for a final investment decision on the 16.5 million tonne
per annum foundation development from the first quarter of 2025,
and focused on bringing quality strategic partners into this
value-creating opportunity.
During 2024 we also acquired the Beaumont New Ammonia Project,
providing early mover advantage in the growing global market for
lower-carbon ammonia. We are targeting first ammonia production
in the second half of 2025 and lower-carbon ammonia production in
the second half of 2026. We anticipate cost-efficient production from
the project, enabling healthy margins and attractive returns once
we hit steady state production in 2027.
We also streamlined our Australian LNG portfolio with a focus on
high-value operating assets, including an agreement to increase our
equity interest in the North West Shelf Project to generate near-
term cash flow while unlocking future development opportunities.
Focus on sustainability
Conducting our business sustainably underpins our strategy to
thrive through the energy transition. Managing carbon emissions
is a fundamental part of operating our assets, with 30 projects
approved or implemented during the year to reduce or avoid
Scope 1 and 2 emissions. We are firmly on track to meet our net
equity Scope 1 and 2 emissions reduction targets, which were 14%
below the starting base at year end. We also took a step-change
towards achieving our Scope 3 investment and abatement targets
through our acquisition of Beaumont New Ammonia.
Strong and trusted relationships in the communities where we
live and work, including careful management of cultural heritage
and environmental impacts, are fundamental to our business.
Our 2024 performance demonstrated again that when Woodside
performs well, local economies and communities benefit. We paid
A$4.1 billion in taxes, royalties and levies payments to Australian
governments and were pleased to inject more than $7.9 billion into
local economies during 2024, generating thousands of local jobs
and supplier opportunities.
Our total social contribution spend of A$35.4 million included
community investments across our expanding global footprint,
ranging from education programs in Trinidad & Tobago and Mexico
to sustainable waste management in Senegal.
We also revised our leadership structure during 2024 to build
greater alignment with Woodside’s strategic priorities and support
our evolution into a global business. With our leaders setting
the example, we are building a culture at Woodside that values
inclusion, flexibility and enabling everyone to perform to their best.
As we position Woodside for future success, I could not be prouder
of the Woodside team’s performance and the role we play in
delivering reliable, affordable and lower-carbon energy to help
people lead better lives.
Meg O’Neill
Chief Executive Officer and Managing Director
25 February 2025
2024 ANNUAL REPORT 13
Global portfolio
Primary product
Phase
Gas
Producing assets
Oil
Projects
New energy opportunity
or lower-carbon service1
Developments1
Operating hub
Key
* Non-operated.
1. Subject to FID and/or regulatory approvals.
2. Denotes marketing offices.
3. Denotes representative and/or liaison offices.
4. Woodside Energy will join the NeoSmelt consortium as an
equal equity participant and energy supplier (energy supply
may include hydrogen, natural gas and electricity), subject to
finalising commercial arrangements.
1.5
Senegal
› Sangomar
Caribbean
› Angostura
› Ruby
› Calypso
Shenzi
Mad Dog*
Atlantis*
Trion
H2OK
US
› Shenzi
› Atlantis*
› Mad Dog*
Mexico
› Trion
Houston
Houston
Canada
› Liard*
Beaumont New
Ammonia Project
Louisiana LNG¹
Beaumont New
Ammonia Project
Louisiana LNG¹
14 WOODSIDE ENERGY GROUP LTD
14 WOODSIDE ENERGY GROUP LTD
Overview • Global portfolio
Angel CCS¹
Greenhouse Gas
Assessment Permit
G-18-AP
H2Perth¹
NeoSmelt⁴
Scarborough
Ngujima-Yin
FPSO
Okha FPSO
Wheatstone*/
Julimar-Brunello
North West
Shelf Project
East coast Australia
› Bass Strait*
Timor-Leste/
Australia
› Greater Sunrise
Pluto
Western
Australia
Browse
Timor Sea
Perth
Woodside
headquarters
Karratha
› Pluto LNG
› Karratha Gas Plant
› Woodside Solar project¹
Onslow
› Macedon Gas Plant
› Wheatstone*
Pyrenees
FPSO
Macedon
H2Perth¹
Tokyo³
Seoul³
Singapore²
Beijing³
Melbourne²
Western
Australia
› Pluto
› North West Shelf
› Wheatstone*/Julimar-Brunello
› Okha FPSO
› Ngujima-Yin FPSO
› Pyrenees FPSO
› Macedon
› Scarborough
› Browse
Perth
South East Australia CCS
Bonaparte CCS
All footnotes are displayed on the prior page.
2024 ANNUAL REPORT 15
STRATEGY AND FINANCIAL PERFORMANCE
Woodside continues to deliver
value for our stakeholders.
16
Woodside’s strategy is to thrive through the energy transition by developing a
low-cost, lower-carbon, profitable, resilient and diversified portfolio.
The world’s response to climate change is integrated into our
strategy, and we assess investment decisions against a wide
range of factors including climate-related scenarios.
This strategy is underpinned by three goals: providing energy;
creating and returning value to shareholders; and conducting
our business sustainably.
We seek to provide the energy that meets current and
future demand. We play to our strengths, providing oil and gas
to our customers while advancing new energy products and
lower-carbon services.
We strive to create and return value to our shareholders.
Our capital management framework aims to optimise value, invest
in quality opportunities and deliver strong shareholder returns.
And, we aim to conduct our business sustainably by managing our
impact on people, communities and the environments in which we
operate. This includes a strong focus on the safety of our people and
managing our net equity Scope 1 and 2 GHG emissions to meet our
targets, which are central 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
WOODSIDE’S STRATEGY
THREE GOALS DRIVING OUR STRATEGIC DIRECTION
OPTIMISE
VALUE AND
SHAREHOLDER
RETURNS
L
O
W
C
O
S
T
L
O
W
E
R
C
A
R
B
O
N
P
R
O
FI
T
A
B
L
E
R
E
SI
LI
E
N
T
DI
V
E
R
SI
FI
E
D
Provide
energy
Create and
return value
Conduct our business
sustainably
2.1
2024 ANNUAL REPORT 17
2024 ANNUAL REPORT 17
Strategy and Financial Performance • Woodside’s strategy
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 enables us
to 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, including:
• Debt management, to enable 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. In 2024,
Woodside was well supported in issuing $2,000 million of senior
unsecured bonds in the US bond market.
• Commitment to maintain an investment-grade credit rating.
Our targeted gearing ratio is 10-20% through the investment
cycle, but gearing may temporarily sit outside of this range to
support growth.
• Shareholder returns, to reward our shareholders appropriately.
Our dividend policy aims to pay a minimum of 50% of net profit
after tax (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 downturn in the
commodity cycle, particularly during periods of increased capital
expenditure.
• Focused expenditure management, to enable prudent and efficient
deployment of capital to support delivery of our operating asset
and growth opportunities.
• Management of participating interests within our portfolio, to
enable us to balance capital investment requirements, project
execution risk and long-term value. In 2024 we completed the
sales of equity interests in the Scarborough Joint Venture to
JERA (15.1%) and LNG Japan (10%), demonstrating our strategic
relationships and shared view that LNG will play an ongoing
and sustained role in the energy transition. In 2025, we continue
to assess opportunities to balance our participating interest in
ventures, including Louisiana LNG.
Surplus cash allocation will be guided by our capital management
framework, continuously balancing investing for growth, managing
our balance sheet and strong returns to our shareholders.
Capital management
Capital management framework
Special dividends
Share buy-backs
Future investment
Safe, reliable
and low cost
operations
Investment
expenditure
Strong
balance
sheet
Dividend policy
(minimum 50%
payout ratio)
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
Excess
cash
2.2
18 WOODSIDE ENERGY GROUP LTD
18 WOODSIDE ENERGY GROUP LTD
Strategy and Financial Performance • Capital management
CAPITAL ALLOCATION
Woodside’s high-margin portfolio is made up of quality assets that
have the scale and resilience to deliver long-term 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.
Our portfolio includes LNG, oil, gas, and new energy assets across
Australia, the United States, Trinidad and Tobago, Senegal, Mexico,
Timor-Leste and Canada.
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 and meet their energy security needs. Our LNG
assets are geographically advantaged.
Our domestic gas assets deliver steady cash flows, resilience to
commodity price fluctuations and provide reliable returns.
In our oil assets, we seek high cash generation and shorter
payback periods, which boost our funding capabilities in the short
term, while remaining resilient in the long-term as the demand for
oil slows with economies working towards reducing emissions.
In June 2024 Woodside commenced production from the Sangomar
Project in Senegal, and in July 2024 achieved nameplate production
capacity.
We strive to operate our assets safely, reliably and efficiently to
deliver the best value to our customers.
We have major projects in execution phase that are expected to
deliver Woodside’s next wave of growth. The Scarborough Energy
Project in Australia is targeting the first LNG cargo in 2026. In
Mexico, the Trion Project is targeting first oil in 2028.
In addition, we seek to grow our portfolio where we identify
opportunities that we believe are consistent with our strategy
and will add long-term shareholder value. In 2024, we made two
strategic acquisitions. In July 2024, Woodside acquired Tellurian Inc.,
including its owned and operated US Gulf Coast LNG development
opportunity, now known as the Louisiana LNG Project. This is a
fully permitted, pre-final investment decision (FID) development
opportunity located near Lake Charles, Louisiana. In addition, we
acquired the Beaumont New Ammonia Project in Beaumont, Texas.
The project is under construction and is targeting production of
ammonia from 2025.
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 of
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, CCUS
Characteristics
High cash generation
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
IRR > 15%
Payback within 5 years1
IRR > 12%
Payback within 7 years1
IRR > 10%
Payback within 10 years1
Emissions
reduction
Net equity Scope 1 and 2 GHG emissions:
target 30% reduction by 2030; aspiration for net zero by 2050 or sooner2
1. Payback refers to RFSU + X years.
2. Targets and aspirations are for net equity Scope 1 and 2 GHG 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 GHG 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.
2024 ANNUAL REPORT 19
When assessing opportunities, we consider a broad range of portfolio evaluation and opportunity evaluation factors, along with
understanding the risks relevant to the opportunity. These assessments can apply to acquisitions or divestments, and for evaluating the
impact of a new project on the portfolio.
SUSTAINED NATURAL GAS DEMAND
We expect sustained demand for natural gas, especially in Asia and
for the decades ahead, supporting our confidence in the value of our
current portfolio of producing assets and our sanctioned projects.
We also consider these factors carefully in connection with future
investment opportunities.1
As an example, China, Japan, South Korea, and all countries within
the ASEAN bloc are signatories to the Paris Agreement and have
plans to reduce emissions. Collectively, they represent some of
the world’s largest economies and more than 25% of the world’s
population. The national energy plans of these nations also confirm
ongoing demand for natural gas.2,3,4,5
The International Energy Agency’s (IEA’s) 2024 World Energy
Outlook (WEO) increased the modelled 2050 demand for LNG in
all three of its scenarios including the 1.5°C aligned “Net Zero
Emissions” scenario, compared to the 2023 WEO.6
WHY IS NATURAL GAS PART OF THE ENERGY
TRANSITION?
This sustained demand for natural gas is part of, not instead of,
the energy transition, as countries work towards energy security,
affordability and emissions reductions goals.
Energy transition priorities in Asia include maintaining secure
reliable and affordable supplies while also progressively reducing
emissions.
1. Additional information is available on our website under Sustainability – woodside.com
2. Ministry of Economy Trade and Industry of Japan, 2024. “Japan 7th Draft Basic Energy Plan” https://www.enecho.meti.go.jp/committee/council/basic_policy_subcommittee/2024/067/067_005.pdf.
3. People’s Republic of China, 2024. “China Energy Outlook 2060 (2024 version)” by Sinopec.
4. ASEAN, 2024. “ASEAN 8th Energy Outlook” https://aseanenergy.org/publications/the-8th-asean-energy-outlook/
5. The Republic of Korea, 2024. “Working draft of the Korean 11th Basic Plan for Supply and Demand of Power” https://www.shinkim.com/eng/media/newsletter/2480.
6. International Energy Agency (2024): World Energy Outlook 2024
7. International Energy Agency (2024): CO2 Emissions in 2023
8. BCG (2023): The role of infrastructure in Australia’s energy transition, pp. 13-14
9. International Gas Union, 2023. “Global Gas Report 2023”, pp. 76-77. https://www.igu.org/resources/global-gas-report-2023-edition/
In 2023, according to the IEA, coal demand in emerging markets
and developing economies was the biggest driver in global
emissions growth.7 In Asia, coal use continues to grow and is now
five times higher than the amount consumed in Europe when coal
peaked in the 1980s, and more than six times higher than the total
reduction in coal use that Europe has achieved since then (please
see the chart on next page).
Natural gas demand is sustained by these factors:
• Transition priorities: While renewable sources of energy are
growing, particularly in countries like China, they have not reached
the scale to fully replace coal at current energy demand levels.
Total energy demand is also expected to grow as a result of extra
power demand expected for electric vehicles and data centres.
Sustaining gas supply levels so that available renewables can be
directed to higher emissions reductions (like substituting coal first)
can support both energy security and faster emissions reduction.8
• Firming renewables: Natural gas can support more renewables
to replace coal, by “firming” up their intermittent supply along
with batteries.
• Fuel switching: Natural gas is an established substitute for coal in
power generation where infrastructure exists and can accelerate
the impact of coal-to-renewables switching. In 2023, coal-to-gas
switching was the largest source of emissions reduction in the US
power sector, according to the IEA.7
• Hard-to-abate sectors: Some uses of natural gas are
“hard-to-abate”and will be sustained for longer – such as
very high temperature industrial heat (in glass, ceramic
and steel production) or as chemical feedstock (in fertiliser
production).9
EARNINGS
PER SHARE
BREAKEVEN
RISK
FREE CASH
FLOW
PAYBACK
PERIOD
FUNDING
CAPACITY
IRR/NPV
EMISSIONS
PROFILE
STRATEGIC
FIT
GROWTH OPPORTUNITIES ARE SCREENED AGAINST PORTFOLIO METRICS USING PRICE, SCENARIO AND CLIMATE ANALYSIS
PORTFOLIO EVALUATION CONSIDERATIONS
OPPORTUNITY EVALUATION CONSIDERATIONS
20 WOODSIDE ENERGY GROUP LTD
Global coal consumption 1965 - 2023 (Exajoules)1
1. Energy Institute: Statistical Review of World Energy (2024).
180
160
140
120
100
80
60
40
20
0
Asia Pacific
Europe
Other
Global LNG Trade
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
2016
2019
2022
2023
SUSTAINABILITY
Our Sustainability Strategy is central to our Corporate Strategy
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 environmental, social
and governance performance in everything we do.
As described further in section 3.8 – Sustainability Report, in 2024
our sustainability activities and disclosures continued to develop
in response to the evolving strategic importance of sustainability
topics, emerging mandatory sustainability standards and investor
priorities.
2024 ANNUAL REPORT 21
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.
2024
2023
2022
Operating revenue
$ million
13,179
13,994
16,817
EBITDA excluding impairment1
$ million
9,276
9,363
11,234
Earnings before interest and tax (EBIT)1
$ million
4,514
3,307
9,186
Net profit after tax (NPAT)2,3
$ million
3,573
1,660
6,498
Underlying NPAT1
$ million
2,880
3,320
5,230
Net cash from operating activities
$ million
5,847
6,145
8,811
Capital expenditure1,4
$ million
5,306
5,736
4,115
Exploration expenditure1,5
$ million
342
367
418
Free cash flow1,6
$ million
100
560
6,546
Dividends distributed
$ million
2,449
4,253
3,088
Final dividend determined
US cps
53
60
144
Earnings
US cps
188.5
87.5
430.0
Gearing1,7
%
17.9
12.1
1.6
Production volumes8
Gas
MMboe
124.1
128.3
113.8
Liquids
MMboe
69.8
58.9
43.9
Total
MMboe
193.9
187.2
157.7
Sales volumes
Gas
MMboe
133.9
144.1
125.0
Liquids
MMboe
69.6
57.4
43.9
Total
MMboe
203.5
201.5
168.9
1. These are 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.
2. Net profit after tax attributable to equity holders of the parent.
3. The global operations effective income tax rate (EITR) is ~18.3%. The EITR is calculated as Woodside’s income tax expense or benefit divided by profit or loss before income tax. EITR was ~27.5% for 2023
and ~31% for 2022.
4. Capital additions on property, plant and equipment and evaluation capitalised. 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.
5. Exploration and evaluation expenditure less amortisation of licence acquisition costs and prior year exploration expense written off.
6. Cash flow from operating activities less cash flow from investing activities.
7. 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.
8. Includes production of 192.7 MMboe (2023: 186.1 MMboe) from Woodside reserves and 1.2 MMboe (2023: 1.1 MMboe) primarily from feed gas purchased from Pluto non-operating participants processed
through the Pluto-KGP Interconnector.
Financial overview
2.3
22 WOODSIDE ENERGY GROUP LTD
22 WOODSIDE ENERGY GROUP LTD
Strategy and Financial Performance • Financial overview
CAPITAL MANAGEMENT
Final dividend
A 2024 final dividend of 53 US cents per share (cps) has been
determined, representing a full-year dividend yield of 8.0%.1 The
total amount of the final dividend payment comes to $1,006 million
which represents approximately 80% of underlying NPAT for the
second half of 2024, and will be fully franked for Australian tax
purposes.2
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 selldowns. During the year, Woodside generated $5,847
million of cash flow from operating activities, received $2,285 million
of proceeds from the equity selldown in the Scarborough Joint
Venture and delivered positive free cash flow of $100 million.2,3
Woodside entered into the following new drawn debt facilities
in 2024:
• $1,200 million seven-year syndicated term loan from Asian and
European commercial banks.
• $1,000 million ten-year loan from the Japan Bank for International
Cooperation (JBIC) to support the Scarborough Energy Project.
• $450 million ten-year syndicated term loan from Asian
commercial banks.
Woodside also, through a wholly owned subsidiary, issued $2,000
million of senior unsecured bonds in the United States, comprising
a $1,250 million ten-year bond and a $750 million 30-year bond.
Woodside received strong support from commercial banks
and investors on all of the 2024 funding activities, including
oversubscription of the $1,200 million term loan and $2,000 million
US bond issuance.
At the end of the period, Woodside had cash and cash equivalents of
$3,923 million, drawn debt of $10,050 million, including $1,000 million
principal debt payable in 2025, and liquidity of $6,723 million.4
Additional details of Woodside’s credit facilities, including total
commitments, maturity and interest and amount outstanding as of
31 December 2024, can be found in Note C.2 to the audited Financial
Statements.
Woodside’s principal ongoing uses of cash are to meet working
capital requirements, fund debt obligations and finance Woodside’s
capital expenditure and acquisitions. Working capital is sufficient for
present requirements.
Woodside’s capital expenditure for 2025 is expected to be between
$4,500 million and $5,000 million primarily due to Scarborough and
Trion, and remaining acquisition expenditure for Beaumont New
1. Calculated based on Woodside’s closing share price on 31 December 2024 of A$24.60 ($15.29) and a US$:A$ exchange rate of 0.6217.
2. Underlying NPAT and free cash flow are a non-IFRS measures. Refer to section 6.6 - Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
3. Cash flow from operating activities less cash flow from investing activities.
4. Liquidity is a non-IFRS measure. Refer to section 6.6 - Alternative performance measures for a reconciliation of these measures to Woodside’s Financial Statements.
5. 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.
6. 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.
Ammonia. Woodside’s capital expenditure estimates exclude Louisiana
LNG project expenditure as this remains subject to FID as well as
the impact of any subsequent asset selldowns, future acquisitions or
other changes in equity. We are targeting first LNG cargo in 2026 for
Scarborough and first oil in 2028 for Trion. Total project estimated
cost for Scarborough is $12.5 billion ($8.2 billion Woodside share)
and $7.2 billion for Trion ($4.8 billion Woodside share including
capital carry of PEMEX of approximately US$460 million).
Woodside has no off-balance sheet arrangements that have, or are
reasonably likely to have, a current or future material effect on
Woodside’s financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources.
Balance sheet
Woodside remains committed to maintaining an investment-
grade credit rating, which supports our aims of providing
sustainable returns to shareholders and investing in future growth
opportunities, in accordance with our capital allocation framework.
Any downgrade in credit ratings could affect Woodside’s ability
to access capital markets and increase the cost of capital of the
existing debt portfolio. In 2024, Woodside’s credit ratings of BBB+
and Baa1 by S&P Global and Moody’s respectively were both
maintained.5
Woodside’s gearing at the end of 2024 was 17.9%, within 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, including increasing above the range to
support growth.6
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 29.3 MMboe of 2024 volumes.
The realised value of these oil price hedges was a pre-tax loss of
$202 million.
As at 31 December 2024, Woodside has placed oil price hedges for
approximately 30 MMboe of 2025 production at an average price of
approximately $78.7 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 commodity swaps.
As at 31 December 2024, an average of 94% of 2025 volumes
and 67% of 2026 volumes have reduced pricing risk as a result
of hedging activities.
2024 ANNUAL REPORT 23
Global energy markets during 2024 experienced price volatility resulting from
significant geopolitical events, changes of government and energy policy shifts
worldwide.
1. OECD Economic Outlook, 4 December 2024.
2. UN World Population Prospects 2024.
3. WoodMackenzie, Global Gas Investment Horizon Outlook, November 2024.
Volatility in energy markets reinforces the need for reliable,
affordable, and secure energy. Despite price volatility, energy
markets have been stable overall due to ample supply and
uninterrupted flows. The demand for oil and natural gas highlights
the need for ongoing hydrocarbon production and investment.
MACROECONOMIC FACTORS
In 2024, central banks in advanced economies tried to balance
monetary policy to curb inflation without stifling growth. The
Organisation for Economic Co-operation and Development’s
(OECD’s) December 2024 Economic Outlook projects global GDP
growth of 3.3% in 2025, up from the 3.2% in 2024.1
The world’s population is expected to reach 9.7 billion in 2050
(an increase of 1.6 billion from 2024) and global GDP is forecast
to almost double, driving increased energy demand.2
Artificial intelligence and data centres may also represent
significant drivers of future energy demand.
Oil
Numerous geopolitical events including Russia’s invasion of Ukraine
and conflicts in the Middle East have altered trade flows and
contributed to high volatility in oil markets over the past four years.
Despite OPEC+ exercising production restraint, the oil market was
well supplied as production in the United States, Canada, Brazil
and Guyana continued to increase in 2024. In the second half of
the year, OPEC+ announced it would delay its planned unwinding
of production cuts to 2025, citing strong non-OPEC+ supply and an
uncertain demand outlook linked to China’s economic data.
Dated Brent averaged US$80.8 per barrel in 2024, 2.3% below
average 2023 prices and 7.1% above the five-year average.
Liquefied Natural Gas
Despite relatively mild weather, global gas markets in 2024
remained tight. Supply uncertainty was exacerbated by Russian LNG
sanctions, the end of the Ukraine gas transit deal and weather risks.
Wood Mackenzie’s base case scenario forecasts global LNG demand
to increase by 55% (220 Mt per annum) to 2034.3 South East Asia is
expected to remain the major engine of growth past this period with
the power and industrial sectors driving continuous LNG demand
growth as domestic production declines.
North East Asian LNG prices averaged US$11.9 per million British
thermal units (MMBtu), 13.5% below average 2023 prices and 27.8%
below the five-year average.3
Australian domestic gas markets
The Australian Government released its Future Gas Strategy in
2024 highlighting the importance of gas in the energy transition.
Australian domestic gas markets experienced some supply
shortfalls in 2024. In Western Australia, the market was finely
balanced with increases in power demand offset by the closure of
the Kwinana refinery and temporary suspension of BHP’s Nickel
West Project. The east coast gas market broadly stabilised during
2024 but did experience seasonal supply gaps. Without further
investment, both the west and east coasts of Australia are expected
to be structurally short of gas by 2030.
New energy products
Across the globe, investment in new energy technology has
increased, spurred by government policy seeking to reduce long-
term emissions. Investment has been currently focused towards
solar, wind, battery technologies and electric vehicles. Other
products such as hydrogen face challenges specifically relating to
cost inflation, uncertainty in demand from end-users, uncertainty
around availability and eligibility for government support.
Woodside continues to believe that new energy products will play
an important role in the energy transition as part of the energy
mix. Lower-carbon ammonia is economically advantaged under
the United States and European policy settings supporting viability
of new projects. Underlying demand for ammonia continues to
grow with global population increases together with the expected
adoption of new lower-carbon ammonia uses such as power
generation, as a marine fuel, and potentially as a hydrogen carrier.
Energy markets
2.4
24 WOODSIDE ENERGY GROUP LTD
24 WOODSIDE ENERGY GROUP LTD
Strategy and Financial Performance • Energy markets
Business model and value chain
Woodside 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.
2024 examples
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 locations
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.
• Acquired the Louisiana LNG opportunity.
• Acquired the Beaumont New Ammonia Project.
• Completed the sales of equity interests in the
Scarborough Joint Venture to JERA (15.1%) and
LNG Japan (10%).
• Agreed to an asset swap with Chevron under
which Woodside will acquire Chevron’s interest
in the NWS Project, the NWS Oil Project and the
Angel CCS Project, and transfer all of its interest
in both the Wheatstone and Julimar-Brunello
Projects to Chevron.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.
• Completed Sangomar Project and achieved first oil
in June 2024, delivering $948 million in revenue to
Woodside in 2024.
• Continued project execution of Scarborough
and Trion, which were 78% and 20% complete
respectively by the end of 2024.2
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 NWS Project and Pluto LNG. We also operate Macedon
and three floating production storage and offloading (FPSO) facilities and have
non-operated interests in Bass Strait and Wheatstone. Internationally, we operate
Sangomar in Senegal, Shenzi in the Gulf of Mexico, Angostura and Ruby in Trinidad
and Tobago, and have non-operated interests in Atlantis and Mad Dog in the Gulf of
Mexico.3 We endeavour to adopt technology and a continuous improvement mindset
to support operational performance and optimise the value of our assets.
• Achieved reliability of 98.3% at KGP and 96.1%
at Pluto LNG.
• Delivered excellent early production performance
at Sangomar, quickly achieving nameplate capacity
of 100,000 barrels per day.
Market and transport
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 production and through offtake agreements with
third parties, and by maintaining our own shipping fleet. This helps ensure reliable
delivery to our customers and creates opportunities to capture value by portfolio
and shipping optimisation. We continue to look for opportunities to collaborate with
our customers on lower-carbon energy solutions.
• Signed sales and purchase agreements with
KOGAS, CPC and JERA for the long-term supply of
LNG to Korea, Taiwan and Japan respectively.
• Received new long-term charter LNG vessel, the
Woodside Scarlet Ibis.
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 to plug and abandon wells that are no longer required
for our operations. We work with regulators to deliver our decommissioning
commitments.
• Removed the final two of 18 xmas trees (valve
systems) at Enfield.
• Successfully recovered the Griffin riser turret
mooring.
• Decommissioned 149 km of pipeline and recovered
more than 90 subsea structures.
• Plugged and abandoned seven of ten Stybarrow
wells.
1. Completion of the transaction is subject to customary conditions precedent, refer to section 3.1 - Australian Operations for details.
2. Scarborough completion percentage excluding Pluto Train 1 modifications.
3. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24
January 2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi,
Mad Dog and Atlantis projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in
relation to US waters.
2.5
2024 ANNUAL REPORT 25
2024 ANNUAL REPORT 25
Strategy and Financial Performance • Business model and value chain
OPERATIONS
Our established track record
of operational excellence and
reliable supply underpins
our success.
26
Woodside’s Australian portfolio generates strong cash flow combined with low
unit production cost, with Woodside operated assets providing reliable energy to
domestic and international customers for 40 years. Woodside’s share of production
from our Australian operated and non-operated oil and gas projects was
139.5 MMboe (381 Mboe/day) in 2024.
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 54.1 MMboe in 2024,
an increase from 51.8 MMboe in 2023, due to minimal turnaround
activity and annualised reliability of 96.1%.
To support ongoing production from Pluto LNG, during the first
quarter of 2024 Woodside took a final investment decision (FID) for
the Xena 03 production well and started-up the produced water
handling unit at the Pluto A platform. In June 2024, construction
commenced on the subsea facilities for the PLA-08 production well,
with startup expected in the first half of 2025.
In the second quarter of 2024, Woodside increased the production
of Pluto domestic gas through the Pluto-KGP Interconnector at the
NWS. The allocation of domestic gas from Pluto gas processed at
NWS was increased from 15% to 30% until December 2025.
Woodside is operator and holds a 90% participating interest.
Woodside Solar
Woodside is progressing an opportunity to reduce up to a total of
150 kilotonnes per anum (ktpa) CO2-e gross Scope 1 greenhouse
gas emissions at Pluto LNG by importing renewable electricity from
the proposed Woodside Solar project. The project plans to generate
an initial supply of approximately 50 megawatts of electricity from a
large-scale solar photovoltaic farm.
Woodside Solar FID and first solar energy import timing are subject
to securing access to proposed new common-user transmission
infrastructure that will be required to transmit renewable energy
to Pluto LNG. The development of this infrastructure is being led by
the Western Australian Government with Woodside continuing to
finalise associated commercial agreements.
Australian operations
3.1
The safe startup of Pluto LNG in 2012 cemented Woodside’s status as a major supplier of energy to the Asia-Pacific region. Now, we’re developing a second
train to process gas from the offshore Scarborough field
2024 ANNUAL REPORT 27
2024 ANNUAL REPORT 27
Our Business • Australian operations
NORTH WEST SHELF PROJECT
The NWS Project consists of three offshore platforms and the
onshore Karratha Gas Plant (KGP). KGP includes five onshore
LNG processing trains and two domestic gas trains.
Woodside’s share of NWS Project production was 38.1 MMboe in
2024, a decrease from 40.8 MMboe in 2023, due to gradual reservoir
decline. World-class reliability continued at KGP achieving an annual
reliability rate of 98.3%.
In 2024, 11.8 MMboe of Pluto gas was processed at KGP through the
Pluto-KGP Interconnector. This was a 5.6% increase compared to 2023.
Discussions continued between the NWS Joint Venture participants
and other resource owners for the processing of additional third-
party gas to utilise available processing capacity at KGP. Processing
of Waitsia gas continued and is expected to ramp up when the
Waitsia Stage 2 facility commences production.
The strategic consolidation of the NWS Project’s ownership
structure, through the conditional asset swap agreement with
Chevron that was announced in December 2024 (see page 29), is
a significant milestone in the 40-year history of this critical energy
infrastructure. This transaction creates greater opportunity to fill
emerging processing capacity at KGP and maximise value accretive
recovery from the NWS Project.
The NWS Joint Venture participants took FID on the Lambert West
Project which will support ongoing production from the NWS.
This project is targeted for startup in the second half of 2025.
Additionally, FID was taken on the Low-Low Pressure Operation
Project at Goodwyn Alpha, aimed at increasing and accelerating
NWS production from the Goodwyn area reservoirs. The NWS
Joint Venture participants also progressed a NWS infill program,
which includes a proposed subsea tieback of five wells into existing
offshore NWS facilities, to be produced via the KGP. This project is
targeting FID in 2025.
State environmental approval for the NWS Project Extension was
received in December 2024; the Federal environmental approval
process is ongoing. These approvals would support long-term
operations and processing of future third-party gas resources at
KGP through to 2070.
After 40 years of operations, the NWS Project is entering a period
of production decline. With increased ullage due to natural field
decline and limited third-party gas-processing demand, LNG train
2 was taken offline as preparations for permanent retirement
commenced in the last quarter of 2024.
Planned maintenance activities at the Goodwyn Alpha facility, North
Rankin Complex and an onshore LNG train at KGP were successfully
completed in 2024.
Woodside is operator and holds a 33.33% participating interest.
Following completion of the asset swap agreement with Chevron
announced in 2024, Woodside’s participating interest will increase.1
1. The NWS Project consists of a number of active joint ventures. Prior to completion of the transaction, Woodside has a participating interest of 33.33% and Chevron has a 16.67% participating interest in all of
these joint ventures, apart from the NWS joint ventures with CNOOC. For CLNG JV with CNOOC, Woodside’s participating interest is 25% and Chevron’s is 12.5%. For the Extended Interest JVs with CNOOC,
Woodside’s participating interest is 31.567% and Chevron’s participating interest is 15.78%.
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 production from Wheatstone was 12.6 MMboe
in 2024, a decrease from 13.5 MMboe in 2023, due to unplanned
outages affecting the Julimar subsea production system and
Wheatstone facility respectively.
Wheatstone’s domestic gas plant nameplate capacity was
successfully increased for the second consecutive year, with the
upgraded nameplate of 230 terajoules (TJ) per day representing a
12% increase from the original design.
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. Following completion of the
asset swap agreement with Chevron announced in 2024, Woodside’s
interest in Wheatstone and Julimar-Brunello will reduce to zero.
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 located in Victoria. The Bass Strait
assets include the Gippsland Basin Joint Venture (GBJV) and the
Kipper Unit Joint Venture.
Woodside’s share of production from the Bass Strait was
18.8 MMboe in 2024, this was a decrease from 22.8 MMboe in 2023,
driven by natural field decline, lower Australian east coast short-
term gas market demand, offshore maintenance and reduced
production capacity. All of Woodside’s share of gas produced by the
GBJV is supplied into the eastern Australian domestic gas market.
Through the execution of the Gippsland Asset Streamlining project,
the asset has optimised facilities and transitioned to a gas focused
business. In 2024, the Halibut, West Kingfish and Cobia oil platforms
ceased production, marking the end of 55 years of crude oil
production from the Bass Strait. At Longford, the crude stabilisation
plant and gas plant 1 were permanently shut-in, streamlining the
asset for ongoing gas and condensate production.
The Kipper Compression Project, which added compression facilities
to the West Tuna Platform, successfully commenced operation in
the third quarter of 2024, delivering a production rate increase
and enabling continued supply of gas from the Kipper field to the
domestic market.
The Hastings Generation Project at Long Island Point successfully
started up in September, using ethane to generate electricity to
supply power to the grid.
Woodside holds a 50% non-operating interest in the GBJV and a
32.5% non-operating interest in the Kipper Unit Joint Venture.
28 WOODSIDE ENERGY GROUP LTD
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
7.9 MMboe in 2024, a decrease from 8.0 MMboe in 2023 primarily
due to maintenance activities at the Pyrenees FPSO. The Pyrenees
FPSO safely completed its planned five-yearly maintenance
turnaround in Singapore in May 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 2024 was
8.0 MMboe, a decrease from 8.2 MMboe in 2023. In October,
the facility successfully installed a new front-end compressor,
enabling an initial 15% uplift in production.
ASSET SWAP
In December 2024, Woodside simplified its Australian portfolio and
consolidated its focus on operated LNG assets by entering into an
agreement with Chevron. Subject to completion, Woodside will
acquire Chevron’s 16.67% interest in the North West Shelf (NWS)
Project and the NWS Oil Project and a 20% interest in the Angel
Carbon Capture and Storage (CCS) Project, and transfer its 13%
non-operated interest in the Wheatstone Project and 65% operated
interest in the Julimar-Brunello Project to Chevron. Chevron will
also make a cash payment to Woodside of up to $400 million.
The asset swap provides Woodside with the opportunity to realign
its Australian infrastructure interests to provide greater commercial
certainty and enhance development prospects.
The transaction is subject to the completion of Julimar Phase 3
Project execution and handover which is expected in 2026, and the
completion of certain ongoing abandonment activities. The Julimar
Phase 3 Project is a four well tie-back to the existing Julimar field
production system and is currently in execution phase. Woodside
will continue to operate the execution phase, transferring the asset
to Chevron at project startup. The effective date of the transaction is
1 January 2024 and is expected to close in 2026.
Completion of the transaction is also subject to customary
conditions precedent, including Australian Competition and
Consumer Commission and Foreign Investment Review Board
clearances and other applicable State and Federal regulatory
approvals, relevant third-party consents and pre-emption rights
of the continuing joint venture participants.
The Karratha Gas Plant in Western Australia has been providing a reliable and affordable supply of natural gas to domestic and international
customers for decades
2024 ANNUAL REPORT 29
Woodside’s international portfolio consists of established high-quality operated and
non-operated oil and gas assets in Senegal, the US Gulf of Mexico and Trinidad and
Tobago.1 Woodside’s share of production from international operations was 54.4 MMboe
(149 Mboe/day) in 2024.
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
SANGOMAR
The Sangomar oil and gas field is located offshore Senegal,
approximately 100 km south of Dakar. Woodside achieved first oil
production in June 2024, marking the safe delivery of the country’s
first offshore oil project.
The Sangomar Field Development Phase 1 is a deepwater project
including a stand-alone FPSO facility with a nameplate capacity of
100,000 bbl per day, and subsea infrastructure that is designed to
allow subsequent development phases. The final Sangomar Field
Development Phase 1 cost was approximately $5.0 billion, at the
lower end of the previously estimated range of $4.9 - $5.2 billion.
Woodside’s share of production from Sangomar was 13.3 MMboe
in 2024.
Early production performance has been outstanding with nameplate
production capacity achieved in July 2024 and maintained.
Sangomar crude received strong interest from buyers in Europe,
Asia and the United States, with 17 cargoes exported by the end of
December 2024.
The Sangomar drilling campaign was concluded during the year,
marking the successful drilling and completion of 24 development
wells. The FPSO hook-up, commissioning and startup activities were
completed with reliability of 90% since startup.
Woodside will continue to analyse production performance to inform
the potential Sangomar Phase 2 development.
Woodside is the operator and holds an 82% participating interest
in the Sangomar exploitation area.
MAD DOG
Mad Dog is a conventional oil and gas development located in the
US Gulf of Mexico.1
The Mad Dog Phase 1 development includes a spar facility (A-Spar)
with drilling capability and dry-tree producer wells. A planned
intervention campaign at A-Spar was completed in July 2024,
achieving increased production rates.
Mad Dog Phase 2 is a development of the southern flank of the Mad
Dog field through the Argos floating production facility. First oil was
achieved in April 2023 and production ramped up throughout 2024,
with the facility achieving peak production of 130,000 bbl per day.
The development includes subsea producer wells and subsea water
injector wells.
Execution of the Mad Dog Southwest Extension Project is ongoing,
following sanction in late 2023. First production is planned for 2026.
Woodside’s share of production from Mad Dog was 11.3 MMboe in
2024, an increase from 7.2 MMboe in 2023. The increase was driven
primarily by production ramp up at Argos.
Woodside holds a 23.9% non-operating participating interest.
ATLANTIS
Atlantis is a conventional oil and gas development in the US Gulf
of Mexico.1 The Atlantis development includes a semi-submersible
facility with subsea production wells and subsea water injector wells.
Woodside’s share of production from Atlantis was 10.5 MMboe
in 2024, a decrease from 12.6 MMboe in 2023. The decrease was
driven primarily by a planned facility and midstream turnaround
and multiple downtime events associated with weather events.
One production well was completed in 2024. This was the first
horizontal well in the Atlantis field.
Woodside took FID on the Atlantis Drill Center 1 Expansion in
February 2024. It is a two well tie-back to the Atlantis facility
through the existing Drill Center 1 manifold in the southwest portion
of the field. First production is planned for 2026.
Woodside holds a 44% non-operating participating interest.
International operations
3.2
30 WOODSIDE ENERGY GROUP LTD
30 WOODSIDE ENERGY GROUP LTD
Our Business • International operations
SHENZI
Shenzi is a conventional oil and gas field developed through a
tension leg platform located in the US Gulf of Mexico.1 The facility
has subsea production and water injection wells. In addition, two
subsea wells are tied back to the non-operated Marco Polo platform.
Woodside’s share of production from Shenzi was 9.4 MMboe in 2024,
down from 10.8 MMboe in 2023. This was due to natural depletion
and multiple downtime events associated with weather events.
Woodside is operator and holds a 72% participating interest.
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24
January 2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi,
Mad Dog and Atlantis projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in
relation to US waters.
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, five wellhead platforms and an onshore oil terminal.
Woodside and the Trinidad and Tobago Ministry of Energy and
Energy Industries reached an agreement in the fourth quarter of
2024 to modify key fiscal terms in their production sharing contract
in support of economic life extension. The revised terms take effect
from 2025.
Woodside’s share of production from Greater Angostura was
9.5 MMboe in 2024, a decrease from 11.2 MMboe in 2023 primarily
due to a planned facility maintenance turnaround completed in
June 2024.
Woodside is operator and holds a 45% participating interest in the
Angostura field and a 68.5% participating interest in the Ruby field.
Woodside CEO and Managing Director Meg O’Neill (centre) and the President of Senegal, His Excellency Bassirou Diomaye Diakhar Faye (centre), together
with representatives from the Senegalese government and Woodside employees on an offshore visit to the Léopold Sédar Senghor FPSO
2024 ANNUAL REPORT 31
Woodside’s marketing business generated $427 million in profit before tax in 2024.
Woodside has a global portfolio with positions in both the Pacific and Atlantic basins.
We have a strong track record of reliable supply to major energy customers through
our integrated shipping, operations, marketing and trading activities across LNG,
pipeline gas, condensate, crude and natural gas liquid (NGL) cargoes.
1. Subject to conditions and agreement on terms for this period.
2. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
The marketing segment’s strong profit reflects 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.
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 2024,
Woodside’s exposure of produced LNG to gas hub indices was
34.4%. This represents 15% of Woodside’s total equity production.
Woodside remains one of the largest suppliers of Australian LNG to
major regional trading partners. In 2024, Woodside signed sale and
purchase agreements with KOGAS, CPC and JERA for the long-
term supply of LNG to Korea, Taiwan and Japan respectively. These
LNG buyers are some of the largest in the world, demonstrating
ongoing robust demand for Woodside’s products and the ability
of LNG to meet energy security needs while supporting regional
decarbonisation goals.
The KOGAS agreement is for the supply of approximately
0.5 million tonnes per annum (Mtpa) of LNG from 2026,
for a period of 10.5 years on a delivered basis.
The CPC agreement is for the supply of approximately 6 million
tonnes of LNG on a delivered basis over ten years, from July
2024. Under the CPC agreement, Woodside may also deliver
approximately 8.4 million tonnes of LNG for a further ten years, from
2034 to 2043.1
The JERA agreement is for the supply of approximately 0.4 Mtpa (six
cargoes) of LNG over ten years on a delivered basis, commencing in
April 2026.
LNG delivered under all three agreements will be sourced from
volumes across Woodside’s global portfolio.
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.
The marketing of crude, condensate and NGLs is predominantly
based on short-term sales and supplemented by term arrangements.
The majority of Woodside’s crude oil and condensate in Australia,
Senegal and Trinidad and Tobago is currently sold to international
markets. In the US Gulf of Mexico, crude oil is sold to refiners and
traders on the US Gulf Coast. Woodside has also maintained its
operational flexibility in the US Gulf of Mexico through access to
infrastructure that enables the export of crude oil to international
markets.2
Woodside produces natural gas for domestic markets in Western
Australia, the east coast of Australia, the United States and Trinidad
and Tobago.
In 2024, Woodside’s Western Australian assets produced
86 petajoules (PJ) of natural gas, representing approximately
21% of Western Australia’s domestic gas supply. Woodside executed
73.5 PJ of termed WA gas sales for delivery across 2025 and 2026
and will continue to support the domestic market by offering
additional supply for 2025 and onwards.
A record quantity of trucked LNG (approximately 1,900 TJ) was also
delivered in 2024 to customers in northern Western Australia. Since
the commencement of operations at the Pluto LNG Truck Loading
Facility in 2019, Woodside has delivered more than 3,200 trailers of
LNG (approximately 3,250 TJ), offering a lower-carbon alternative to
diesel and fuel-oil for industry to users in remote locations.
In the east coast of Australia, Woodside’s share of Bass Strait
production was 84.9 PJ, representing approximately 17% of all gas
supplied to the east coast market. All of Woodside’s production from
Bass Strait is sold into the east coast domestic market. Woodside
was granted an exemption under the applicable domestic Gas Market
Code legislation in January 2024. The exemption provides Woodside
with the opportunity to increase delivery to the east coast domestic
market by more than 260 PJ (100% share) through to 2033 if needed.
In the US Gulf of Mexico, natural gas is sold to end-users and
merchants at the tailgate of the Neptune gas processing plant,
which is owned and operated by a third-party midstream company.2
Woodside’s marketing and trading portfolio is supported by our
managed shipping capacity which includes seven LNG vessels
under long-term charter and multiple vessels on short-term charter.
A new 174,000 m3 long-term charter LNG vessel, the Woodside
Scarlet Ibis, was delivered in June 2024.
Marketing and trading
3.3
32 WOODSIDE ENERGY GROUP LTD
32 WOODSIDE ENERGY GROUP LTD
Our Business • Marketing and trading
PROJECTS
Our disciplined investment
decisions and world-class project
delivery are rewarding our
shareholders and driving future
growth and value.
Trion FPU computer generated image
33
Woodside is leveraging proven project execution capabilities to deliver quality growth
projects in LNG, oil and lower-carbon solutions, with a focus on safety, quality, cost
and schedule.
SCARBOROUGH ENERGY PROJECT
1. Wood Mackenzie, Emissions Benchmarking, June 2023.
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 433 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 floating
production unit (FPU) with eight wells expected to be drilled in the
initial phase and 13 wells drilled throughout the life of the field.
The 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
FPU and onshore Pluto Train 2, the Scarborough Energy Project is
expected to be one of the lowest carbon intensity sources of LNG
delivered into north Asian markets.1
At the end of 2024, the Scarborough Energy Project was 78%
complete, excluding Pluto Train 1 modifications, and remains on
track for first LNG cargo in 2026.
Fabrication of the FPU continued to progress through 2024.
The topsides structure was completed and the flare boom,
monoethylene glycol module and living quarters module were
installed on the topsides. Commissioning of services and utilities is
in progress. Hull fabrication and installation scope are proceeding
ahead of FPU integration activities planned in 2025.
The installation of the trunkline was successfully completed in
October 2024. Approximately 36,000 lengths of pipe were fabricated
and welded together for the 433 km trunkline, which has been dried
and inerted. The trunkline will transport gas from the Scarborough
field to the onshore processing facilities.
The installation and testing of the three subsea flowlines was
completed, and the next phase of the subsea installation campaign
is underway. All 20 suction piles were installed and subsequent to
the period, all FPU mooring chains were successfully pre-installed.
The drilling campaign continued with two of the eight wells reaching
completion.
The first Pluto Train 2 module was delivered from the Batam
module yard in Indonesia to the Pluto site in February 2024 and the
fifty-first and final module arrived in December 2024. All modules
have been set in position and site activity is now focused on the safe
execution of the remaining construction scope.
All engineering reviews for Pluto Train 1 modifications were
completed. Mobilisation of personnel to both the module yard in
Thailand and Pluto site commenced. Module construction is in
progress and site preparation works for the modifications to Pluto
Train 1 continue.
The Integrated Remote Operations Centre building works were
completed with the fit out progressing throughout 2024. The
centre will allow Scarborough and the Pluto facility to be remotely
operated from Woodside’s headquarters in Perth.
In March 2024, Woodside completed the sale of a 10% non-operating
participating interest in the Scarborough Joint Venture (SJV) to LNG
Japan for $910 million. In October 2024, Woodside completed the
sale of a 15.1% non-operating participating interest in the SJV to
JERA for $1.4 billion. These transactions reflect the long-term value
that LNG customers in Japan are placing on energy security.
Woodside is operator and holds a 74.9% participating interest in
Scarborough, 51% participating interest in Pluto Train 2 and 90%
participating interest in Pluto Train 1.
Projects
3.4
Pluto Train 2 construction progress, Western Australia, December 2024
34 WOODSIDE ENERGY GROUP LTD
34 WOODSIDE ENERGY GROUP LTD
Our Business • Projects
TRION
Trion is an oil development located in the Mexican Gulf,
approximately 180 km off the Mexican coastline and 30 km south
of the United States/Mexico maritime border.1 The development
includes a 24 subsea well development, a semi-submersible FPU
capable of producing and transferring 100,000 bbl per day, and a
floating storage and offloading (FSO) facility.
At the end of 2024, overall progress of the project was 20%. The
project is progressing in accordance with the execution plan with all
major scope contracts awarded, and fabrication of equipment and
floating facilities commenced. Woodside is targeting first oil in 2028.
The FPU engineering, procurement and construction scope has
been progressively converted to lump sum contract, underpinned
by substantive technical maturity of the design and procurement
of equipment and bulks. Key personnel have mobilised in Korea
and conducted pre-construction activities. Engineering continues
to progress with deliverables supporting construction, quality, and
technical safety activities. First steel cut for the FPU was achieved
in November 2024 representing a significant milestone for the
execution of the project.
Manufacturing has advanced across multiple subsea scopes
including line-pipe, trees, valves, connectors, umbilicals, subsea
distribution equipment and flexible pipe. System and installation
engineering has matured the field layout and optimised well
locations.
The FSO front end engineering and design (FEED) concluded and has
transitioned to the build-lease phase with the award of the bareboat
charter. This has enabled key fabrication slots to be secured.
Woodside has commenced reprocessing of the ocean-bottom node
seismic to further reduce fault uncertainty and de-risk the future
drilling campaign. The subsurface and drilling teams have optimised
trajectories for the first production wells and Woodside is targeting
commencement of the drilling campaign in 2026.
Local content initiatives have begun in Mexico including supplier
development programs, in-country fabrication of subsea structures
and in-country flow assurance testing. In 2024, Trion was
highlighted as a priority project within Mexico’s national energy
plan, reinforcing the importance to the country’s energy future.
Woodside is operator and holds a 60% participating interest.
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24
January 2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi,
Mad Dog and Atlantis projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in
relation to US waters.
2. Production of lower-carbon ammonia is conditional on supply of carbon abated hydrogen and ExxonMobil’s CCS facility becoming operational.
3. The tragic death of an OCI contractor employee at the Beaumont New Ammonia site is not included in the Woodside statistics due to the applicable contractual agreements. Refer to section 3.8.4 for further
details on 2024 metrics and targets for health, safety and wellbeing.
BEAUMONT NEW AMMONIA
Construction of Train 1 of the Beaumont New Ammonia Project,
which has a design capacity of 1.1 Mtpa, is underway. At the end of
2024, the project was approximately 83% complete.
First ammonia production is targeted for the second half of 2025
with lower carbon ammonia production targeted for the second half
of 2026.2 All critical agreements for feedstock, utilities, and terminal
services are in place.
In accordance with the terms of the acquisition (refer to page 41
for more information), OCI continues to manage the construction of
the project under the Construction Management Agreement. The
project is subject to cost, schedule, and performance guarantees
from OCI. The second production train, which has the potential for
an additional 1.1 Mtpa in production capacity, is being evaluated and
will be considered separately for a future FID.
The project was renamed to Beaumont New Ammonia to reflect the
change of ownership and the production of a new, lower-carbon
ammonia product following the associated carbon, capture and
storage (CCS) facility becoming operational.
In early October 2024, the tragic death of an employee of one of
OCI’s construction contractors occurred at the project site.3 OCI’s
investigation into the incident is ongoing at this time.
Upon completion of the project Woodside will become operator and
hold a 100% participating interest.
Construction of the Beaumont New Ammonia Project, July 2024
2024 ANNUAL REPORT 35
Our priority remains the safety of people and the environment by completing the
work using recovery methods developed by our contractors and workforce.
Woodside is working with a range of international contractors which
bring experience, technical expertise and the specialist offshore
vessels required for our offshore decommissioning scopes.
In 2024 Woodside made substantial progress on planned
decommissioning activities, spending US$805 million across
our portfolio.
With the recovery of the Nganhurra FPSO’s anchors, chains and
moorings in February 2025, Woodside decommissioned the Enfield
Project, located approximately 38 km north of the North West Cape,
Western Australia. All 18 Enfield wells have been permanently
plugged and the associated xmas trees and wellheads recovered.
More than 40 km of flexible flowlines and umbilicals, and eight
subsea structures have been recovered. Deconstruction of the
Nganhurra riser turret mooring (RTM) at the Australian Marine
Complex (AMC) was completed in March 2024, with more than 95%
of the mooring to be reused or recycled.
Woodside has continued decommissioning of the Griffin and
Stybarrow fields, having already recovered more than 100 km
of pipe and 65 subsea structures for cleaning at an onshore
decommissioning facility near Onslow in preparation for recycling
and reuse. At Griffin, all rigid piping has been recovered and
wellhead severance activities have been completed. A well plug and
abandonment campaign at Stybarrow was 79% complete at the end
of the year, with seven wells plugged.
In December 2024, the Griffin RTM was safely recovered and
transported to AMC to be cleaned and deconstructed in preparation
for recycling and reuse.
Preparations were undertaken for the planned retrieval of the
Stybarrow disconnectable turret mooring in the first half of 2025.
Removal of the Echo Yodel umbilical is planned for the first half of 2025.
The removal of nine NWS exploration wellheads was successfully
completed during the final quarter of 2024.
State and Commonwealth environmental approvals for
decommissioning the Minerva field, offshore Victoria, were secured
with planning and preparations completed in the last quarter of
2024. The plugging and abandonment of three wells, and removal
of subsea infrastructure including 10 km of pipeline is planned for
completion in 2025.
The GBJV continued planned decommissioning activities in Bass
Strait, with more than 150 wells permanently plugged since the
campaign commenced. In 2024, plugging and abandonment of
platform wells continued to plan with 55 wells plugged; a semi-
submersible well intervention unit completed plugging and
abandonment of two subsea wells, and a jack-up rig commenced
plugging and abandonment work. The GBJV also awarded contracts
for the heavy lift removal and disposal of a number of the offshore
facilities within the Gippsland Basin and continued to execute
preparatory decommissioning activities for an offshore removal
campaign planned for 2027.
Planning for future decommissioning progressed in 2024, including
engaging a range of stakeholders, undertaking engineering and
science studies to understand decommissioning impacts, and
developing plans for decommissioning scrap material recycling.
Outside Australia, Woodside and partners continue to responsibly
progress decommissioning obligations in line with relevant local
regulatory environments. This includes ongoing work in Canada, at
both the upstream Liard and Horn River basins and downstream
Kitimat locations in British Columbia, and in the United States
where two deepwater wells have been plugged and legacy site
decommissioning is ongoing.
Decommissioning
Decommissioning of the Nganhurra RTM
3.5
36 WOODSIDE ENERGY GROUP LTD
36 WOODSIDE ENERGY GROUP LTD
Our Business • Decommissioning
DEVELOPMENTS AND EXPLORATION
Through targeted opportunities
and strategic partnerships we
are building a quality, diversified
portfolio for long-term success.
37
Woodside is building a diverse global portfolio of development opportunities to
underpin long-term profitability. Leveraging our strong technical and commercial
expertise, we take a disciplined and targeted approach focused on long-term value
creation.
LOUISIANA LNG
In July 2024 Woodside entered into a definitive agreement to
acquire all issued and outstanding common stock of Tellurian Inc.,
including its owned and operated US Gulf Coast Driftwood LNG
development opportunity. The transaction closed on 8 October 2024
and the Driftwood LNG opportunity was renamed “Louisiana LNG”.
Louisiana LNG is a fully permitted, pre-FID development opportunity
located near Lake Charles, Louisiana. The development plan
comprises four phases of development with five LNG plants, with a
total permitted capacity of 27.6 Mtpa, and supporting infrastructure.
The foundation development includes Phase 1 (11 Mtpa, two plants)
and Phase 2 (5.5 Mtpa, one plant).
Louisiana LNG expands Woodside’s position as a leading
independent LNG company, enabling us to better serve global
customers and capture further marketing optimisation opportunities
across both the Atlantic and Pacific Basins. Well-matched to
Woodside’s proven capabilities in project execution, operations and
marketing, it provides a pathway to significant long-term cashflow.
The development continues to progress readiness for FID, targeted
from the first quarter of 2025. Woodside is inviting partners for the
Louisiana LNG investment, and strong interest has been received
from high-quality potential partners.
The development opportunity is competitively advantaged being
fully permitted with a valid non-free trade agreement LNG export
authorisation and an extension of its Federal Energy Regulatory
Commission (FERC) authorisation. It also benefits from ongoing
early siteworks with pilings for plants 1 and 2 complete, foundation
work in progress, and pilings underway for the LNG tanks.
The progress on groundwork has reduced risk to engineering,
procurement and construction timeline and cost.
In support of FID readiness, Woodside has signed a revised lump
sum turnkey engineering, procurement and construction contract
with Bechtel for the development of the three plant 16.5 Mtpa
foundation development of Louisiana LNG.
Bechtel has maintained a continuous presence on site prior to the
acquisition and is now under a Woodside limited notice to proceed
(LNTP) executed under the revised contract. The LNTP progresses
continued site construction and commitment to certain key
materials and services required for the foundation project.
Woodside is operator and holds a 100% participating interest,
subject to future selldown.
Developments and
exploration
Woodside Louisiana
LNG development,
January 2025
3.6
38 WOODSIDE ENERGY GROUP LTD
38 WOODSIDE ENERGY GROUP LTD
Our Business • Developments and exploration
BROWSE
The Browse to NWS Project involves the proposed development
of the Calliance, Brecknock and Torosa gas and condensate fields
in the offshore Browse Basin, located approximately 425 km north
of Broome, Western Australia. The proposed concept includes two
FPSO facilities and an approximately 900 km pipeline to existing
infrastructure at the NWS Project’s KGP.
The Browse to NWS Project aligns with key policy statements
of both the Western Australian and Federal Governments which
recognise the pivotal role of natural gas in Australia to 2050 and
beyond. This could support domestic gas security for Western
Australia at a time when there are forecast supply shortfalls.
In December 2024, Woodside entered into an asset swap with
Chevron for its interest in the NWS Project. This transaction which
will simplify the NWS Joint Venture ownership and is expected to
improve the Joint Venture alignment across the Browse to NWS
Project.1
Key work activities continued during 2024 in support of progress
towards FEED entry, including optimising the development concept
to improve cost and schedule certainty, engagement with regulators
on environmental and regulatory approvals and progressing
commercial agreements.
The development concept includes a CCS component, the Browse
CCS Project, which is designed to sequester the majority of
Browse reservoir CO2. In June 2024, a declaration of an identified
greenhouse gas storage formation was made by the Australian
Commonwealth Government over the Calliance storage formation
within the G-8-AP greenhouse gas assessment permit. Woodside
subsequently referred the Browse CCS Project to the environmental
regulator for assessment.
Woodside is operator and holds a 30.6% participating interest.
CALYPSO
Calypso is a proposed deepwater gas development in Trinidad and
Tobago, located approximately 220 km off the coast of Trinidad in
2,100 m water depth. It involves the development of several gas
discoveries in Block 23(a) and Block TTDAA 14. The development is
located in a region with existing offshore and onshore infrastructure
and a favourable demand outlook.
In 2024, progress was made to mature the technical definition of
the development concept. Fiscal negotiations advanced with the
Government of Trinidad and Tobago and commercial discussions
continued with key stakeholders to evaluate options to monetise
the resource.
Woodside is operator and holds a 70% participating interest.
1. Completion of the transaction is subject to customary conditions precedent, refer to section 3.1 - Australian operations for details.
GREATER SUNRISE
The Sunrise development 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 2024, the Sunrise Joint Venture participants made progress
with the Australian and Timor-Leste Governments on negotiating
a new Production Sharing Contract, Petroleum Mining Code and
fiscal regime.
The Sunrise Joint Venture also completed a Concept Study Report,
which incorporates previous work related to Sunrise by utilising
the latest technologies (where relevant) and cost estimates,
while considering the socio-economic, capacity building, safety,
environmental, strategic and security benefits across potential
development pathways. The Sunrise Joint Venture participants are
reviewing the outcomes of the Concept Study Report and discussing
next steps.
Woodside is operator and holds a 33.44% participating interest.
LIARD
Liard is an unconventional gas field located in British Columbia
Canada. Woodside is working with the operator, to develop a
comprehensive strategy for full field development. Woodside is also
working with its partners in Rockies LNG to potentially export LNG
via the proposed Ksi Lisims project on the west coast of Canada.
Woodside holds a 50% non-operating participating interest.
EXPLORATION
Woodside’s exploration strategy is focused on accessing and testing
potential value accretive growth options with the potential to be
developed at pace. The strategy balances a focus on exploring near
current producing hubs with opportunities in new regions.
In Australia, Woodside was awarded exploration permit WA-554-P.
In the United States, Woodside was awarded 18 leases in Lease
Sale 261 and participated in the drilling of the Corvus well (non-
operated), which did not encounter commercial quantities of
hydrocarbons. Woodside acquired new interests in the Nile Delta
offshore Egypt and completed the Khendjer well (non-operated),
which did not encounter hydrocarbons. In the Republic of the Congo,
Woodside completed the unsuccessful Niamou well (non-operated).
Woodside continued to optimise its exploration portfolio, exiting
blocks no longer considered prospective. This included exiting the
exploration acreage associated with Rufisque Offshore, Sangomar
Offshore, and Sangomar Deep Offshore in Senegal, and initiating exit
activities in Barbados and Red Sea Block 3 and Block 4 in Egypt.
2024 ANNUAL REPORT 39
NEW ENERGY OPPORTUNITIES
As the energy transition
progresses we will continue to
deliver affordable, reliable energy
and progress lower-carbon
projects.
40
Complementing our investment in Beaumont New Ammonia and its potential to
deliver future growth and value, Woodside is investing in new energy products and
lower-carbon services to enable our base business and help our new and existing
customers decarbonise. We take a disciplined approach to new investments that
seeks to match the pace, scale and needs of our customers as they determine their
own decarbonisation pathways.
1. Cumulative spend against the investment target at the end of 2024 includes 80% of the total $2,350 million for the Beaumont New Ammonia Project acquisition. The remaining 20% will be paid at Project completion
2. Production of lower-carbon ammonia is conditional on supply of carbon abated hydrogen and ExxonMobil’s CCS facility becoming operational.
3. Scope 3 emissions abatement capacity of 1.6 Mtpa CO2-e assumes supply of carbon abated hydrogen and CCS operational for phase 1 of the Beaumont New Ammonia project. Woodside has made the
assumption to estimate the avoided emissions through the displacement of conventional marine fuel. Actual displaced emissions may differ based on actual use case.
4. 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.
5. Energy supply may include hydrogen, natural gas and electricity.
UNITED STATES
Beaumont New Ammonia
In September 2024, Woodside completed the acquisition of OCI’s
Clean Ammonia Project in Beaumont, Texas.
Beaumont New Ammonia is Woodside’s biggest investment in
new energy1 and positions Woodside to be an early mover in the
lower-carbon ammonia industry and meet growing global demand.
First ammonia production is targeted for the second half of 2025
and lower-carbon ammonia production targeted for the second half
of 2026.2
The acquisition represents a material step towards achieving our
new energy and lower-carbon investment and abatement targets.3,4
Once in production, the project will be well placed to serve the US
domestic market as well as European and Asia Pacific markets
which are expected to lead adoption of lower-carbon ammonia due
to increasing carbon cost requirements and stricter regulations.
The configuration of the project means it has the potential to
attract premium pricing when compared to conventional ammonia
producers.
H2OK
H2OK is a proposed liquid hydrogen project to be located in
Ardmore, Oklahoma, and is expected to produce up to 60 tonnes per
day of liquid hydrogen by electrolysis.
Woodside continues to take a disciplined approach to H2OK and has
made a strategic decision to delay FID, prioritising Beaumont New
Ammonia. Work will continue on improving project competitiveness,
securing offtake and understanding the impacts of policy updates.
Woodside is reviewing the final 45V Clean Hydrogen Production Tax
Credit regulations released by the US Department of Treasury.
Woodside is operator and holds a 100% participating interest.
AUSTRALIA
H2Perth
H2Perth is a proposed liquid hydrogen production facility to be
located in Perth, Western Australia. In 2024, Woodside changed the
H2Perth concept from hydrogen and ammonia production to liquid
hydrogen only, following feedback from potential customers.
Woodside signed a conditional offtake term sheet in 2024 with
Keppel for the supply and purchase of liquid hydrogen, aimed at
powering Keppel’s data centre facilities in Singapore. The sources
of liquid hydrogen would include Woodside’s proposed production
facilities, including H2Perth.
Woodside is operator and holds a 100% participating interest.
Hydrogen Refueller @H2Perth
The Hydrogen Refueller @H2Perth is a self-contained hydrogen
production, storage and refuelling station located in Perth, Western
Australia. In 2024, all primary environmental approvals were secured
for the project. Woodside awarded the major services contract which
includes detailed engineering, construction, commissioning, and
startup work scopes to enable progression towards being ready for
startup. The project has received funding from the Hydrogen Fuelled
Transport Project Funding Process as part of the Western Australian
Government’s Renewable Hydrogen Strategy.
Woodside is operator and holds a 100% participating interest.
NeoSmelt
The NeoSmelt project is a proposed direct reduced iron electric
smelting furnace pilot plant to be located in Perth, Western
Australia. Woodside will join BHP, Rio Tinto, and BlueScope as part
of the NeoSmelt project and as energy supplier subject to finalising
commercial arrangements.5
New energy
opportunities
3.7
2024 ANNUAL REPORT 41
2024 ANNUAL REPORT 41
Our Business • New energy opportunities
CARBON SOLUTIONS
Woodside is evaluating lower-carbon services including carbon capture and storage (CCS), carbon capture and utilisation (CCU), and
investing in carbon credits to enable our base business, help our customers decarbonise, and deliver future value to shareholders.
Carbon Capture and Storage
Woodside, as a participant in various joint ventures, is involved in five greenhouse gas assessment permits (see section 6.5 - Asset Facts).
In 2023, Woodside entered into three non-binding memoranda of understanding to enable studies of a potential CCS value chain between
Japan and Australia. Throughout 2024, these studies have progressed to form an understanding of the technical, economics, timing, and
regulatory requirements to enable CCS value chains across borders.1 These proposed large-scale multi-user CCS hubs aimed at capturing
carbon emitted by multiple industries are summarised below:
Opportunity
Angel
Bonaparte
South East Australia CCS
Greenhouse Gas
Assessment Permit G-18-AP
Location
Offshore, North West
Australia
Offshore, northern Australia
Offshore, South East
Australia
Offshore, North West Australia
Interest
20% Operator2
21% Non-operator
50% Non-operator
30% Non-operator
2024 activities
Progressed concept
definition level of
engineering, regulatory
approvals, and customer
development activities.
Progressed appraisal activities
in the G-7-AP Assessment Permit
Area, including acquisition of the
West Peron marine 3D seismic
and the drilling of two appraisal
wells.
Continue to assess options
associated with Greenhouse
Gas Assessment Permit
G-19-AP, located in the
Gippsland Basin.
Awarded Greenhouse Gas Assessment
Permit G-18-AP, located in the Northern
Carnarvon Basin, and commenced
regional geological and geophysical
studies along with licensing of relevant
3D seismic datasets.
1. Refer to section 6.5 – Asset facts for information on our greenhouse gas assessment permits and for further information on Woodside’s CCS projects.
2. In December 2024, Woodside announced it will acquire Chevron’s 20% interest in the Angel CCS Project. After completion of the transaction, Woodside will hold a 40% interest and remain as operator.
3. Figures provided for seedlings, ha and carbon credit volume figures are approximate.
4. Portfolio volume excludes (1) carbon credits (held and expected to be received) from Woodside Pluto Carbon Offset Project Stages 1-4 held by Woodside Burrup Pty Ltd (2) retired credits and (3) carbon
credits identified for sale or under review.
5. 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 2060 under or in relation to: (i) third-party contracts entered into prior to 31 December 2025; or (ii) Woodside originated projects for which land has been purchased prior to 31
December 2025. Volumes reported on an unrisked basis. Unrisked volumes do not include an adjustment to such volumes to reflect any risk of non-delivery. Woodside does not make any claims in relation to
the mitigation impact of carbon credits within the portfolio unless, and until, a credit is retired or surrendered (taken out of circulation and can no longer be sold).
Carbon credits portfolio3
Woodside utilises carbon credits to offset gross equity Scope 1
and 2 GHG emissions that are above our net emissions reduction
targets. As at 31 December 2024, Woodside manages a portfolio
of more than 20 million carbon credits from the Australian Carbon
Credit Unit (ACCU) scheme, Gold Standard and Verra.4,5 In relation
to our 2024 gross equity Scope 1 and 2 GHG emissions, 1,347,262
carbon credits have been retired.
In 2024, we planted 3.2 million biodiverse seedlings in Western
Australia as part of our Native Reforestation Project across 4,800 ha
of land at Woodside owned properties. This brings our biodiverse
carbon plantings in Australia to 8.9 million seedlings across 13,000
ha of land.
In Paraguay, Woodside is funding the reforestation of 7,400 ha of land
in the Chaco region. The Woodside portion of the project is expected
to receive approximately 2.4 million carbon credits over 40 years.
In Senegal, Woodside is funding the restoration of 7,000 ha of
mangroves in the Sine Saloum and Casamance regions. Woodside
is expected to receive approximately 1.8 million carbon credits from
this project over 40 years.
Carbon to products
Woodside is focused on collaborating with CCU technology
developers and is assessing opportunities to deploy their
technologies to create value added products and also to evaluate
their potential in reducing our Scope 1 or 3 emissions. In 2024,
Woodside continued to screen several approaches for CCU
technologies.
Ground preparation for seedling planting at Karakin, Western Australia
42 WOODSIDE ENERGY GROUP LTD
SUSTAINABILITY REPORT
Conducting our business
sustainably underpins our
strategy to thrive through the
energy transition.
43
We are in an exciting period for
Woodside, as we expand and evolve our
business to continue providing reliable,
affordable and lower-carbon energy
through the energy transition.
In the past year, we have continued our track record of operational
excellence, financial discipline and project execution that is
fundamental to our business success. We have also made
transformative acquisitions that provide the foundation for
Woodside’s next chapter of growth and value.
Underpinning all of these achievements is Woodside’s sustainability
performance, which remains woven into all aspects of our business.
With this in mind, the Sustainability Committee (Committee) plays
a critical role in Woodside’s business strategy and performance by
supporting the Board’s oversight of sustainability topics, identifying
priorities and reviewing Woodside’s policies and performance, while
seeking internal and external advice and expertise.
Core sustainability topics such as safety and climate change are
on the agenda at every Committee meeting, reflecting Directors’
recognition of the importance of these issues to creating long-term
value for shareholders.
The Committee also has a structured process to systematically
identify, review and assess other material sustainability risks and
opportunities including First Nations communities and cultural
heritage, environment and biodiversity, and a wide range of other
current and emerging environmental, social and governance topics.
This report provides updates on our most material topics and is
supported by more detail and additional topics on our website.
I encourage you to read this information, and we welcome your
feedback as Woodside seeks continuous improvement in these areas.
Safety remains our highest priority, and everyone who works at
Woodside should expect to go home safely. In 2024, we renewed
efforts to strengthen our safety culture, simplify our processes and
improve our systems. We are seeing early results from these efforts,
but we must remain vigilant and strive for further improvement.
Climate change, and the way that the world responds to it, creates
both risks and opportunities for Woodside. It is no surprise that on
such a complex topic there is a wide range of divergent views in
the community, including among our shareholders. The vote on our
Climate Transition Action Plan at our 2024 AGM was disappointing
and is taken seriously by every Director. We continue to listen and
engage with investors as we take forward a considered, pragmatic
and action-oriented climate strategy for our shareholders.
We have also taken steps to further increase our transparency on
this topic, by issuing a separate report that describes our systematic
approach to investor engagement, the issues raised by investors,
and the continued evolution of our climate strategy in recent years.
A key role of the Committee is to monitor the development of
sustainability reporting standards, including those recommended
by the International Financial Reporting Standards Foundation’s
International Sustainability Standards Board, and those adopted by
the Australian Accounting Standards Board with effect from
1 January 2025. We look forward to the development of
standardised approaches to sustainability reporting which should
enable consistent and comparable assessment of company
performance. We have structured this Sustainability Report and
included it within our Annual Report, in part to anticipate the
changes that these reporting standards will bring.
I am proud of Woodside’s contribution as a responsible supplier
of energy as societies pursue prosperity, positive environmental
outcomes and climate goals. For Woodside to continue playing this
role through the energy transition, our sustainability performance
has never been more important. With my fellow Directors, I am
fully committed to maintaining our strong governance in the years
ahead.
Ann Pickard
Chair of the Sustainability Committee
25 February 2025
Sustainability
Report
Ann Pickard
3.8
44 WOODSIDE ENERGY GROUP LTD
44 WOODSIDE ENERGY GROUP LTD
Our Business • Sustainability Report
3.8.1 Woodside’s Sustainability Strategy
1. For Woodside, a lower-carbon portfolio is one from which the net equity Scope 1 and 2 GHG 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 to
achieve this aim.
Our company strategy is to thrive through the energy transition
by developing a low-cost, lower-carbon, profitable, resilient and
diversified portfolio.1 This strategy is underpinned by three goals:
providing energy; creating and returning value to shareholders;
and conducting our business sustainably.
Conducting our business sustainably means identifying, responsibly
managing and transparently reporting upon the potential impact
of our business upon society and the environment, as well as the
potential risks and opportunities to our operational and financial
performance.
Our Sustainability Strategy is overseen and regularly reviewed by
the Board, its Sustainability Committee and responsible executives.
This Sustainability Strategy includes:
• A systematic process to identify sustainability topics, including
environmental, social and governance aspects, and prioritise the
material ones for further plans, actions and disclosures. This is
called our materiality assessment process.
• A company wide Corporate Sustainability Plan to address
the risks and opportunities identified for our most material
sustainability topics.
• Disclosures developed in compliance with regulatory
requirements and with consideration of global sustainability
standards relevant to our activities.
• The Woodside Management System defines expectations on how
to manage material sustainability topics, guide our decision-
making and transparently report on them aligned to relevant
regulatory and industry standards.
2024 sustainability topics
ENVIRONMENT
SOCIAL
CLIMATE
ENVIRONMENT AND
BIODIVERSITY
DECOMMISSIONING
FIRST NATIONS CULTURAL
HERITAGE AND ENGAGEMENT
SOCIAL CONTRIBUTION
PEOPLE AND CULTURE
HUMAN RIGHTS
ENERGY SECURITY
HEALTH, SAFETY
AND WELLBEING
CORPORATE GOVERNANCE
MAJOR INCIDENT PREPAREDNESS
CYBERSECURITY
GOVERNANCE
MATERIAL TOPICS
These are reviewed in this
report with further information
on our website
ADDITIONAL TOPICS
With information on our
website only
Woodside’s Corporate Sustainability Plan 2024 objectives and focus areas
Material topics
Objectives
Key Focus Areas
Climate
›
Our aspiration to thrive through the energy
transition with a low-cost, lower-carbon,
profitable, resilient and diversified portfolio.1
›
Reduce our net equity Scope 1 and 2 GHG emissions
›
Invest in products and services for the energy transition.
Health, safety and wellbeing
›
Operating safely and protecting the health of our
workforce.
›
Improve personal safety and wellbeing outcomes
›
Improve process safety outcomes.
First Nations cultural heritage
and engagement
›
Create positive economic, social and cultural
outcomes that leave a lasting legacy with First
Nations communities.
›
Delivery of Reconciliation Action Plan in Australia
›
First Nations and cultural heritage requirements in the
areas where we are active
›
First Nations partnerships in the areas where we are
active.
Environment and biodiversity
›
Embed environmental and biodiversity
management and opportunities in our approach.
›
Develop a waste and water management framework
›
Scientific innovation and technology to support better
environmental management outcomes
›
Deliver positive biodiversity outcomes in regions we
operate in.
Additional information about our Sustainability Strategy and Plan,
these four material topics, and other relevant sustainability topics
are available on our website at woodside.com.
This report provides information about the governance of the
sustainability strategy, our sustainability risk management process
and 2024 performance against our material topics.
2024 ANNUAL REPORT 45
3.8.2 Governance
This section of the Sustainability Report provides information
about Woodside’s governance of sustainability-related risks and
opportunities. This includes the Board’s oversight of them and
management’s role in assessing and managing them.
Board oversight
The Board oversees and considers recommendations from the
Sustainability Committee on the Company’s policy and performance
in relation to health, safety, process safety, the environment, climate
change, human rights, heritage and land access, security and
emergency management and community relations.
This includes approving relevant sustainability-related
targets, monitoring performance against them, and approving
recommendations from the Human Resources & Compensation
Committee about the inclusion of sustainability-related metrics in
executive remuneration.
Board composition
The Non-Executive Directors contribute diverse operational and
international experience, an understanding of the industry in which
Woodside operates, knowledge of financial markets, decarbonisation
technologies and strategies, and an understanding of the health,
safety, environmental, community and other sustainability-related
matters that are important to Woodside. The Board supplements its
sustainability awareness by seeking the input of executives, external
advisers and specialists to further inform its decisions.
Changes to the membership of Woodside’s Board of Directors are
part of the continuous review of Board skills and composition.
Changes are intended to enhance Woodside’s Board and
Committees so that they are best placed to support Woodside’s
global operations and strategic growth opportunities through
the energy transition. Further information on Board skills and
composition is included in the Corporate Governance Statement in
section 4.1 of this report.
Board skills
The competencies and skills of the Directors are set out in
the competencies matrix set out in the Corporate Governance
Statement. The Director competencies matrix includes energy
transition and climate-related components to reflect the increasing
importance of these issues to Woodside’s operations. The Board
uses this competencies 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.
Board committees
The Board has four standing committees to assist in the discharge
of its responsibilities, including on sustainability-related matters.
The Sustainability Committee’s responsibilities include reviewing, and
making recommendations to the Board on the company’s policy and
performance in relation to sustainability-related matters. This includes
oversight of material sustainability-related risks and opportunities;
reviewing and monitoring compliance with applicable sustainability-
related laws and regulations; and reviewing and recommending to the
Board for approval material public sustainability-related targets and
monitoring progress against those targets.
The Audit & Risk Committee assists the Board to meet its oversight
responsibilities in relation to the company’s financial reporting,
compliance with legal and regulatory requirements, internal
control structure, risk management and insurance procedures and
the internal and external audit functions. Given the importance of
sustainability-related risks and opportunities to Woodside, and potential
implications relating to financial reporting, they are considered by
the Audit & Risk Committee during the review of the Company’s risk
management framework. The Committee also considers the inclusion
of sustainability-related risks within Woodside’s internal audit program
and the appropriateness of disclosures on climate-related risk within
the consolidated Financial Statements.
The Nominations & Governance Committee assists the Board
with reviewing Board composition, performance and succession
planning. This includes identifying, evaluating and recommending
candidates for the Board, taking into account the factors set out in
the Director competencies matrix in section 4.1 of this report.
The Human Resources & Compensation Committee assists the
Board with establishing human resources and compensation
policies and practices. Performance based remuneration for the
CEO, senior leadership team and all other permanent employees
include metrics related to climate and health and safety. Further
details are provided in the Remuneration Report in section 4.3 of
this report.
Sustainability-related Board discussions
A structured calendar provides the Board and its relevant
Committees with regular scheduled updates on the four material
topics outlined in section 3.8.1 and other sustainability topics as
appropriate. Information is presented by management, external
advisers or third party specialists where appropriate.
Examples of topics considered by the Board and its relevant
Committees in 2024 include:
• An annual Major Incident Prevention update which informs
Directors how potential process safety related risks are being
managed
• Sustainability-related aspects of the investment decisions to
acquire Louisiana LNG and the Beaumont New Ammonia Project
• Investor feedback on Board composition, Remuneration Report,
climate disclosures and other topics
• Performance against net equity Scope 1 and 2 GHG emissions
targets and the progress of emissions reduction initiatives
• Energy markets and the energy transition
• Performance against the targets in Woodside’s Reconciliation
Action Plan
• Developments in international policy, including insights from
the COP29 climate summit in Baku, Azerbaijan and the COP16
biodiversity summit in Cali, Columbia
• Developments in sustainability reporting frameworks, including
the International Sustainability Standards Board (ISSB), the
Taskforce on Nature-related Financial Disclosures (TNFD),
Australian mandatory climate reporting standards, and European
and United States current and proposed requirements.
46 WOODSIDE ENERGY GROUP LTD
CEO and Executive remuneration
Executive remuneration is an important tool to reward management
performance in line with company priorities, including sustainability.
In 2024, safety and climate metrics were each a distinct component
of Company Scorecard impacting Variable Annual Reward. Safety
metrics make up 15% of the total 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 scorecard, and is based
on gross Scope 1 and 2 GHG emissions performance and on new
energy project progress.1,2 Individual key performance indicators
(KPIs) may also be added to Executive performance agreements in
accordance with their roles and responsibilities.
Management accountabilities
The Chief Executive Officer and Managing Director (CEO) is
responsible for the implementation of strategy, including the
Sustainability Strategy and Plan, and reports directly to the Board.
The CEO is supported by the Executive Leadership Team. The
position of Executive Vice President Sustainability, Policy and
External Affairs reports directly to the CEO and is a member of the
Executive Leadership Team.
The Executive Leadership Team is informed about and monitors
progress on sustainability matters by senior leaders through
channels such as presentations and papers to the Executive
Leadership Team, and by distribution of Board papers and other
periodic updates.
The strategic nature of sustainability-related topics means that
many different groups have a role to play in the delivery of
sustainability-related performance. Activities include:
• Setting a capital allocation framework and investment decision
making processes
• Liaising with debt and equity investors, including on
sustainability-related matters
• Incorporating sustainability-related considerations, in particular
climate and the energy transition, into development of company
strategy
• Defining technical company minimum standards
• Preparing Asset Decarbonisation Plans
• Building a portfolio of carbon credits which is subject to integrity
due diligence
• Preparing a Sustainability Plan for approval by the Board,
including recommending targets
• Monitoring and updating the Board on the Sustainability Strategy
and the Sustainability Plan and related internal and external
developments
• Designing company-wide processes to assist business delivery
(e.g. integrated emissions accounting and forecasting).
1. Gross equity emissions are calculated prior to retirement of carbon credits as offsets, focusing the organisational priorities on avoiding and reducing emissions.
2. New energy project progress (which includes new energy products and lower-carbon services) is 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.
Accessing global knowledge
Woodside management supplements its knowledge and expertise
by joining and/or engaging with external organisations. This helps
to ensure that management is aware of emerging trends and
developments, including in jurisdictions where we do not have a
direct operational footprint, and can learn from the experience of
others.
In 2024, Woodside engaged with organisations including Ipieca, the
global oil and gas association dedicated to advancing environmental
and social performance across the energy transition, including its
Climate Change, Social, and Environment committees. Woodside
is also a member of the International Association of Oil & Gas
Producers (IOGP). Woodside participates in IOGP’s standing
committees and expert working groups, and utilises industry
accepted metrics and standards where possible, particularly in the
areas of health and safety, which enables sharing of best practice
and benchmarking.
We are also members of a number of other Australian and
international industry associations and organisations. Further
information about these is available on our website.
Mandatory sustainability reporting requirements
Woodside complies with regulatory requirements in jurisdictions
that apply to our activities. We also monitor the development of
global sustainability reporting standards, relevant to our activities
around the world.
These include:
• Australian Sustainability Reporting Standards issued by the
Australian Accounting Standards Board (AASB), including the
relevant climate standard (AASB S2) and sustainability standard
(AASB S1)
• European Corporate Sustainability Reporting Directive (CSRD)
and its European Sustainability Reporting Standards (ESRS)
including the Corporate Sustainability Due Diligence Directive
(CSDDD)
• International Financial Reporting Standards (IFRS) Foundation’s
International Sustainable Standards Board (ISSB) recommended
standards.
As a calendar year reporter, Woodside will be required under the
Corporations Act 2001 (Cth) to include further climate-related
disclosures in the Sustainability Report which forms part of the
2025 Annual Report to be released in the first quarter of 2026, in
compliance with AASB S2. We expect that Woodside will be amongst
the first companies in Australia to report in accordance with the
new standards.
2024 ANNUAL REPORT 47
Voluntary sustainability reporting frameworks and
benchmarks
Our 2024 sustainability disclosures are guided by a number of
voluntary frameworks including amongst others:
• The Task Force on Climate-related Financial Disclosures (TCFD).
TCFD has fulfilled its remit and disbanded. The Financial Security
Board of the Bank of International Settlements has asked the
International Financial Reporting Standards (IFRS) Foundation to
take over the monitoring of the progress of companies’ climate-
related disclosures
• The Global Reporting Initiative (GRI) is a network-based
organisation that promotes sustainability reporting worldwide.
The GRI reporting framework sets out principles and indicators
1. The information contained or reflected herein is not directed to or intended for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted,
and Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for the actions of third parties in this respect.
2. Copyright ©2024 Morningstar Sustainalytics. All rights reserved. The information, data, analyses and opinions contained herein: (1) includes the proprietary information of Sustainalytics and/or its content
providers; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice nor an endorsement of any product, project, investment strategy or consideration of
any particular environmental, social or governance related issues as part of any investment strategy; (4) are provided solely for informational purposes; and (5) are not warranted to be complete, accurate
or timely. The ESG-related information, methodologies, tool, ratings, data, and opinions contained or reflected herein are not directed to or intended for use or distribution to India-based clients or users and
their distribution to Indian resident individuals or entities is not permitted. Neither Morningstar Inc., Sustainalytics, nor their content providers accept any liability for the use of the information, for actions of
third parties in respect to the information, nor are responsible for any trading decisions, damages or other losses related to the information or its use. The use of the data is subject to conditions available at
https://www.sustainalytics.com/legal-disclaimers
3. THE USE BY WOODSIDE ENERGY GROUP LTD OF ANY MSCI ESG RESEARCH LLC. OR ITS AFFILIATES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES
HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF WOODSIDE ENERGY GROUP LTD BY MSCI. MCSI SERVICES AND DATA ARE THE PROPERTY OF MSCI
OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED “AS-IS” AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI.
that organisations can use to measure and report their
environmental, social and governance performance
• Ipieca reporting guidance. Its reporting guidance is specific to the
oil and gas sector.
Woodside also actively participates and engages with relevant
Sustainability rating indices, including MSCI, S&P Global and
Sustainalytics. Participation provides broader insights into
stakeholders’ areas of interest, emerging trends and good business
practice with regards to sustainability performance.
Additional information is available on our website under
Sustainability.
Sustainability ratings performance
S&P Global
Woodside is a S&P Global Sustainability Yearbook member.
Yearbook members are selected based on their 2024 Corporate Sustainability Assessment
(CSA) Score, which is the S&P Global ESG Score without the application of modelling
approaches. To be listed in the Yearbook, companies must score within the top 15% of
their industry and must achieve a CSA Score within 30% of their industry’s top-performing
company.
Sustainalytics
In October 2024, Woodside Energy Group Ltd received an ESG Risk Rating of 26.5 and was
assessed by Morningstar Sustainalytics to be at medium risk of experiencing material
financial impacts from ESG factors. In no event the ESG Risk Rating shall be construed as
investment advice or expert opinion as defined by the applicable legislation.1,2
Produced by MSCI ESG Research as of 18 June 2024.
MSCI
As of 2024, Woodside Energy Group Ltd received an MSCI ESG Rating of AAA.3
48 WOODSIDE ENERGY GROUP LTD
3.8.3 Risk Management
1. For the purposes of Woodside’s 2024 sustainability disclosures we determine which topics are material we classify the topics into three categories of material, significant or important. For these purposes,
‘material topic’ means a 2024 sustainability topic described in this report, determined as part of the 2024 materiality assessment process undertaken by Woodside. From 2025, we will only classify which
topics are material. 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, and the United States.
Risk management process
Woodside’s risk management process is described in section
3.9 - Risk Factors of this report.
As a business, Woodside categorises its risks in three ways:
• strategic (those within our sphere of influence that could affect
our ability to achieve strategic objectives)
• emerging (those capturing external threats or factors that have
a high degree of uncertainty and are not readily controlled by
Woodside)
• current (those that could affect our ability to deliver our
objectives).
Woodside’s strategic risks align with several of its material
sustainability topics. Risks categorised as ‘strategic’ are reviewed by
the Board, its Audit & Risk Committee and the Executive Leadership
Team at least twice a year, and the Board confirms its risk appetite
in relation to each strategic risk. Management actions that need
to be taken in order to address the risks are incorporated into
Woodside’s internal management system.
Materiality assessment process for sustainability
topics
Woodside also conducts a materiality assessment process which
is aligned to our risk management process but has a specific
focus on sustainability-related topics. It is intended to inform our
understanding of which sustainability-related topics are most
relevant to our business performance, activities and stakeholders.
It considers potential risks, opportunities and impacts of
sustainability topics on our business, the economy, the environment
and upon people, including impacts on human rights.
In the materiality assessment, management undertake analysis
drawing upon internal and external inputs, including from our
Executive Leadership Team and Directors and our monitoring of
developments, trends and stakeholder views throughout the year.
In addition, some specific engagements with stakeholders (such as
investors, customers, communities, and governments) can help us
to verify our analysis.
When topics have been identified, they are prioritised.
The highest priority topics are determined to be material.1
Following endorsement by the Executive and the Sustainability
Committee, actions to address the material topics are included in a
Corporate Sustainability Plan which is implemented and monitored
by the Executive and the Sustainability Committee. Potential risks
associated with the material topics are incorporated into the
Woodside risk management process.
Our materiality assessment process is also informed by Our Values
which guide everything we do.
Further information is available on our website under
Sustainability.
2024 ANNUAL REPORT 49
MATERIAL TOPIC UPDATES
1. In early October 2024, the tragic death of an employee of one of OCI’s construction contractors occurred at the project site. OCI’s investigation into the incident is ongoing at this time. This tragic incident is not
included in Woodside’s statistics based on the applicable Health, Safety and Environment mode of contracting.
3.8.4 Health, safety and wellbeing
Everyone has the right to be safe at work and go home in the same condition in which
they arrived. Reliable incident-free operational performance goes hand in hand with
productivity and our business performance.
2024 PERFORMANCE OVERVIEW
In 2024, Woodside experienced zero Tier 1 process safety events
(PSEs) and two Tier 2 loss of primary containment (LOPC) PSEs.
Actions were put in place to address the potential root causes,
including preventative actions across our facilities.
Project activities and the commencement of Sangomar operations
increased our total workforce exposure hours to 23,314,922.
Our Total Recordable Injury Rate (TRIR) was 2.44 with 57 recordable
injuries in 2024. The main injury types were lacerations, wounds
and soft tissue injuries. One high-consequence injury, with recovery
extending beyond six months, was recorded in 2024.
Our Total Recordable Occupational Illness Frequency (TROIF)
increased to 1.42. There were a total of 33 recordable occupational
illnesses in 2024. The illnesses included musculoskeletal disorders,
noise induced hearing loss, eye irritation and heat illness.
In early October 2024, the tragic death of an employee of one of
OCI’s construction contractors occurred at the project site. OCI’s
investigation into the incident is ongoing at this time. Although
the 2024 incident is not included in Woodside statistics1, we are
committed to learn from all incidents, taking action to ensure
everyone returns home safely from work. In the last 18 months
we have undertaken a number of safety reviews (both internal
and external), identifying common focus areas and executing
tailored action plans across the regions. The International Business
Process Safety Improvement Plan and the management system
simplification activities led by the Australian business will uplift the
capability and effectiveness of our people while ensuring we have
the critical hardware controls needed for ongoing safe operations.
In 2024, we trained, assessed and assured 65 additional employees to
a ‘skilled’ level of competency in process safety critical roles (PSCRs).
Over 1,200 employees and contractors were trained in the Field
Leadership Program. Woodside’s Field Leadership Program provides
a structured approach to work team engagement. Leaders build their
understanding of onsite work practices and develop the leadership
skills that aim to lead to a safer workplace by fostering a culture of
openness, learning and continuous improvement.
In October 2024, we embraced Stand Together for Safety globally
during Australia’s National Safe Work Month on the theme
“Preventing harm depends on us, that’s why I get involved”,
encouraging regional teams to have vital conversations about why
safety matters to us.
In 2024 we published our refreshed Global Wellbeing Framework.
The framework aims to enable individuals and leaders to cultivate a
work environment where everyone can flourish.
To promote employee wellbeing we facilitated access to non-
occupational medical and healthcare services through benefits
such as gym membership subsidies, wellness reimbursements and
health plans. Our fully subsidised Employee Assistance Program
(EAP) provides voluntary access to professional, confidential
coaching and support for employees and eligible family members.
All reporting from our EAP provider is aggregated and de-identified
to maintain confidentiality.
Woodside employees at Karratha Gas Plant, Western Australia
50 WOODSIDE ENERGY GROUP LTD
STRATEGY
Woodside’s activities present process safety, personal safety and
health and wellbeing risks.
Our strategic frame provides focus areas for our efforts to achieve
our vision for Health, Safety and Environment, so that we protect
what matters most – our people, environment and communities.
Our current approach groups these into four key areas:
SYSTEMS
SIMPLE SYSTEMS AND TOOLS
LEAD AND LAG INDICATORS
RISK MANAGEMENT
INNOVATION
BEST PRACTICE AND
COLLABORATION
DATA AND AI
TECHNOLOGY
HABITS
LEADERSHIP
LEARNING
ASPIRATION
PRACTICES
CAPABILITY AND CAPACITY
H&S FOCUSSED DESIGN,
MAINTENANCE AND OPERATIONS
VERIFICATION
Systems
The expectations that apply to every Woodside asset and employee
across all of our business locations are defined in Our Code of
Conduct, our Health and Safety Policy and our Working Respectfully
Policy. All employees, contractors and joint venture participants
engaged in activities under Woodside’s operational control, are
responsible for the application of this approach. Woodside’s
Management System sets mandatory requirements for working
safely, including the systems and processes that we use to identify,
assess and control risk by applying a consistent hierarchy of
controls - our most effective protection is to design out risks.
Habits
Leaders aim to create a culture in which everyone is encouraged to
speak up and intervene on safety issues, including an obligation to
stop unsafe work. Human and Organisational Performance (HOP)
is a contemporary perspective on how we can improve work and
safety. HOP focuses on understanding the context and conditions
of work, recognising the complex interactions between people and
systems. The HOP approach aims to identify and amplify the good
work that is already being undertaken in our business. It focuses on
understanding and engaging those employees most familiar with
tasks to optimises system conditions and, where possible, reduce
constraints. Ultimately, the focus is on creating the conditions for
success, not just avoiding failure or unwanted safety events. This
approach is reflected in Our Values.
We engage with our workforce regularly to communicate safety
information and to understand current and emerging safety issues.
Location specific site inductions are used to familiarise workers with
health and safety hazards and procedures. Regular communications
channels include site-based pre-start meetings, safety event
bulletins, and safety learning discussions.
We report and investigate health and safety events to understand
risks and causes, and to implement corrective actions to mitigate
impacts and to ensure that our controls are effective. This supports
continuous improvement of our systems to help prevent recurrence.
Innovation
Woodside has participated for many years in industry organisations
such as IOGP and Safer Together, benchmarking performance and
sharing best practice in achieving best possible safety outcomes.
Health and Safety reporting is supported by a robust data structure
that provides trusted insights.
Technical experts actively monitor technological advancements for
opportunities to put additional barriers between our people and
hazards. The HaloGuard case study included in this section is a
good example.
Practices
Our competency frameworks define the requirements for certain
roles in our organisation, and are backed by training systems.
These cover competencies such as risk management, process
safety, emergency response procedures, human factors, and
management of occupational health, including support for mental
health and wellbeing.
Process Safety Management (PSM) is of critical importance to
avoid loss of control of hazardous substances which could result
in a major accident and environmental event. Woodside aligns and
assesses compliance of the management system and practices with
the Energy Institute Process Safety Management Framework, which
includes 20 elements across four areas:
1. Process Safety Leadership
2. Risk Identification and Assessment
3. Risk Management
4. Review and Improvement.
These elements remind us that safety focussed processes are
essential in engineering design, maintenance, operations and
projects where individuals, leaders and systems all play a role.
Priorities
Our 2025 priorities fit within the strategic frame:
Systems
• Go-live of our new Woodside Management System. This includes
clear and simple requirements and tools, and guidance to achieve
effectiveness in all aspects of the business
• Cohesive approach to management of psychosocial hazards
• Health Management deep dive, in particular reducing
Musculoskeletal Disorders which are increasing with our
experienced workforce.
2024 ANNUAL REPORT 51
Habits
• Reinforcing Our Safety Behaviours, including the commitment to
learn, and adherence to Life Saving Rules
• Field Leadership consolidation leading to a culture of openness
and focus on learning.
Practices
• Process Safety Critical Role competency pipeline
• Contractor Management, partnering with those who carry a large
proportion of our exposure hours
• Work planning review – closing the gap between ‘work as
planned’ and ‘work as done’.
Innovation
• Interactive dashboards consisting of leading and lagging
indicators to help us understand focus areas
• Use of Artificial Intelligence to provide insights.
POTENTIAL RISKS AND OPPORTUNITIES
For Woodside the potential key risks and opportunities regarding
health, safety and wellbeing are as follows:
Risks
• Significant loss of primary containment resulting from a
process safety event, such as a flammable substance leak which
subsequently results in a fire
• Failure to effectively plan and execute high risk activities, such as
working at height, resulting in a fall to grade and serious injury
• Failure to identify or mitigate health and safety risks, such as
when work plans change unexpectedly, resulting in not having the
appropriate tools for the job, leading to a serious injury.
Opportunities
• Pursue opportunities to learn and extrapolate from both events
and activities that are executed well
• Build our partnerships with contractors to support our common
goals of exceptional safety performance
• Improve tracking and visibility of leading indicators of health and
safety (including Field Leadership records) to target areas for
improvement prior to the occurrence of incidents.
CASE STUDY
Woodside implements groundbreaking safety
system to protect offshore drilling crews
HaloGuard™ is an innovative safety system technology to help
protect offshore drilling crews from moving equipment. The
system was recently installed on a drilling rig contracted to
Woodside in what is believed to be an Australian first.
The HaloGuard system combines a wearable alarm, a real-time
location transmitter and a machine vision system. It is designed to
track the position of personnel and equipment on the drill floor.
If a person with a wearable device comes within a certain
proximity of moving equipment, they are notified by an alarm
through the wearable device. In the event the person remains
in close proximity of the moving equipment, the system will
stop the equipment until they return to a safer, more distant
position.
In October 2024, the new safety system was commissioned
on the Transocean Endurance which is currently conducting a
decommissioning campaign off the Pilbara coast and will move
on to perform additional activities well into mid-2026.
By enabling machines with the technology to track, sense and,
if needed, stop operations, HaloGuard provides an advanced
layer of individual protection on the drill floor.
52 WOODSIDE ENERGY GROUP LTD
METRICS AND TARGETS
This section explains a number of safety-related metrics that are relevant to Woodside’s assessment, management and performance against
potential key risks and opportunities. For some of these metrics, targets have been adopted.
The following metrics have been selected as they focus on the highest impact to people and the business. The metrics are also informed by
recommended disclosures within current voluntary sustainability frameworks and guidance, with consideration of industry practice.
Process Safety Events - Tier 1 and 2 Process Safety Events
This is a measure of an unplanned or uncontrolled release of energy or LOPC of any material
including non-toxic and non-flammable materials from a process with the potential to cause
harm.
Target
≤2
2024 performance
2
Senior Process Safety Critical Role Conformance
This is an internal measure of assessed competency for process safety critical roles. This is a
leading indicator and measures the leadership and competency of the individuals in roles that
can affect process safety outcomes.
Target
≥95%.
2024 performance
93%
High-Consequence Injuries (HCIs)
This measure was introduced in 2024 as the KPI for personal safety in the 2024 scorecard
replacing TRIR. This was selected as a scorecard metric to focus attention on the highest risks to
people and promote learning through more transparent reporting. A HCI is an injury where the
individual does not return to full health within six months.
Target
≤1
2024 performance
1
Total Recordable Occupational Illness Frequency
This is a measure of the occurrence of occupational illnesses within our business and applies to
both physical and psychological illnesses.
Target
N/A
2024 performance
1.42
In addition to the key metrics outlined above, please also see the Health and Safety data table available on our website for other metrics.
CASE STUDY
Field Leadership: Moving from safe to safer
The Woodside Field Leadership framework creates a structured
approach to developing leadership skills at all levels of the
business. This is achieved through four types of conversations,
all of which are designed to engage with workers in the
location where they perform their role.
The Take Time Talk is a conversation that everyone can have.
It is a demonstration of our culture of care and rooted in the
‘I see, I fix’ mentality.
The Real Work Talk is for frontline leaders and involves a pre-
selected work task, field based observation and a conversation
about how the delivery of work corresponded to how it was
planned.
The Fatality Risk Talk is also for frontline leaders and involves
a pre-selected work activity and a conversation about the
fatality risks involved, the work conditions that might impact
control effectiveness and what we can learn to improve them.
The Layered Deep Dive is for Line Leaders (including
executives) and frontline leaders and involves taking a focused
examination of a component of the management system or a
specific risk control. Preparation is required for this activity
starting with a documentation review, including an assessment
of the practical application of procedure, with the aim to
improve either documentation or any identified conditions that
are impacting application.
Except for the Take Time Talk, which can happen anytime, these
conversations are planned and scheduled. Crew and leaders
are trained to ensure the conversations feel energising to all
involved, and there is a coaching component built in to provide
feedback to the leaders on how to improve their approach.
The benefits of Field Leadership include:
1. Building trust amongst the workforce, so that we can learn
and improve
2. Understanding gaps between work as planned and work as
done, allowing us to improve systems and processes
3. Increasing confidence that risks are understood and controls
are operated as intended.
We are excited to see how this approach can move the dial over
time on our safety performance.
2024 ANNUAL REPORT 53
MATERIAL TOPIC UPDATES
1. Targets and aspiration are for net equity Scope 1 and 2 GHG 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 GHG 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. This means net equity for the 12-month period ending 31 December 2025 are targeted to be 15% lower than the starting base.
3. Woodside analysis, based on Woodside Scope 1 and 2 GHG emissions data for 2024 relative to a comparable portfolio of upstream oil, upstream natural gas and LNG liquefaction assets, based on the average
emissions intensity of these project categories reported in Table 3.1 of IEA’s “The Oil and Gas Industry in Net Zero Transitions” (November 2023).
4. 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.
5. 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.
6. Cumulative spend against the investment target at the end of 2024 includes 80% of the total $2,350 million for the Beaumont New Ammonia project acquisition. The remaining 20% will be paid at Project
completion.
7. The information regarding Beaumont New Ammonia (BNA) in this report does not contain all the underlying context and details that is included in the announcement “Woodside to acquire OCI’s Clean
Ammonia Project”, released 5 August 2024. Refer to the announcement for the full explanation of the underpinning assumptions, uncertainties, and context relevant to BNA. https://www.woodside.com/docs/
default-source/asx-announcements/2024/woodside-to-acquire-oci’s-clean-ammonia-project.pdf?sfvrsn=cf35e9ed_1
8. Scope 3 emissions abatement capacity of 1.6 Mtpa CO2-e assumes supply of carbon abated hydrogen and CCS operational for phase 1 of the Beaumont New Ammonia Project. Woodside has made the
assumption to estimate the avoided emissions through the displacement of conventional marine fuel. Actual displaced emissions may differ based on actual use case.
3.8.5 Climate
Climate change is a strategic risk and opportunity for Woodside. We anticipate that
energy markets will continue to evolve, creating investment opportunities in existing
and new products. We recognise that natural gas can support more renewables to
replace coal, by ‘firming’ up their intermittent supply along with batteries.
We also anticipate that regulation will impact upon the GHG
emissions from our operations, potentially affecting costs whilst
also creating the opportunity to be competitively advantaged as an
efficient supplier.
2024 PERFORMANCE OVERVIEW
Our net equity Scope 1 and 2 GHG emissions were 5,437 kt CO2-e,
14% below the starting base, on track to meet our 2025 target
of 15%.1,2
Gross equity Scope 1 and 2 GHG emissions volumes were 6,784 kt
CO2-e compared to 6,190 kt CO2-e in 2023. This includes an increase
due to the commencement of Sangomar production, including
expected one-off emissions from startup and production during the
second half of 2024. This performance was better than expected due
to high reliability and lower flaring on Pluto, NWS and FPSOs and
Sangomar’s lower flaring in December.
This facility performance was supplemented by the retirement of
1,347 kt CO2-e carbon credits as offsets.
Woodside’s gross Scope 1 and 2 GHG emissions intensity, which
measures our emissions performance per unit of production
remains better than industry benchmark.3
We progressed decarbonisation plans across our portfolio of
operated assets, including implementing or sanctioning projects
that are expected to achieve approximately 40% of the emissions
reductions identified in asset decarbonisation plans to date.
We also progressed engineering studies of large scale abatement
opportunities at the Pluto facility, although the cost of these
opportunities remains significantly above Woodside’s internal cost
of carbon.
We joined OGMP 2.0, the UN Environment Program’s flagship oil and
gas methane mitigation and measurement programme in January
2024, and are preparing our implementation plan.
In 2024, the first Australian Carbon Credit Units (ACCUs) were issued
from our Native Reforestation Project which commenced in 2020.
We progressed our plan to invest in products and services for the
energy transition, strengthening our portfolio of competitive oil and
gas assets whilst developing our new energy business. At the end
of 2024, we had spent $2.461 billion cumulatively on new energy
products and lower-carbon services, making disciplined progress
towards our target to invest $5 billion by 2030.4,5,6
The Beaumont New Ammonia Project is our biggest investment
in new energy to date ($2.35 billion) and Phase 1 of this project,
which is post-FID, has a design capacity of 1.1 Mtpa of ammonia.6
First ammonia production is targeted for the second half of
2025 with lower-carbon ammonia production targeted for
the second half of 2026. The project will target conventional
ammonia customers at startup and will target lower-carbon
ammonia customers in Europe and Asia when CCS is operational.
Phase 1 has the potential to contribute up to 1.6 Mtpa of CO2-e
abatement.7,8
We put our CTAP to a non-binding advisory vote of shareholders at
the 2024 AGM. Disappointingly, the CTAP did not achieve majority
support. Subsequently, the Board and Management have continued
to engage with shareholders, and Woodside has published a
Climate-related Investor Engagement document to provide greater
transparency about investor feedback.
Additional information is available on our website under
Sustainability/Climate.
54 WOODSIDE ENERGY GROUP LTD
STRATEGY
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 GHG emissions; and
• Investing in products and services for the energy transition.
Reducing our net equity Scope 1 and 2 GHG emissions is supported
by three levers: avoiding emissions in design, reducing emissions in
operations, and offsetting the remainder with carbon credits.
Investing in products and services for the energy transition is
also 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.
These levers are further supported by our work to promote global
measurement and reporting – including our own publication of
transparent disclosures.
Targets
We have set a target for reducing our net equity Scope 1 and 2
GHG emissions. This is to reduce these emissions by 15% (in 2025)
and 30% (in 2030) below the starting base, which is representative
of our gross annual average Scope 1 and 2 emissions over the
2016-2020 period.
We have set two related Scope 3 targets. The first to invest
$5 billion in new energy products and lower-carbon services by
year end 2030 (investment target). The second, to take FID on new
energy products and lower-carbon services by year end 2030, with
total abatement capacity of 5 Mtpa CO2-e (emissions abatement
target). 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.
The Board and Sustainability Committee regularly review our
progress towards these targets. We also consider the need to
adjust these targets in response to our progress, our prospects of
successfully meeting them, or in response to external developments.
Some investors have asked Woodside to consider setting a target for
the period beyond 2030, such as for 2035. National governments are
expected to publish their next Nationally Determined Contributions
(NDCs) to the Paris Agreement during 2025, and these may contain
commitments beyond 2030. These updated NDCs will be a component
of the information needed to inform analysis of potential targets
beyond 2030, and we expect to further consider this topic during 2025.
1. For Woodside, a lower-carbon portfolio is one from which the net equity Scope 1 and 2 GHG 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.
2. Woodside’s assumption on carbon cost pricing include a long-term carbon price of US$80/tonne of emissions (real terms 2024). Woodside continues to monitor the uncertainty around climate change risks
and will revise carbon pricing assumptions accordingly.
3. These updated figures are based on 74.9% equity in Scarborough. Previous figures in the 2023 CTAP were based on 90% equity in Scarborough.
4. 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 section 6.8 - Information about this report for
important cautionary information relating to forward-looking statements.
Reducing net equity Scope 1 and 2 GHG emissions
Emissions reduction at facilities can be achieved through the way
they are designed (‘design out emissions’) or by changes to the way
they are operated after construction (‘operate out emissions’).
Asset decarbonisation plans
Each asset identifies its opportunities to reduce emissions in an
Asset decarbonisation plan. The main opportunities include energy
efficiency, methane reduction, flaring reduction and the use of
renewables. These have identified some 28 Mt CO2-e (cumulative to
2050) of emissions reduction opportunities over the remaining life
of assets, mainly at a cost below $80/t CO2-e.2 These are included
in asset decarbonisation plans. Of these, 15 Mt CO2-e (cumulative to
2050) were implemented during the design phase of Scarborough,
Pluto Train 2 and Trion. The remaining 13 Mt CO2-e (cumulative
to 2050) are being pursued through around 80 projects.3 Projects
which will deliver around 40% of these emissions reductions were
completed or sanctioned at the end of 2024, and 100% completion is
expected by the end of 2030.4
Focus on methane
Management of methane emissions receives particular focus
within our asset decarbonisation plans. Methane has a higher
global warming potential than carbon dioxide so its management is
important in efforts to limit global warming, especially in the near
term. Our focus on methane has also been long standing because
leaks, if they occur at sufficient volume, would be a loss to our
production and a potential safety hazard.
Woodside’s reported methane emissions are around 0.1% of
production by volume. This calculation is supported by our
improving ability to directly monitor and measure methane at our
facilities. It is lower than the Oil and Gas Climate Initiative (OGCI)
2025 target of below 0.2%. The 2024 Climate Update presents
Woodside’s methane intensity performance against this OGCI target.
We continue to strive for further reductions through our methane
emissions management plan.
This methane emissions management plan includes improving our
ability to measure methane emissions, taking action to reduce them
where identified, transparent reporting of data, and supporting the
adoption of best practice across industry and regulation.
We report methane emissions using the relevant regulatory
standard. However, in our asset decarbonisation planning, when we
assess emissions reduction opportunities, we multiply our internal
cost of carbon of $80/t CO2-e (real terms 2024) by 84 representing
the higher global warming potential of methane in the near-term.
This results in an effective price for methane of $6,720/t emitted.
Woodside is a member of the UN Environment Programme’s
(UNEP) reporting and mitigation program, the Oil and Gas Methane
Partnership (OGMP 2.0).
Woodside is also a member of initiatives aiming to promote knowledge
sharing and technical collaboration across the natural gas value chain,
including the global Methane Guiding Principles, the Association of
2024 ANNUAL REPORT 55
Southeast Asian Nations (ASEAN) Methane Leadership Programme and
an initiative by the Australian Climate Leaders Coalition.
Large scale abatement
Electrification, hydrogen fuelling and carbon capture utilisation and
storage (CCUS) are all methods for reducing emissions from our
electrical and mechanical turbines. However, they are expensive
to retrofit onto existing plant and equipment, with estimates in the
range of $200-$500 tCO2-e. This involves continuing engineering
assessment in order to reduce costs. In 2024, hydrogen fuelling
of turbines emerged as the leading opportunity, with hydrogen
generated from natural gas (steam methane reforming with CCS).
The unit abatement costs remain significantly higher than that of
alternatives such as utilising carbon credits as offsets.
Carbon credits
The use of carbon credits as offsets remains an important part
of Woodside’s approach to Scope 1 and 2 GHG emissions, due to
the high potential cost of large scale abatement options. We both
originate (i.e. invest in our own carbon projects) and acquire carbon
credits, to maintain a diverse portfolio differentiated by underlying
abatement method, geography and vintage.
We prioritise abatement at facilities before we utilise carbon credits
as offsets. One way that we do this is that the $80/t threshold for
assessing opportunities for implementation in asset decarbonisation
plans is above the most recent generic ACCU spot price of around
A$36.60/t (approximately US$25/t).1
A second way that we prioritise abatement at facilities over the
utilisation of carbon credits is to set executive remuneration targets
on gross Scope 1 and 2 GHG emissions, which do not include the
use of carbon credits.
Investing in products and services for the energy
transition
Woodside is an oil, gas and emerging new energy company. We
assess that there will be continued demand for these products
in the decades ahead, but that the levels of demand will change
as the world pursues an energy transition in order to limit global
temperature increase whilst pursuing economic development. There
are many potential energy transition pathways that could result, and
therefore Woodside does not adopt a single scenario as a planning
assumption, but rather assesses many scenarios and the plans of
its customers and their governments. As a result we expect:
• Sustained demand for natural gas, especially LNG, during the
period in which countries invest in renewables and other lower-
carbon power options to meet increased demand as well as
substituting coal in power generation;
• Growing demand for new energy products (such as hydrogen and
hydrogen derivatives like ammonia) and lower-carbon services
(like CCUS and nature based solutions);
• Demand for oil is expected by some agencies to peak in the 2030s
(e.g. due to electrification of vehicles), but in most scenarios will
still require investment in supply.2,3
1. Australian Government Clean Energy Regulator - The Quarterly Carbon Market Report – December 2024.
2. IPCC, 2022. “Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change”, pg. 699. https://www.
ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_FullReport.pdf
3. IEA 2024. “World Energy Outlook 2024” (WEO). The WEO includes investment in oil out to 2050 in all three IEA scenarios, including the 1.5°C aligned “Net Zero Emissions” scenario. Refer to pg. 136. https://www.
iea.org/reports/world-energy-outlook-2024
4. IEA, 2024. “World Energy Outlook 2024.” All rights reserved. https://www.iea.org/reports/world-energy-outlook-2024
Investment discipline
Woodside recognises that as demand varies it will continue to
be important to be a low-cost, lower-carbon provider in order to
compete effectively for market share. That is why we carefully
assess our new investment opportunities for their resilience to the
energy transition, prior to taking a FID. It is also why we are working
to diversify our portfolio through the introduction of new energy
products and lower-carbon services, so that we can respond to
anticipated growth in demand.
We test the resilience of our investments for both organic and
inorganic opportunities. These 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.
Scenario analysis
Scenario analysis is a tool which contributes to our assessment of
the risks and opportunities related to climate change. There are many
different scenarios and methodologies for producing them. Typically
they are not forecasts, but they can provide a view of different
potential futures – if used in the right application with an awareness
of their underlying approach, assumptions, limitations and inputs.
Scenario analysis on its own does not provide sufficient insight
into future risk and opportunities on which to base business
planning. Woodside does not adopt a single scenario for planning
purposes. Rather, the assumptions used for Woodside’s internal
business planning, such as for investment decisions and asset
valuation, require a broader range of inputs. These inputs include
consideration of climate-related factors, including both Paris-
aligned and non Paris-aligned outcomes. They must also include
other factors such as economic growth, inflation, exchange rates,
interest rates and geopolitics. They consider the specific role of LNG
(as opposed to aggregate gas use) and regional differentiations (as
opposed to globalised data). Together these factors can inform a
broad based consideration of risks, opportunities, competitiveness
and resilience. They contribute to understanding the potential
impact of climate-related risks alongside other risks to our strategy,
business and financial planning.
One element of this process is to stress-test the potential future
cashflows from our portfolio of producing assets and sanctioned
projects. As part of the transition case methodology which forms
part of investment decisions, we can assess how a potential new
investment might change the outcome of this portfolio stress test.
We have also disclosed the annual results of the stress test, as part
of our disclosure of TCFD aligned climate-related information.
For the 2024 assessment, we have continued to utilise pricing
assumptions derived from the three main scenarios in the
International Energy Agency’s World Energy Outlook (IEA), updated
for its latest edition. These span a range of temperature outcomes:
STEPS (2.4ºC), IEA Announced Pledges Scenario (APS) (1.7ºC)
and Net Zero Emissions by 2050 (NZE) (1.5ºC).4 It is important to
note that the assumptions which underpin these scenarios do not
constitute the only potential pathway to achieving those outcomes.
56 WOODSIDE ENERGY GROUP LTD
Our 2024 analysis, depicted in the chart, concludes that:
• The Woodside portfolio is Free Cash Flow (FCF) positive for
all periods, highlighting resilience of the business, including in
the Net Zero Emissions Scenario (NZE) and the IEA Announced
Pledges Scenario (APS), that are aligned with the Paris
Agreement temperature goals.
• FCF from 2025-2029 is lower than 2030-2034 (under all three
scenarios) due to high capital expenditure during this period on
Scarborough, Pluto Train 2, and the Trion development.
• FCF peaks under all three scenarios in 2030-2034 as Scarborough
and Trion are operating and then declines consistent with the
natural field decline of older assets within our portfolio.
1. The table has been considered further since the publication of the Climate Transition Action Plan and 2023 progress report that was published in February 2024.
Scenario analysis has limitations and is based on a wide range of
assumptions. It involves interpreting each scenario to generate
average price points (these assumed price points are provided in
the chart below).
It further requires isolating all variables except for commodity and
carbon pricing to enable examination of climate-related factors. The
scenario analysis, therefore, does not include decisions Woodside
could make in response such as acquisitions, divestments or
cost reduction. Nor does it include the potential impact of future
investment decisions in new projects.
This analysis must therefore not be interpreted as Woodside
investment guidance. These are scenarios not forecasts and no
likelihood is assigned to any of these scenarios eventuating.
Portfolio resilience: Tested against climate scenarios for producing assets and sanctioned projects1
8.0
Average Annual Free Cash Flow US$b (Nominal)
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
2020-2024
2025-2029
2030-2034
2035-2040
Oil price
(Actuals)
Real terms, consistent with IEA dataset
Oil price (US$/bbl, Brent)2 , North Asian LNG price (US$/MMBtu)2 and Carbon price (US$/tCO2-e)3 average real 2024
Average brent price was
US$78/bbl
2020-2024 average real
terms 2024
ASSUMPTIONS
USED
STEPS
82
9
80
81
8
80
80
9
80
APS
76
8
110
72
7
150
67
6
173
NZE
52
6
112
40
5
161
32
5
199
1. Modelled impact of climate scenarios on potential average annual free cash flow from current producing and sanctioned assets (not guidance). The FCF analysis includes Louisiana LNG acquisition costs in
the 2024 cashflows, but does not include future potential cashflows because a final investment decision has not been taken. The FCF analysis does not take into account any cash flow implications from the
Woodside and Chevron asset swap which is yet to be completed (explained in announcement titled ‘Woodside Simplifies Portfolio and Unlocks Long-Term Value’). The FCF analysis includes cashflows from
sanctioned projects including Scarborough (74.9%), Pluto Train 2 (51%), Trion (60%) and Beaumont New Ammonia Phase 1 (100%).
2. Based on data from IEA, 2024. “World Energy Outlook 2024” 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, 2024. “World Energy Outlook 2024” 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/t CO2-e
consistent with internal carbon pricing. Woodside used the 2024 starting price point and the IEA’s published 2030, 2035 and 2040 carbon prices for each scenario to interpolate annual price points through to 2040.
Actual results
IEA NZE
IEA APS
IEA STEPS
POTENTIAL RISKS AND OPPORTUNITIES
The table on the next page describes the potential key climate-
related risks and opportunities that may impact Woodside’s
business, strategy, and financial planning, including potential
financial impacts and potential mitigations.1
This does not necessarily mean that the risks have materialised in
practice or that the mitigations are currently being pursued. This is
presented using the TCFD framework.
Please also see the Managing physical risk content available on
the Woodside website under Sustainability/Climate.
2024 ANNUAL REPORT 57
KEY CLIMATE-RELATED RISKS AND OPPORTUNITIES
Timeframe*
Type of potential impact
Potential financial impacts
Potential mitigations
S
M
L
Transition risks
The global transition to a lower-carbon economy may entail extensive policy, legal, technology and market
changes in order for the world to address mitigation and adaptation requirements relating to climate change.
Policy and legal risks
Exposure to litigation
• Increased operating costs
• Deferred revenue from project
startups due to delays to, or failure
to obtain, regulatory approvals
• Asset valuation changes
• Legal costs and fines
• Increased decommissioning costs
• Shareholder divestment
• Access to capital
• Adopt and deliver targets for net
equity emissions reduction
• Report in alignment with climate-
related financial disclosure
requirements in Australia and
equivalent requirements in other
jurisdictions we are active in and have
a significant presence
• Build a diverse carbon credits portfolio
• Engage regulators and stakeholders
• Monitor global policy and legal
developments
• Diversity of geographical footprint
• Selldown in equity share
• Transition case methodology
Delays to, or failure to obtain, project
approvals
Increased pricing or other regulatory
control of emissions
Mandates or controls on hydrocarbon
product use or access to growth acreage
Increased emissions reporting
requirements
Technology
Unsuccessful investment in new
technologies
• Loss of research and development
expenditure
• Increased operating costs
• Deferred revenue from project
startups due to delays to, or failure
to obtain required technology
• Technology collaboration and
partnerships
• Opportunity management process
• Maintain internal capability with
proven track record
• Jurisdictional diversity for leveraging
legislative incentives
Higher than expected costs of transition to
new technologies
Overreliance on policy support to support
commerciality
Technology disruption
Inability to develop at scale due to
competition for resources, people
or technology
Market
Faster than expected substitution
of hydrocarbon products
• Lower demand for hydrocarbon,
new energy or lower-carbon
services relative to investment case
• Natural gas crowded out of carbon
budget by coal and/or unable to
achieve attractive pricing
• Under or over investment in product
portfolio components
• Modified and unstable tax and fiscal
settings
• Stranded assets and associated
impact on asset valuations
• Implement strategy to be a low-cost
and lower-carbon energy company
• Scope 3 emissions plan
• Capital allocation framework
• Customer and market engagement
• Scenario analysis
• Portfolio and market diversity
• Carbon border adjustment
mechanisms or related policy
• Selldown in equity share
Slower than expected adoption of new
energy and lower-carbon services
Slower than expected phase-out of coal
Uncertainty/regional variation in transition
pathways
Demand destruction due to disorderly
transition or being an unpreferred provider
Reputation
Increased stakeholder concern
• Increased operating costs
• Increased debt capital costs
• Exacerbated policy and legal risks
• Impact on revenue
• Inhibited growth
• Shareholder divestment
• Adopt and deliver targets for net
equity emissions reduction
• Scope 3 emissions plan
• Report in alignment with climate-
related financial disclosure
requirements in Australia and
equivalent requirements in other
jurisdictions we are active in and have
a significant presence
• Engage regulators and stakeholders
• ESG planning and engagement
• Funding strategy and execution
program
Targets fail to meet stakeholder
expectations
Stigmatisation of hydrocarbon energy
sector
Constrained access to talent
Constrained access to debt capital and
insurance
Inability to pursue range of
climate-related pathways
Targeted extreme activism
1. Woodside has selected these short-, medium- and long-term timeframes reflecting the nature of its business. The short-term period can impact its current producing assets and sanctioned projects; the
medium-term timeframe could impact on these current assets and sanctioned projects as well as opportunities under active evaluation but not yet subject to a final investment decision; and the long-term
timeframe could impact on both these categories of asset and project as well as opportunities beyond current consideration.
*Timeframe:1
S: end of 2025 (short)
M: 2026-2035 (medium)
L: 2036 and beyond (long)
58 WOODSIDE ENERGY GROUP LTD
Timeframe*
Type of potential impact
Potential financial impacts
Potential mitigations
S
M
L
Physical risks
Physical risks from climate change may have financial implications for organisations
such as direct damage to assets and indirect impacts from supply chain disruption.
Acute
Increased frequency, severity and/or
duration of extreme weather events, such
as tropical cyclones, hurricanes, rainfall,
flooding, storm surge, lightning, squalls,
bushfires and/or heat waves
• Damage to assets or reduced
asset life
• Decreases in production
• Increases in emergency response-
related costs
• Supply chain and logistics
disruptions and/or cost increases
• Decreased workforce productivity
• Underperformance of tree planting
• Design of facilities to withstand harsh
operating environments
• Equipment redundancy or sparing
• Maintenance of safety critical
equipment and control systems
• Business and performance planning
• HSE culture and procedures
• Emergency response plans and
procedures
• Supplier relationship frameworks and
diversification
• Annual preventative bushfire
maintenance and geographic diversity
in carbon offset origination portfolio
• Selldown in equity share
Chronic
Longer-term shifts in climate patterns,
such as warmer ambient temperatures,
rising sea levels, coastal erosion, reduced
water availability, and lower rainfall in tree
planting areas
• Damage to assets or reduced
asset life
• Decreased production
• Decreased workforce productivity
• Increased operating and capital
cost required to maintain current
performance
• Underperformance of tree planting
• Design of facilities to withstand harsh
operating environments
• Equipment redundancy or sparing
• Maintenance of safety critical
equipment and control systems
• HSE culture and procedures
• Geographic diversity in carbon offset
origination portfolio
• Desalination as technology option for
access to water
Opportunities
Efforts to mitigate and adapt to climate change also
produce opportunities for organisations.
Resource efficiency
Fuel gas savings diverted to sales gas
• Increased sales revenue
• New revenue streams
• Reduced operating costs
• Asset decarbonisation plans
• Optimisation reference plans
• Scope 3 emissions plan influencing
suppliers
More efficient shipping fleet
More efficient building stock
Recycling of decommissioned materials
Reduce methane losses
Energy source
Use of renewable energy generation
• Increased production
• Reduced operating costs
• Reduced exposure to carbon costs
• Design out emissions
• Develop new energy products and
lower-carbon services
• Asset decarbonisation plans
Use of efficient technologies
Use of energy storage
Products and services
Diverse portfolio of products and services
including natural gas in decarbonisation
pathways
• New revenue streams
• Reduced demand side risk
• Ability to achieve attractive pricing
• Lower operating costs
• Capital allocation framework
• Technology collaboration and
partnerships
• Portfolio diversity
• Customer and market engagement
Development of new energy products and
lower-carbon services
New technologies for forecasting physical risk
Markets
Use of public sector incentives
• Reduced development costs
• Engage regulators and stakeholders
• Climate-related advocacy
• Customer and market engagement
• Partnerships to drive market
development
• Provisions in production agreements
and MOUs
Collaborative partnership with customers,
research institutions and broader industry
organisations
Access to new markets
Resilience
Broader portfolio inclusive of oil, gas and
new energy opportunities
• Diverse revenue streams
• Better competitive position to reflect
shifting consumer preferences
• Capital allocation framework
• Adopt and deliver targets for net
equity emissions reduction
• Scope 3 emissions plan
Access to sustainable finance
Decrease climate risk in the supply chain
Capital allocations strategy to flex between
product streams
More information on how Woodside manages physical risks is available on the Sustainability section of our website at woodside.com.
2024 ANNUAL REPORT 59
METRICS AND TARGETS
This section explains a number of climate-related metrics that are relevant to Woodside’s assessment, management and performance
against potential key risks and opportunities. For some of these metrics, targets have been adopted.
Net equity Scope 1 and 2 GHG emissions
This is a measure of our total net equity Scope 1 and 2 GHG emissions, i.e. those
that arise as a consequence of operating our facilities, adjusted for the use of
carbon credits as offsets. It is our primary measure of the emissions impact
of our operations. This measure is an absolute volume and does not adjust for
production volumes.
Target
Reduce by 15% (year to 31 Dec
2025) and 30% (year to 31 Dec 2030)
below 2016-2020 gross annual
average1,2
2024 performance
14% below 2016-2020
gross annual average
Gross equity Scope 1 and 2 GHG emissions intensity3
This is a measure of the efficiency of our production. It does not include the use
of carbon credits, but it does adjust for production. It enables comparison with
other oil and gas producers, and also enables calculation of an implied emissions
avoided by comparison with global averages. This is an important measure
because it can demonstrate that Woodside is managing emissions appropriately at
facilities, rather than exclusively relying on the use of carbon credits as offsets.
2024 benchmark
44 tCO2-e/boe*
*(portfolio weighted average from the IEA).
2024 performance
35 tCO2-e/boe
Methane emissions intensity4
Methane emissions from our operations receive particular attention because
methane is a potent greenhouse gas over the near term. Methane emissions
can also represent a loss of our saleable volumes of natural gas, and at high
concentrations could present a safety hazard at our facilities.
2024 benchmark
0.2% (Oil and Gas Climate Initiative
(OGCI) target for 2025)
2024 performance
0.14% Sm3/Sm3 marketed gas
Scope 1, 2 and 3 GHG emissions (life cycle) intensity5
This is a measure of the life cycle impact of our business, including the use of our
products. It is a proxy for our whole of business exposure to the energy transition
and enables comparison with other oil and gas producers.
2024 benchmark
73.1 g CO2-e/MJ*
*most recent data from Transition Pathway
Initiative (TPI)
2024 performance
65.0 g CO2-e/MJ
Portfolio diversification
This is a measure of the efforts Woodside is making to diversify its portfolio in
order to be able to respond to anticipated changes in demand due to the energy
transition, i.e. growth in demand for new energy products and lower-carbon
services. We measure this in two ways – the amount of investment we are making,
and the potential impact on our customers’ emissions (Woodside Scope 3).
Target
$5 billion investment in new energy
products and lower-carbon services
by 20306,7
2024 performance
$2.461 billion cumulative8
Target
Take FID on new energy products
and lower-carbon services by 2030,
with total abatement capacity of
5 Mtpa CO2-e6,9
2024 performance
Potential for 1.6 Mtpa CO2-e
abatement capacity from
Beaumont New Ammonia
Project Phase 110
1. Targets and aspiration are for net equity Scope 1 and 2 GHG 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 GHG 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. This means net equity for the 12-month period ending 31 December 2025 are targeted to be 15% lower than the starting base.
3. Woodside analysis, based on Woodside Scope 1 and 2 GHG emissions data for 2024 relative to a comparable portfolio of upstream oil, upstream natural gas and LNG liquefaction assets, based on the average
emissions intensity of these project categories reported in Table 3.1 of IEA’s “The Oil and Gas Industry in Net Zero Transitions” (November 2023).
4. Woodside methane emissions data for 2024 relative to a benchmark characterised by OGCI’s 2025 methane intensity target of well below 0.20%. OGCI’s 2023 upstream methane intensity reported in their 2024
Progress Report was 0.14%. https://www.ogci.com/wp-content/uploads/2024/12/241115_OGCI_ProgressReport2024.pdf
5. Woodside analysis, based on Woodside Scope 1, 2 and 3 emissions data for 2024 relative to the Transition Pathway Initiative oil and gas sector mean reported in their assessment Woodside on 9 June 2024.
https://www.transitionpathwayinitiative.org/companies/woodside-petroleum.
6. 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.
7. 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 GHG emissions which are managed separately through asset decarbonisation plans.
8. Cumulative spend against the investment target at the end of 2024 includes 80% of the total $2,350 million for the Beaumont New Ammonia project acquisition. The remaining 20% will be paid at Project
completion.
9. 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.
10. The information regarding Beaumont New Ammonia (BNA) in this update does not contain all the underlying context and details that is included in the announcement “Woodside to acquire OCI’s Clean
Ammonia Project”, released 5 August 2024. Refer to the announcement for the full explanation of the underpinning assumptions, uncertainties, and context relevant to BNA. https://www.woodside.com/docs/
default-source/asx-announcements/2024/woodside-to-acquire-oci’s-clean-ammonia-project.pdf?sfvrsn=cf35e9ed_1.
60 WOODSIDE ENERGY GROUP LTD
MATERIAL TOPIC UPDATES
1. United Nations General Assembly, 2007. “United Nations Declaration on the Rights of Indigenous Peoples”, Article 32 https://www.un.org/development/desa/indigenouspeoples/wp-content/uploads/
sites/19/2018/11/UNDRIP_E_web.pdf
3.8.6 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 and that Traditional Owners and Custodians can help us to
understand, manage and protect cultural values.
There is diversity within the First Nations communities in the
areas where we are active. When communicating with a wide
audience, Woodside uses the term Indigenous and First Nations
interchangeably. At a local level, Woodside will be guided by the
community about the appropriate terms of reference.
2024 PERFORMANCE OVERVIEW
In 2024, three First Nations Advisory Group Roundtable discussions
were held. These roundtables were an opportunity for senior
Woodside executives to learn from First Nations perspectives.
The roundtables are designed to share knowledge, insights, context
and perspectives with Woodside and work collaboratively to identify
positive features of our work, recommend areas for improvement,
help inform decision-making processes and strengthen
relationships with communities.
Woodside consulted with more than 50 Australian First Nations
stakeholder groups to support the preparation of Environment
Plans, with resources provided where necessary to enable
participation.
A Cultural Heritage Management Plan (CHMP) for the Hydrogen
Refueller @H2Perth was developed in collaboration with Gnaala
Karla Boodja Aboriginal Corporation.
Woodside’s largest ever Traditional Owner construction contract
was awarded to Winyama Constructing, for civil works on the Pluto
Train 1 Modifications project.
In 2024, we identified one cultural heritage incident, due to the
unplanned spraying of herbicide within a cultural heritage site at
our Australian operations. Woodside reported the incident to the
relevant Traditional Owner representative body and the regulator.
STRATEGY
We understand the importance of identifying and working with
those who have longstanding cultural and spiritual connections
to the land and waters where we have a presence. By consulting
effectively, we can be guided by First Nation Peoples in our efforts
to avoid or minimise the potential impact of our operations – this
improves cultural heritage management performance, and can
reduce the risk of unanticipated disruption to business activities
such as through regulatory intervention.
We also believe we can partner with First Nations communities
to create positive outcomes that leave a lasting legacy, improving
both our business and the communities where we operate in. First
Nations Peoples make up a significant proportion of the population
near our facilities, with the potential to contribute to our business as
employees, contractors and suppliers.
Our First Nations Communities Policy defines our approach and is
regularly reviewed and updated. Woodside employees, contractors
and joint venture participants engaged in activities under
Woodside’s operational control are responsible for the application
of the Policy, and are provided with appropriate training. This
Policy also notes that Woodside is guided by the United Nations
Declaration on the Rights of Indigenous Peoples.
Consultation and engagement
As a global company, we are positively engaging with a range of
community stakeholders around the world.
In Australia, we maintain relationships with First Nations
communities in a number of areas of Australia, including the Pilbara,
Kimberley, South West of Western Australia (WA) including Perth,
the Tiwi Islands in the Northern Territory, and in coastal Victoria.
Internationally, we maintain relationships with First Nations
communities in New Zealand and the United States.
Woodside is guided by the United Nations Declaration on the Rights
of Indigenous Peoples and we engage with affected communities
of First Nations in ways that are consistent with the principles of
seeking Free, Prior and Informed Consent (FPIC).1
Woodside is guided by these principles through:
• Engaging through representative institutions with cultural
authority to represent First Nations communities.
• Being guided by First Nations communities on their preferred
methods of consultation, including the format, attendees, cultural
protocols, location and timing.
• Providing relevant information through accessible communications
including fact sheets and face-to-face engagements at our
Roebourne town office and through the establishment of our
First Nations Ambassador role. The role allows for a First Nations
representative to directly and meaningfully engage and represent
Woodside in the Roebourne community to further strengthen
relationships and reciprocal understanding.
• Supporting representative institutions so that they are resourced
to access credible, independent expert advice where required.
• Listening to the voices, views and aspirations of First Nations
communities and leaders so that they are heard within Woodside
and factored into decision making processes.
• Adherence to our Anti-Bribery and Corruption Policy, which
includes the recognition of Indigenous Elders or representatives
authorised to act on behalf of an Indigenous group or community
as de facto Government officials.
2024 ANNUAL REPORT 61
Cultural Heritage Management
Our Cultural Heritage Management Procedure sets out how we
give effect to the intent of our First Nations Communities Policy
in respect of cultural heritage. It contains our approach to the
identification, management and protection of tangible and intangible
cultural heritage, with the intent to avoid impacts, or where
avoidance is not possible to minimise and manage those impacts.
We strive to ensure that Traditional Owners and Custodians are
central to heritage management so that their cultural values
are understood and remain protected. For example, we prepare
CHMPs for our projects, and conduct heritage audits and surveys,
with input from Traditional Owners and Custodians as well as
from independent heritage experts. Woodside is also committed
to ensuring the ongoing management of any identified cultural
heritage is transparent, thorough and continues to benefit from the
input and engagement of First Nations communities.
This approach is illustrated in our consultations for Environment
Plans for oil and gas activities, our heritage surveys for the
proposed Woodside Solar project in the Pilbara, and support for the
Murujuga Cultural Landscape World Heritage Listing.
Partnering for positive social and economic outcomes
Woodside is committed to supporting a range of projects that
generate positive social and economic outcomes. One of these
projects is the ‘Desert to the Sea’ project, which Woodside is
supporting from 2022 to 2027. It is an Australian Research Council
project administered by University of Western Australia (UWA) and
includes other university partners plus the Murujuga Aboriginal
Corporation, the Mungarlu Ngurrarankatja Rirraunkaja (Aboriginal
Corporation) and Jamukurnu-Yapalikurnu Aboriginal Corporation
(Western Desert Lands).
Reconciliation
Woodside has been part of Reconciliation Australia’s Reconciliation
Action Plan (RAP) program since 2009, when we became the first
energy company to join the program. Overseen by Reconciliation
Australia, RAPs require participants to publicly nominate and report
on practical actions they are taking to advance reconciliation.
Woodside’s vision for reconciliation is to partner with Indigenous
communities to create positive economic, social and cultural
outcomes and to reflect on our shared history, empower Indigenous
voices to speak and be heard and work together towards a better
shared future.
We are recognised as a leader in reconciliation with our fourth
plan, the 2021-2025 RAP, and in 2024 reached the third reporting
milestone of this plan by releasing our 2023 RAP Report. We
measure long-term impact outcomes and report annually on
progress towards our commitments across four pillars:
• Respect for culture and heritage
• Capability and capacity
• Economic participation
• Stronger communities.
Australian Indigenous employment is important to Woodside and
its employees and is recognised as an indicator under Pillar 3
‘Economic Participation’ of Woodside’s RAP in Australia with a target
of 6.2% Indigenous workforce in 2024.
Workforce Cultural Competency is also recognised as an important
measure as an indicator under Pillar 1 ‘Respect for Culture and
Heritage’ of Woodside’s RAP in Australia. Employees are encouraged
to complete cultural learning annually, with a target in 2024 of 90%
of employees completing cultural learning.
Landscape on the
Burrup Peninsula
62 WOODSIDE ENERGY GROUP LTD
POTENTIAL RISKS AND OPPORTUNITIES
For Woodside the potential key risks and opportunities regarding
First Nations cultural heritage and engagement are as follows:
Risks
• Woodside contributes to negative impacts to First Nations cultural
heritage.
• Woodside does not meet agreed local content outcomes for First
Nations communities.
• Woodside does not meet expectations of First Nations
communities in the areas where we are active.
Opportunities
• Pursue initiatives in addition to existing RAP Targets.
• Further develop relationships with First Nations communities in
the areas where we are active.
• Encourage and formalise First Nations partnerships in the areas
where we are active.
• Contribute to broader discussion and debate on relevant First
Nations issues in jurisdictions where Woodside has a presence.
CASE STUDY
Woodside awards contract to Winyama
Contracting Group
Woodside (Woodside Burrup Pty Ltd.) awarded its largest-ever
Traditional Owner construction contract to Karratha company
Winyama Contracting Group for the delivery of civil works for
the Pluto Train 1 Modifications project.
Winyama Contracting Group will be working alongside Kellogg
Brown & Root Pty Ltd, Woodside’s Engineering Procurement
and Construction Management contractor for the project. The
decision to award to Winyama Contracting Group followed
a commercially competitive bid process based on criteria
including experience, local content and health, safety and
environment performance.
The award will support the continued growth of Winyama
Contracting Group’s business capability and deliver additional
opportunities for Indigenous participation through employment
and training.
Paul Baker, Woodside Pluto Expansion Project Manager
said Woodside was pleased to be partnering with Winyama
Contracting Group for the delivery of the civil works for the
Pluto Train 1 modifications and supporting the delivery of local
business and employment outcomes for the Pilbara.
“By engaging a local Indigenous led and owned contractor,
we’re securing the delivery of an important service while
contributing to the local economy. The contract will also
support the growth of Winyama Contracting Group, increasing
the company’s capacity to deliver services to other industries
across the Pilbara,” he said.
Woodside’s Scarborough Energy Project has awarded more
than A$3.6 billion in contracts to Western Australian businesses
since the project began. Together with its contractors, it has
invested approximately A$115 million with Karratha-based
businesses.
Arthur Ramirez, Winyama Contracting Group Chairman and
Indigenous Business Manager, said the new supply agreement
with Woodside was a major milestone for Winyama Contracting
Group.
“This project will allow our team to grow by about another 65
new employees, with the majority being residential employees,”
he said.
“Being engaged on the Pluto Train 1 Modifications project will
help fulfill Winyama Contracting Group’s vision to increase its
footprint in the region, which will enable us to increase our
focus on outcomes for Aboriginal people through our Reflection
Reconciliation Action Plan.”
“We are really proud that Woodside has chosen a local
Karratha-based Indigenous business to execute a major portion
of one of their largest current projects, showing they live their
values, and support local and Indigenous business growth in
the region.”
The award of this significant contract supports Winyama’s
growth and provides the ability for further investment in
equipment and people.
Winyama, KBR and Woodside
representatives at Pluto LNG
2024 ANNUAL REPORT 63
METRICS AND TARGETS
This section explains a number of metrics that are relevant to Woodside’s assessment, management and performance against potential key
risks and opportunities. For some of these metrics, targets have been adopted.
Indigenous employment
This metric applies to our Australian Indigenous
workforce. This measure is important to Woodside
and its employees and is an indicator under Pillar 3
of Woodside’s RAP in Australia, namely ‘Economic
Participation’.
Woodside increased its Indigenous workforce to 5.8%, with
Pilbara-based Indigenous representation reaching 11%.
Target
6.2%
2024 performance
5.8%1
Cultural heritage
This measure is important to Woodside, noting effective
cultural heritage management allows cultural values
to be understood and remain protected. Impacts to
cultural heritage carry possible significant reputational
and financial impacts to the business, highlighting the
importance of the effective management of this measure.
Target
• Support two cultural heritage
management initiatives proposed by
Australian First Nation Traditional
Custodians through engagement
and consultation.
• Conduct two First Nations Advisory
Group Roundtables.
2024 performance
• In 2024, Woodside supported ten
cultural heritage management
initiatives proposed by Australian First
Nations Traditional Custodians.
In addition, independent cultural
heritage audits of Pluto and the North
West Shelf facilities were completed,
in collaboration with Australian First
Nation Traditional Custodians.
• In 2024, three First Nations Advisory
Group Roundtables were held.
Workforce cultural competency
This measure is important to Woodside as it is an
indicator under Pillar 1 of Woodside’s RAP in Australia,
namely ‘Respect for Culture and Heritage’.
Target
• 90% of employees complete cultural
learning annually
2024 performance
• 93.3% training completion rate
for 2024
Additional First Nations cultural heritage and engagement content is available on the First Nations cultural heritage and engagement page
of the Sustainability section of the Woodside website.
1. Indigenous Australian employment continues to be part of our RAP commitments and our Inclusion and Diversity Strategy 2021-2025. Targeted actions are planned in 2025, to increase representation in our
workforce.
64 WOODSIDE ENERGY GROUP LTD
MATERIAL TOPIC UPDATES
1. This metric is determined utilising Woodside’s risk matrix. Where there is an occurrence relevant
to this metric, it is reported together with the reportable environmental events of hydrocarbon and
hazardous non-hydrocarbon substances greater than 1 bbl.
2. https://www.climateleaders.org.au/publications/naturestarter/
3.8.7 Environment and biodiversity
A robust and systematic approach to environmental management of our activities,
underpinned by credible science, are the key elements of Woodside’s approach to the
environment.
2024 PERFORMANCE OVERVIEW
Our operations and growth strategy depends on obtaining and
maintaining our 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 2024, there were a total of six environmental events related to the
release of hydrocarbon and hazardous non-hydrocarbon substances
greater than 1 barrel (bbl) to the environment. Two were hydrocarbon
and four were hazardous non-hydrocarbon. All events, which
occurred in Western Australia, were minor and did not reach the
threshold to be defined as a ‘Moderate’ impact to the environment.1
The events classified as hazardous non-hydrocarbon contained
mostly non-hazardous chemicals as assessed against the Offshore
Chemical Notification Scheme (OCNS, UK), however, due to some
trace elements present, they were considered hazardous by
Woodside under local regulatory approvals.
To uphold our commitment to minimising impacts and risks, we
have updated and integrated our hydrocarbon spill preparedness
and response framework across our global operations and
activities. This approach allows us to effectively assess and
manage spill risks to the marine environment in alignment with our
environmental principles.
In 2024, we developed new oil pollution emergency plans that
contributed to regulatory acceptance of 11 environmental approvals
across our Australian assets. Additionally, we implemented training
and capability-building programs in the regions where we operate.
Our collaboration with regional and international industry groups
remains a priority, enabling us to proactively address and monitor
emerging risks.
Since December 2022, Woodside committed to supporting
biodiversity outcomes in the regions in which we operate.
Biodiversity positive projects are intended to result in a measurable
outcome to a local species, habitat or ecological process.
In 2024, we focused on expanding our biodiversity programs in
Western Australia. We are undertaking biodiversity assessments
and monitoring on several of our carbon origination projects in
Western Australia and have commenced implementing additional
measures to improve biodiversity outcomes.
We continue to invest in science to support better environmental
performance and outcomes. This science may be used to support the
baseline or monitoring requirements associated with current and
future environmental approvals. In 2024, we specifically focused on
the management of underwater noise and artificial light. In addition,
we conducted regional studies on key marine habitats and species
in Australia’s northwest. These studies included extensive research
on nearshore and offshore reefs, as well as on important migratory
species such as pygmy blue whales, turtles, and shorebirds. In
2024, 18 scientific articles were published in international journals
highlighting the findings of research undertaken by our research
partnerships and supported by Woodside.
In 2024, we complied with our Environment and Biodiversity
Policy principles which include net zero deforestation across
our global business, and our global activities were outside the
boundaries of natural sites on the UNESCO World Heritage Areas.
In addition, in areas where we operated within International Union
for Conservation of Nature (IUCN) Protected Areas, our activities
were aligned with the existing management plans for those regions.
We also finalised our Biodiversity Management Plan Guidance, a key
component of our Environment and Biodiversity Policy.
In 2024, we contributed to Ipieca’s feedback on the TNFD’s draft Oil
and Gas Sector Guidance.
We actively participated in the Australian Climate Leaders
Coalition (CLC) Nature Working Group in 2024, including the rollout
of the NatSTART tool and involvement in a number of CLC Nature
Catalyst sessions.2
See the Environment data table available on our website for other
relevant metrics.
Seedling planting in Australia.
2024 ANNUAL REPORT 65
STRATEGY
The nature of our operations are accompanied by certain
environmental impacts and risks. We work to avoid or minimise our
impacts by integrating environmental management into our activities.
Our Environment and Biodiversity Policy places a focus on
implementing a systematic approach to the management of
the impacts and risks of our operating activities on an ongoing
basis, including emissions and air quality, discharge and waste
management, water management, biodiversity and protected areas.
We aim to achieve 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. This allows us
to focus our effort and resources on the most significant risks
associated with our activities no matter where we operate.
We regularly reassess environmental impacts and risks of
operations across our global portfolio, at the activity level. This
provides the opportunity to incorporate new scientific knowledge
and improved environmental impact assessment processes and
management approaches with the aim of improving environmental
outcomes.
A key mitigation focus is the prevention of hydrocarbon spills.
Our hydrocarbon spill preparedness and response framework
continue to be a focus across Woodside’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.
In addition, strong external partnerships with government and
non-government organisations to collect and analyse environmental
scientific knowledge, underpin our approach to avoiding or
minimising our environmental impacts. A focus of the risk-based
process is to consider the key values of the environment, such
as protected areas, threatened and migratory species, and a
component of robust impact assessment is to evaluate activities
against the relevant management plans for habitats and species.
More broadly, Woodside recognises the intrinsic value of nature
and the importance of conserving biodiversity and ecosystem
services to support the sustainable development of our society.
Under Woodside’s Environment and Biodiversity Policy we have
committed to supporting a biodiversity positive program that has
measurable biodiversity positive outcomes in the regions and
areas in which we undertake activities. This commitment builds on
our ongoing collaborative work with science-based organisations
and local communities which contribute to environmental and
social outcomes. We continue to scope and implement a range of
biodiversity restoration projects in regions in which we operate.
Woodside recognises that methods to measure and certify
biodiversity outcomes are still evolving and in 2025 we plan to
implement a globally accepted certification standard.
1. https://www.unep.org/resources/kunming-montreal-global-biodiversity-framework
We also recognise that there has been an evolution of agreements,
standards and reporting for nature and biodiversity, specifically
with the adoption of the Kunming-Montreal Global Biodiversity
Framework,1 the release of the TNFD recommendations and the
European Corporate Sustainability Reporting Directive and associated
European Sustainability Reporting Standards. We continue to monitor
these and other emerging regulatory requirements and look to
understand the implications to our business.
View our Environment and Biodiversity Policy – updated in
December 2024
1. DAS, a novel technology, allows the recording of underwater noise through our
offshore communication-based fibre optic cables which link our offshore facilities
with onshore operational centres.
CASE STUDY
Fibre optic cable whale detection in offshore
waters, Western Australia
In 2024, Woodside focussed on advancing technology
projects that can enhance our understanding of the
environment in which we operate and achieve better long-
term environmental management outcomes. For example,
to mitigate underwater noise emissions and lessen any
adverse effects on marine mammals resulting from our
operations, we seek to understand the presence and
behaviours of whale species near our operational sites.
In partnership with Curtin University, a proof-of-concept
trial utilising Distributed Acoustic Sensing (DAS) for whale
detection was successfully conducted in 2024.1 By utilising
a communication cable supporting our North West Shelf
operations in WA, we have demonstrated the capability
to record vocalising or singing whales as they traverse
over these cables. Building upon the positive outcome of
this trial, our future plans involve further developing this
technology to improve our approaches.
For more information about this activity and our
scientific partnerships, please see the Environment and
Biodiversity page of our website.
Pygmy blue whale off Ningaloo, Western Australia,
Micheline Jenner, Centre for Whale Research
66 WOODSIDE ENERGY GROUP LTD
CASE STUDY
Burrup Air Monitoring Program
The Burrup Peninsula (Murujuga) is unique worldwide for
its collection of petroglyphs, engravings that have been
etched, rubbed or scratched into the rocks. The presence
of industry on the Burrup Peninsula has generated
concerns from some stakeholders that associated
emissions may lead to an accelerated weathering or
deterioration of rock art.
In 2021, Woodside commenced operation of four
atmospheric deposition monitoring stations on Murujuga
and one control location. The stations continue to be
in operation and monitor for parameters that may
potentially accelerate weathering of rock art, including acid
depositions. This monitoring supplements an extensive
dataset collected at the time of Pluto LNG construction
and commissioning between 2008-2013. While there are
currently no set air quality thresholds for the protection
of rock art, this monitoring data set will contribute to the
ongoing knowledge regarding any potential relationship
between industrial emissions and cultural heritage.
Outcomes of this air monitoring program directly support
the Murujuga Rock Art Strategy and the Murujuga Rock
Art Monitoring Program, run by the Murujuga Aboriginal
Corporation and Western Australian Department of Water
and Environmental Regulation.
For further information and a summary of annual air
monitoring data see our website.
CASE STUDY
Developing waste management capability
in Senegal
The Sangomar Project team recognised the challenges
associated with managing waste in Senegal and contracted
a local waste management company, SEPCO Industries,
to build a waste facility in Senegal’s capital city, Dakar.
It now includes designated waste storage areas, a high
temperature incinerator, a water treatment plant, and
waste shredders. The collaborative approach between
Woodside and SEPCO has helped strengthen the local
waste management industry and is delivering better waste
management outcomes for the Sangomar Project.
See woodside.com for more information.
POTENTIAL RISKS AND OPPORTUNITIES
For Woodside the potential key risks and opportunities regarding
environment and biodiversity are as follows:
Risks
• Potential incident resulting in a failure to manage our key
environmental risks, such as major hydrocarbon spills or
biosecurity impact.
• Extended timeframes and complexity of environmental approvals
for major projects.
Opportunities
• Recognition of our biodiversity projects through a globally
accepted certification standard.
• Develop biodiversity management plans for our major
developments including Trion, Beaumont New Ammonia Project
and Louisiana LNG.
• A Waste and Water Framework to support Woodside to identify,
manage, monitor, and mitigate water and waste-related risk
exposure, drive operational resilience, promote resource
efficiency to minimise impacts to the environment.
Kangaroo on the Burrup Peninsula
2024 ANNUAL REPORT 67
METRICS AND TARGETS
This section explains a number of environment and biodiversity metrics that are relevant to Woodside’s assessment, management and
performance against potential key risks and opportunities. For some of these metrics, targets have been adopted.
These metrics have been selected as they aligned with our objectives and focus areas outlined in our Environment and Biodiversity
Policy and guided by our sustainability reporting frameworks.
No hydrocarbon and hazardous non-hydrocarbon spills that cause a ‘Moderate’ impact to the environment1
This metric measures any moderate impact to the
environment from Woodside’s operations from a hydrocarbon
or hazardous non-hydrocarbon spill.
Target
0
2024 performance
0
Environmental penalties
This metric measures compliance against our regulatory
commitments.
Target
0
2024 performance
There were no significant fines and non-monetary
sanctions for non-compliance with environmental
laws and/or regulations in terms of:
• total number of significant fines with monetary
value greater than US$10,000;
• total number of non-monetary sanctions;
• cases brought through dispute resolution
mechanisms in relation to environmental impact.
Compliance with Environment and Biodiversity Policy principles – net zero deforestation for new activities2
Deforestation can lead to significant biodiversity loss. Woodside
has committed to have net zero deforestation loss from
operated global activities and operations as such is expected to
be considered key to the readers of this report.
Target
Net zero
deforestation for
new activities
2024 performance
Complied with Environment and Biodiversity
Policy principles with net zero deforestation for
new activities
Compliance with IUCN Protected Areas management plans
To support the protection of the key environmental values of
IUCN Protected Areas, Woodside complies with all relevant
management plans as such is expected to be considered key
to the readers of this report.
Target
Compliance
achieved
2024 performance
Compliance
achieved
No activities within natural World Heritage Areas (WHA)
This metric is to avoid any activities within the boundaries of
natural WHA to protect its outstanding universal values.
Target
Compliance
achieved
2024 performance
Compliance
achieved
1. This metric is determined utilising Woodside’s risk matrix. Where there is an occurrence relevant to this metric, it is reported together with the reportable environmental events of hydrocarbon and hazardous
non-hydrocarbon substances greater than 1 bbl
2. Woodside’s Environment and Biodiversity Policy outlines our deforestation principles and definition of a forest.
Further Environment and biodiversity information is available on
the Environment and Biodiversity page of the Sustainability section
of the Woodside website.
68 WOODSIDE ENERGY GROUP LTD
RISK FACTORS
We are focused on identifying
and managing risks to support
ongoing business success and
shareholder value.
69
Woodside recognises that taking risk is necessary for our business and that effective risk
management 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 protects us against potential negative impacts and
enables us to seek the right opportunities. The objective of our
risk management framework is to provide a consolidated view of
risks across the company to understand our full risk exposure and
prioritise risk management and governance.
Woodside’s Risk Appetite Statement is a vital element of our risk
framework. It sets out the Board’s appetite to take risk in pursuit of
our strategic objectives. It provides guidance to the executive and
senior management teams on the type and amount of risk that is
acceptable when making decisions, consistent with other company
policies.
Woodside’s risk management process is designed to identify, assess
and control risks across the organisation. Company-wide risk
management activities occur throughout the year and are reported to
the Audit & Risk Committee and executive twice annually, in addition
to deep dives on particular risk areas that occur throughout the year.
We categorise risks in three different ways:
1. Strategic risks
These are risks within Woodside’s sphere of influence that could
affect our ability to achieve our strategic objectives. Management
and the Board consider a range of risks and opportunities that have
the potential to deliver or erode value for our organisation in both
the near and longer term. We factor these risks into our strategic
decision-making, as the decisions we make can create, amplify,
reduce, or remove current risks and improve our resilience to
emerging risks.
Examples of strategic risks and opportunities relevant to Woodside
include delivering growth and long-term value through acquisitions
and divestments, and the competitiveness of our portfolio mix under
a range of scenarios.
2. Emerging risks
These risks capture external threats or factors that have a high
degree of uncertainty, are not readily controlled by Woodside and
may be unpredictable or rapidly changing. They have the potential
to materially affect the achievement of our strategic objectives.
Examples include a shifting geopolitical landscape or rapid
technological change.
3. Current risks
These quantifiable risks could affect Woodside’s ability to deliver
our objectives and require appropriate control and management.
Informed by the International Standard ISO31000 for Risk
Management, our risk management process involves these features:
• Communicating and consulting
• Defining risk scope, context and criteria
• Assessing risk
• Treating risk
• Monitoring and review
• Recording and reporting risks.
The risk management process provides a consistent way of
identifying, managing and reporting risks that have the potential to
materially affect the achievement of Woodside’s objectives. Potential
impacts of these risks, were they to eventuate, include those related
to health and safety, the environment, the community and culture,
our reputation and brand, legal and compliance, and financial. 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, 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 prioritises risk management actions and governance
through use of a risk register. The functionality within the register
provides transparency and enhances the ability of senior leaders
to effectively manage and govern risks, including checking that
identified actions to address, manage or remove risk have been
closed out.
WOODSIDE’S RISK MANAGEMENT PROCESS
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.
For more information on Woodside’s risk management process,
refer to our Risk Management Policy, available on our website at
woodside.com.
Risk factors
3.9
70 WOODSIDE ENERGY GROUP LTD
70 WOODSIDE ENERGY GROUP LTD
Our Business • Risk factors
OVERVIEW OF OUR RISK FACTORS
Our business is subject to risks related to safety or major hazard events associated with our activities or facilities. These may include
unanticipated or unforeseeable adverse events that affect our ability to respond, manage and recover from such events.
How is this factor relevant to Woodside?
At Woodside, we believe that our ability to operate safely is critical to our competitiveness. Failure to continue to do so could result in
potential impacts on people, as well as reputational damage with customers, employees, commercial partners and other stakeholders,
and sustained production interruptions leading to an inability to meet production forecasts.
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, from personal health, safety and wellbeing through to
fatalities. This could result in financial, legal and reputational
impacts.
• Natural disasters and severe weather events, such as cyclones,
floods, freezes and heatwaves, droughts, earthquakes or other
acts of nature, social unrest, pandemic diseases, 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. Coastal operations may be
particularly susceptible to severe weather events.
• Woodside’s operations are subject to numerous laws and
regulations relating to public and occupational health and
safety. The requirements of these laws and regulations are
becoming increasingly complex, stringent and expensive to
implement and comply with.
Other risks and opportunities are outlined in section 3.8 –
Sustainability Report; Health, safety and wellbeing material
sustainability topic.
How is Woodside managing these risks?
We implement a systematic approach to health, personal safety, and process safety risk management to minimise adverse health and
safety risk related impacts.
Our Code of Conduct, our Health and Safety Policy and our Working Respectfully Policy set the expectations that apply to all employees,
contractors and joint venture participants engaged in activities under Woodside’s operational control. Leaders aim to create a culture
in which everyone is encouraged to speak up and intervene on safety issues. Our competency framework includes risk management,
process safety, emergency response procedures, human factors, and management of occupational health. We identify, assess and
control risk by applying a consistent hierarchy of controls.
Refer to section 3.8 – Sustainability Report; Health, safety and wellbeing material sustainability topic and the Sustainability section of
our website for further information.
HEALTH AND SAFETY
2024 ANNUAL REPORT 71
Risks associated with major environmental incidents in connection with our activities or facilities include potential incidents resulting
in significant loss of hydrocarbon. We are also subject to risks associated with biodiversity and failure to deliver emission reductions
in a timely manner, consistent with regulatory and stakeholder expectations.
How is this factor relevant to Woodside?
Woodside’s operations are subject to environmental impacts or risks that can arise as a result of the nature of our operations.
Examples of how this factor may impact Woodside
• An incident may result in a significant loss of hydrocarbon to
the environment including when caused by factors that are
outside Woodside’s direct control. These factors include natural
disasters, severe weather events, such as cyclones, floods,
freezes and heatwaves, droughts, earthquakes or other acts
of nature, pandemics, well blowouts, fires, explosions, pipeline
ruptures, chemical releases, oil releases including maritime
releases, releases into navigable waters and groundwater
contamination, material or mechanical failure, power outages,
industrial accidents, physical or cyber attacks, abnormally
pressured or structured formations and other events that
cause operations to cease or be curtailed. This may negatively
affect Woodside’s businesses and the communities in which we
operate.
• Woodside’s operations are subject to numerous laws and
regulations relating to environmental protection. The
requirements of these laws and regulations are becoming
increasingly complex, stringent and expensive to implement.
Costs of compliance with these laws and regulations are
significant and can be unpredictable.
• Applicable laws and regulations may obligate Woodside to
adjust our various operational practices, plans or strategies,
which in turn could cause uncertainty and delay, materially
adversely affect our business, financial condition or results
of operations. We may also be required to maintain financial
assurance through bonds or insurance.
• Third-party insurance may not provide adequate coverage
or Woodside may be self-insured with respect to the related
losses.
Other risks and opportunities are outlined in section 3.8 – Sustainability Report; Environment and biodiversity material sustainability topic.
How is Woodside managing these risks?
We work to avoid incidents and prevent harm to the environment by integrating environmental management into our activities,
including the design, construction, operation and decommissioning of our facilities.
Our Environment and Biodiversity Policy sets the expectation to implement a systematic approach to the management of environmental
impacts and risks. Our hydrocarbon spill preparedness and response framework is underpinned by a comprehensive process
informed by international best practice conventions. Our risk-based approach is supported through strong external partnerships with
government and non-government organisations to collect and analyse environmental scientific knowledge.
Refer to section 3.8 – Sustainability Report; Environment and biodiversity material sustainability topic and the Sustainability section of
our website for further information.
ENVIRONMENT
72 WOODSIDE ENERGY GROUP LTD
The global response to climate change is changing the way the world produces and consumes energy. The inherent uncertainty of
potential societal responses to climate change may create a systemic risk to the global economy. Legislative and regulatory programs
to reduce emissions have been introduced, or are pending, in response to political, social and industry attention on climate change.
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 their substitutes, as well as reputation.
Examples of how this factor may affect Woodside
• Physical impacts or disruptions to our assets or those of our
suppliers, customers or communities.
• Over and under investment in oil and gas reserves leading to
an imbalance between supply and global demand.
• Failure to transition to new energy at a pace that serves the
global demand, or to develop and implement lower-carbon
technologies.
• Successful implementation of new and existing technologies
on an industrial scale, may require more capital, or take longer
than currently expected.
• Climate-driven changes to legislation, regulation and policy
or climate-related litigation resulting in additional costs,
preventing or restricting Woodside from conducting activities.
• Failure of other organisations to meet emissions targets across
industry and the reputational impacts for the industry as a
whole.
Other risks and opportunities are outlined in section 3.8 –
Sustainability Report; Climate material sustainability topic.
How is Woodside managing these risks?
Woodside is working to meet its net equity Scope 1 and 2 GHG emissions reduction targets, and to invest in products and services for
the energy transition in accordance with our capital allocation framework. This includes oil, gas, new energy products and lower-carbon
services.
We engage and advocate with key industry and governance stakeholders to understand and consult on key policies and legislation and
to inform our strategic decision-making.
An index of our various 2024 climate-related disclosures is provided in the Sustainability section of our website at woodside.com.
Refer to section 3.8 – Sustainability Report; Climate material sustainability topic and the Sustainability section of our website for further
information.
CLIMATE
2024 ANNUAL REPORT 73
We manage a range of risks within our operations, including commercial risks relating to third-party relationships such as joint venture
partners, contract counterparties and our supply chain. 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 United States and elsewhere.
We manage the estimation of proved oil and gas reserves by using judgement and the application of complex rules.
How is this factor relevant to Woodside?
Our operating assets are subject to a range of risks associated with process safety incidents, breaches of cybersecurity, extreme
weather events and supply chain disruptions, potentially impacting our production, operations, financial performance and reputation.
Joint ventures may limit our control over, and our ability to effectively manage risks associated with our major projects. For projects
where we are not the operator, we may be unable to directly control the behaviour, performance and cost of operations.
Our operations are subject to operating and capital expenditures to comply with various national and local laws, regulations and
approvals. More stringent standards for greenhouse gas emissions could lead to operational restrictions, increased compliance costs
and changes in product pricing and demand.
Examples of how this factor may impact Woodside
• Our joint venture participants (JVP) 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 JVP and contractual counterparties may not be able to meet
their financial or other obligations and their actions could result
in legal liability and financial loss for Woodside.
• 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.
• Government policy objectives in the countries in which we do
business, now or in the future, could take the form of increased
governmental regulations relating to environment, biodiversity,
climate, taxation, lease retention, contracts and other
commercial matters.
• A failure to comply with applicable laws, regulations and
approvals may result in action, including fines and sanctions
being taken against Woodside that could result in cost
increases, schedule delays or stoppages or production
and operation impacts. 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.
• Supply chain disruptions such as extended lead times for
critical spares or imposition of trade sanctions or export
controls on key suppliers, may cause outages at our
operations, increased costs or delays on our projects.
• The geographical locations for our operations may present
challenges and risks. For example, certain activities
undertaken in deep waters are more difficult and costly than
in shallower waters and require significant time between
the discovery and the time that Woodside can market its
production.
• 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.
• 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.
PRODUCTION AND OPERATIONS
74 WOODSIDE ENERGY GROUP LTD
How is Woodside managing these risks?
Safe and sustainable operation is fundamentally embedded through an extensive framework of controls that deliver strong operational
performance in our base business.
The framework includes production, 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.
The process of estimating oil and natural gas reserves is complex and requires significant decisions and assumptions. Actual
production, revenues, expenditures, prices of hydrocarbons and taxes with respect to Woodside’s reserves may vary from estimates
and the variance may be material. Woodside may record impairments resulting from declines in oil and gas prices or other factors.
Downward adjustments of our reported reserves estimates could indicate lower future production volumes or the impairment of assets.
Decommissioning is integrated into project planning. We work with our partners and technical experts to identify sustainable post-
closure options that minimise financial, social and environmental impacts.
We adapt our execution and contractor management strategies to mitigate the impacts of supply chain risks. 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.
PRODUCTION AND OPERATIONS (CONT’D)
2024 ANNUAL REPORT 75
Growth risks associated with delivery of both major and complex multi-year execution project activities and transactions (including
acquisitions and divestments) across multiple locations around the world, including a reliance on third parties for materials, products
and services.
How is this factor relevant to Woodside?
Oil and gas
Woodside must continue to identify growth opportunities, organic and inorganic, and commercialise them. Woodside competes with a
wide range of companies as we seek to continue to expand Woodside’s current operations and deliver shareholder value.
Woodside effectively manages relationships with industry partners, including when we enter joint ventures with organisations that may
also be competing oil and gas suppliers. 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 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 economy. 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 not meet the market’s needs.
• Limited or reduced market share resulting in a loss of
shareholder value and a failure to deliver expected returns.
• Project schedule delays or cost increases due to labour or
material shortages, geopolitical conflicts, regulatory approvals
or other unanticipated events.
• Failure to identify, execute or implement strategic transactions,
including acquisitions and divestments, or to achieve the full
benefits of those transactions.
• The development of acquired assets may lead to significant
capital and operating expenses being incurred. This may result
in a requirement to incur additional debt, and we may not be
able to obtain financing in the future on acceptable terms.
• Credit rating agencies could downgrade our credit ratings
below currently expected levels.
• Woodside may be unable to compete with other larger
companies in the industry with greater resources at their
disposal.
How is Woodside managing these risks?
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.
Our opportunity management framework is flexible and adaptable. The primary objective of this framework is to realise the value of an
opportunity while mitigating the risk of a suboptimal outcome for our organisation, our shareholders and our communities.
1. 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.
GROWTH
76 WOODSIDE ENERGY GROUP LTD
Social licence risks are associated with actual or perceived deviation from social or business expectations of ethical behaviour
(including breaches of laws or regulations) and social responsibility (including community contribution and impacts on the
environment, climate, biodiversity, human rights or cultural heritage), particularly as these expectations evolve and as Woodside
expands its operations around the world.
How is this factor relevant to Woodside?
Communities, First Nations Peoples including Traditional Owners and Custodians, government authorities, investors and other groups
form significant relationships with our organisation on the basis that Woodside will meet our stakeholders’ expectations.
Examples of how this factor may impact Woodside
• Lost or limited stakeholder support for our current business
and future opportunities, resulting in refusal or delay in
approvals, permits or authorisations and potential cost
overruns.
• New or amended laws and regulations, or new or different
applications or interpretations of existing laws and regulations.
• Risks related to the violation of certain laws and regulations,
including class action lawsuits, litigation and activism,
allegations of legal compliance failures and greenwashing.
• Reductions in the availability of, or less favourable terms for,
financing and other forms of capital.
• Third-party risks that are outside of our control could
negatively affect our reputation and licence to operate,
including reputational damage to the oil and gas industry at
large.
Other risks and opportunities are outlined in section 3.8 –
Sustainability Report; First Nations cultural heritage and
engagement material sustainability topic.
How is Woodside managing these risks?
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 business conduct is informed by the UN Guiding Principles on Business and Human Rights, which set a global standard of conduct
for all businesses wherever they operate. These principles apply in addition to compliance with national laws and regulations protecting
human rights.
Refer to section 3.8 – Sustainability Report; First Nations cultural heritage and engagement material sustainability topic and the
Sustainability section of our website for further information.
SOCIAL LICENCE
2024 ANNUAL REPORT 77
These risks are associated with the ability to attract, retain, develop and motivate employees to succeed and safeguard both current
and 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 organisational structure will allow us to conduct our operations and pursue new
opportunities. For Woodside to remain an employer of choice, our culture must support our current employees and attract the best new
candidates.
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.
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.
• Actual or alleged misconduct, including fraud and corruption.
• An inability to reach timely agreements with employees
including where representation 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 existing business and growth
opportunities. We recognise and value the benefits of creating an inclusive and diverse working environment.
We set the expectation for ethical behaviour through the application of Our Values, Code of Conduct and other relevant policies. This is
supported by a framework of monitoring, governance and training.
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.
Further information on this topic can be found in the People and Culture section of our website.
PEOPLE AND CULTURE
78 WOODSIDE ENERGY GROUP LTD
These risks are those associated with interest rates, inflation, and fluctuations in commodity price and foreign exchange.
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.
Capital management
For Woodside 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. Section 2.2 – Capital management
contains further information.
From time to time, Woodside has relied on access to capital markets for funding. Our ability to obtain additional financing or refinancing
will be subject to a number of factors, including general economic and market conditions such as rising interest rates, inflation or
unstable or illiquid market conditions.
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. Section A in the Notes to the Financial Statements also provides 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. Section C in the
Notes to the Financial Statements contain further information.
Examples of how this factor may impact Woodside
• A reduced ability to fund our strategy including our projects.
• Impairments of assets, goodwill or other intangible assets, or
a significant increase in capital and operational expenditure as
a result of acquisitions, 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.
How is Woodside managing these risks?
A flexible approach to capital management enables the overall level of investment in the different areas of our business and the mix
to be adjusted with consideration of 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.
We maintain insurance in line with industry practice and sufficient to cover normal operational risks. 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 affect 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.
FINANCIAL MANAGEMENT
2024 ANNUAL REPORT 79
Commercial and market risks are associated with the ability to capture value whether markets are stable or volatile. Generally,
Woodside does not have control over the factors that affect market development and prices.
How is this factor relevant to Woodside?
Woodside’s revenues are primarily derived from the sale of oil and gas. The prices Woodside receives for these products are variable
and are affected 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. Section 6.3 - Additional disclosures and section A in the
Notes to the Financial Statements provides further information.
Examples of how this factor may impact Woodside
• Significant volatility in energy prices, such as the volatility
experienced in recent years, may increase the challenges
associated with future revenue and delivery of our strategy
• An imbalance in supply and demand can affect commodity
prices; our ability to forecast market conditions determines
whether we are affected positively or negatively.
• Woodside may become a less attractive joint venture
participant.
• Shareholder returns are reduced due to lower commodity
prices.
• Woodside’s acquisition activities carry risks that it may not
fully realise anticipated benefits due to less-than-expected
reserves or production or changed circumstances, such as
price decline or an inability to capture market optimisation
opportunities; bear unexpected integration costs or experience
other integration difficulties; experience share price declines
based on the market’s evaluation of the activity; or be subject
to liabilities that are greater than anticipated.
• 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
fulfil their obligations, a larger percentage of our future oil and
gas production could be subject to price changes.
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.
COMMERCIAL AND MARKET
80 WOODSIDE ENERGY GROUP LTD
These risks are associated with adopting and implementing new technologies, while safeguarding our digital information and
landscape (including from cyber threats) across our value chain.
How is this factor relevant to Woodside?
Woodside must protect the confidentiality, integrity and availability of digital information and operational technologies. Woodside’s
technology systems, including artificial intelligence and machine learning, 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.
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 unauthorised access to our
process control systems, or the systems of vendors on which
we rely, occurs.
• Litigation and governmental investigations may arise from the
occurrence of a cyber attack.
• There may be potential adverse impacts on our reputation, the
safety and privacy 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. This process also applies to digital risks relating to third parties, including suppliers and service
providers, within our supply chain.
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 partners and in our supply chain. But, due to the rapid
evolution of cyber threats, there can be no certainty that such controls will be sufficient to prevent all security breaches.
Refer to section 4.1.6 - Risk management and internal control and section 6.3 - Additional disclosures and the Cybersecurity section of
our website for further information on cybersecurity.
DIGITAL AND CYBERSECURITY
2024 ANNUAL REPORT 81
Reserves and
Resources Statement
Woodside produced a total of 206.3 MMboe in 2024, including
192.7 MMboe produced for sale and 13.6 MMboe of production
consumed primarily as fuel in operations.1 At 31 December 2024,
Woodside’s remaining proved (1P) reserves were 1,975.7 MMboe,
remaining proved plus probable (2P) reserves were 3,092.2 MMboe,
while the remaining 2C contingent resources were 5,869.7 MMboe
(Table 1).
As a result of completion of the sale of 10.0% and 15.1%
non-operating participating interest in the Scarborough Joint Venture
in Australia,2 Woodside’s proved undeveloped reserves decreased
by 323.0 MMboe, proved plus probable undeveloped reserves
decreased by 504.7 MMboe and 2C contingent resources decreased
by 5.6 MMboe (shown as acquisitions and divestments in Table 2, 3,
and 7).
In 2024, excluding divestments and production, Woodside’s proved
reserves increased by 54.9 MMboe, proved plus probable reserves
increased by 46.2 MMboe and 2C contingent resources decreased
by 26.7 MMboe (shown as revision of previous estimates, transfer
to/from reserves, and extensions and discoveries in Table 2, 3).
Key drivers for these changes include:
• post start-up field performance at Sangomar in Senegal
contributed to proved and proved plus probable reserves
increases of 16.2 MMboe and 15.4 MMboe, respectively
• performance based revisions, technical updates, and the final
investment decision on development opportunities in North West
Shelf in Australia contributed to proved and proved plus probable
reserves increases of 13.4 MMboe and 25.2 MMboe, respectively3
• performance and technical updates at Bass Strait in Australia
contributed to proved and proved plus probable reserves
increases of 12.9 MMboe and 1.2 MMboe, respectively.
Additionally, field performance and technical updates at multiple
Exmouth fields in Australia contributed to both proved and proved
plus probable reserves increases of 7.6 MMboe
• final investment decision on Xena-3 in Greater Pluto in Australia
resulted in extensions of proved and proved plus probable
reserves of 7.1 MMboe and 14.6 MMboe, respectively
• initial field performance and technical updates at Mad Dog
Phase 2 in the United States contributed to proved and proved
plus probable reserves decreases of 8.1 MMboe and
14.0 MMboe, respectively
• final investment decision on development opportunities
in the United States and Australia, along with minor development
plan changes in the United States, resulted in the transfer of
25.0 MMboe from 2C contingent resources to proved plus
probable reserves.
The transfers of undeveloped to developed reserves associated with
successful start-up of Sangomar, start-up of development wells
in the United States and start-up of two compression projects in
Australia are discussed in the Undeveloped reserves section of this
Reserves and Resources Statement.
Unless stated otherwise, the following apply to this Reserves
and Resources Statement:4 The effective date for reserves and
resources estimates is 31 December 2024. Proved reserves are
calculated using SEC-compliant economic assumptions and pricing.
Production is reported for the period from 1 January 2024 to
31 December 2024. Reserves, resources and production stated are
Woodside’s net share and inclusive of fuel consumed in operations.
On 19 December 2024 Woodside issued an announcement entitled
“Woodside Simplifies Portfolio and Unlocks Long-Term Value”,
describing an asset swap with Chevron. This Reserves and
Resources Statement has not been adjusted to account for the
impact of the asset swap with Chevron, as the transaction has not
yet completed and remains subject to conditions precedent.3 The
transaction would, if completed, result in changes to Woodside’s
interests in the North West Shelf Project Area and Julimar-Brunello
disclosed in this statement, effective as of 1 January 2024. 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 additional information and
production history becomes available.
Table 1: Woodside’s reserves5,6,7,8 and contingent resources9 overview (net Woodside share, as at 31 December 2024)
Natural gas10
Bcf13
NGLs11
MMbbl14
Oil & condensate
MMbbl
Total12
MMboe15
Fuel included in
total MMboe
Proved16 developed17 and undeveloped18
8,049.9
18.9
544.6
1,975.7
178.2
Proved developed
1,995.0
17.4
339.4
706.8
59.3
Proved undeveloped
6,054.9
1.5
205.2
1,268.9
119.0
Proved plus probable19 developed and undeveloped
12,589.4
33.9
849.7
3,092.2
273.4
Proved plus probable developed
3,264.0
31.6
523.3
1,127.5
94.0
Proved plus probable undeveloped
9,325.5
2.3
326.3
1,964.7
179.4
Contingent resources20
27,688.8
80.6
931.4
5,869.7
360.3
Small differences are due to rounding
3.10
82 WOODSIDE ENERGY GROUP LTD
82 WOODSIDE ENERGY GROUP LTD
Our Business • Reserves and Resources Statement
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 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 and Standards, reserves and
resources estimation guidance, annual staff training and minimum
experience levels. The Woodside Reserves and Resources Policy
requires external assessments 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 estimates are reviewed annually by the
CRT to ensure technical quality, adherence to Woodside’s Reserves
and Resources Policy and Standards 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 Woodside’s 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
Benjamin Ziker, 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 Ziker.
Mr Ziker’s qualifications include a Bachelor of Science (Chemical
Engineering) from Rice University (Houston, Texas, USA), and
26 years of relevant experience.
Table 2: Proved and proved plus probable developed and undeveloped reserves reconciliation (net Woodside share, as at
31 December 2024)
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
Proved
Proved plus
probable
Proved
Proved plus
probable
Proved
Proved plus
probable
Proved
Proved plus
probable
Reserves as at 31 December 2023
10,496.9
16,024.1
21.0
37.1
587.5
908.7
2,450.1
3,757.1
Acquisitions and divestments21
-1,841.3
-2,876.8
0.0
0.0
0.0
0.0
-323.0
-504.7
Revision of previous estimates22
123.4
104.3
4.1
2.6
16.9
-3.9
42.7
17.0
Transfer to/from reserves23
11.0
37.6
0.4
0.8
2.9
7.2
5.2
14.6
Extensions and discoveries24
37.7
78.0
0.0
0.0
0.5
0.9
7.1
14.6
Production1
-777.8
-777.8
-6.7
-6.7
-63.2
-63.2
-206.3
-206.3
Reserves as at 31 December 202425
8,049.9
12,589.4
18.9
33.9
544.6
849.7
1,975.7
3,092.2
Fuel included in reserves as at 31 December 2024
1,011.2
1,552.4
0.8
1.0
0.0
0.0
178.2
273.4
Small differences are due to rounding
2024 ANNUAL REPORT 83
Table 3: 2C contingent resources reconciliation (net Woodside share, as at 31 December 2024)
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
Contingent resources as at 31 December 2023
27,786.8
80.6
946.5
5,902.0
Acquisitions and divestments
-32.1
0.0
0.0
-5.6
Revision of previous estimates
27.4
0.8
-7.3
-1.7
Transfer to/from reserves
-93.2
-0.8
-7.8
-25.0
Extensions and discoveries
0.0
0.0
0.0
0.0
Contingent resources as at 31 December 202420
27,688.8
80.6
931.4
5,869.7
Small differences are due to rounding
Table 4: Proved developed and undeveloped reserves (net Woodside share, as at 31 December 2024)
Country
Assets
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Australia
Greater Pluto26
347.2
303.2
650.4
0.1
0.0
0.1
4.0
3.7
7.7
65.0
57.0
122.0
Bass Strait
289.0
19.2
308.2
9.3
0.3
9.6
6.5
0.3
6.7
66.5
3.9
70.4
North West Shelf27
659.4
8.3
667.7
3.1
0.1
3.2
23.7
0.2
24.0
142.5
1.8
144.3
Exmouth28
452.9
43.0
495.9
0.0
0.0
0.0
24.2
0.8
25.0
103.7
8.3
112.0
Scarborough29
0.0
5,494.7
5,494.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
964.0
964.0
USA
Shenzi, Mad Dog
and Atlantis fields
79.6
9.9
89.5
5.0
1.1
6.0
191.6
36.4
227.9
210.5
39.2
249.7
Other
International30
166.9
176.5
343.5
0.0
0.0
0.0
89.4
163.8
253.2
118.7
194.8
313.5
Total
Reserves
1,995.0
6,054.9
8,049.9
17.4
1.5
18.9
339.4
205.2
544.6
706.8
1,268.9
1,975.7
Fuel included in reserves as at
31 December 2024
333.2
677.9
1,011.2
0.8
0.0
0.8
0.0
0.0
0.0
59.3
119.0
178.2
Small differences are due to rounding
Table 5: Proved plus probable developed and undeveloped reserves (net Woodside share, as at 31 December 2024)
Country
Assets
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Developed
Undeveloped
Total
Australia
Greater Pluto
928.0
348.6
1,276.6
0.1
0.1
0.1
10.7
4.3
14.9
173.5
65.5
239.0
Bass Strait
436.5
2.7
439.3
18.2
0.2
18.4
9.4
0.2
9.6
104.2
0.8
105.0
North West Shelf
964.6
32.1
996.7
4.9
0.2
5.1
32.0
0.8
32.8
206.1
6.7
212.8
Exmouth
579.3
222.4
801.6
0.0
0.0
0.0
29.7
4.1
33.8
131.3
43.1
174.5
Scarborough
0.0
8,584.6
8,584.6
0.0
0.0
0.0
0.0
0.0
0.0
0.0
1,506.1
1,506.1
USA
Shenzi, Mad Dog
and Atlantis fields
125.3
15.9
141.1
8.4
1.9
10.3
287.9
50.6
338.5
318.3
55.3
373.6
Other
International
230.3
119.1
349.4
0.0
0.0
0.0
153.6
266.3
419.9
194.0
287.2
481.2
Total
Reserves
3,264.0
9,325.5
12,589.4
31.6
2.3
33.9
523.3
326.3
849.7
1,127.5
1,964.7
3,092.2
Fuel included in reserves as at
31 December 2024
530.1
1,022.3
1,552.4
1.0
0.0
1.0
0.0
0.0
0.0
94.0
179.4
273.4
Small differences are due to rounding
84 WOODSIDE ENERGY GROUP LTD
Table 6: 2C contingent resources summary by region (net Woodside share, as at 31 December 2024)
Country
Assets
Natural gas
Bcf
NGLs
MMbbl
Oil & condensate
MMbbl
Total
MMboe
Australia
Greater Pluto
1,006.2
0.0
19.5
196.0
Bass Strait
581.7
32.1
51.5
185.7
North West Shelf
570.1
5.3
38.6
144.0
Exmouth
669.4
0.0
37.7
155.1
Scarborough
1,600.1
0.0
0.0
280.7
Browse31
4,403.3
8.3
117.5
898.3
Greater Sunrise Special Regime Area
Sunrise32
1,778.0
0.0
75.6
387.5
USA
Shenzi, Mad Dog
and Atlantis fields
235.6
34.8
284.1
360.3
Canada
Liard20
14,225.7
0.0
0.0
2,495.7
Other
International
2,618.8
0.0
306.9
766.3
Total
Resources
27,688.8
80.6
931.4
5,869.7
Small differences are due to rounding
UNDEVELOPED RESERVES
At 31 December 2024, Woodside’s remaining proved undeveloped
reserves were 1,268.9 MMboe, representing a decrease of
443.6 MMboe from the 1,712.5 MMboe as at 31 December 2023
(Table 7). Additionally, remaining proved plus probable undeveloped
reserves were 1,964.7 MMboe, a decrease of 717.6 MMboe from
2,682.3 MMboe as at 31 December 2023.
As a result of completion of the sale of 10.0% and 15.1% non-
operating participating interest in the Scarborough Joint Venture,2
Woodside’s proved and proved plus probable undeveloped reserves
decreased by 323.0 MMboe and 504.7 MMboe, respectively.
In 2024, 132.6 MMboe of proved undeveloped reserves were
transferred to proved developed reserves with the start-up of
development wells in Sangomar (94.5 MMboe), Mad Dog and
Atlantis (24.0 MMboe), and compression projects at Bass Strait
(9.3 MMboe) and Macedon (4.9 MMboe). Similarly, 224.0 MMboe
of proved plus probable undeveloped reserves were transferred
to proved plus probable developed reserves with start-up of
development wells in Sangomar (164.6 MMboe), Mad Dog and
Atlantis (35.8 MMboe), and compression projects at Bass Strait
(11.7 MMboe) and Macedon (11.9 MMboe).
Revisions of previous estimates resulted in proved and proved
plus probable undeveloped reserves decreases of 0.2 MMboe
and 18.1 MMboe, respectively. Technical updates at Greater Pluto
resulted in proved and proved plus probable undeveloped reserves
increases of 20.7 MMboe and 5.0 MMboe, respectively. Proved
undeveloped reserves increases at Greater Pluto were primarily
due to production acceleration and onshore facility limits. Initial field
performance and technical updates at Mad Dog and strong base
performance at Julimar-Brunello in Australia contributed to proved
undeveloped reserves decreases of 12.4 MMboe and 7.4 MMboe,
respectively. The remaining proved plus probable undeveloped
reserves revisions were primarily driven by initial field performance
and technical updates at Mad Dog.
Transfers associated with the final investment decisions on
development opportunities in the United States and Australia, and
minor development plan changes in the United States, resulted
in proved and proved plus probable undeveloped reserves
increases of 5.2 MMboe and 14.6 MMboe, respectively. In addition,
the final investment decision on Xena-3 in Greater Pluto resulted
in extensions of proved and proved plus probable undeveloped
reserves of 7.1 MMboe and 14.6 MMboe, respectively.
Only 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.
As of 31 December 2024, approximately 88 percent of Woodside’s
proved undeveloped reserves are scheduled to be developed within
five years of initial disclosure. The remaining proved undeveloped
reserves (approximately 12 percent) are associated with large
and complex capital investment projects, which are scheduled to
be developed beyond five years from initial disclosure primarily
due to facility ullage constraints and scheduled offshore drilling
campaigns. Woodside is committed to these projects and continues
to actively progress the development of these volumes.
Table 7: Proved undeveloped reserves reconciliation (net
Woodside share, as at 31 December 2024)
Total
MMboe
Reserves as at 31 December 2023
1,712.5
Acquisitions and Divestments
-323.0
Transfers to proved developed reserves
-132.6
Revision of previous estimates
-0.2
Performance, technical studies, and other
-0.2
Price
0.0
Transfer to/from Reserves
5.2
Extensions and discoveries
7.1
Reserves as at 31 December 2024
1,268.9
Small differences are due to rounding
During 2024, Woodside incurred approximately US$4.0 billion
progressing the transfer of proved undeveloped reserves for projects
where development status was achieved in 2024 or is expected to be
achieved when development is completed in the future.
2024 ANNUAL REPORT 85
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 include
quantities of oil and gas that may not meet the SEC’s definitions
of proved, probable and possible reserves, and which the SEC’s
guidelines strictly prohibit Woodside from including in filings with
the SEC. These estimates are by their nature more speculative
than estimates of proved reserves and would require substantial
capital spending over a significant number of years to implement
recovery, and accordingly are subject to substantially greater
risk of being recovered by Woodside. In addition, actual locations
drilled and quantities that may be ultimately recovered from
Woodside’s properties may differ substantially. Woodside has made
no commitment to drill, and likely will not drill, all drilling locations
that have been attributable to these quantities. U.S. investors are
urged to consider closely the disclosures in Woodside’s filings with
the SEC, which are available at www.sec.gov.
NOTES TO THE RESERVES AND RESOURCES
STATEMENT
1. ‘Production’ is the volume of natural gas, natural gas liquids (NGLs), condensate and oil produced
during the period from 1 January 2024 to 31 December 2024 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 1.2 MMboe
in excess of reserves working interest percentage from Pluto non-operating participants processed
via the Pluto-KGP Interconnector. Other small differences are due to rounding.
2. Refer to announcements on 26 March 2024 and 31 October 2024 entitled “Woodside Completes
Sale of 10% Scarborough Interest” and “Woodside Completes Sale to JERA of 15.1% in
Scarborough”, respectively.
3. In this Reserves and Resources Statement, Woodside’s interests, including those in the North
West Shelf Project Area and Julimar-Brunello, represent interests at the end of this reporting
period. On 19 December 2024 Woodside issued an announcement entitled “Woodside Simplifies
Portfolio and Unlocks Long-Term Value”, describing an asset swap with Chevron. The transaction
would, if completed, result in changes to Woodside’s interests in the North West Shelf Project Area
and Julimar-Brunello, effective as of 1 January 2024. Completion of the transaction is subject to
customary conditions precedent, including Australian Competition and Consumer Commission
and Foreign Investment Review Board clearances and other applicable State and Federal and
regulatory approvals, relevant third-party consents and pre-emption rights of the continuing
joint venture participants. The transaction is also subject to the completion of Julimar Phase 3
Project execution and handover which is expected in 2026, and the completion of certain ongoing
abandonment activities.
4. Woodside is an Australian company listed on the Australian Securities Exchange and the New York
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 resources estimates using definitions consistent with SPE-PRMS.
5. 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.
6. ‘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.
7. Assessment of the economic value in support of an SPE-PRMS 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.
8. 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.
9. ‘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.
10. ‘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.
11. ‘Natural gas liquids’ or ‘NGLs’ is defined as the product associated with liquefied petroleum gas
(LPG) and consists of propane, butane, and ethane - individually or as a mixture.
12. ‘Total’ includes fuel consumed in operations.
13. ‘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).
14. ‘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).
15. ‘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.
16. ‘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.
17. ‘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.
18. ‘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.
19. ‘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.
20. ‘Liard’ comprises unconventional contingent resources in the Liard Basin. As at 31 December 2024,
Liard represents approximately 43% of Woodside’s 2C contingent resources.
21. ‘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.
22. ‘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.
23. ‘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).
24. ‘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.
25. Proved reserves at 31 December 2024 are estimated and reported in accordance with SEC
regulations. Proved plus probable reserves and contingent resources at 31 December 2024 are
estimated and reported in accordance with SPE-PRMS guidelines.
26. ‘Greater Pluto’ consists of the Pluto, Xena, Pyxis, Larsen, Martell, Martin, Noblige, and Remy fields.
27. ‘North West Shelf’ consists of all oil and gas fields within the North West Shelf Project Area.
28. ‘Exmouth’ consists of the Pyrenees, Macedon, Julimar-Brunello, and Ngujima-Yin fields.
29. ‘Scarborough’ consists of Scarborough, Thebe, and Jupiter fields. Scarborough proved
undeveloped reserves as at 31 December 2024 are 5,494.7 Bcf (964.0 MMboe). Development
activities are underway. In this Reserves and Resources Statement, Scarborough estimates are
based on a 74.9% interest in the Scarborough Joint Venture, and 100% interest in Thebe and
Jupiter.
30. ‘International’ consists of the Angostura, Ruby, Trinidad and Tobago Deep Water, Trion, and
Sangomar fields. Of which, all but Trion are under Production Sharing Contracts. ‘International’
fields represent approximately 16% of Woodside’s proved and proved plus probable reserves, and
13% of Woodside’s 2C contingent resources. Woodside net economic interest volumes are reported.
31. ‘Browse’ consists of the Brecknock, Calliance, and Torosa fields.
32. ‘Sunrise’ consists of the Sunrise and Troubadour fields.
86 WOODSIDE ENERGY GROUP LTD
GOVERNANCE
Woodside’s commitment to
corporate governance is critical
to our strong and sustainable
business performance.
87
Woodside is committed to high levels
of corporate governance and fostering
a culture of ethical behaviour, integrity
and respect.
A key responsibility of the Board is the overall corporate
governance of Woodside. This Corporate Governance Statement
summarises the activities and processes underpinning the high
standards of corporate governance followed by Woodside.
Our focus at Woodside is not just on what we do, but how we do it.
Everything we do is guided by Our Values, inspired by our purpose,
and in accordance with a strong corporate governance architecture.
We recognise that good corporate governance starts at the top. It is
essential that Woodside is led by a Board that engages openly and
productively with management and facilitates robust dialogue and
constructive challenge in response to critical and emerging issues
and risks faced by the business.
The Nominations and Governance Committee (Committee) assists
the Board with reviewing Board composition, performance and
succession planning.
An important factor in succession planning is to ensure that the
Board has the right mix of Directors with the skills and experience
to lead Woodside in accordance with high standards of corporate
governance, and to identify and understand strategic opportunities
and risk to deliver long-term sustainable value. This is particularly
important given Woodside’s role in meeting the global challenge of
supplying reliable, affordable and lower-carbon energy.
Also relevant is continuity and corporate memory underpinning the
decisions made by the Board and significant professional experience
in our sector, especially given the long-term perspective required by
the Directors. This is balanced by renewal of the Board to bring in
new skills, experiences and perspectives.
We have been actively renewing the membership of the Board and
have appointed six directors since 2020. In 2024, we also changed
Chairs of the Human Resources and Compensation Committee and
the Audit and Risk Committee.
The Committee works closely with the Board on recommendations
relating to Woodside’s corporate governance policies, helping to
inform the Board’s direction on corporate governance framework
and practices.
Another key responsibility of the Committee is to review and,
where appropriate, enhance our corporate governance policies
and practices. We frequently consider developments arising in the
markets where Woodside securities are listed, being the Australian
Securities Exchange (ASX) 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.
Given our commitment to corporate governance and its direct link to
creating and protecting shareholder value, I encourage you to read
this Corporate Governance Statement. And, as always, we welcome
your feedback.
Richard Goyder, AO
Chair of the Nominations and Governance Committee
25 February 2025
Corporate
Governance
Statement
Richard Goyder, AO
4.1
88 WOODSIDE ENERGY GROUP LTD
88 WOODSIDE ENERGY GROUP LTD
Governance • Corporate Governance Statement
4.1.1 Corporate governance at 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.
Stakeholders
Board
Chief Executive Officer
Nominations &
Governance Committee
Management Governance and Assurance
Strategy
Authorities
WOODSIDE
MANAGEMENT SYSTEM
Including Woodside
Values and Policies
Risk Management
Operating Structure
Independent Assurance
External Audit
Internal Audit
Human Resources &
Compensation Committee
Audit & Risk
Committee
Sustainability
Committee
Woodside must comply with applicable provisions of the
Corporations Act 2001 (Cth), ASX Listing Rules, and other relevant
Australian and international laws, including the NYSE Listed
Company Manual and US securities laws applicable to Woodside
as a foreign private issuer.
This Corporate Governance Statement (Statement) reports on
Woodside’s key governance principles and practices.
The ASX Listing Rules require Woodside 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 NYSE Listing Rules and US securities laws
also require Woodside to report on its governance arrangements
and governance code.
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 NYSE and
the SEC. The section ‘Differences from NYSE corporate governance
requirements’ provides further information.
The Statement is current as at 25 February 2025 (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.
2024 ANNUAL REPORT 89
4.1.2 Board of Directors
1. OCI’s investigation into the incident is ongoing at this time.
2. The transaction completed on 31 October 2024 as announced on the same date.
3. Completion of the transaction is subject to customary conditions precedent, including applicable State and Federal regulatory approvals, relevant third-party consents and pre-emption rights of the continuing
joint venture participants.
4. Details of Woodside’s senior executives are set out in section 4.1.4 – Executive Leadership Team.
5. As announced on 16 October 2024, as of 08:00 (GMT) on 20 November 2024, Woodside delisted from the London Stock Exchange (LSE). Information about Woodside’s material activities as previously disclosed
to the LSE are available on Woodside’s website.
BOARD ROLE AND RESPONSIBILITIES
The Woodside Energy Group Ltd Constitution provides that the
business and affairs of Woodside are to be managed by or under
the direction of the Board. The central role of the Board is to
set Woodside’s strategic direction, to select and appoint a Chief
Executive Officer (CEO) and to oversee Woodside’s management and
business activities.
The Board’s role, powers, duties and functions are formalised in
a Board 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:
• The review of Woodside’s strategy and providing input and
guidance including on management’s execution of strategy
• Monitoring the potential impacts of certain macroeconomic and
geopolitical events on the global energy market
• Woodside’s plans to support its emissions targets and goals
• Management’s response to key safety events, including the tragic
death of an employee of one of OCI’s construction contractors at
the Beaumont New Ammonia site1
• Management’s response to policy and regulatory developments,
including legal challenges to regulatory decision making in
Australia
• The acquisition of OCI Clean Ammonia Holding B.V. and its
1.1 Mtpa lower-carbon ammonia project in Beaumont, Texas
• The sale of a 15.1% non-operating participating interest in the
Scarborough Joint Venture to JERA2
• The acquisition of Tellurian Inc. and its US Gulf Coast Driftwood
LNG development opportunity
• The acquisition of Chevron’s interests in the North West Shelf
(NWS) Project, the NWS Oil Project and the Angel Carbon Capture
and Storage (CCS) Project, in exchange for Woodside’s interests
in the Wheatstone Project and the Julimar-Brunello Project3
• The progression of CCS studies and the H2OK hydrogen project
• The progression of the Scarborough Energy Project
• The progression of the Trion Project
• The commencement of production from the Sangomar Project
• The appointment of two new Directors to the Board
• The appointment of a new Group Company Secretary
• Revisions to the leadership structure and Executive Leadership
Team effective August 20244
• Woodside’s de-listing from the London Stock Exchange.5
BOARD COMPOSITION
The Woodside Energy Group Ltd Constitution provides that
Woodside Energy Group Ltd is not to have more than 12, nor
less than three Directors. At the date of this report, the Board is
comprised of 10 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.
90 WOODSIDE ENERGY GROUP LTD
Richard Goyder, AO
BCom, FAICD
Chair: Chair since April 2018.
Term of office: Director since August 2017, re-
election required at AGM in 2027.
Independent: Yes
Country of residence: Australia
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: Perron Group (from March 2025),
Channel 7 Telethon Trust (since 2018),
West Australian Symphony Orchestra (WASO)
(since 2018) and Australian Football League
Commission (since 2017).
Other directorships of listed entities within the
past three years: Qantas Airways Limited (2018
until September 2024).
Meg O’Neill
BSc (Ocean Engineering), BSc (Chemical
Engineering), MSc (Ocean Systems Management)
CEO and Managing Director
Term of office: Director since August 2021.
Independent: No
Country of residence: Australia
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), WA Venues & Events Pty Ltd
(WAVE) (since 2019), West Australian Symphony
Orchestra (WASO) (since 2019), Business
Council of Australia (since November 2024) and
Reconciliation Western Australia (from 2021 until
December 2024).
Member: Chief Executive Women, National
Petroleum Council (US) and UWA Business
School Advisory Board (resigned January 2025).
Other: Honorary Governor of the American
Chamber of Commerce (AmCham).
Other directorships of listed entities within the
past three years: Nil.
Larry Archibald
BSc (Geosciences), BA (Geology), MBA
Term of office: Director since February 2017,
re-election required at AGM in 2026.
Independent: Yes
Country of residence: USA
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.
2024 ANNUAL REPORT 91
Ashok Belani
MS Engineering
Term of office: Director since January 2024, re-
election required at AGM in 2027.
Independent: Yes
Country of residence: USA
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, and Executive Vice President
Technology. Most recently, he served as SLB’s
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 continues to work as a
senior advisor to SLB.
Committee membership: Member of the
Sustainability, Audit & Risk and Nominations &
Governance Committees.
Current directorships/other interests:
Director: Gentari Sdn. Bhd. (since 2023),
Enervenue, Inc. (since 2021) and AMGreen Group
(since 2024).
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.
Arnaud Breuillac
MSc Engineering
Term of office: Director since March 2023, re-
election required at AGM in 2026.
Independent: Yes
Country of residence: France
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 the Sustainability and Nominations &
Governance Committees.
Current directorships/other interests:
Director: Trident Energy Ltd (since 2022) and
Géosel Manosque SAS (since 2022).
Member: Board of ACL (Association des diplomes
de l’ECL).
Other: President of ECL (Ecole Centrale de Lyon)
Endowment Fund.
Other directorships of listed entities within the
past three years: Nil.
Swee Chen Goh
BSc (Information Science), MBA
Term of office: Director since January 2020, re-
election required at AGM in 2026.
Independent: Yes
Country of residence: Singapore
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), Singapore
Power Ltd (since 2019), Resilience Collective
Singapore (since 2019) and Honour Singapore
(since 2021).
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).
92 WOODSIDE ENERGY GROUP LTD
Ian Macfarlane
Former Australian Federal Minister (Resources;
Energy; Industry and Innovation), FAICD
Term of office: Director since November 2016,
re-election required at AGM in 2026.
Independent: Yes
Country of residence: Australia
Experience: Mr Macfarlane 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: Australian Composites Manufacturing
Cooperative Research Centre (previously
Sovereign Manufacturing Automation for
Composites Cooperative Research Centre) (since
2023).
Member: Fellow of the Australian Institute of
Company Directors and Toowoomba Community
Advisory Committee of the University of
Queensland Rural Clinical School.
Other directorships of listed entities within the
past three years: Nil.
Angela Minas
MBA Finance and Accounting, BA Managerial Studies
Term of office: Director since April 2023, re-
election required at AGM in 2026.
Independent: Yes
Countries of residence: Greece and USA
Experience: Ms Minas is an experienced financial
executive with strong capital markets experience,
including six years as a public company Chief
Financial Officer (CFO) and Chief Accounting
Officer at Constellation Energy Partners LLC and
CFO at DCP Midstream LLC. Ms Minas spent the
first 20 years of her career in financial advisory
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).
Tony O’Neill
BAS (Mining Technology), MBA
Term of office: Director since June 2024, election
required at AGM in 2025.
Independent: Yes
Countries of residence: Australia and United
Kingdom
Experience: Mr O’Neill joined Anglo American
in 2013 and retired in 2022 as Group Technical
Director. Mr O’Neill served on the boards of a
number of Anglo American subsidiaries including
Anglo American Plc, Anglo American Platinum
and De Beers. During the course of his career,
Mr O’Neill has been involved in many technology
ventures and mining industry sustainability
initiatives.
Committee membership: Member of the Audit
& Risk, Sustainability and Nominations &
Governance Committees.
Current directorships/other interests:
Director: Nil.
Member: Fellow of the Royal Academy of
Engineering (UK) and the Institute of Materials,
Minerals and Mining (UK).
Other directorships of listed entities within the
past three years: Anglo American Plc (2013 to
2022).
2024 ANNUAL REPORT 93
Ann Pickard
BA, MA
Term of office: Director since February 2016, re-
election required at AGM in 2025.
Independent: Yes
Country of residence: USA
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 1999.
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. (from 2021 until
May 2025) and KBR Inc (since 2015).
Member: University of Wyoming Foundation
Board.
Other directorships of listed entities within the
past three years: Nil.
Ben Wyatt
LLB, MSc
Term of office: Director since June 2021, re-
election required at AGM in 2025.
Independent: Yes
Country of residence: Australia
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: Chair of the Audit
& Risk Committee. Member of the Human
Resources & Compensation and Nominations &
Governance Committees.
Current directorships/other interests:
Director: Rio Tinto Ltd (since 2021), West Coast
Eagles (since 2021), Perth International Arts
Festival (since 2021) and Telethon Kids Institute
(since 2021).
Member: UWA Business School Advisory Board,
Australian Institute of Company Directors and
Australian Capital Equity Pty Ltd Advisory
Committee Board.
Other directorships of listed entities within the
past three years: APM Group (2022 until 2024).
Frank Cooper, AO
BCom, FCA, FAICD
Independent: Yes
Experience: Mr Cooper retired on 24 April 2024
after having served more than 11 years on
Woodside’s Board of Directors.
Throughout his tenure, Mr Cooper served on
a number of Woodside Board Committees
including as Chair of the Audit & Risk Committee
and as a member of the Human Resources &
Compensation and Nominations & Governance
Committees.
Gene Tilbrook
BSc, MBA, FAICD
Independent: Yes
Experience: Mr Tilbrook retired on 28 February
2024 after having served more than nine years on
Woodside’s Board of Directors.
Mr Tilbrook served on a number of Woodside
Board Committees as a member of the Audit
& Risk, Human Resources & Compensation (of
which he was appointed Chair from 2019 to 2023)
and Nominations & Governance Committees.
Woodside acknowledged Mr Tilbrook’s significant
contribution to the company on his passing in
August 2024.
94 WOODSIDE ENERGY GROUP LTD
DIRECTOR AND SENIOR EXECUTIVE 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 future
site tours.
Directors complete questionnaires annually to facilitate the Board’s
assessment of each Director’s skills and knowledge required to
discharge their obligations to Woodside. The Board considers at
least annually the 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 Woodside, where
appropriate.
DIRECTOR REMUNERATION
Details of remuneration paid to Directors (Executive and Non-
Executive) are set out in the 2024 Remuneration Report in section
4.3 – Remuneration Report. The Remuneration Report also contains
information on Woodside’s policy and practice for determining the
nature and amount of remuneration for Non-Executive Directors,
Executive 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 Woodside’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.
Director attendance at meetings
Directors in office, Committee membership and Directors’ attendance at meetings during 2024
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
13
13
8
5
4
5
Non-Executive Director
Larry Archibald
13
13
8
8
5
4
4
5
5
Ashok Belani3
13
12
8
8
5
4
3
5
4
Arnaud Breuillac
13
13
8
5
5
4
4
5
5
Swee Chen Goh
13
10
6
5
5
4
4
5
5
Richard Goyder
13
13
8
5
4
5
5
Ian Macfarlane
13
13
8
5
5
4
4
5
5
Angela Minas
13
13
8
8
5
4
4
5
5
Tony O’Neill3
8
8
5
3
2
2
2
3
3
Ann Pickard
13
13
7
5
5
4
4
5
5
Ben Wyatt
13
12
8
8
5
5
4
5
5
Frank Cooper4
5
5
2
2
2
2
1
1
2
2
Gene Tilbrook4
3
3
2
2
2
2
1
1
1
1
Current Chair
Current Member
Retired
1. ‘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.
2. ‘Attended’ indicates the number of meetings attended by each Director, during the period of each Director’s tenure. All Directors are entitled to and generally attend meetings of the standing Committees.
3. Mr Belani was appointed on 29 January 2024 and Mr O’Neill was appointed on 3 June 2024.
4. Mr Cooper retired at the 2024 Annual General Meeting on 24 April 2024 and Mr Tilbrook retired on 28 February 2024.
2024 ANNUAL REPORT 95
BOARD PERFORMANCE EVALUATION
The Nominations & Governance Committee is responsible for
determining the process for evaluating Board performance. Board
performance evaluations are conducted annually. In 2024, an
external consultant was engaged to conduct a Board performance
evaluation.
The evaluation process involves questionnaires and interviews
with Directors. The report on Board and Committee performance is
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 2024, 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 103 and in the
Remuneration Report.
DIRECTORS’ RETIREMENT AND RE-ELECTION
The Woodside Energy Group Ltd 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.
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 that they are all independent. The CEO, Meg O’Neill, is
not considered independent as she is an Executive Director and a
member of management.
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 the Woodside Energy Group Ltd Constitution, Directors must
comply with the Corporations Act 2001 (Cth) in relation to disclosure
and voting on matters involving material personal interests. Subject
to the Corporations Act 2001 (Cth):
• 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.
• Woodside 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 Woodside.
• the Director may retain benefits under the transaction even
though the Director has an interest.
• Woodside cannot avoid the transaction merely because of the
existence of the interest.
AREAS OF COMPETENCE AND SKILLS OF THE BOARD
OF DIRECTORS
Each year, the Board, on the recommendation of the Nomination &
Governance Committee, reviews and determines the composition
and size of the Board, including succession plans, such that the
Non-Executive Directors collectively bring the skills, knowledge and
experience necessary to direct Woodside going forward.
To assist with this review, each year the Nomination & Governance
Committee evaluates and adopts a Director competencies matrix
that the Committee determines is appropriate for Woodside’s
operations, strategy and risks. In 2024, Directors were asked to
confirm their competencies against the competencies matrix,
through a process coordinated by an external consultant. As part
of this process, three classifications were established for each
competency, being ‘Expert/ Advanced’ and ‘General’ and ’Limited’,
along with criteria for each of these classifications. Directors then
participated in interviews facilitated by the external consultant, who
assisted in the calibration of each Director’s individual competence
and skill.
Based on the outcome of the 2024 review, the Board considers that
they collectively have a combination of skills and experience which
are necessary to direct Woodside in accordance with high standards
of corporate governance and oversee Woodside’s management and
business activities.
The Director competencies matrix and the outcome of the 2024
review are set out below. The Board also uses this competencies
matrix to identify potential areas of focus for Director recruitment
and to identify any professional development opportunities that may
benefit Directors.
96 WOODSIDE ENERGY GROUP LTD
Director competencies matrix 2024
Area of Competence and Skill
Description
Results
Leadership and Culture
Business leadership
Senior leadership in a large and complex organisation
Public listed company experience
Senior leadership in a public listed company
Woodside values and behaviours
Alignment with Woodside’s Values
Finance
Financial acumen, accounting and
audit
Qualifications in finance disciplines and has senior executive or equivalent
experience in financial accounting and reporting and internal financial controls
Insurance
Experience in material insurance activities and strategy in a public listed
company or large and complex organisation
Taxation
Understanding material taxation implications in the oil and gas industry, or
similarly complex industries
Business Strategy
Corporate financing and treasury
Senior executive or equivalent experience or background in corporate financing
and/or treasury management
Business strategy
Record of development and oversight of business strategy and competitive
business analysis
Capital projects
Experience or background in capital intensive and long-term projects and
investments
Commercial
Gas/LNG marketing
Experience in marketing of oil and gas products including an understanding of
Woodside’s value chain
Mergers and acquisitions
Experience in merger and acquisition transactions raising complex financial,
regulatory and operational issues
Business development
Experience in customer and supplier relationships and in new business
opportunities
Legal and regulatory compliance
Experience in ensuring compliance with laws and regulations applicable to
Woodside business activity
US regulatory compliance
Experience in US SEC reporting and SOX requirements
Risk management
Experience in recognising and managing risks which have the potential to
materially impact the achievement of business objectives
Sustainability and Stakeholder Management
Health and safety
Relevant experience in workplace health and safety and process safety including
controlling risks and impacts across the value stream
Community relations
Experience in engagement with a range of key stakeholders at national, regional
and local levels, including First Nations peoples, government, community and
non-government organisations
Corporate governance
Experience in the management of the highest standards of corporate governance
Environment
Experience in the management of environmental performance including
managing resources and emissions and understanding potential environmental
risks and opportunities, including those related to nature and biodiversity
Public and regulatory policy
Experience in government affairs and public and regulatory policy
Climate Change
Policy and legal risks
Experience in navigating policy reforms that promote adaptation to and
mitigation of climate change. Experience in managing climate change risks
including uncertainty surrounding future regulatory frameworks
Market
Experience in managing climate change risks and opportunities including
changes in product markets, capital markets and supply chains
Technology
Experience in overseeing technological improvements or innovations that
support the transition to a lower-carbon economy
Reputation
Experience in managing climate change risks including increased stakeholder
expectations, and the ability to attract and retain talent
Expert/Advanced
General
Limited
2024 ANNUAL REPORT 97
Director competencies matrix 2024
Area of Competence and Skill
Description
Results
People and Capability
People and culture
Experience in people management and succession planning, performance and
organisational culture
Industrial relations
Experience in industrial relations
Remuneration
Experience in remuneration policy and application including linking
remuneration to strategy
Industry
Oil and gas experience
Experience in exploration, development, or operations in the oil and gas industry
Major projects
Experience in successfully delivering large projects
New energy, lower-carbon services
and renewables
Experience in new and emerging energy products, lower-carbon services and
renewables industries and businesses
Technology
Track record of successfully delivering technology strategy to maintain
competitive advantage
Digital and innovation
Experience in using digital as a value enabler and implementing and reviewing
business transforming technology and innovation strategies including artificial
intelligence
Cybersecurity
Experience in managing cybersecurity risks and digital disruption
International
International oil and gas exploration,
development and production
Experience in identifying, acquiring, developing and exploring reserves in
international jurisdictions
International experience
Experience in regions and countries related to Woodside’s strategy and activities
Expert/Advanced
General
Limited
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 the
Directors and management which are open, cordial and conducive
to productive cooperation, and which facilitate robust dialogue,
debate and constructive challenge in response to key issues and
emerging risks. 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 Woodside’s
headquarters in Perth, Western Australia. The Non-Executive
Directors are 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 and its Committees. 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.
The section on the ‘Board composition’ contains information about
recent changes to the Board’s composition.
98 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.
The Audit & Risk Committee, the Human Resources & Compensation
Committee and the Sustainability Committee have additional
membership requirements as set out in their respective Charters.
Each Committee is entitled to seek information from any employee of
Woodside 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. Directors’ attendance at Board
and Committee meetings can be found on page 95.
Audit & Risk Committee
Assists with overseeing Woodside’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
• Ben Wyatt (Committee Chair from 25 April 2024, following the retirement
of Frank Cooper)
• Larry Archibald
• Ashok Belani (from January 2024)
• Angela Minas
• Tony O’Neill (from June 2024)
Some of the 2024 key activities undertaken by the Committee include:
• 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 2024 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 2025/2026 Internal Audit program
• 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 the ongoing integration activities in connection with
Woodside’s acquisition of Tellurian Inc. and OCI Clean Ammonia
Holding B.V.
• Reviewing Woodside’s future dividend approach and operation of the
distributable profits reserve
• Reviewing the Group’s key risks and management of contemporary and
emerging risks such as cybersecurity, conduct risk, technology and
innovation, privacy and data breaches, sustainability and climate change
• Overseeing matters and informing the Board of any material concerns
raised under the Code of Conduct, the Anti-Bribery and Corruption Policy
and the Whistleblower Policy which call into question the culture of the
organisation
• Reviewing and endorsing amendments to the Reserves and Resources
Policy, Code of Conduct and the Whistleblower Policy
• Undertaking ongoing shareholder and other external and internal
stakeholder engagement
• Informing the Board of Woodside’s compliance with material legal and
regulatory requirements and any conduct that is materially inconsistent
with Woodside’s Values or Code of Conduct.
Audit committee financial expert
Woodside’s Board has determined that Angela Minas, who currently serves as a member of the Audit & Risk Committee, meets the audit committee
financial expert requirements under SEC Rules. The Board has also determined that she is independent under applicable NYSE Listing Rules.
2024 ANNUAL REPORT 99
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
• Swee Chen Goh
• Ian Macfarlane
• Angela Minas
• Tony O’Neill (from June 2024)
• Ann Pickard
• Ben Wyatt
Some of the 2024 key activities undertaken by the Committee include:
• Identifying and recommending to the Board new Directors to join the
Woodside Board in 2024
• Reviewing the size and composition of the Board
• Reviewing the Director skills and competencies matrix
• Reviewing the Directors’ material interests
• Overseeing 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
• Reviewing Woodside’s governance framework and practices.
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)
• Swee Chen Goh
• Ian Macfarlane
• Ann Pickard
• Ben Wyatt
Some of the 2024 key activities undertaken by the Committee include:
• 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 Woodside’s organisation design and policy changes required
to meet changing regulatory requirements
• Overseeing amendments to Woodside’s employee and executive equity
plans
• Overseeing Woodside’s response to Australian and US 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
• Reviewing and endorsing amendments to the Remuneration Policy
• Reviewing Woodside’s remuneration policies globally and practices and
considering advice on the remuneration of Woodside’s key management
personnel
• Reviewing Woodside’s recruitment and retention strategies
• Oversight of programs to assess and monitor culture (such as 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
• Reviewing and making recommendations to the Board on:
›
remuneration of Non-Executive Directors
›
remuneration of the CEO
›
criteria for the evaluation of the CEO’s performance
›
incentives payable to the CEO
›
employee equity-based plans
›
the annual Remuneration Report.
100 WOODSIDE ENERGY GROUP LTD
Sustainability Committee
Assists the Board in meeting its oversight responsibilities in relation to Woodsides’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
• Tony O’Neill (from June 2024)
Some of the 2024 key activities undertaken by the Committee include:
• Overseeing Woodside’s response to key safety events
• Overseeing Woodside’s in-year Scope 1 and 2 GHG emissions
performance, and its plans for meeting emissions reduction targets
• Reviewing Woodside’s environmental performance, including major
incident prevention
• Overseeing the Group’s health and personal safety performance
• Considering for Board approval Woodside’s approach to climate
reporting
• Overseeing Woodside’s process safety performance including major
incident prevention
• Reviewing Woodside’s quality management
• Considering security and emergency management performance,
including major incident prevention and response and business
continuity
• Reviewing delivery against Woodside’s 2021-2025 Reconciliation Action
Plan
• Considering Woodside’s management of climate change risk and
opportunities
• Overseeing and reviewing the performance of Woodside’s Climate
Transition Action Plan
• Overseeing and reviewing the preparation of the 2024 Climate Update,
and approach to climate-related disclosures
• Keeping up to date with Woodside’s implementation plan in relation to
its involvement in the Oil & Gas Methane Partnership 2.0 (OGMP 2.0) and
the UN Environment Program
• Considering First Nations affairs, including cultural heritage and land
access matters
• Reviewing Woodside’s activities supporting local content in our supply
chain
• Overseeing Woodside’s social performance and social contribution in our
host communities
• Reviewing Woodside’s reputational performance and issues of
significance to our communities and stakeholders
• Overseeing publication of the Reconciliation Action Plan Report 2023
• Endorsing for Board approval Woodside’s Modern Slavery Statement
2023 and reviewing related human rights issues.
2024 ANNUAL REPORT 101
4.1.4 Executive Leadership Team
Mark Abbotsford
Executive Vice President and
Chief Commercial Officer1
BEc (Hons), MPhil, MBA, AMP
Tony Cudmore
Executive Vice President Sustainability,
Policy and External Affairs
BA, GCIR
Andy Drummond
Executive Vice President Strategy
BEng (Hons) (ChemEng)
Joined Woodside: 2002
Joined Woodside: 2022
Joined Woodside: 2022
Experience: Mark leads Woodside’s commercial,
marketing and trading teams and is responsible
for developing Woodside’s growth opportunities
through his leadership of mergers and
acquisitions, new energy business development,
exploration and new venture teams. Mark has
over 20 years of 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 held roles at Treasury (Western
Australia) and BHP Iron Ore.
External directorships: Board member of the
Chamber of Commerce and Industry (WA),
GLX Digital and Asia Natural Gas and Energy
Association (ANGEA).
Experience: Tony leads Sustainability, Policy &
External Affairs. He joined Woodside in 2022 as
Executive Vice President Strategy and Climate.
Tony has over 20 years of industry experience.
Prior to joining Woodside, Tony held senior
leadership positions at ExxonMobil and BHP
including Chief Public Affairs Officer, and Group
Sustainability and Public Policy Officer.
External directorships: Nil.
Experience: Andy is responsible for delivering
a global portfolio of growth options. Andy has
over 25 years of 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.
External directorships: Nil.
Julie Fallon
Executive Vice President Technical and
Energy Development
BEng (Hons), (ChemEng), GAICD
Daniel Kalms
Executive Vice President and
Chief Operating Officer, International1
BEng (Hons) (ChemEng), MBA, GAICD
Ruth Lyall
Senior Vice President Human Resources
BA (Hons), MHRM, GAICD
Joined Woodside: 1998
Joined Woodside: 2001
Joined Woodside: 2010
Experience: Julie is responsible for a range of
areas including project development, reserves
and subsurface, well and seismic engineering
and technology, digital, IT and cybersecurity,
and health, safety and environment. Julie has
30 years of industry experience and has held a
number of senior leadership roles at Woodside,
including Executive Vice President Corporate
Services, Senior Vice President Pluto and Senior
Vice President Engineering.
External directorships: Director and President
of the Australian Resources and Energy
Employer Association (since August 2024).
Advisory Board member of the Chamber of
Minerals and Energy of Western Australia.
Experience: Daniel is responsible for Woodside’s
projects and business operations in the
United States, Senegal, Trinidad and Tobago,
Mexico and Canada. Daniel has over 25 years
of industry experience and has held roles
across the breadth of Woodside’s business.
Most recently he was Executive Vice President
Technical Services and oversaw Woodside’s
technical services including engineering,
subsurface, technology and digital.
External directorships: Board member of United
Way of Greater Houston.
Experience: Ruth is responsible for human
resources and security and global workplace.
Prior to her current appointment, Ruth served
as Woodside’s Vice President Human Resources,
and was the regional head of Human Resources
for Woodside’s Australian region. Ruth is a
human resources professional with more
than 20 years of experience and since joining
Woodside in 2010, has led several different parts
of the Human Resources function including
business partnering and organisational
development.
External directorships: Nil.
1. Identified as key management personnel (KMP)
102 WOODSIDE ENERGY GROUP LTD
Rebecca McNicol
Senior Vice President Legal and
Group General Counsel
BCom, LLB
Graham Tiver
Executive Vice President and
Chief Financial Officer1
BBus, FCPA
Elizabeth (Liz) Westcott
Executive Vice President and
Chief Operating Officer Australia1
BCom, BEng (Hons), GAICD
Joined Woodside: 2011
Joined Woodside: 2022
Joined Woodside: 2023
Experience: Rebecca is responsible for legal,
ethics and compliance, company secretariat
and internal audit. Rebecca is a solicitor with
more than 25 years of legal, mergers and
acquisitions and commercial experience and has
held a number of senior roles within Woodside
including Vice President Legal, Vice President
Mergers and Acquisitions and Vice President
Commercial. Prior to joining Woodside, Rebecca
practised law at Mallesons Stephen Jaques
(now King & Wood Mallesons) with a focus on
mergers and acquisitions, energy, corporate law
and governance.
External directorships: Nil.
Experience: Graham is responsible for finance;
financial control; treasury; tax; investor relations;
governance, risk and compliance; contracting
and procurement and business improvement
planning. 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. Graham has extensive international
experience, having worked in North and South
America as well as in a variety of roles around
Australia.
External directorships: Advisory Board member
of UWA Business School (from March 2025).
Experience: Liz leads Woodside’s projects and
business operations for Australia, focusing
on optimising value across the portfolio and
throughout an asset’s lifecycle. Liz joined
Woodside in 2023 as Executive Vice President
Australian Operations, with responsibility for
the safe, efficient and reliable operation of
Woodside’s portfolio of assets across Australia.
Liz has over 30 years of industry experience
in operations and project roles. Prior to
joining Woodside, Liz held senior leadership
roles at EnergyAustralia and ExxonMobil
spanning strategic planning, operations,
project management, and safety, technical and
commercial leadership.
External directorships: Nil.
Performance evaluation of Executive Leadership Team
Senior executive performance is reviewed annually, which
considers and assesses the executive’s performance against a list
of key performance indicators.
All senior executives had a performance evaluation in FY2024
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 96.
1. Identified as key management personnel (KMP)
2024 ANNUAL REPORT 103
4.1.5 Promoting responsible and ethical behaviour
OUR VALUES
Everything we do is guided by Our Values and inspired by our purpose. We are one team, we care, we innovate every day, our results matter
and we build and maintain trust. Our purpose is to be society’s trusted energy partner.
One team
We are inspired by our common purpose.
We challenge, respect, and back each other.
We are inclusive, value diversity,
and can be ourselves.
We care
We keep each other safe.
We listen and respond with humility.
We respect the environment, operate
responsibly, and care for communities.
We adapt to the world’s expectations of us.
Innovate every day
We explore ideas, fi nd creative solutions, and
try new ways of doing things to provide the
energy the world needs today and low-cost,
lower-carbon energy for tomorrow.
Results matter
We go after opportunities and show
courage by taking the right risks and
learning from our mistakes.
We spend and invest as if it’s our money.
We are proud of our achievements.
Build and maintain trust
Trust takes time and effort and will not be
taken for granted.
We nurture relationships and act with
integrity – doing what we say and doing it well.
CODE OF CONDUCT AND ANTI-BRIBERY AND
CORRUPTION POLICY
Woodside’s Code of Conduct and 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.
Material 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 which is available for submitting anonymous reports of
alleged improper conduct.
Material 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
The Woodside Board has adopted the Securities Dealing Policy,
which governs the purchase, sale and other dealings of Woodside’s
securities by Directors, senior management and employees, and
seeks to promote compliance with applicable insider trading laws,
rules and regulations.
Woodside’s Securities Dealing Policy applies to all Directors,
employees, contractors, consultants and advisers. It prohibits
Directors and employees from dealing in Woodside’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.
104 WOODSIDE ENERGY GROUP LTD
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. Woodside’s 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 is 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 engages with political parties and participates in public
policy discussions in jurisdictions in which it operates.
Where appropriate and approved through Woodside’s established
governance arrangements, we pay to attend Western Australian and
Australian political party business engagement events as part of our
participation in public policy debate.
Woodside does not endorse or donate to campaign funds for any
political party, politician or candidate for public office in any country.
Woodside’s approach to political contributions is consistent with
Australian laws and applicable US law.
Woodside publishes political contributions through relevant
statutory and sustainability reporting. Australian political
financial disclosures are available through the Australian
Electoral Commission (AEC) and the Western Australian Electoral
Commission in compliance with our reporting requirements.
As reported to the AEC, our payments for the financial year
2023/2024 totalled A$79,550, reduced from A$97,550 in 2022/2023.
Our contributions for the year ending 30 June 2024 (being the
relevant reporting period) are as follows:
Value (A$)
Australian Labor Party
15,500
Australian Labor Party (Western Australia Branch)
21,800
Liberal Party of Australia
17,800
Liberal Party (WA Division) Inc
11,250
National Party of Australia
13,200
National Party of Australia (WA) Inc
0
Total
79,550
2024 ANNUAL REPORT 105
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 Woodside 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.
The role of the Board and Audit & Risk Committee in
risk 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, oversees Internal Audit’s activities and reviews Internal
Audit’s performance.
Management is responsible for promoting and applying the Risk
Management Policy.
In 2024, the Audit & Risk Committee reviewed and confirmed
Woodside’s risk management framework was sound, and that
Woodside was operating with due regard to the risk appetite
endorsed by the Board.
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 fulfil 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 Senior Vice President Legal and
Group General Counsel.
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 exposure to risks (including environmental and social
risks) and how they are managed are disclosed in section 3.9 – Risk
factors.
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.
PricewaterhouseCoopers (PwC) is the external auditor of the Group.
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 do not exceed 10% of PwC Perth
aggregate revenues for the prior period; and
• annual review of auditor performance.
External auditor independence
Woodside’s External Auditor 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. It 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 are 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 2024.
Under SEC regulations, the remuneration of the external auditors
have been disclosed in Note E.4 to the Financial Statements.
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).
106 WOODSIDE ENERGY GROUP LTD
• 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.
• 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 reviewed or audited by an external auditor. Management
has developed practices and guidance material that are intended
to verify the integrity of and 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; and
• the above opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating effectively; and
• the consolidated entity disclosure statement required by section
295(3A) of the Corporations Act 2001 (Cth) is true and correct as
at 31 December 2024.
2024 ANNUAL REPORT 107
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 and applies throughout Woodside,
including the Board and its Committees. The Human Resources &
Compensation Committee is responsible for monitoring Woodside’s
I&D Policy, and for delivering its other objectives as set out in the
Human Resources & Compensation Committee Charter which is
available on our website at woodside.com.
We focus on creating a culture which 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 every individual brings
to the workplace and fostering a values-based and leader-led
inclusive culture
• providing education and training to better understand inclusivity
in the workplace, as well as conducting reviews, undertaking
initiatives and measuring the culture of the organisation
• amplifying the voices of employees to inform our activities by
enabling Employee Impact Groups and conducting employee
surveys
• conducting annual remuneration reviews to gauge equity in
compensation, and providing resources and processes to improve
the equity of opportunity
• 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). Further information
is contained in our 2024 submission available on our website at
woodside.com
› focusing on recruiting, developing and retaining Indigenous
Australian talent to better represent the communities in which
we operate.
2024 MEASURABLE OBJECTIVES
Our 2024 measurable objectives include objectives set out in our I&D Policy. Further information about Board and executive management
diversity, including Board commitments to and progress on reaching Board gender equality of 40% male / 40% female / 20% either gender,
is on page 110.
2024 measurable objective
Progress
Continue to track the perceived level of
inclusion and use inclusion survey insights to
inform initiatives to continually improve
• The Our Voice employee survey was completed twice in 2024, with belonging, inclusive culture and
inclusive leadership measured. The feedback from this survey has informed our efforts in 2024 and
will inform our 2025 priorities.
Embed Respectful Behaviours at Woodside via
increasing a ‘speak up’ culture and proactive
employee engagement on this topic
• This year 447 people completed the 3.5 hour Working Better Together – Respectful Behaviours
program and 54 people completed the 1.5-hour Respect at Woodside education session.
• During 2024, through the Navigator Leadership Program, 1071 employees completed leadership
program immersions; and 80 leaders completed the Inclusive Leadership Six Signature Traits course
(2 x ½ day sessions).
• The Our Voice Survey recorded improvements in employee perception of feeling safe to speak up
(62%), and of working in an environment which is free from harassment and discrimination (83%).
Ensure diversity of the Board with consideration
for gender, racial and cultural diversity
• As of 31 December 2024, Board diversity included:
›
36.4% female representation
›
9% LGBTIQA+ representation
›
country based cultural diversity – Indigenous and non-Indigenous Australian, American,
Singaporean Chinese, Indian, Greek and French
›
racial diversity – 18% Asian, 9% Indigenous Australian, 73% white/Caucasian.
Increase the percentage of Indigenous
Australian people employed in leadership roles,
mid-career and senior roles and overall
• Establishment of a specialised role dedicated to sourcing Indigenous talent saw mid-career
representation rise from 0.8% in 2023 to 1.3% in 2024 (+58%).
• Overall participation (including pathway program participants) increased to 5.8% (from 5.7%).
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 11.7% (from 11.2%)
›
leadership roles increased to 27.8% (from 27.7%)
• There was an overall increase to 33.8% (from 33.6%)
• Trion I&D strategy developed and moved into implementation phase.
108 WOODSIDE ENERGY GROUP LTD
2024 measurable objective
Progress
Maintain gender balance and meet recruitment
goals for Indigenous Australian peoples through
all forms of entry to Woodside including
pathway programs and experienced hires1
• Recruitment results for female representation were:
›
non-tertiary pathways2: 42.9%
›
summer vacation students: 50.8%
›
graduates: 48.1%
›
experienced hires: 40.7% female.
• Recruitment results for Indigenous Australian representation were:
›
non-tertiary pathways: 39.3%
›
summer vacation students: 4.6%
›
graduates: 3.7%
›
experienced hires: 7.9%.
Make progress towards building greater
inclusion of people who are differently abled
and/or neurodiverse
• Progress has been made with the development of a three-year digital accessibility plan, including
ways to embed improvements in procurement of software and hardware to meet Web Content
Accessibility Guidelines.
• The Workplace Adjustments Guide provides accessibility options for any employee needing them, and
events have been held by the employee impact group ADAPT (Advocates for Different Abilities and
Personal Traits) to raise awareness.
Support LGBTIQA+ individuals to feel safe to be
out at work
• 700 people completed LGBTIQA+ awareness and inclusion related training in 2024.
• Woodside achieved silver status in the Australian Workplace Equality Index for LGBTQ workplace
inclusion.
Make progress towards achieving racial equity
• Newly developed racial equity training was launched, with 52% of leaders participating in 2024.
• 93.3% of employees completed an Indigenous Australian cultural learning experience in 2024.
• Woodside’s Roadmap Towards Australian First Nations Cultural Safety was initiated which will help
to understand employees’ perspectives and promote and reinforce a workplace where Australian
First Nations employees feel safe, respected, and valued. Successful launch of Cape York Indigenous
Leadership Development Program with 18 employees from Karratha and Perth completing.
1. Gender balance in the US is defined as representative and reflective of the available talent pool.
2. Non-tertiary pathway data is based on third-party program recruitment information.
1. Gender profile data reflects all employees engaged on 31 December 2024, excluding temporary personnel such as vacation students, cadets and scholarship students.
Senior management
%
Female
30.0
Male
70.0
Total
%
Female
33.8
Male
66.2
Directors
%
Female
36.4
Male
63.6
Middle management
%
Female
26.5
Male
73.5
Administration
%
Female
51.1
Male
48.9
Technical
%
Female
32.2
Male
67.8
Supervisory/professional
%
Female
36.7
Male
63.3
Trade/technician
%
Female
11.7
Male
88.3
WOODSIDE WORKFORCE GENDER PROFILE1
2024 ANNUAL REPORT 109
BOARD AND EXECUTIVE DIVERSITY
The I&D Policy includes a Board commitment to continue to improve
diversity on the Board, with a key focus on:
• gender equality reaching 40% male / 40% female / 20% either
gender and having at least one female in a key role (including
Chair or CEO or Chair of a Committee); and
• having a minimum of one Board member who identifies as being
from a minority background.
As part of Board succession planning, the Nominations &
Governance Committee evaluates prospective candidates against a
range of criteria including the skills, experience and expertise that
will best complement Board effectiveness at the time.
The tables below set out the relevant demographic information
of the Board and Executive as at 31 December 2024. The data
presented in those tables was collected by requesting all members
of the Board and Executive Leadership Team to self-report in
questionnaires about their cultural background, languages spoken,
racial identity, LGBTIQA+ identity and gender.
Woodside notes that it was previously required to disclose certain
diversity related information in compliance with previous UK
listing requirements. While Woodside no longer has UK disclosure
requirements, for ease of comparability with prior year reporting, it
has retained the ethnic/racial background groupings below.
Gender
Number of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO and
Chair)
Number in executive
management1
Percentage
of executive
management
Men
7
64%
1
5
50%
Women
4
36%
1
5
50%
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 and
Chair)
Number in executive
management1
Percentage
of executive
management
White
8
73%
2
9
90%
Mixed/multiple ethnic groups
1
10%
Asian2
2
18%
Black/African/Caribbean
Other ethnic group, including Arab
1
9%
Not specified/prefer not to say
1. Executive management includes the CEO and the Executive Leadership Team.
2. Including Southern Asian.
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 2024. Based
on that evaluation, the CEO and CFO concluded that Woodside’s
disclosure controls and procedures were effective, as at 31
December 2024, 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 2024.
Woodside acquired 100% of OCI Clean Ammonia Holding B.V.
and its Beaumont New Ammonia Project on 30 September
2024 and all the issued and outstanding common stock of
110 WOODSIDE ENERGY GROUP LTD
Tellurian Inc. on 8 October 2024 (Acquisitions). As permitted
by the SEC Staff interpretative guidance that an assessment of
internal controls over financial reporting of a recently acquired
business may be excluded from management’s evaluation of
disclosure controls and procedures for up to one year from
the date of acquisition, Woodside has excluded the Acquisitions
from management’s report on internal control over financial
reporting as of 31 December 2024. The Acquisitions, collectively,
represented approximately 7% of Woodside’s consolidated
total assets as of 31 December 2024 and approximately 0% of
Woodside’s consolidated total revenues as of 31 December 2024.
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.
Changes in internal control over financial reporting
Effective 1 January 2024, we implemented an updated enterprise
resource planning (ERP) system. As a result, we have evaluated
and made corresponding changes to our business processes and
information systems, updating applicable internal controls over
financial reporting as necessary.
There were no other changes in our internal control over financial
reporting during FY2024 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 2024 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 Form 20-F.
DIFFERENCES FROM NYSE CORPORATE
GOVERNANCE REQUIREMENTS
Woodside’s American Depository Shares 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 instead 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 would be subject to the SEC and NYSE Listing
Rules applicable to US domestic companies.
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
Energy Group Ltd 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
Woodside’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 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 Energy Group Ltd
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.
Further information on Audit and Risk Committee requirements
under the ASX Recommendations is contained in section 4.1.3 –
Board committees – Audit & Risk Committee.”
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.
Further information on the Code of Conduct is contained in section
4.1.5 – Promoting responsible and ethical behaviour.
2024 ANNUAL REPORT 111
4.1.9 Shareholders
Shareholder communications
Our website provides up-to-date information about Woodside, our corporate governance and
policies, the Board and management, ASX announcements, SEC reports, the share price,
dividend distributions and other relevant information.
Shareholders are encouraged to receive electronic communications from Woodside 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’ section of our website. The ‘Investors’ section of our website also sets out the
contact details 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 NYSE, 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).
Major 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.
Shareholder meetings
Woodside recognises the importance of shareholder participation in general meetings and
facilitates and encourages that participation. Woodside 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.
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 promptly after their disclosure.
112 WOODSIDE ENERGY GROUP LTD
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 2024.
DIRECTORS
The Directors of Woodside Energy Group Ltd in office at any time
during or since the end of the 2024 financial year and information
on the Directors (including qualifications, experience, special
responsibilities and Directorships of listed companies held by the
Directors at any time in the last three years) are set out on pages
91-94 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 during the financial year are
shown on page 95 in section 4.1.2 – Board of Directors - Director
attendance at meetings.
Details of Director and senior executive remuneration are set out on
pages 121-144 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 the acquisition
of OCI Clean Ammonia Holding B.V. and its Beaumont New Ammonia
Project and Tellurian Inc. noted in section 4.1.8 - Other governance
disclosures, 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 $3,573 million ($1,660 million in 2023).
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 6-15 in section
1 – Overview, pages 17-25 in section 2 – Strategy and Financial
Performance, pages 27-86 in section 3 – Our Business and pages
246-249 in section 6.5 – Asset facts.
Significant changes in the state of affairs
The review of operations on pages 6-86 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 198, 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 2024 of 53 US cents per ordinary share
(fully franked) payable on 2 April 2025.
Type
2024 final
2024 interim
2023 final
Payment date
2 April 2025
3 October 2024
4 April 2024
Period ends
31 December 2024
30 June 2024
31 December 2023
Cents per share
53
69
60
Value $ million
1,006
1,310
1,139
Fully franked
Likely developments, business strategies, future
prospects and expected results
In general terms, the review of operations of Woodside as set out
on pages 6-86 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 258 of section 6.8 – Information about
this report includes further details regarding Woodside’s reliance on
the unreasonable prejudice exemption.
4.2
2024 ANNUAL REPORT 113
2024 ANNUAL REPORT 113
Governance • Directors’ report
Environmental compliance
Woodside is subject to a range of environmental legislation
in Australia and other countries in which it operates, further
details of which are set out in ‘Government Regulation’ in section
6.3 - Additional disclosures. At Woodside, we are committed to
conducting our operations in an environmentally responsible
manner and maintaining compliance with all applicable
environmental laws and regulations. Our goal is to minimise
our impact on the environment and continually improve our
environmental performance.
Through its Environment and Biodiversity Policy, Woodside commits
to compliance with relevant environmental laws and regulations,
permits and applying responsible standards where laws do not
exist. Woodside has established management systems to identify
and mitigate environmental risks, implement pollution prevention
measures and manage environmental compliance requirements for
all activities.
For the financial year ending 31 December 2024, we recorded no
fines or prosecutions relating to our environmental performance.
Further information about Woodside’s environmental performance
can be found in section 3.8.7 - Environment and biodiversity
on page 68.
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
opportunities on page 41.
Company Secretaries
The following individuals have acted as Company Secretary during
2024:
Damien Gare LLB, LLM, MBA, GAICD
Group Company Secretary
Mr Gare joined Woodside in 2007 and was appointed Group
Company Secretary effective 27 August 2024. Prior to this he served
as Vice President & Chief of Staff from 2022. Mr Gare has held a
number of senior positions at Woodside, including as Vice President
Investor Relations and Vice President Risk & Compliance. Prior
to joining Woodside, Mr Gare was a Partner at Minter Ellison. He
is a fellow of the Governance Institute of Australia and a graduate
member of the Australian Institute of Company Directors.
Lucy Bowman MA (Oxon), Jurisprudence
Deputy Company Secretary
Ms Bowman joined Woodside in 2021 as Senior Legal Counsel
and was appointed Joint Company Secretary effective 20 October
2022. Prior to joining Woodside, Ms Bowman worked as a banking
and finance lawyer in private practice and held legal roles with
companies in the financial and mining industries. Ms Bowman is
a fellow of the Governance Institute of Australia and a graduate
member of the Australian Institute of Company Directors.
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. Mr Baillie ceased to
be Group Company Secretary effective 27 August 2024.
Branches
Woodside, through various subsidiaries, has established branches
in a number of countries.
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 Energy Group Ltd on terms consistent with the indemnity
provided under Woodside Energy Group Ltd’s Constitution.
From time to time, Woodside engages its external auditor, PwC,
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 PwC:
• against all losses, claims, costs, expenses, actions, demands,
damages, liabilities or any proceedings (liabilities) incurred by
PwC in respect of third-party claims arising from a breach by
Woodside under the engagement terms
• for all liabilities PwC 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 2024 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.
114 WOODSIDE ENERGY GROUP LTD
Non-audit services and auditor independence
declaration
Details of the amounts paid or payable to the external auditor of
Woodside, PwC 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 (Cth) 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 Woodside 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 (Cth), is set out on page 116 and
forms part of this report.
Financial instruments
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, is in sections A, C and D on
pages 156, 181 and 185 in section 5 – Financial Statements and
Quantitative and qualitative disclosures about market risk on pages
228-229 in section 6.3 – Additional disclosures.
Proceedings on behalf of Woodside
No proceedings have been brought on behalf of Woodside Energy
Group Ltd, nor has any application been made in respect of
Woodside Energy Group Ltd, under section 237 of the Corporations
Act 2001 (Cth).
Rounding of amounts
Woodside Energy Group Ltd 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.
Directors’ relevant interests in Woodside Energy
Group Ltd shares as at the date of this report
Director
Relevant interest in shares
Larry Archibald
13,524
Ashok Belani
733
Arnaud Breuillac
1,745
Swee Chen Goh
16,260
Richard Goyder
36,163
Ian Macfarlane
14,511
Angela Minas
1,293
Meg O’Neill1
527,355
Tony O’Neill
10,834
Ann Pickard
15,870
Ben Wyatt
5,771
1. Meg O’Neill is the only Woodside Director who has rights on issue and her rights holdings are
set out on page 143 in section 4.3 – Remuneration Report. Woodside Energy Group Ltd does not
have any options on issue.
Signed in accordance with a resolution of the Directors.
R J Goyder, AO
Chair
Melbourne, Victoria
25 February 2025
M E O’Neill
Chief Executive Officer and Managing Director
Sydney, New South Wales
25 February 2025
2024 ANNUAL REPORT 115
Auditor independence declaration to the Directors of Woodside Energy Group Ltd
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 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.
Auditor’s Independence Declaration
As lead auditor for the audit of Woodside Energy Group Ltd for the year ended 31 December 2024, 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
Perth
Partner
PricewaterhouseCoopers
25 February 2025
116 WOODSIDE ENERGY GROUP LTD
REMUNERATION
Woodside’s remuneration outcomes
reflect our strong performance and
align with shareholder returns.
117
Remuneration
Report
CONTENTS
4.3.1
Committee Chair’s letter
119
4.3.2
Remuneration Report (audited)
121
KMP and summary of Woodside’s five-year performance
121
Executive KMP
122
Remuneration Policy
122
Executive Incentive Scheme
122
Executive KMP remuneration structure
124
Other equity plans
126
Minimum Shareholding Requirements (MSR) Policy
126
Remuneration changes and benchmarking
127
Corporate Scorecard measures and outcomes for 2024
128
Executive KMP KPIs and outcomes for 2024
129
Contracts for Executive KMP
136
Non-Executive Directors (NEDs)
137
Remuneration Policy
137
MSR Policy
137
NEDs remuneration structure
137
Human Resources & Compensation Committee
138
Loans and transactions
138
Use of remuneration consultants
138
Reporting notes
138
Reporting in United States dollars
138
Statutory tables
139
4.3.3
Glossary
144
4.3
118 WOODSIDE ENERGY GROUP LTD
118 WOODSIDE ENERGY GROUP LTD
GOVERNANCE • Remuneration Report
4.3.1 COMMITTEE
CHAIR’S LETTER
25 February 2025
Dear Shareholders
On behalf of the Board, I am pleased to present the Remuneration
Report for the year ended 31 December 2024.
1. The completion % excludes the Pluto Train 1 modifications project.
Business performance
I am pleased to report that in 2024, Woodside performed well across
the key metrics that underpin company performance.
Woodside’s 2024 Corporate Scorecard was based on five individually
weighted measures comprised of financial, base business, growth,
safety and climate. Safety and climate were elevated to standalone
measures to reflect an increased focus on leadership contribution to
Woodside’s safety performance and delivery against climate plans.
In 2024 we delivered an annual net profit after tax (NPAT) of
$3.6 billion and underlying NPAT of $2.9 billion. We returned a full-
year dividend to shareholders of 122 US cents per share, at the top
end of our payout range. Operating Expenditure was better than
target at US$2,183 million, while earnings before interest, taxes,
depreciation and amortisation (EBITDA) excluding impairment was
US$9,276 million, below target due to lower realised prices.
Woodside’s global portfolio delivered record production in 2024
of 193.9 MMboe, above target and at the top end of our guidance
range. This was driven by outstanding production performance at
Sangomar and strong LNG reliability at our operated assets.
We made excellent progress on key growth projects, with the
Scarborough and Pluto Train 2 Project advancing to 78% completion
and on target for first LNG cargo in 2026.1 The Trion Project reached
20% completion and is targeting first oil in 2028.
Woodside also took transformative decisions during 2024 to
underpin our next wave of growth and value. We completed the
acquisition of Louisiana LNG, which leverages Woodside’s proven
capabilities and positions us as a leading LNG company with
exposure to the Pacific and Atlantic basins. We completed equity
sell-downs in Scarborough to JERA and LNG Japan, and agreed
an Australian asset swap with Chevron. We also acquired the
Beaumont New Ammonia Project, positioning Woodside as an early
mover in a growing global market for lower-carbon ammonia.
Safety of our people is our priority. Personal and process safety
targets were met, with process safety critical role conformance
marginally below target. In October 2024, the tragic death of an
employee of one of OCI’s construction contractors occurred at the
project site in Texas.
While this fatality is not included in the 2024 Corporate Scorecard
assessment based on the applicable Health, Safety and
Environment mode of contracting, it reminds us that safety must
come before everything else we do.
We continued to deliver on our emissions targets in 2024. High
reliability and lower flaring across our assets resulted in gross
equity Scope 1 and 2 emissions of 6.784 Mt CO2-e, 8% better than
the target level of performance set under the 2024 Corporate
Scorecard. The purchase of Beaumont New Ammonia represents
a step-change towards delivery of our new energy and lower-
carbon investment and abatement targets. Since the purchase
in the second half of 2024, exciting progress has been made with
construction of Train 1 underway.
Overall, Woodside’s performance across the five Corporate Scorecard
measures resulted in a performance outcome of 6.1 (out of a
maximum of 10). No discretion has been applied to the outcome.
The 2025 Corporate Scorecard has been approved by the Board and
reflects Woodside’s balanced approach to setting measures aligned
with our strategy to thrive through the energy transition.
2024 Executive Incentive Scheme (EIS) outcomes
Each Executive’s award under the EIS is based on their individual
performance and the company’s performance through the
Corporate Scorecard. The individual performance of the CEO and
each Senior Executive was assessed against five individually
weighted measures of growth agenda, effective execution,
enterprise capability, culture and reputation, and shareholder
focus, with individual KPIs set relevant to each Executive’s area
of responsibility.
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 of 122.7% of the target opportunity (81.8% of the
maximum opportunity). Senior Executive EIS awards ranged from
122.6% to 127.1% of target opportunity (76.7% to 79.5% of maximum
opportunity). The Board has approved the 2024 EIS outcomes
and believes they appropriately align with overall corporate
performance and shareholder experience.
Arnaud Breuillac
Chair of Human Resources
& Compensation
Committee
2024 ANNUAL REPORT 119
2018 Performance Rights Relative Total Shareholder Return
(RTSR) outcome
The five-year performance period for the Performance Rights
awarded in respect of the 2018 EIS ended on 19 February 2024.
Performance Rights comprised 30% of the 2018 award and were
subject to a RTSR hurdle tested over a 5-year period. One-third of
the Performance Rights were tested against a comparator group
comprised of entities within the ASX 50 index as of 1 December
2018, while the remaining two-thirds were tested against an
international group of oil and gas companies. Woodside’s RTSR
percentile position was below the 50th percentile within each
comparator group. Consequently, all Performance Rights awarded
to the CEO and other eligible Senior Executives lapsed.
The Board believes this component of the EIS award continues to
align EIS outcomes with shareholder experience, while being the
best measure of long-term value creation across the commodity
price cycle of our industry.
Executive KMP changes
In June 2024 Woodside announced a revised leadership structure,
aggregating core business activities into a simplified operating
model and continuing to build a team with strong capabilities,
experience and diverse perspectives.
As a result, effective 1 August 2024 Mr Graham Tiver continued
as Woodside’s Executive Vice President (EVP) and Chief Financial
Officer. Ms Liz Westcott continued as an Executive KMP and was
appointed to the role of EVP and Chief Operating Officer Australia,
with responsibility for all project execution and operational activities
in the Australian region.
Mr Daniel Kalms was appointed to the role of EVP and Chief
Operating Officer International and Mr Mark Abbotsford was
appointed to the role of EVP and Chief Commercial Officer. Ms Shiva
McMahon ceased being an Executive KMP on 31 July 2024. Details
of the remuneration and key contract terms for each Executive KMP
are set out in this report.
Executive remuneration outcomes
The Board annually reviews remuneration for the CEO and
Senior Executives. In 2024, remuneration was assessed based
on accountability, experience and individual performance and
considered Woodside’s growing global footprint and broader range
of business activities. External benchmarking conducted against
ASX 20 companies, selected peers in the Australian materials and
energy sector, and international oil and gas companies, informed
each review.
Following the review of CEO remuneration in December 2024,
the Board set Ms Meg O’Neill’s Fixed Annual Reward (FAR) at
A$2,600,000, effective 1 January 2025, representing a 5.2% increase.
This adjustment maintains a balance between FAR and Total Target
Reward (TTR) to ensure competitive remuneration both domestically
and internationally.
Senior Executive remuneration was reviewed in February 2024 with
the Board approving a 3% increase for Mr Tiver and Ms Westcott,
effective 1 April 2024. A subsequent review, following the 1 August
changes to the leadership structure, considered the broadened
accountabilities of each position and external benchmarking. This
review informed the FAR on appointment for Mr Kalms and Mr
Abbotsford. Ms Westcott’s FAR was increased by 3% reflecting the
broadened responsibility of the role.
Chair and Non-Executive Directors
Woodside continued to refresh its Board membership during 2024.
Mr Frank Cooper and Mr Gene Tilbrook retired from the Board,
having given exceptional service and contributing to Woodside’s
success. We were pleased to welcome Mr Ashok Belani and Mr
Tony O’Neill as Non-Executive Directors and appoint Mr Ben Wyatt
as Chair of the Audit & Risk Committee. These appointments
continue to bring new experience and expertise in areas including
decarbonisation and sustainability.
Fees for the Chair and Non-Executive Directors were reviewed in
December 2024. As a result, the Board approved an increase to
annual Board and Committee fees ranging between 2% and 3%
effective 1January 2025. Additionally, an increase to international
travel allowances was approved and the Sustainability Committee
Chair and member fee was adjusted to recognise the increased
workload and to align with the Human Resources & Compensation
Committee fees. These increases ensure NEDs fees remain
competitive in the market and consider the broader range of
business responsibilities and work requirements.
Conclusion
The Committee continues to review Woodside’s remuneration
policies and practices globally to ensure these remain
competitive and meet changing regulatory requirements. We
believe the remuneration outcomes of our Executive KMP,
detailed in this report, reflect Woodside’s strong performance
and align with shareholder returns while maintaining Woodside’s
ability to attract and retain talented executive capability in a
globally competitive market.
In the fourth quarter of 2024, I met with Woodside shareholders,
who collectively represented nearly 30% of issued share capital, to
discuss Woodside’s remuneration policies. There was broad support
for Woodside’s remuneration structure given its weighting towards
equity and long-term value and elevation of Safety and Climate into
individual segments in the Corporate Scorecard.
We will continue to engage with you as we focus on Woodside’s
long-term success and enduring value for our shareholders.
Arnaud Breuillac
Chair of Human Resources & Compensation Committee
120 WOODSIDE ENERGY GROUP LTD
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 2024.
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 2024 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 2024.
Table 1A – Executive KMP
Executive Director
Meg O’Neill
Chief Executive Officer and Managing Director (CEO)
Senior Executive
Graham Tiver
Executive Vice President and Chief Financial Officer
Liz Westcott1
Executive Vice President and Chief Operating Officer Australia
Daniel Kalms2
Executive Vice President and Chief Operating Officer International
Mark Abbotsford2
Executive Vice President and Chief Commercial Officer
Former Senior Executive
Shiva McMahon3
former Executive Vice President International Operations
1. Ms Westcott’s position changed from Executive Vice President Australian Operations to
Executive Vice President and Chief Operating Officer Australia on 1 August 2024.
2. Mr Kalms and Mr Abbotsford were appointed as Executive KMP on 1 August 2024.
3. Ms McMahon ceased being Executive Vice President International Operations and an Executive
KMP on 31 July 2024.
Table 1B – Non-Executive Directors KMP
Non-Executive Directors
Richard Goyder, AO (Chair)
Larry Archibald
Swee Chen Goh
Ian Macfarlane
Ann Pickard
Ben Wyatt
Arnaud Breuillac
Angela Minas
Ashok Belani1
Tony O’Neill2
Former Non-Executive Directors
Frank Cooper, AO3
Gene Tilbrook4
1. Mr Belani was appointed as a non-executive director on 29 January 2024.
2. Mr O’Neill was appointed as a non-executive director on 3 June 2024.
3. Mr Cooper ceased being a non-executive director on 24 April 2024.
4. Mr Tilbrook ceased being a non-executive director on 28 February 2024.
Table 2 - Five-year performance
The table below summarises Woodside’s performance on financial and non-financial measures over the last five years.
2024
2023
2022
2021
2020
EBITDA excluding impairment1
(US$ million)
9,276
9,363
11,234
4,135
1,922
Operating Expenditure2
(US$ million)
2,183
2,255
2,0633
1,0303
-
Net profit after tax (NPAT)4
(US$ million)
3,573
1,660
6,498
1,983
(4,028)
Underlying NPAT1
(US$ million)
2,880
3,320
5,230
1,620
447
Basic earnings per share5
(US cents)
188.5
87.5
430
206
(424)
Dividends per share
(US cents)
122
140
253
135
38
Share closing price (last trading day of the year)
(A$)
24.60
31.06
35.44
21.93
22.746
Production7,8
(MMboe)
193.9
187.2
157.7
91.1
100.3
Average annual Dated Brent8
($/boe)
81
83
101
71
42
Volume-weighted average realised price8
($/boe)
63.6
68.6
98.4
60.7
32.4
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. In 2024, operating expenditure excludes post-acquisition expenditure for Louisiana LNG and Beaumont New Ammonia.
Operating expenditure was not disclosed prior to 2021.
3. Operating Expenditure for the Corporate Scorecard is calculated and reported in USD reflecting the global nature of the organisation post-merger. Prior to 2023, 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 2019 was $34.38.
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.
2024 ANNUAL REPORT 121
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.1 There are three goals which drive this
strategic direction.
First, we seek to provide the energy that meets current and future
demand. We play to our strengths, providing oil and gas to our
customers while advancing new energy products and lower-carbon
services.
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 by managing
our impact on people, communities and environments in which we
operate. This includes a strong focus on the safety of our people
and managing our net equity Scope 1 and 2 emissions to meet our
targets, which are central 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 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.
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.
122 WOODSIDE ENERGY GROUP LTD
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%
INDIVIDUAL
KPIs
30%
VARIABLE
ANNUAL
REWARD
Target variable reward opportunity for 2024
Each Executive is given a target VAR opportunity and a maximum VAR opportunity which is expressed as a percentage of the Executive’s
FAR. The opportunities for 2024 are outlined below.
Position
Minimum opportunity
(% of FAR)
Target opportunity
(% of FAR)
Maximum opportunity
(% of FAR)
CEO
Zero
280
420
Senior Executives
Zero
160
256
Fixed reward
Variable reward
26%
74%
CEO remuneration at target
Fixed reward
Variable reward
38%
62%
Senior Executives remuneration at target
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 2024 Corporate Scorecard was based on five measures that
impact short-term and long-term shareholder value. These measures
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 was
elevated to a standalone measure.
FINANCIAL
EBITDA is a key contributor
to annual profitability,
and controlling Operating
Expenditure brings a focus
on efficient operations,
cost competitiveness and
shareholder returns.
30%
BASE BUSINESS
Revenue is maximised and
value generated from our
assets when they are fully
utilised in production.
20%
GROWTH
Growth focuses on
achievement of capital
project milestones and
business developments
aligned to our strategic
plan.
20%
SAFETY
Protecting the health
and safety of our people,
our contractors and our
host communities is a top
priority.
15%
CLIMATE
Ensures appropriate
emphasis on meeting
Scope 1 and 2 emissions
targets and progress of
new energy projects.
15%
2024 ANNUAL REPORT 123
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:
Cash
The cash component is payable following the end of the 12-month
performance year, in the March pay cycle.
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
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.
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 2024. 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 on the following page. For EIS
awards, any Performance Rights that do not vest will lapse and are
not retested.
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.
CEO EIS structure
PERFORMANCE RIGHTS1
30%
Subject to 5-year RTSR performance
RESTRICTED SHARES1
30%
Subject to a 5-year deferral period
RESTRICTED SHARES1
10%
Subject to a 4-year
deferral period
RESTRICTED SHARES1
10%
Subject to a 3-year
deferral period
CASH
20%
Performance Year2
Year 1
Year 2
Year 3
Year 4
Year 5
Senior Executives EIS structure
PERFORMANCE RIGHTS1
27.5%
Subject to 5-year RTSR performance
RESTRICTED SHARES1
27.5%
Subject to a 5-year deferral period
RESTRICTED SHARES1
25%
Subject to a 3-year
deferral period
CASH
20%
Performance Year2
Year 1
Year 2
Year 3
Year 4
Year 5
1. Allocated using a face value methodology.
2. The cash component is payable following the end of the 12-month performance year. Restricted Shares and Performance Rights are allocated following the end of the 12-month performance year.
124 WOODSIDE ENERGY GROUP LTD
RTSR performance hurdle vesting
Woodside RTSR percentile position within peer group
Vesting of Performance Rights in the relevant RTSR component
Less than 50th percentile
No vesting
Equal to 50th percentile
50% vest
Between the 50th and 75th percentile
Vesting on a pro-rata basis
Equal to or greater than 75th percentile
100% vest
Table 3 – Key EIS features
The following table sets out the key features of the EIS awards.
Allocation
methodology
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.
Dividends and
voting
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. Once shares are allocated following vesting of Performance Rights, Executives are entitled to receive
dividends on those shares. 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.
Clawback
provisions
The Board has broad discretion to reduce vested and unvested entitlements, including (among other circumstances) where an
Executive has acted fraudulently or dishonestly or is found to be in material breach of their obligations; they have engaged in an
act which has brought a Group company into disrepute or may negatively impact any Group company’s reputation in a material
way; vesting is not justified or supportable; there is a material misstatement or omission in the financial statements; or a significant
unexpected or unintended consequence or outcome has occurred.
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.
Control event
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.
Cessation of
employment
The Board has the discretion to determine the treatment of any EIS award on cessation of employment. During a performance year,
if an Executive resigns or their employment is terminated for cause, no EIS award will be provided (unless the Board determines
otherwise). In any other case of cessation of employment, Woodside will have regard to performance against target and the portion
of the performance year elapsed in determining any EIS award, unless the Board determines otherwise.
During a vesting period, if an Executive resigns (or gives notice of their resignation) or their employment is terminated for cause, all
Restricted Shares and Performance Rights will be forfeited or lapse (unless the Board determines otherwise). If an Executive ceases
employment for any other reason, all Restricted Shares will vest in full at a date determined by the Board and any Performance
Rights will remain on foot and will remain subject to the original terms, unless the Board determines otherwise.
In all cases, the Board retains discretion to determine alternative treatments in relation to unvested Restricted Shares and
Performance Rights, including to lapse or forfeit some or all of them.
Adjustments to
Performance Rights
The Board has discretion to vary the peer group including to consider events that occur prior to vesting (for example, takeovers,
mergers or de-mergers).
The Board may also adjust vesting outcomes or include or exclude items that the Board considers appropriate, including to better
reflect shareholder expectations or management performance.
The Board may grant additional Performance Rights or make adjustments it considers appropriate to the terms of a Performance
Right if there is a corporate action by, or capital reconstruction in relation to, the company, including any return of capital.
Dealing restrictions
Executives must not deal in their unvested Restricted Shares or Performance Rights prior to vesting, except in limited
circumstances.
2024 ANNUAL REPORT 125
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.
Woodside Equity Plan (WEP)
The purpose of the WEP is to enable eligible employees to build
up a holding of equity in Woodside as they progress through their
career. The WEP is offered to permanent employees who do not
participate in the EIS.
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. There are no
further ongoing performance conditions.
The linking of performance to an allocation allows Woodside to
recognise and reward eligible employees for high performance.
Each ER entitles the participant to receive a Woodside share on the
vesting date. For offers prior to 2022, the terms of the Plan allowed
for 75% vesting of the ERs three years after the effective grant date
and the remaining 25% of ERs five years after the effective grant
date. For subsequent awards, the Board amended the terms of the
Plan to entitle the participant to receive a Woodside share on the
vesting date three years after the effective grant date.
Subject to overarching Board discretion, ERs under the WEP may
vest prior to the vesting date on a change of control or on a pro-
rata basis if a participating employee ceases employment due to
redundancy, genuine retirement, total and permanent disablement,
medical illness, incapacity, death or any other reason the Board
determines. Any unvested ERs held by an employee whose
employment is terminated by resignation or for cause prior to the
vesting date will lapse unless the Board determines otherwise.
The other key terms of WEP ERs are similar to the terms of the
Performance Rights granted under the EIS.
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 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.
The SWEP awards have service conditions and no performance
conditions. Each ER entitles the participant to receive a Woodside
share on vesting.
Subject to an overarching Board discretion, ERs under SWEP
may vest prior to the vesting date on a change of control or on a
pro-rata basis if a participating employee ceases employment in
the following circumstances: redundancy, death, medical illness
or incapacity or total and permanent disablement. Any unvested
ERs held by an employee whose employment is terminated by
resignation or for cause prior to the vesting date will lapse unless
the Board determines otherwise.
There is no entitlement to dividends on ERs, and they do not carry
voting rights.
Minimum Shareholding Requirements (MSR) Policy
The Executive KMP 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.
All the Executive KMP except Ms Westcott meet the MSR
requirements. Ms Westcott commenced employment with Woodside
in 2023 and will continue to acquire Woodside shares to meet MSR
requirements. See Table 14 for details.
126 WOODSIDE ENERGY GROUP LTD
Remuneration changes and benchmarking
The Board conducted a comprehensive review of the remuneration
for the CEO and Senior Executives, taking into account their
respective accountabilities, experience and individual performance.
To support the review the Board engaged independent remuneration
consultants KPMG (Australia) and Meridian (US) to provide external
benchmarking. 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 17 companies with global operations, primarily in the
oil and gas energy sector.
As a result of the review the Board has set Ms O’Neill’s FAR at
A$2,600,000 effective 1 January 2025. This represents a 5.2%
increase compared to Ms O’Neill’s FAR of A$2,472,000 in 2024.
The increase recognises the expertise, knowledge and performance
of Ms O’Neill and considers Woodside’s growing global footprint
and broader range of business activities, including as a result of
significant transactions during 2024. In setting the remuneration the
Board has continued to balance Ms O’Neill’s FAR with Total Target
Reward (TTR), which includes FAR and VAR at target, to ensure
this remains competitive both domestically and internationally.
The structure provides for long-term focus with 60% of the VAR
opportunity not realised for six years.
Following the review, FAR is positioned above the median of the
ASX 20 peer group and in the upper quartile of international oil and gas
peers while TTR is positioned above the median of the ASX 20 peer group
and below the median compared to international oil and gas peers.
Senior Executive remuneration was also reviewed in 2024, both in
the annual cycle and following the implementation of the revised
leadership structure. The outcomes of this review reflect the
increased accountabilities of each role, individual performance and
external benchmarking and are set out in the Executive KMP KPIs
and outcomes section of this report.
CEO FAR comparison
4
3
2
1
0
$ Million
CEO
ASX
International
Upper
Median to upper
Lower to median
Lower
CEO TTR comparison
Upper
Median to upper
Lower to median
Lower
CEO
ASX
International
40
30
20
10
0
$ Million
2025 Corporate Scorecard
The 2025 Corporate Scorecard has been approved by the Board
and reflects Woodside’s balanced approach to setting measures
aligned with Woodside’s strategy.
The Corporate Scorecard has six individually weighted
measures which assess safe, reliable, and efficient operations,
implementation of our strategic plan and delivery of sustainable
business priorities.
To continue to emphasise Executive’s focus on their leadership
contribution to Woodside’s safety performance and delivery
against climate plans, safety and climate metrics remain individual
measures contributing 15% each to the Corporate Scorecard.
To provide further transparency on the Corporate Scorecard, the
financial measure has been separated into two equally weighted
measures: EBITDA and Operating Expenditure, each at 15%.
Previously, both EBITDA and Operating Expenditure were included
in the financial measure, which had a weighting of 30%.
SAFETY
Protecting the
health and safety
of our people, our
contractors and our
host communities is
a top priority.
15%
CLIMATE
Ensures appropriate
emphasis on meeting
gross equity Scope 1
and 2 reduction targets
and progress of new
energy projects.
15%
EBITDA
EBITDA is a key
contributor to annual
profitability and a
driver of short-term
shareholder value.
15%
OPEX
Controlling Operating
Expenditure brings
a focus on efficient
operations, cost
competitiveness and
shareholder returns.
15%
BASE BUSINESS
Revenue is
maximised and value
generated from our
assets when they
are fully utilised in
production.
20%
GROWTH
Growth focuses
on achievement
of capital project
milestones
and business
developments aligned
to our strategic plan.
20%
Woodside CEO 1 January 2025 FAR and TTR comparison to ASX 20 peers and international oil and gas peers:
2024 ANNUAL REPORT 127
Corporate Scorecard measures and outcomes for 2024
Financial (30%)
MID-POINT
MAX
4.6
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.
2024 performance
Operating Expenditure was US$2,183 million, US$16 million lower than the target of US$2,199 million, highlighting the strong cost discipline throughout the
business in an inflationary environment.
EBITDA excluding impairment was US$9,276 million, below the target of US$9,861 million due to lower realised prices, partially offset by higher production
of 3.6 MMboe above the target.
Base business (20%)
MID-POINT
MAX
5.9
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.
2024 performance
Production was 3.6 MMboe above target at 193.9 MMboe due to Sangomar achieving first oil earlier than planned and accelerated field ramp-up, NWS
strong subsurface outcomes and higher reliability, and Pluto Interconnector above targeted volumes. This is partially offset by Atlantis well availability and
water handling constraints, lower demand at Bass Strait, and unplanned outages at Wheatstone.
Growth (20%)
MID-POINT
MAX
7.7
In 2024, we focused on advancing or completing our growth projects: Scarborough and Pluto Train 2, Sangomar, Trion, Calypso and Julimar Phase 3. The
Louisiana LNG acquisition and the agreed asset swap with Chevron were achieved in addition to delivering objectives set out at the start of the year.
2024 performance
Scarborough and Pluto Train 2
• Scarborough and Pluto Train 2 78% complete1, targeting
first LNG cargo in 2026.
• Topside and hull preparations continue on the floating
production unit, trunkline installation completed, drilling
campaign is nearing completion, all modules of Train 2
installed.
Sangomar
• Production ramp-up completed and nameplate production
capacity achieved with zero high consequence injuries and
more than one million exposure hours worked.
• Drilling campaign including 24 wells successfully completed.
Trion
• Trion 20% complete, targeting first oil in 2028.
• All major scope contracts awarded and fabrication of equipment and floating facilities
commenced.
Calypso and Julimar
• Technical definition of the Calypso development concept progressed, fiscal negotiations
advanced with the Government of Trinidad and Tobago, commercial discussions
continued with key stakeholders to evaluate options to monetise the resource.
• Julimar Phase 3 field execution activities progressed, targeting handover to Chevron in 2026.
Additional achievements
• Woodside made a significant acquisition of Louisiana LNG, and agreed to an asset swap
with Chevron for the NWS and Wheatstone assets.
Safety (15%)
MID-POINT
MAX
5.0
Protecting the health and safety of our people, contractors and our host communities is imperative. Strong safety performance is achieved when we all work and
learn together to reduce the likelihood of major accident events or catastrophic losses. This one team approach mitigates risks, enhances operational resilience,
supports compliance, and strengthens engagement, which all lead to optimised shareholder value and protecting what matters most.
2024 performance
Personal safety performance was on target, with one high consequence injury recorded where recovery time exceeded 180 days for the involved person
(against a maximum metric of one injury). Process safety performance was on target, with two Tier 2 process safety events recorded (against a maximum
metric of two events). Process safety critical role conformance was 93%, 2% below the target of 95%. The tragic death of an employee of one of OCI’s
construction contractors that occurred in October 2024 at the project site is not included in the 2024 Corporate Scorecard assessment based on the
applicable Health, Safety and Environment mode of contracting.
Climate (15%)
MID-POINT
MAX
8.2
The Board considers performance across material sustainability issues including climate change and emissions. Strong performance in this area creates
and protects value in three ways: it maintains Woodside’s licence to operate which enables 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.
2024 performance
Gross equity Scope 1 and 2 emissions performance was
6.784 Mt CO2-e, 8% better than the target metric set for the
2024 Corporate Scorecard which was inclusive of one-off
emissions increases associated with Sangomar startup and
production during the second half of 2024. This performance
is attributable to reliability and lower flaring on Pluto, NWS
and FPSOs and Sangomar’s lower flaring in December due
to higher availability of gas compression system.
Progress on New Energy Projects
• Woodside made a significant acquisition of Beaumont New Ammonia, which represents
a step-change towards delivery of our new energy and lower-carbon investment and
abatement targets.
• Following the acquisition of Beaumont New Ammonia, the level of activity on H2OK
was reduced.
• Angel carbon capture and storage (CCS) progressed concept definition level of
engineering, regulatory approvals, and customer development activities.
• The Woodside Solar Project final investment decision remains subject to
Western Australian Government finalising the Burrup Transmission Project.
Woodside continued to work closely with the WA Government to progress its plans.
Overall corporate performance outcome
MID-POINT
MAX
6.1
1. The completion % excludes the Pluto Train 1 modifications project.
OUTCOME
128 WOODSIDE ENERGY GROUP LTD
Executive KMP KPIs and outcomes for 2024
CEO FAR
As a result of the Board’s review of CEO remuneration, Ms O’Neill’s
FAR increased by 3% to A$2,472,000 effective 1 January 2024.
CEO VAR and other incentives
For 2024, 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.
At the end of the year, the Board reviewed the CEO’s performance
for 2024. The CEO’s individual performance was assessed, which
together with the Corporate Scorecard outcome, determined the
CEO’s VAR outcome. This resulted in an EIS award at 122.7% of the
target opportunity (81.8% of the maximum opportunity).
Information on the individual performance of the CEO is shown
in Table 4. The 2024 EIS award for the CEO is detailed in Table 7.
Senior Executive FAR
As a result of the Board’s review of Senior Executive remuneration,
Mr Tiver’s FAR was increased to A$1,190,000 and Ms Westcott’s FAR
to A$1,123,000 effective 1 April 2024. Ms Westcott’s FAR increased
to A$1,157,000 effective 1 August 2024 reflecting the broadening of
the role to include project execution in addition to all operational
activities in the Australian region.
The FAR on appointment was A$1,004,000 for Mr Kalms and
A$950,000 for Mr Abbotsford. During 2024 Mr Kalms was on
international assignment, based in Houston, Texas. The details of his
assignment remuneration are provided in Tables 5 and 10.
Senior Executive VAR and other incentives
For 2024, 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.
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 2024 is shown in Table 4. Details
of the EIS award for each Senior Executive who was a KMP as at 31
December 2024 are set out in Table 7.
The Board approved a pro-rata 2024 EIS award for Ms McMahon, for
the period from 1 January 2024 to 12 December 2024, at 109.1% of
the target opportunity and 68.2% of the maximum opportunity. The
cash component of the award, together with a cash payment in lieu
of the Restricted Share component (52.5% of the total award), will
be paid in March 2025. Performance Rights will be awarded subject
to the standard vesting conditions. Details of the award, reflecting
the period Ms McMahon was in a KMP role, are set out in Table 7.
Other incentives paid to Mr Kalms in 2024 include a one-off cash
bonus payment (A$90,000) in recognition of significant additional
contribution and leadership related to the acquisition of Tellurian
and its Driftwood LNG Project (now known as Louisiana LNG). As
this payment was awarded in recognition of significant executive
contribution, it is not subject to performance conditions. This
payment is detailed in Tables 5 and 10.
1. This represents an average for Senior Executives actual and variable remuneration for 2024, who were KMP as at 31 December 2024.
CEO actual remuneration
Senior Executives actual remuneration1
22.5% Fixed reward
33.4% Fixed reward
77.5% Variable reward
66.6% Variable reward
2018 Performance Rights RTSR outcome
The five-year performance period for the Performance Rights
awarded under the 2018 EIS ended on 19 February 2024. These
Performance Rights were subject to a RTSR hurdle over the same
duration and were tested against two comparator groups set out
on page 81 of the 2018 Annual Report.
RTSR outcomes, calculated by an external adviser, determined
that Woodside’s RTSR performance within each comparator group
was below the 50th percentile. Consequently, all Performance
Rights granted to Executives in respect of the 2018 EIS lapsed.
Specifically, all of the 15,379 Performance Rights granted to the
CEO, with a corresponding value of A$476,289, lapsed.
Executive VAR awards are tied to financial performance through the Corporate Scorecard. Since 2021, Operating Expenditure and EBITDA
have been distinct metrics contributing to the Corporate Scorecard. This ensures the Executives are focused on delivering strong returns for
our shareholders and is demonstrated in the tables below.
EBITDA and Corporate Scorecard outcome
EBITDA (excl. impairment)
Corporate Scorecard outcome
EBITDA (excl impairment) US$ million
12,000
10,000
8,000
6,000
4,000
2,000
0
10
8
6
4
2
0
2020
2021
2022
2023
2024
Corporate Scorecard outcome
EBITDA and CEO’s EIS award (as a % of target opportunity)
CEO’s EIS award (% of target)
EBITDA (excl impairment) US$ million
EBITDA (excl. impairment)
CEO’s EIS award
12,000
10,000
8,000
6,000
4,000
2,000
0
150%
120%
90%
60%
30%
0
2020
2021
2022
2023
2024
2024 ANNUAL REPORT 129
Table 4 – CEO and Senior Executive individual performance for 2024 EIS
Meg O’Neill - CEO and Managing Director
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities
to shareholder return; portfolio balance; the
achievement of challenging business objectives.
• Delivered two significant value-enhancing opportunities in Louisiana LNG and
Beaumont New Ammonia acquisitions, brought two quality partners, LNG Japan and
JERA, into the Scarborough Joint Venture and agreed an asset swap with Chevron to
simplify portfolio and improve commercial prospects for the NWS Project.
• Completed the Sangomar Project with rapid production ramp-up and nameplate
production capacity production achieved with total recordable injury frequency rate
of zero, setting up the organisation to realise long-term value from the project.
• Scarborough and Pluto Train 2 Project 78% complete1 with trunkline and flowline
installation complete, floating production unit topsides and hull construction
progressed and Train 2 module fabrication completed and installed.
• Trion Project 20% complete with all major scope contracts awarded and fabrication
of equipment and floating facilities commenced.
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.
• Personal and process safety performance met targets with process safety critical
role conformance slightly below target. Field Leadership program rolled out
globally with 1200+ people trained.
• Strong operational performance with above target production and high LNG
reliability.
• Commenced production from the Sangomar Project.
• NWS LNG Train 2 taken offline as preparations for permanent retirement are
underway.
• NWS Extension received State environmental approval supporting operation
until 2070.
• Full year gross equity Scope 1 and 2 emissions were 8% better than the target
level of performance set under the 2024 Corporate Scorecard.
• Continued safe execution of decommissioning campaigns continued across a
number of fields offshore Western Australia and in the Bass Strait.
Above target
Enterprise capability
Assesses leadership development; workforce
planning; executive succession; Indigenous
participation and diversity; effective risk
identification and management.
• Improved female participation in leadership roles throughout the year.
• 2023 Reconciliation Action Plan performance met or exceeded baseline in all nine
key areas. Stretch targets were achieved in: promoting reconciliation, Indigenous
business participation, social contribution and self-determination.
• Restructured the organisation to better integrate traditional and new energy
activity and capabilities along the value chain.
• Continued embedding Woodside’s leadership program with another 1000+
employees completing foundational programs.
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.
• Active external representation of Woodside and the Australian energy sector,
including roles of Chair of Australian Energy Producers and Board member of the
Business Council of Australia.
• Launched the Challenge Accepted brand program, Woodside Connected employee
activation network, and the 70th Anniversary campaign.
• Continued proactive community engagement and maintained relationships.
• Achieved consistent workforce engagement scores reflective of the stabilised
organisational climate.
Above target
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.
• Delivered growth projects and opportunities which will increase Woodside’s long-
term value and profitability.
• Continued to provide strong dividends with 8.0% yield.2
• Ensured Woodside financially well positioned with strong balance sheet, gearing
in range, high liquidity and appropriate hedging to protect against a low pricing
environment.
• Undertook regular engagement with investors and Environment Social and
Governance teams regarding climate response.
Above target
EIS3 earned as percentage of target opportunity
122.7%
EIS earned as percentage of maximum
opportunity
81.8%
1. The completion % excludes the Pluto Train 1 modifications project.
2. Calculated based on Woodside’s closing share price on 31 December 2024 of A$24.60 ($15.29) and a US$:A$ exchange rate of 0.6217.
3. The award of Restricted Shares and Performance Rights is subject to shareholder approval at the 2025 Woodside Annual General Meeting.
130 WOODSIDE ENERGY GROUP LTD
Graham Tiver - Executive Vice President and Chief Financial Officer
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities
to shareholder return; portfolio balance; the
achievement of challenging business objectives.
• Completed sell down of 15.1% and 10% equity stakes in the Scarborough Joint
Venture to JERA and LNG Japan respectively and associated US$1 billion debt
funding from the Japanese Bank for International Cooperation (JBIC).
• Provided significant Finance divisional support to transactions, including Louisiana
LNG and Beaumont New Ammonia, and the agreed asset swap with Chevron.
• Successfully issued US$2 billion of bonds in the US market in Woodside’s inaugural
SEC raising, attracting strong levels of high calibre investment to position the
balance sheet to support growth activities.
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.
• Realised significant improvements and efficiencies in processes leveraging the
delivery of a new financial system.
• Supported the business in maintaining strong cost performance resulting in lower
year-on-year unit production costs despite an inflationary environment.
• Delivered the redocumentation of the Sarbanes-Oxley (SOX) framework to optimise
controls and further streamline processes.
• Progressed Governance, Risk and Compliance harmonisation with a focus on
simplification and consistency across the portfolio.
Above target
Enterprise capability
Assesses leadership development; workforce
planning; executive succession; Indigenous
participation and diversity; effective risk
identification and management.
• Integrated Contracting and Procurement into the Finance division and restructured
the leadership team with a focus on growth of internal talent.
• Achieved improvements across a number of diversity and inclusion metrics,
including Indigenous employment and female leadership.
On 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.
• Employee engagement increased in parallel with an organisational restructure and
the introduction of a new financial system.
• Established broader debt support relationships including new markets.
• Implemented a new organisational structure to support delivery of a high
performing finance division.
• Sponsored the employee interest group focused on cultural and linguistic diversity.
Above target
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.
• Actively engaged with the investor community directly and through presentations
at shareholder events, including the US investor event in September 2024.
• Delivered the Petroleum Resource Rent Tax (PRRT) submission and participated in
the Australian Senate Inquiry resulting in a formal closure of the PRRT review.
Above target
EIS earned as percentage of target opportunity
122.6%
EIS earned as percentage of maximum
opportunity
76.7%
2024 ANNUAL REPORT 131
Liz Westcott - Executive Vice President and Chief Operating Officer Australia
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities
to shareholder return; portfolio balance; the
achievement of challenging business objectives.
• Scarborough and Pluto Train 2 78% complete1, trunkline and flowline installation
complete, floating production unit topsides and hull construction progressed and
Train 2 module fabrication completed and installed.
• Executed Pluto Interconnector Production Capacity Approved Quantity (PCAQ)
increase.
• Commissioned Macedon Low Pressure Operations increasing Macedon domestic
gas production.
• Progressed NWS infill program including proposed subsea tieback of five wells
into existing offshore NWS facilities to be produced via the Karratha Gas Plant.
Targeting FID in 2025.
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.
• Improved safety engagement with contractors and implemented Field Leadership
program across assets. One high consequence injury recorded.
• Production outcomes above budget due to strong operated LNG reliability (98.0%),
and Pluto Interconnector above committed volumes. Gross equity Scope 1 and
2 emissions 6.4% better than the target level of performance set under the 2024
Corporate Scorecard due to higher reliability and implementation of ‘operate out’
practices.
• Delivered cost saving initiatives to offset inflationary pressures and deliver unit
cost below budget.
• NWS LNG Train 2 taken offline as preparations for permanent retirement are
underway.
• Progressed decommissioning activities for Enfield, Griffin, Stybarrow, Minerva and
Bass Strait including safe recovery and transportation of the Griffin riser turret
mooring (RTM).
• Worked with operator to complete the Gippsland Asset Streamlining Project and
the Hastings Generation Project for Bass Strait.
Above target
Enterprise capability
Assesses leadership development; workforce
planning; executive succession; Indigenous
participation and diversity; effective risk
identification and management.
• Implemented an improved operating model for the Australia business, emphasising
growth of internal talent and the implementation of succession plans for key
leadership positions.
• Increased overall female participation and female leadership.
• Progressed design and development of a simplified management system for
operations (to be implemented in 2025).
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.
• Built and fostered key external relationships with the Australian State and Federal
Governments, regulators, customers, joint venture partners and investors.
• Received environmental approvals from the Western Australian Government for
the North West Shelf Project Extension.
• Participated in multiple engagements with host communities and Traditional
Owners including attending the Garma Festival.
• Maintained an upwards trajectory in employee engagement scores.
Above target
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.
• Led key asset optimisation projects including the simplification and consolidation of
Woodside’s Australian portfolio through an asset swap with Chevron.
• Progressed Pluto large scale decarbonisation opportunities.
• Progressed NWS Late Life Asset Management operating cost reduction initiatives.
• Executed incremental WA gas sales of 7.3PJ (full year 73.5PJ) for delivery across
2025 and 2026. Completed an expressions of interest process for the East Coast
that resulted in commitments to contracts totaling 77.4 PJ across 2025 and 2026.
On target
EIS earned as percentage of target opportunity
122.6%
EIS earned as percentage of maximum
opportunity
76.7%
1. The completion % excludes the Pluto Train 1 modifications project.
132 WOODSIDE ENERGY GROUP LTD
Daniel Kalms - Executive Vice President and Chief Operating Officer International
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities
to shareholder return; portfolio balance; the
achievement of challenging business objectives.
• Led the corporate acquisition resulting in the Louisiana LNG opportunity, delivering
significant international growth opportunity for Woodside.
• Achieved Sangomar startup in Q2 at low end of cost range. Facility startup and
performance testing completed.
• Trion Project 20% complete at year end with major scope elements on track.
Floating production unit (FPU) construction commenced in Q3.
• Integrated the Beaumont New Ammonia Project into international business in
advance of startup in second half 2025.
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.
• Zero high consequence injuries in 2024.
• Zero environmental non-compliance events and gross equity Scope 1 and 2
emissions 13.6% better than the target level of performance set under the 2024
Corporate Scorecard.
• Sangomar production and reliability surpassed plan and supported accelerated
reserves booking.
• International production grown year on year from 22% to 28% of Woodside total
production, driven by increased production from Senegal and assets in the United
States.
• Established Louisiana LNG Project organisation and signed revised engineering,
procurement and construction (EPC) contract with Bechtel allowing limited notice
to proceed.
• Led implementation of the enterprise system upgrade (S4HANA) on time and
without business interruption.
• Implemented increased offshoring of IT work to India delivering material cost
savings.
Above target
Enterprise capability
Assesses leadership development; workforce
planning; executive succession; Indigenous
participation and diversity; effective risk
identification and management.
• Championed reorganisation of the international business into a simpler
asset-based operating model.
• Delivered the process safety improvement project and achieved signoff of process
safety leadership competencies across safety critical roles.
• Built capability pipeline leading to an increase in participation by females and
under-represented racial groups.
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.
• Built industry relationships with partners and governments across Senegal,
Mexico, Trinidad and Tobago, USA and other project and business development
locations.
• Employee engagement scores for international business group above company
average.
• Sponsored and participated in several employee interest groups in international
locations.
• Actively led and sponsored Woodside US-based employee giving and volunteering
campaign in support of United Way of Houston and served on the Board of United
Way of Greater Houston.
Above target
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.
• Secured improved Production Sharing Contract terms in Trinidad and Tobago for
producing assets and growth opportunities.
• Actively engaged in multiple investor meetings across the USA to communicate
Woodside’s strategy and receive feedback.
Above Target
EIS earned as percentage of target opportunity
127.1%
EIS earned as percentage of maximum
opportunity
79.5%
2024 ANNUAL REPORT 133
Mark Abbotsford - Executive Vice President and Chief Commercial Officer
KPI
Performance
Outcome
Growth agenda
Assesses the alignment of growth opportunities
to shareholder return; portfolio balance; the
achievement of challenging business objectives.
• Led the strategic partnership discussion with JERA that enabled the execution and
completion of the 15.1% Scarborough JV sell down, LNG offtake and collaboration
on new energy and lower-carbon services opportunities.
• Developed the commercial and marketing strategy to support the Louisiana LNG
acquisition decision.
• Progressed early stage opportunities for carbon capture and storage and
hydrogen, including the conditional offtake term sheet with Keppel for the supply
and purchase of liquid hydrogen.
• Identified and led the evaluation of several potential new supply and partnership
opportunities.
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.
• Executed long-term LNG sale and purchase agreements with key buyers KOGAS,
CPC and JERA.
• Successfully implemented the Sangomar marketing and shipping strategy
following first production.
• Added a long-term charter LNG vessel to Woodside’s shipping fleet to meet
portfolio delivery commitments, in line with Woodside’s growth strategy.
• Supported the execution of the agreed asset swap with Chevron, enabling the
consolidation and simplification of Woodside’s Australian portfolio.
Above target
Enterprise capability
Assesses leadership development; workforce
planning; executive succession; Indigenous
participation and diversity; effective risk
identification and management.
• Successfully embedded a global Business Development and Commercial
leadership structure, focusing on maturing commercial capabilities within the
organisation.
• Expanded Woodside’s marketing and trading capabilities, particularly in London
and the US to accommodate the increase in activities.
• Continued to build on the strong pipeline of females in senior leadership positions.
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.
• Active external representation of Woodside and the Australian energy sector,
including as a board member of the Chamber of Commerce and Industry of
Western Australia and the Asia Natural Gas & Energy Association.
• Embedded a clear vision for the newly formed Business Development and
Commercial organisation, brought together to strengthen Woodside’s ability to
identify and capitalise on new growth opportunities.
• Proactively managed key external relationships with the Australian State and
Federal Governments and regulators, including representing Woodside at the
Parliamentary Inquiry into the Western Australian Domestic Gas Policy.
Above target
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.
• Regular engagement with the external market through presentations at
shareholder events and direct engagements with investors.
• Continued to optimise Woodside’s existing portfolio, delivering a marketing
segment profit before tax of US$427 million for the trading organisation, exceeding
the stretch target.
Above target
EIS earned as percentage of target opportunity
127.1%
EIS earned as percentage of maximum
opportunity
79.5%
134 WOODSIDE ENERGY GROUP LTD
Table 5 – CEO and Senior Executive total remuneration received (non-IFRS information)1
The following table provides greater transparency to shareholders of the total remuneration received or receivable by the CEO and Senior Executives, in
2023 and 2024. This includes FAR, EIS cash awards earned in respect of performance for the year and the value of shares and rights which vested during
the year calculated using the five-day VWAP leading up to but not including the vesting, forfeiture or lapsing date. Termination benefits are not included
in the table below; these amounts are disclosed in Table 10. Amounts are shown in the currency in which the remuneration is paid, either AUD or USD,
whereas Table 10 is expressed in USD which is Woodside’s functional and presentational currency.
Total remuneration received differs from statutory remuneration reported in Table 10 that is prepared in accordance with the Corporations Act 2001 (Cth)
and Accounting Standards which require share-based payments to be reported as remuneration from the time of grant, even though actual value may
ultimately not be realised from these share-based payments.
Name
Year
Salary,
allowances and
superannuation2
A$
EIS cash and
other cash
incentives3
A$
Restricted
Shares vested4
A$
Performance
Rights vested4
A$
Equity Rights
vested4
A$
Total
remuneration
received
A$
Previous years’
awards forfeited
or lapsed4
A$
M O’Neill
2024
2,472,000
1,698,800
1,012,781
-
-
5,183,581
476,289
2023
2,400,000
1,530,600
534,659
-
-
4,465,259
-
G Tiver
2024
1,185,859
520,705
-
-
878,125
2,584,689
-
2023
1,145,053
432,900
-
-
1,229,333
2,807,286
-
L Westcott5
2024
1,178,105
454,000
-
-
-
1,632,105
-
2023
709,771
239,538
-
-
-
949,309
-
D Kalms6
2024
435,758
260,725
-
-
-
696,483
-
2023
-
-
-
-
-
-
-
M Abbotsford7
2024
399,735
180,132
-
-
-
579,867
-
2023
-
-
-
-
-
-
-
Former Senior Executive
US$
US$
US$
US$
US$
US$
US$
S McMahon8
2024
404,039
438,353
-
-
-
842,392
-
2023
731,585
186,800
-
-
327,039
1,245,424
-
1. This is non-IFRS information that is unaudited.
2. Represents the total FAR earned in 2024 and 2023 including salaries, fees, allowances and company contributions to superannuation. This reflects pro-rated amounts for the period that Executives were in
KMP roles.
3. Includes the EIS cash incentive earned in the respective year, which is actually paid in the following year. This reflects pro-rated amounts for the period that Executives were in KMP roles.
4. 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.
5. Ms Westcott commenced employment with Woodside on 1 June 2023.
6. Mr Kalms was appointed as an Executive KMP on 1 August 2024. Mr Kalms was on international assignment during 2024 and received assignment allowances (A$182,969 paid on a net basis) in addition to
allowances disclosed in this table. Woodside settled the actual tax liability on these allowances on behalf of Mr Kalms. Cash incentives earned by Mr Kalms include a one-off cash bonus payment (A$90,000)
in recognition of his significant additional contribution and leadership related to the acquisition of Tellurian and its Driftwood LNG Project (now known as Louisiana LNG).
7. Mr Abbotsford was appointed as an Executive KMP on 1 August 2024.
8. Ms McMahon ceased being an Executive KMP on 31 July 2024. Other cash incentives earned by Ms McMahon include a cash payment in lieu of the Restricted Share component of the 2024 EIS award. This
payment will be made in March 2025.
Table 6 – 2024 vesting outcomes
Executive
Shares
Vesting value
US$1
2018 EIS 5-year Restricted Shares vested on 19 February 2024
M O’Neill
15,379
309,735
2018 EIS 5-year Performance Rights vested on 19 February 20242
M O’Neill
-
-
2020 EIS 3-year Restricted Shares vested on 24 February 2024
M O’Neill
17,697
351,128
2022 Equity Rights vested on 31 August 20243
G Tiver
32,307
595,632
1. The value of Restricted Shares and Equity Rights is calculated using the five-day VWAP leading up to but not including the vesting date. Amounts were translated to USD based on the exchange rate
reflective of the five-day period leading up to but not including the vesting date.
2. All of the Performance Rights allocated to Ms O’Neill in respect of the 2018 EIS lapsed as RTSR performance within each peer group was below the hurdle for vesting.
3. Equity Rights were awarded to Mr Tiver as a sign-on benefit under the SWEP to compensate for benefits forgone on leaving the BHP Group.
2024 ANNUAL REPORT 135
Table 7 – Valuation summary of Executive KMP EIS for 2024 and 2023
Name
Year
Cash1
US$
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$
M O’Neill4
20242
1,056,074
541,717
541,717
1,625,181
1,066,961
4,831,650
20233
906,280
463,891
463,891
1,391,714
937,894
4,163,670
G Tiver
20242
290,315
372,303
-
409,526
268,861
1,341,005
20233
265,631
339,914
-
373,918
251,988
1,231,451
L Westcott5
20242
282,233
361,935
-
398,133
261,381
1,303,682
20233
146,983
188,091
-
206,902
139,434
681,410
D Kalms6
20242
106,132
136,105
-
149,715
98,291
490,243
2023
-
-
-
-
-
-
M Abbotsford6
20242
100,431
128,791
-
141,673
93,011
463,906
2023
-
-
-
-
-
-
Former Senior Executive
S McMahon7
20242
438,353
-
-
-
179,013
617,366
20233
186,800
243,171
-
267,484
180,261
877,716
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 2024 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 2024 and preliminary
modelling respectively. Grant date for Senior Executives’ awards has been determined to be the date of the Board of Directors’ approval, being 25 February 2025, while grant date for Ms O’Neill’s award
will, subject to shareholder approval being given, be the date of the 2025 Woodside Annual General meeting. Any differences between the estimated fair value at 31 December 2024 and the final fair value
will be trued-up in the 2025 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 2023 were 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 was 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
is the date of shareholder approval at the 2024 Woodside Annual General meeting on 24 April 2024. The final fair value was calculated at these dates and was 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.
4. Ms O’Neill’s 2023 EIS was awarded at 99% of the target opportunity. The Board’s assessment of Ms O’Neill’s performance, together with the Corporate Scorecard outcome, resulted in an EIS award at 104%
of the target opportunity. The CEO proposed to the Board her final EIS be reduced by 5% in light of the fatality at our North Rankin Complex and the Board exercised its discretion to reduce the award to
99% of the target opportunity.
5. Ms Westcott commenced employment with Woodside on 1 June 2023.
6. Mr Kalms and Mr Abbotsford were appointed as Executive KMP on 1 August 2024.
7. Ms McMahon ceased being an Executive KMP on 31 July 2024. Ms McMahon is eligible for a pro-rata 2024 EIS award, which includes a cash payment (US$ 317,428) in lieu of an allocation of Restricted
Shares. This payment will be made in March 2025.
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
Name1
Employing company
Contract duration
Termination notice period
where given by company2,3
Termination notice period
where given by Executive
M O’Neill
Woodside Energy Ltd
Unlimited
6 months
6 months
G Tiver
Woodside Energy Ltd
Unlimited
6 months
6 months
L Westcott
Woodside Energy Ltd
Unlimited
6 months
3 months
D Kalms
Woodside Energy Ltd
Unlimited
6 months
3 months
M Abbotsford
Woodside Energy Ltd
Unlimited
6 months
3 months
1. Remuneration is reviewed annually or as required to maintain alignment with policy and benchmarks.
2. 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.
3. 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.
Termination benefits
Ms McMahon ceased being an Executive KMP on 31 July 2024,
and ceased employment on 12 December 2024, following changes
to the executive leadership structure that took effect on 1 August
2024. As a result, the Board considered and approved termination
benefits including a pro-rata EIS award for the 2024 performance
year, accelerated vesting of incentive awards awarded in respect of
prior performance years, and a severance payment aligned with the
provisions of the Severance Pay Plan. Incentive awards that vested
included a pro-rata vesting of Equity Rights awarded under the
SWEP and accelerated vesting of Restricted Shares awarded under
the EIS. All existing Performance Rights awarded under the EIS, as
well as those to be awarded in respect of the 2024 EIS, will remain
on-foot subject to the original terms.
Table 10 provides further details including all termination payments
on separation.
136 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 (HR&CC) based on benchmarking from
external remuneration consultants and determined by the Board.
Following a review in December 2024, the Board approved an
increase to annual Board and Committee fees ranging between 2%
and 3%, effective 1 January 2025. The increases ensure the NED
fees remain competitive in the market and consider the broader
range of business responsibilities and work required as Woodside
continues to invest in targeted, strategic opportunities to deliver
growth and value creation. Additionally, effective 1 January 2025,
the Sustainability Committee Chair fee was increased to A$56,000
and the member fee was adjusted to A$28,500 to acknowledge the
increased workload and align with the fees paid to the HR&CC.
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.
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 2024, all NEDs met the MSR, except for Mr Wyatt,
Mr Breuillac, Ms Minas and Mr Belani who have joined Woodside in
the past five years. Each of these NEDs is participating in the NEDSP
to assist with acquiring shares to meet the MSR. See Table 14 for
details.
NEDs remuneration structure
NEDs remuneration consists of base Board fees and Committee
fees, plus statutory superannuation contributions or payments in
lieu (currently 11.5%). 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 2024 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. Based on
benchmarking outcomes to the ASX peer group, the Board approved
an increase to travel allowances effective 1 January 2025. Where
travel is between six and ten hours, an allowance of A$7,500 gross
per trip is to be paid. Where travel exceeds 10 hours, an allowance
of A$15,000 gross per trip is to be paid. This is the first increase to
the international travel allowance since 1 January 2019.
Board fees are not paid to the CEO, as the time spent on Board
work and the responsibilities of Board membership are considered
in determining the remuneration package provided as part of the
normal employment conditions.
The total remuneration paid to, or in respect of, each NED in 2024 is
set out in Table 13.
Table 9 – Annual base Board and committee fees for NEDs1
Position
Board2
A$
Audit & Risk
Committee
A$
Human Resources
& Compensation
Committee
A$
Sustainability
Committee
A$
Nominations &
Governance Committee
A$
Chair of the Board3
759,465
-
-
-
-
Non-Executive Directors4
230,137
-
-
-
-
Committee Chair
-
62,328
54,600
49,770
Nil
Committee member
-
33,562
27,825
24,885
Nil
1. Fees in this table reflect 2024 annual base Board and committee fees for NEDs.
2. NEDs receive Board and committee fees plus statutory superannuation or payments in lieu where statutory superannuation is not required to be paid.
3. Inclusive of committee work.
4. Board fees paid to NEDs other than the Chair.
2024 ANNUAL REPORT 137
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 Statement in 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 Executive KMP including to an Executive 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.
Under communications and engagement protocols adopted by
Woodside, 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.
External remuneration benchmarking in 2024 was obtained from
independent remuneration consultants KPMG to assist with the NED
fee review, and from KPMG and Meridian for the CEO and Senior
Executive review. No remuneration recommendations were received
during 2024.
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 Executive 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 Executive KMP is paid in US dollars.
Valuation of equity awards is converted at the spot rate applying
when the equity award is granted.
138 WOODSIDE ENERGY GROUP LTD
STATUTORY TABLES
Table 10 – Compensation of CEO and Senior Executives for the year ended 31 December 2024 and 2023
FAR
VAR and other incentives
Short-term
Post-
employment
Short-term
Long-term
Salaries,
fees and
allowances
$
Non-
monetary
benefits1
$
Superannuation
/ Pension
Contributions
$
Cash2
$
Equity
Rights3
$
Restricted
Shares3,4
$
Performance
Rights3
$
Long
Service
Leave
$
Termination
benefits
$
Total
Remuneration5
$ A$
Performance
related6
%
M O’Neill7
Chief Executive Officer and
Managing Director
2024
1,795,548
19,500
-
1,056,074
-
1,807,949
641,069
148,258
-
5,468,398
8,388,230
64
2023
1,672,740
47,576
-
958,405
-
1,521,538
537,298
177,194
-
4,914,751
7,373,431
61
G Tiver
Executive Vice President
and Chief Financial Officer
2024
842,026
11,872
25,444
323,701
276,366
451,794
129,109
28,594
-
2,088,906
3,196,894
57
2023
721,973
9,169
23,486
294,851
599,593
311,868
90,077
25,681
-
2,076,698
3,116,921
62
L Westcott8
Executive Vice President
and Chief Operating Officer
Australia
2024
780,848
42,669
105,451
282,233
-
228,356
64,094
20,852
-
1,524,503
2,337,379
38
2023
443,247
53,174
48,373
163,151
-
50,518
14,216
10,687
-
783,366
1,186,020
29
D Kalms9
Executive Vice President
and Chief Operating Officer
International
2024
282,840
15,183
58,679
162,082
-
189,175
70,346
189,048
-
967,353
1,481,938
44
2023
-
-
-
-
-
-
-
-
-
-
-
-
M Abbotsford10
Executive Vice President
and Chief Commercial
Officer
2024
282,629
3,183
12,253
111,981
-
174,379
58,044
96,700
-
739,169
1,131,279
47
2023
-
-
-
-
-
-
-
-
-
-
-
-
Former Executive KMP
S McMahon11
Executive Vice President
International Operations
2024
353,964
5,529
60,963
438,353
146,531
615,466
413,058
-
724,28712
2,758,151
4,242,450
58
2023
634,567
60,110
143,997
186,800
335,940
180,375
51,649
-
-
1,593,438
2,392,942
47
Executive KMP Total
2024
4,337,855
97,936
262,790
2,374,424
422,897
3,467,119
1,375,720
483,452
724,287
13,546,480
20,778,170
56
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
57
1. Reflects the value of allowances and non-monetary benefits (including relocation, travel, health insurance, car parking and any associated fringe benefit tax). This reflects pro-rated amounts for the period
that Executives were in KMP roles.
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. This
reflects pro-rated amounts for the period that Executives were in KMP roles.
3. 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 2024 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.
4. Mr Kalms’ Restricted Share expense includes US$31,586 of cash settled awards relating to Notional Shares granted under the EIS in 2023 in respect of the 2022 performance year, prior to his appointment
as KMP. In accordance with the requirements of AASB 2 Share-based Payment, the fair value of the Notional Shares as at the date of grant has been determined with reference to the closing share price
at grant date. 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 fair value of the liability is remeasured at the end of each reporting date of settlement, with any changes in the fair value recognised in the profit or loss
for the period. The cash liability as of 31 December 2024 is US$213,308. The terms of the Notional Shares are broadly the same as the Restricted Shares granted under the 2022 EIS, except that Notional
Shares are delivered in cash rather than equity.
5. 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.
6. Performance related outcome percentage is calculated as total variable annual reward divided by the USD total remuneration figure.
7. Ms 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.
8. Ms Westcott commenced employment with Woodside on 1 June 2023.
9. Mr Kalms was appointed as an Executive KMP on 1 August 2024. Mr Kalms was on international assignment during 2024 and received assignment allowances (A$182,969 paid on a net basis) in addition to
allowances disclosed in this table. Woodside settled the actual tax liability on these allowances on behalf of Mr Kalms. Cash incentives earned by Mr Kalms include a one-off cash bonus payment (A$90,000)
in recognition of his significant additional contribution and leadership related to the acquisition of Tellurian and its Driftwood LNG Project (now know as Louisiana LNG).
10. Mr Abbotsford was appointed as an Executive KMP on 1 August 2024.
11. Ms McMahon ceased being an Executive KMP on 31 July 2024 and ceased employment on 12 December 2024. The Board approved a pro-rata vesting of Equity Rights, accelerated vesting of Restricted
Shares and that all existing Performance Rights remain on-foot subject to the original terms. As a result, the share-based payment expenses in this table are fully accelerated in accordance with accounting
standards.
12. Ms McMahon’s termination benefits include salaries, fees and allowances and pension contributions received during the period 1 August 2024 to 12 December 2024, the portion of the 2024 EIS to be
delivered in cash (including the amount in lieu of an allocation of Restriction Shares) and a severance payment received in January 2025.
Table 11 – Peer group of international oil and gas companies1
APA Corporation (previously Apache Corporation)
Devon Energy
Hess Corporation
Canadian Natural Resources
ENI S.p.A
Inpex Corporation
ConocoPhillips2
EOG Resources
Occidental Petroleum
Coterra Energy
Equinor ASA
Santos Ltd
1. A review of the peer group will be conducted in 2025.
2. Marathon Oil Company was acquired by ConocoPhillips in November 2024 and has been removed from the peer group.
2024 ANNUAL REPORT 139
Table 12 – Summary of CEO and Senior Executive allocated, vested or lapsed equity
Name
Type of equity1
Grant date
Vesting date2,3
Awarded but
not vested
Vested
in 2024
% of total
vested
Lapsed in
20244
Fair value of
equity5,6,7
Unamortised
value $8
M O’Neill9
Restricted Shares
13 February 2019
19 February 2024
-
15,379
100
-
24.71
-
Restricted Shares
12 February 2020
18 February 2025
16,391
-
-
-
22.76
8,157
Restricted Shares
17 February 2021
24 February 2024
-
17,697
100
-
20.18
-
Restricted Shares
17 February 2021
24 February 2026
17,697
-
-
-
20.18
66,752
Restricted Shares
19 May 2022
19 May 2025
46,861
-
-
-
20.91
85,126
Restricted Shares
19 May 2022
19 May 2027
51,122
-
-
-
20.91
398,681
Restricted Shares
28 April 2023
28 April 2026
33,143
-
-
-
22.28
225,877
Restricted Shares
28 April 2023
28 April 2027
14,591
-
-
-
22.28
141,808
Restricted Shares
28 April 2023
28 April 2028
64,013
-
-
-
22.28
749,532
Restricted Shares
24 April 2024
6 March 2027
21,923
-
-
-
18.51
211,407
Restricted Shares
24 April 2024
6 March 2028
21,923
-
-
-
18.51
249,010
Restricted Shares
24 April 2024
6 March 2029
65,771
-
-
-
18.51
823,121
Restricted Shares
8 May 2025
February 2028
35,423
-
-
-
15.29
411,875
Restricted Shares
8 May 2025
February 2029
35,423
-
-
-
15.29
436,924
Restricted Shares
8 May 2025
February 2030
106,271
-
-
-
15.29
1,361,638
Performance Rights
13 February 2019
19 February 2024
-
-
-
15,379
16.87
-
Performance Rights
12 February 2020
18 February 2025
16,391
-
-
-
15.81
5,666
Performance Rights
17 February 2021
24 February 2026
23,596
-
-
-
14.44
63,687
Performance Rights
19 May 2022
19 May 2027
51,122
-
-
-
13.40
255,492
Performance Rights
28 April 2023
28 April 2028
64,013
-
-
-
14.92
501,931
Performance Rights
24 April 2024
6 March 2029
65,771
-
-
-
12.08
537,186
Performance Rights
8 May 2025
February 2030
106,271
-
-
-
10.04
893,940
G Tiver10
Equity Rights
18 February 2022
31 August 2024
-
32,307
100
-
17.60
-
Equity Rights
18 February 2022
31 August 2025
27,460
-
-
-
16.82
85,807
Restricted Shares
27 February 2023
7 March 2026
17,249
-
-
-
23.63
117,428
Restricted Shares
27 February 2023
7 March 2028
18,818
-
-
-
23.63
232,019
Restricted Shares
27 February 2024
February 2027
16,064
-
-
-
19.80
165,703
Restricted Shares
27 February 2024
February 2029
17,671
-
-
-
19.80
236,564
Restricted Shares
25 February 2025
February 2028
24,345
-
-
-
15.29
283,067
Restricted Shares
25 February 2025
February 2030
26,779
-
-
-
15.29
343,116
Performance Rights
27 February 2023
7 March 2028
18,818
-
-
-
16.18
158,869
Performance Rights
27 February 2024
6 March 2029
17,671
-
-
-
13.34
159,382
Performance Rights
25 February 2025
February 2030
26,779
-
-
-
10.04
225,262
L Westcott
Restricted Shares
27 February 2024
6 March 2027
8,889
-
-
-
19.80
101,761
Restricted Shares
27 February 2024
6 March 2029
9,778
-
-
-
19.80
140,285
Restricted Shares
25 February 2025
February 2028
23,667
-
-
-
15.29
275,184
Restricted Shares
25 February 2025
February 2030
26,034
-
-
-
15.29
333,571
Performance Rights
27 February 2024
6 March 2029
9,778
-
-
-
13.34
94,515
Performance Rights
25 February 2025
February 2030
26,034
-
-
-
10.04
218,995
D Kalms
Restricted Shares
12 February 2020
18 February 2025
6,654
-
-
-
22.76
3,311
Restricted Shares
17 February 2021
24 February 2026
7,670
-
-
-
20.18
28,931
Restricted Shares
16 February 2022
23 February 2025
13,214
-
-
-
19.01
9,505
Restricted Shares
16 February 2022
23 February 2027
14,415
-
-
-
19.01
95,713
Notional Shares
27 February 2023
7 March 2026
11,183
-
-
-
15.29
48,271
Notional Shares
27 February 2023
7 March 2028
12,200
-
-
-
15.29
96,013
Restricted Shares
27 February 2024
6 March 2027
10,330
-
-
-
19.80
106,556
Restricted Shares
27 February 2024
6 March 2029
11,363
-
-
-
19.80
152,118
Restricted Shares
25 February 2025
February 2028
21,290
-
-
-
15.29
247,546
Restricted Shares
25 February 2025
February 2030
23,419
-
-
-
15.29
300,065
Performance Rights
12 February 2020
18 February 2025
6,654
-
-
-
15.81
2,300
Performance Rights
17 February 2021
24 February 2026
10,227
-
-
-
14.44
27,603
Performance Rights
16 February 2022
23 February 2027
14,415
-
-
-
13.76
69,268
Performance Rights
27 February 2023
7 March 2028
12,200
-
-
-
16.18
101,583
Performance Rights
27 February 2024
6 March 2029
11,363
-
-
-
13.34
102,488
Performance Rights
25 February 2025
February 2030
23,419
-
-
-
10.04
196,998
140 WOODSIDE ENERGY GROUP LTD
Name
Type of equity1
Grant date
Vesting date2,3
Awarded but
not vested
Vested
in 2024
% of total
vested
Lapsed in
20244
Fair value of
equity5,6,7
Unamortised
value $8
M Abbotsford
Restricted Shares
12 February 2020
18 February 2025
5,655
-
-
-
22.76
2,814
Restricted Shares
17 February 2021
24 February 2026
4,445
-
-
-
20.18
16,766
Restricted Shares
16 February 2022
23 February 2025
8,049
-
-
-
19.01
5,790
Restricted Shares
16 February 2022
23 February 2027
8,781
-
-
-
19.01
58,304
Restricted Shares
27 February 2023
7 March 2026
10,775
-
-
-
23.63
71,865
Restricted Shares
27 February 2023
7 March 2028
11,754
-
-
-
23.63
142,933
Restricted Shares
27 February 2024
6 March 2027
9,960
-
-
-
19.80
102,739
Restricted Shares
27 February 2024
6 March 2029
10,956
-
-
-
19.80
146,670
Restricted Shares
25 February 2025
February 2028
20,146
-
-
-
15.29
234,244
Restricted Shares
25 February 2025
February 2030
22,161
-
-
-
15.29
283,946
Performance Rights
12 February 2020
18 February 2025
5,655
-
-
-
15.81
1,955
Performance Rights
17 February 2021
24 February 2026
5,927
-
-
-
14.44
15,997
Performance Rights
16 February 2022
23 February 2027
8,781
-
-
-
13.76
42,195
Performance Rights
27 February 2023
7 March 2028
11,754
-
-
-
16.18
97,869
Performance Rights
27 February 2024
6 March 2029
10,956
-
-
-
13.34
98,817
Performance Rights
25 February 2025
February 2030
22,161
-
-
-
10.04
186,416
S McMahon10
Equity Rights
1 June 2022
31 August 2024
14,118
-
-
-
19.59
-
Equity Rights
1 September 2022
31 August 2025
11,061
-
-
-
18.38
-
Restricted Shares
27 February 2023
7 March 2026
7,395
-
-
-
23.63
-
Restricted Shares
27 February 2023
7 March 2028
8,067
-
-
-
23.63
-
Restricted Shares
27 February 2024
6 March 2027
11,492
-
-
-
19.80
-
Restricted Shares
27 February 2024
6 March 2029
12,641
-
-
-
19.80
-
Performance Rights
27 February 2023
7 March 2028
8,067
-
-
-
16.18
-
Performance Rights
27 February 2024
6 March 2029
12,641
-
-
-
13.34
-
1. 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 in the
remuneration report for the relevant year.
3. Vesting of Restricted Shares and Performance Rights granted in 2025 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.
4. All of the Performance Rights allocated to Ms O’Neill in respect of the 2018 EIS lapsed as RTSR performance within each peer group was below the hurdle for vesting.
5. 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.
6. The fair value of Restricted Shares as at their date of grant has been determined by reference to the share price at grant date. The fair value of Notional Shares as at their date of grant has been
determined by reference to the share price at grant date and has been remeasured at the end of the reporting date by reference of the closing share price at 31 December 2024. The fair value is not
indicative of the benefit (if any) that individual Executive KMP may ultimately realise should these equity instruments vest.
7. Fair values for the 2024 EIS with grant date being 25 February 2025 and expected to be 8 May 2025 have been estimated as disclosed in footnote 2 of Table 7. Fair values for the 2023 EIS with grant dates of
27 February 2024 and 24 April 2024 have been trued-up as disclosed in footnote 3 of Table 7.
8. 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.
9. In respect of the 2023 EIS award, Ms O’Neill was granted Performance Rights and Restricted Shares on 24 April 2024 as approved by shareholders at the 2024 Woodside Annual General Meeting under
Listing Rule 10.14. The grant of the Performance Rights and Restricted Shares components of Ms O’Neill’s 2024 EIS award is subject to shareholder approval at the 2025 Woodside Annual General Meeting.
The grant date for Performance Rights and Restricted Shares is the date of shareholder approval, if obtained.
10. Ms McMahon ceased being an Executive KMP on 31 July 2024. The Board approved pro-rata vesting of Equity Rights awarded under the SWEP and accelerated vesting of Restricted Shares awarded under
the EIS in prior years, effective upon termination of employment.
2024 ANNUAL REPORT 141
Table 13 – Total remuneration paid to NEDs in 2024 and 2023
The following table provides a detailed breakdown of the components of remuneration for each of the company’s NEDs.
Short-term
Post-employment
Cash salary and allowances
Pension/Superannuation
Non-executive director
Board and
Committee fees
$
Other fees and
allowances
$
Company contributions
to superannuation
$
Total
$
Total
A$8
R Goyder
2024
500,940
50,640
18,908
570,488
864,905
2023
504,188
36,710
17,490
558,388
841,108
L Archibald1
2024
190,349
47,798
-
238,147
361,050
2023
191,583
33,873
-
225,456
339,607
S C Goh1
2024
186,565
34,180
-
220,745
334,667
2023
187,774
27,106
-
214,880
323,677
I Macfarlane2
2024
186,565
23,453
10,727
220,745
334,667
2023
187,774
26,824
-
214,598
323,253
A Pickard1
2024
202,979
49,219
-
252,198
382,352
2023
204,295
35,239
-
239,534
360,813
B Wyatt
2024
205,254
13,192
23,106
241,552
366,211
2023
188,169
13,277
20,229
221,675
333,912
A Breuillac1
2024
204,226
55,955
-
260,181
394,454
2023
153,106
36,298
-
189,404
287,704
A Minas1
2024
190,349
47,798
-
238,147
361,050
2023
127,853
20,465
-
148,318
225,936
A Belani1,3
2024
175,917
39,444
-
215,361
326,753
2023
-
-
-
-
-
T O’Neill1,4
2024
110,050
32,491
-
142,541
215,568
2023
-
-
-
-
-
Former Non-executive director
F Cooper5
2024
66,353
-
7,705
74,058
112,878
2023
212,632
6,639
22,858
242,129
364,721
G Tilbrook6
2024
30,758
-
3,390
34,148
51,800
2023
210,092
6,639
22,582
239,313
360,480
C Haynes7
2024
-
-
-
-
-
2023
65,411
20,467
-
85,878
126,295
S Ryan7
2024
-
-
-
-
-
2023
65,411
-
6,868
72,279
106,295
NEDs total
2024
2,250,305
394,170
63,836
2,708,311
4,106,355
2023
2,298,288
263,537
90,027
2,651,852
3,993,801
1. All NEDs who are non-residents for Australian tax purposes 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.
2. Mr Macfarlane elected to receive a cash payment in lieu of superannuation contributions in accordance with the Superannuation Guarantee (Administration) Act 1992, on the basis that he worked with
multiple employers, until June 2024. The cash payment was subject to (PAYG) income tax and paid as part of his normal monthly fees. The amount is included in Other fees and allowances. From July 2024,
Mr Macfarlane elected to receive company contributions to superannuation.
3. Mr Belani was appointed as a non-executive director on 29 January 2024.
4. Mr O’Neill was appointed as a non-executive director on 3 June 2024.
5. Mr Cooper ceased being a non-executive director on 24 April 2024.
6. Mr Tilbrook ceased being a non-executive director on 28 February 2024.
7. Dr Ryan and Dr Haynes ceased being Non-Executive Directors on 28 April 2023 and are included for 2023 comparison purposes only.
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.
142 WOODSIDE ENERGY GROUP LTD
Table 14 – KMP share and equity holdings
Details of shares held by KMP including their personally related entities1 for the 2024 financial year are as follows:
Name
Type of Equity
Opening
holding at
1 January
20242
NEDSP3
Rights
granted
Rights
vested
Restricted
shares
granted
Restricted
shares
vested
Net changes
-Other
Closing
holding at 31
December
20244,5
Non-Executive Directors
R Goyder
Shares
26,163
-
-
-
-
-
10,000
36,163
L Archibald
Shares
13,524
-
-
-
-
-
-
13,524
S C Goh
Shares
14,953
1,307
-
-
-
-
-
16,260
I MacFarlane
Shares
11,376
635
-
-
-
-
2,500
14,511
A Pickard
Shares
15,870
-
-
-
-
-
-
15,870
B Wyatt
Shares
3,054
1,917
-
-
-
-
800
5,771
A Breuillac
Shares
-
1,745
-
-
-
-
-
1,745
A Minas
Shares
-
1,293
-
-
-
-
-
1,293
A Belani6
Shares
-
733
-
-
-
-
-
733
T O’Neill7
Shares
-
-
-
-
-
-
10,834
10,834
F Cooper8
Shares
16,142
762
-
-
-
-
(16,904)
-
G Tilbrook9
Shares
9,947
-
-
-
-
-
(9,947)
-
Executive KMP
M O’Neill
Equity Rights
-
-
-
-
-
-
-
-
Performance Rights
170,501
-
65,771
-
-
-
(15,379)
220,893
Restricted Shares
276,894
-
-
-
109,617
(33,076)
-
353,435
Shares
155,727
-
-
-
-
33,076
(14,883)
173,920
G Tiver
Equity Rights
59,767
-
-
(32,307)
-
-
-
27,460
Performance Rights
18,818
-
17,671
-
-
-
-
36,489
Restricted Shares
36,067
-
-
-
33,735
-
-
69,802
Shares
44,845
-
-
32,307
-
-
(14,538)
62,614
L Westcott
Equity Rights
-
-
-
-
-
-
-
-
Performance Rights
-
-
9,778
-
-
-
-
9,778
Restricted Shares
-
-
-
-
18,667
-
-
18,667
Shares
-
-
-
-
-
-
-
-
D Kalms
Equity Rights
-
-
-
-
-
-
-
-
Performance Rights
-
-
-
-
-
-
54,859
54,859
Restricted Shares
-
-
-
-
-
63,646
63,646
Notional Shares
-
-
-
-
-
-
23,383
23,383
Shares
-
-
-
-
-
-
59,608
59,608
M Abbotsford10
Equity Rights
-
-
-
-
-
-
-
-
Performance Rights
-
-
-
-
-
-
43,073
43,073
Restricted Shares
-
-
-
-
-
-
70,375
70,375
Shares
-
-
-
-
-
-
10,543
10,543
S McMahon11
Equity Rights
25,179
-
-
-
-
-
(25,179)
-
Performance Rights
8,067
-
12,641
-
-
-
(20,708)
-
Restricted Shares
15,462
-
24,133
-
-
-
(39,595)
-
Shares
11,199
-
-
-
-
-
(11,199)
-
1. Includes personally related entities such as a KMP’s spouse, dependants or entities over which they have direct control or significant influence.
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 Executive KMP at 31 December 2024 for KMP that were in office as at that date. The total
Shares and Restricted Shares held by the NEDs and Executive KMP is 999,314 which constitutes less than 1% of all outstanding shares. None of these shares have different voting rights.
5. Closing Rights represents unvested Rights held at the end of the reporting period. There are no Rights vested but unexercised as at 31 December 2024.
6. Mr Belani was appointed as a non-executive director on 29 January 2024.
7. Mr O’Neill was appointed as a non-executive director on 3 June 2024.
8. Mr Cooper ceased being a non-executive director on 24 April 2024.
9. Mr Tilbrook ceased being a non-executive director on 28 February 2024.
10. Mr Kalms and Mr Abbotsford were appointed as Executive KMP on 1 August 2024. The Net changes figure represents their holdings as at that date.
11. Ms McMahon ceased being an Executive KMP on 31 July 2024. The Board approved pro-rata vesting of Equity Rights awarded under the SWEP and accelerated vesting of Restricted Shares awarded under
the EIS in prior years, effective upon termination of employment.
2024 ANNUAL REPORT 143
4.3.3 GLOSSARY
Key terms used in the Remuneration Report
Term
Meaning
Committee
The Human Resources & Compensation Committee
Corporate Scorecard
A corporate scorecard of key measures that aligns with Woodside’s overall business performance
EIS
The Executive Incentive Scheme
Equity Award Rules
The rules which govern offers of incentive securities to eligible employees
ER or Equity Right
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
Fixed Annual Reward
KMP
Key management personnel
KPI
Key performance indicator
MSR
Minimum shareholding requirements
NED
Non-Executive Director
NEDSP
The Non-Executive Directors’ Share Plan
Notional Shares
A contractual entitlement to receive a cash payment equivalent to the value of Restricted Shares at the relevant vesting
date. The Notional Shares are subject to either a 3-year or 5-year deferral period which ends on the relevant vesting
date. The Notional Shares are awarded on the same terms as the EIS Restricted Shares (including performance and
service criteria), except that the awards are delivered in cash following the vesting date. Notional Shares are typically
awarded to employees below KMP level, where the employee has been on international assignment.
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
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
Restricted Shares
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
Rights
ERs and Performance Rights
RTSR
Relative total shareholder return
Senior Executive
A Senior Executive listed as KMP in Table 1A, excluding the Executive Director
SWEP
The Supplementary Woodside Equity Plan
TTR
Total Target Reward
VAR
Variable Annual Reward
144 WOODSIDE ENERGY GROUP LTD
SIGNIFICANT CHANGES IN THE CURRENT REPORTING PERIOD
The financial performance and position of the Group were particularly affected by the following events and transactions during the reporting period:
• On 26 March 2024, the Group completed the sell-down of a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough
Pty Ltd (LNG Japan). Proceeds from the sale were $910 million, including capital reimbursements and escalation. As a result, the Group recognised a
pre-tax gain of $121 million on the transaction (refer to Note B.8).
• On 11 June 2024, the Sangomar project in Senegal achieved first oil. For the year ended 31 December 2024, Sangomar contributed $948 million in
operating revenue. The Group also recognised a net deferred tax asset of $342 million (refer to Note A.5).
• On 30 September 2024, the Group acquired 100% of the issued share capital of OCI Clean Ammonia Holding B.V. and its Beaumont New Ammonia Project
(previously Clean Ammonia project). The transaction has been accounted for as a business combination (refer to Note B.5).
• On 8 October 2024, the Group acquired 100% of the issued and outstanding common stock of Tellurian Inc. (subsequently renamed Woodside Energy (LA)
Holdings Inc.) including its owned and operated Louisiana LNG (previously US Gulf Coast Driftwood LNG) development opportunity. The transaction has
been accounted for as an asset acquisition (refer to Note B.7).
• On 31 October 2024, the Group completed the sell-down of a 15.1% non-operating participating interest in the Scarborough Joint Venture to JERA
Scarborough Pty Ltd (JERA). Proceeds from the sale were $1,425 million including capital reimbursements. As a result, the Group recognised a pre-tax
gain of $88 million on the transaction (refer to Note B.8).
• The Group recognised a $502 million increase to the Pluto PRRT deferred tax asset due to the recognition of previously unrecognised deductible
expenditure that is now considered to be recoverable on the basis of future taxable profits being available to utilise the expenditure (refer to Note A.5).
CONTENTS
Financial statements
146
Consolidated income statement
146
Consolidated statement of comprehensive income
147
Consolidated statement of financial position
148
Consolidated statement of cash flows
149
Consolidated statement of changes in equity
150
Notes to the financial statements
151
About these statements
151
Climate change and energy transition
151
A. Earnings for the year
156
A.1 Segment revenue and expenses
157
A.2 Finance costs
161
A.3 Dividends paid and proposed
161
A.4 Earnings per share
161
A.5 Taxes
162
B. Production and growth assets
165
B.1 Segment production and growth assets
166
B.2 Exploration and evaluation
168
B.3 Property, plant and equipment
169
B.4 Impairment of exploration and evaluation, property, plant and
equipment and goodwill
171
B.5 Business combination
176
B.6 Intangible assets
178
B.7 Significant production and growth asset acquisitions
179
B.8 Disposal of assets
180
C. Debt and capital
181
C.1 Cash and cash equivalents
182
C.2 Interest-bearing liabilities and financing facilities
182
C.3 Contributed equity
184
C.4 Other reserves
184
D. Other assets and liabilities
185
D.1 Segment assets and liabilities
186
D.2 Receivables
186
D.3 Inventories
186
D.4 Payables
187
D.5 Provisions
187
D.6 Other financial assets and liabilities
189
D.7 Leases
191
E. Other items
194
E.1 Contingent liabilities and assets
195
E.2 Employee benefits
195
E.3 Related party transactions
198
E.4 Auditor remuneration
198
E.5 Events after the end of the reporting period
198
E.6 Joint arrangements
198
E.7 Parent entity information
200
E.8 Subsidiaries
200
E.9 Other accounting policies
204
Consolidated entity disclosure statement
205
Directors’ declaration
208
Independent auditor's report
209
Financial
Statements
2024 ANNUAL REPORT 145
FINANCIAL STATEMENTS • FINANCIAL STATEMENTS
5.1
Consolidated income statement
for the year ended 31 December 2024
2024
2023
2022
Notes
US$m
US$m
US$m
Operating revenue
A.1
13,179
13,994
16,817
Cost of sales
A.1
(7,501)
(7,519)
(6,540)
Gross profit
5,678
6,475
10,277
Other income
A.1
624
322
735
Other expenses
A.1
(1,788)
(1,573)
(2,726)
Impairment losses
A.1
-
(1,917)
-
Impairment reversals
A.1
-
-
900
Profit before tax and net finance costs
4,514
3,307
9,186
Finance income
220
273
155
Finance costs
A.2
(365)
(307)
(167)
Profit before tax
4,369
3,273
9,174
Petroleum resource rent tax (PRRT) benefit/(expense)
A.5
91
(898)
313
Income tax expense
A.5
(814)
(653)
(2,912)
Profit after tax
3,646
1,722
6,575
Profit attributable to:
Equity holders of the parent
3,573
1,660
6,498
Non-controlling interest
E.8
73
62
77
Profit for the period
3,646
1,722
6,575
Basic earnings per share attributable to equity holders of the parent (US cents)
A.4
188.5
87.5
430.0
Diluted earnings per share attributable to equity holders of the parent (US cents)
A.4
186.9
86.9
426.3
The accompanying notes form part of the Financial Statements.
Financial statements
146 WOODSIDE ENERGY GROUP LTD
Consolidated statement of comprehensive income
for the year ended 31 December 2024
2024
2023
2022
US$m
US$m
US$m
Profit for the period
3,646
1,722
6,575
Other comprehensive income/(loss)
Items that may be reclassified to the income statement in subsequent periods:
(Losses)/gains on cash flow hedges
(139)
459
(1,097)
Losses on cash flow hedges reclassified to the income statement
86
299
847
Tax recognised within other comprehensive income
(34)
(84)
64
Exchange fluctuations on translation of foreign operations taken to equity
-
(1)
3
Items that will not be reclassified to the income statement in subsequent periods:
Remeasurement (loss)/gain on defined benefit plan
(11)
14
34
Net (loss)/gain on financial instruments at fair value through other comprehensive income
(8)
(32)
2
Other comprehensive (loss)/income for the period, net of tax
(106)
655
(147)
Total comprehensive income for the period
3,540
2,377
6,428
Total comprehensive income attributable to:
Equity holders of the parent
3,467
2,315
6,351
Non-controlling interest
73
62
77
Total comprehensive income for the period
3,540
2,377
6,428
The accompanying notes form part of the Financial Statements.
2024 ANNUAL REPORT 147
Consolidated statement of financial position
as at 31 December 2024
2024
2023
Notes
US$m
US$m
Current assets
Cash and cash equivalents
C.1
3,923
1,740
Receivables
D.2
2,390
1,517
Inventories
D.3
684
616
Other financial assets
D.6
185
209
Assets held for sale
-
826
Tax receivable
288
118
Other assets
93
92
Total current assets
7,563
5,118
Non-current assets
Receivables
D.2
876
839
Inventories
D.3
213
120
Other financial assets
D.6
118
120
Exploration and evaluation assets
B.2
721
668
Property, plant and equipment
B.3
42,636
40,791
Deferred tax assets
A.5
2,393
1,717
Lease assets
D.7
1,291
1,230
Investments accounted for using the equity method
249
249
Intangible assets1
B.6
4,826
4,183
Other assets1
378
326
Total non-current assets
53,701
50,243
Total assets
61,264
55,361
Current liabilities
Payables
D.4
2,185
1,724
Interest-bearing liabilities
C.2
990
-
Other financial liabilities
D.6
139
67
Liabilities directly associated with assets held for sale
-
94
Provisions
D.5
1,322
1,506
Tax payable
308
1,108
Lease liabilities
D.7
189
298
Other liabilities
724
185
Total current liabilities
5,857
4,982
Non-current liabilities
Interest-bearing liabilities
C.2
9,007
4,883
Deferred tax liabilities
A.5
1,497
1,627
Other financial liabilities
D.6
379
42
Provisions
D.5
6,225
6,451
Tax payable
28
40
Lease liabilities
D.7
1,434
1,317
Other liabilities
684
849
Total non-current liabilities
19,254
15,209
Total liabilities
25,111
20,191
Net assets
36,153
35,170
Equity
Issued and fully paid shares
C.3
29,001
29,001
Shares reserved for employee share plans
C.3
(58)
(49)
Other reserves
C.4
4,108
5,261
Retained earnings
2,348
186
Equity attributable to equity holders of the parent
35,399
34,399
Non-controlling interest
E.8
754
771
Total equity
36,153
35,170
1. Intangible assets include software and contract assets which were previously presented within other assets (non-current). The 2023 amounts have been reclassified to be presented on the same basis
(refer to Note B.6).
The accompanying notes form part of the Financial Statements.
148 WOODSIDE ENERGY GROUP LTD
Consolidated statement of cash flows
for the year ended 31 December 2024
2024
2023
2022
Notes
US$m
US$m
US$m
Cash flows from/(used in) operating activities
Profit after tax for the period
3,646
1,722
6,575
Adjustments for:
Non-cash items
Depreciation and amortisation
4,552
3,960
2,808
Depreciation of lease assets
210
179
140
Change in fair value of derivative financial instruments
352
349
960
Net finance costs
145
34
12
Tax expense
723
1,551
2,599
Exploration and evaluation written off
9
77
164
Impairment losses
B.4
-
1,917
-
Impairment reversals
-
-
(900)
Restoration movement
199
147
272
Gain on disposal of property, plant and equipment (including revaluation gain)
(238)
-
(494)
Movement in onerous contracts provision
-
-
(245)
Other
(135)
(226)
(254)
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(301)
107
(77)
Increase in inventories
(161)
(31)
(146)
Increase/(decrease) in provisions
3
(114)
131
Decrease in lease liabilities
-
-
(31)
Increase in other assets and liabilities
(45)
(736)
(961)
Increase/(decrease) in trade and other payables
175
(135)
184
Cash generated from operations
9,134
8,801
10,737
Purchases of shares relating to employee share plans
(81)
(57)
(45)
Interest received
183
264
108
Dividends received
12
20
19
Borrowing costs relating to operating activities
(41)
(26)
(21)
Income tax and PRRT paid
(2,555)
(2,916)
(1,218)
Payments for restoration
(805)
(447)
(263)
Receipts/(payments) for hedge collateral
-
506
(506)
Net cash from operating activities
5,847
6,145
8,811
Cash flows from/(used in) investing activities
Cash (paid)/received on business combination, net of cash acquired
B.5
(1,896)
-
1,082
Payments for capital and exploration expenditure
(4,902)
(5,291)
(3,136)
Payments for asset acquisition, net of cash acquired
B.7
(1,042)
-
-
Reimbursements received from external parties for capital expenditure
155
-
-
Borrowing costs relating to investing activities
(369)
(311)
(287)
Advances to other external entities
-
-
(48)
Proceeds from disposal of non-current assets
2,307
19
132
Funding of equity accounted investments
-
(2)
(8)
Net cash used in investing activities
(5,747)
(5,585)
(2,265)
Cash flows from/(used in) financing activities
Proceeds from borrowings
C.2
5,114
-
-
Repayment of borrowings
C.2
(169)
(284)
(283)
Borrowing costs relating to financing activities
(2)
(4)
(18)
Repayment of the principal portion of lease liabilities
(278)
(340)
(248)
Borrowing costs relating to lease liabilities
(15)
(21)
(10)
Purchases of shares and payments relating to Dividend Reinvestment Plan
-
-
(144)
Contributions to non-controlling interests
(100)
(98)
(98)
Dividends paid
(2,449)
(4,253)
(2,558)
Net payments from share issuance
-
-
(5)
Net cash from/(used in) in financing activities
2,101
(5,000)
(3,364)
Net increase/(decrease) in cash held
2,201
(4,440)
3,182
Cash and cash equivalents at the beginning of the period
1,740
6,201
3,025
Effects of exchange rate changes
(18)
(21)
(6)
Cash and cash equivalents at the end of the period
C.1
3,923
1,740
6,201
The accompanying notes form part of the Financial Statements.
2024 ANNUAL REPORT 149
Consolidated statement of changes in equity
for the year ended 31 December 2024
Issued and fully paid
shares
Reserved shares
Employee benefits
reserve
Foreign currency
translation reserve
Hedging reserve
Distributable profits
reserve
Other reserves
Retained earnings
Equity holders of the
parent
Non-controlling interest
Total equity
Notes
C.3
C.3
C.4
C.4
C.4
C.4
C.4
E.8
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
At 1 January 2024
29,001
(49)
290
795
88
4,118
(30)
186
34,399
771
35,170
Profit for the period
-
-
-
-
-
-
-
3,573
3,573
73
3,646
Other comprehensive loss
-
-
-
-
(87)
-
(8)
(11)
(106)
-
(106)
Total comprehensive (loss)/income for the period
-
-
-
-
(87)
-
(8)
3,562
3,467
73
3,540
Transfers
-
-
-
-
-
1,400
-
(1,400)
-
-
-
Employee share plan purchases
-
(81)
-
-
-
-
-
-
(81)
-
(81)
Employee share plan redemptions
-
72
(72)
-
-
-
-
-
-
-
-
Share-based payments (net of tax)
-
-
63
-
-
-
-
-
63
-
63
Dividends paid
-
-
-
-
-
(2,449)
-
-
(2,449)
(90)
(2,539)
At 31 December 2024
29,001
(58)
281
795
1
3,069
(38)
2,348
35,399
754
36,153
At 1 January 2023
29,001
(38)
278
796
(586)
3,541
2
3,342
36,336
791
37,127
Profit for the period
-
-
-
-
-
-
-
1,660
1,660
62
1,722
Other comprehensive income/(loss)
-
-
-
(1)
674
-
(32)
14
655
-
655
Total comprehensive income/(loss) for the period
-
-
-
(1)
674
-
(32)
1,674
2,315
62
2,377
Transfers
-
-
-
-
-
4,830
-
(4,830)
-
-
-
Employee share plan purchases
-
(57)
-
-
-
-
-
-
(57)
-
(57)
Employee share plan redemptions
-
46
(46)
-
-
-
-
-
-
-
-
Share-based payments (net of tax)
-
-
58
-
-
-
-
-
58
-
58
Dividends paid
-
-
-
-
-
(4,253)
-
-
(4,253)
(82)
(4,335)
At 31 December 2023
29,001
(49)
290
795
88
4,118
(30)
186
34,399
771
35,170
At 1 January 2022
9,409
(30)
232
793
(400)
58
-
3,381
13,443
786
14,229
Profit for the period
-
-
-
-
-
-
-
6,498
6,498
77
6,575
Other comprehensive income/(loss)
-
-
-
3
(186)
-
2
34
(147)
-
(147)
Total comprehensive income/(loss) for the period
-
-
-
3
(186)
-
2
6,532
6,351
77
6,428
Transfers
-
-
-
-
-
5,553
-
(5,553)
-
-
-
Shares purchased for Dividend Reinvestment Plan
-
(144)
-
-
-
-
-
-
(144)
-
(144)
Dividend Reinvestment Plan
332
144
-
-
-
-
-
-
476
-
476
Shares issued for acquisition of BHPP
19,265
-
-
-
-
-
-
-
19,265
-
19,265
Replacement employee share plan issued for
acquisition of BHPP
-
-
18
-
-
-
-
-
18
-
18
Employee share plan purchases
-
(45)
-
-
-
-
-
-
(45)
-
(45)
Employee share plan redemptions
-
37
(37)
-
-
-
-
-
-
-
-
Share-based payments (net of tax)
-
-
65
-
-
-
-
-
65
-
65
Dividends paid
-
-
-
-
-
(2,070)
-
(1,018)
(3,088)
(72)
(3,160)
Transaction costs associated with the issue
of shares
(5)
-
-
-
-
-
-
-
(5)
-
(5)
At 31 December 2022
29,001
(38)
278
796
(586)
3,541
2
3,342
36,336
791
37,127
The accompanying notes form part of the Financial Statements.
150 WOODSIDE ENERGY GROUP LTD
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) and on the New York Stock
Exchange (NYSE) (in the form of Woodside American Depositary
Shares). On 19 November 2024, the Group delisted its shares from
the Main Market for listed securities of the London Stock Exchange
(LSE). 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 25 February 2025.
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 materially consistent with
those disclosed in the Group’s 2023 Financial Statements. Adoption
of new or amended standards and interpretations effective
1 January 2024 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 impairment assessments and restoration
are disclosed in Notes B.4 and D.5 respectively; these assumptions
could change in the future. New estimates and judgements relating
to a business combination and asset acquisition are disclosed in
Notes B.5 and B.7 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.
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 financial statements comprise the financial position and results
of the Group as at and for the year ended 31 December 2024 (refer
to Note E.8).
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’s global portfolio includes oil, gas and new energy assets
across Australia, the United States, Trinidad and Tobago, Senegal,
Mexico, Timor-Leste and Canada. 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.
Notes to the financial statements
for the year ended 31 December 2024
Notes to the financial statements
2024 ANNUAL REPORT 151
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 oil and gas facilities are subject to physical risks such
as metocean 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 harsh environments. Physical risks could also
impact emerging new business in the new energy products and
lower carbon services such as bushfire or drought risk for nature-
based carbon origination projects, or access to water for use in
electrolysis for hydrogen.
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. 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, property, plant
and equipment 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 completion of the sale of the 10% and 15.1% non-operating
participating interest in the Scarborough Joint Venture to LNG
Japan and JERA respectively in 2024, 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 2024 (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. As 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.
Notes to the financial statements
for the year ended 31 December 2024
152 WOODSIDE ENERGY GROUP LTD
CLIMATE CHANGE AND ENERGY TRANSITION (CONT.)
Impairment of exploration and evaluation, property, plant
and equipment 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 2024 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$/bbl)
2025-2029
2030-2034
2035-2040
NZE
52
40
32
APS
76
72
67
STEPS
82
81
80
Woodside
78
78
78
Average North Asian LNG
(RT US$/MMBtu)
2025-2029
2030-2034
2035-2040
NZE
6
5
5
APS
8
7
6
STEPS
9
8
9
Woodside
10
10
11
Average Carbon
(RT US$/tonne)
2025-2029
2030-2034
2035-2040
NZE
112
161
199
APS
110
150
173
STEPS
80
80
80
Woodside
80
80
80
1. IEA 2024. ‘World Energy Outlook 2024’. All rights reserved.
2. Based on data from IEA 2024. 'World Energy Outlook 2024' 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 2024. ‘World Energy Outlook 2024’ 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 2024 starting price point
and the IEA’s published 2030, 2035 and 2040 carbon prices for each scenario to interpolate annual
price points through to 2040.
Woodside’s assumptions for Brent and JKM sit within the range of
various external scenarios, including but not limited to NZE, APS
and STEPS, considered by management. These include scenarios
consistent with the temperature goals of the Paris climate change
agreement as well as industry outlooks.
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 or probability is assigned to any
of these scenarios eventuating.
Impact on remaining life of assets
Oil and gas properties, included within property, 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. New energy assets under development still require
significant capital expenditure. The Group will review depreciation
methodology and useful life of new energy assets as they are
brought into use.
Carbon credits
Woodside utilises certified carbon credits to offset equity Scope 1
and 2 emissions that are above our targets in a given year, after
design out and operate out measures have been taken. The Group’s
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.
The Group has available carbon credits that can be used in the
short and medium term for emissions which are otherwise not
technically or economically viable to avoid or reduce. One carbon
credit is intended to represent a tonne of emissions avoided,
reduced or removed outside of our facilities.
As at 31 December 2024, the Group recognised $202 million (2023:
$123 million) of carbon credits within inventory.
Restoration and other provisions
The energy transition may result in restoration activities occurring
earlier than expected. 53% (2023: 55%) 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.
Refer to Note D.5 for further details.
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 2024, the Corpus Christi contract has a positive
value and therefore is not currently onerous (2023: 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.
Notes to the financial statements
for the year ended 31 December 2024
2024 ANNUAL REPORT 153
CLIMATE CHANGE AND ENERGY TRANSITION (CONT.)
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 2024. 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.
Woodside is not currently aware of any specific proposal that would
materially affect the information in these financial statements.
Woodside continues to monitor the development of global
sustainability standards relevant to our activities around the world
to ensure compliance.
This includes the Australian Sustainability Reporting Standards
issued by the Australian Accounting Standards Board (AASB)
climate standard (AASB S2) and sustainability standard (AASB S1),
the US SEC climate rules, the International Financial Reporting
Standards (IFRS) Foundation’s International Sustainability
Standards Board (ISSB) standards relevant to sustainability
and climate related disclosures and the European Corporate
Sustainability Reporting Directive and associated European
Sustainability Reporting Standards including the Corporate
Sustainability Due Diligence Directive.
Notes to the financial statements
for the year ended 31 December 2024
154 WOODSIDE ENERGY GROUP LTD
Notes to the financial statements
for the year ended 31 December 2024
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. Group
Treasury policy does not permit speculative trading in financial
derivatives. 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
Page 156
Section A
Foreign exchange risk management
Page 156
Section C
Capital risk management
Page 181
Section C
Liquidity risk management
Page 181
Section C
Interest rate risk management
Page 181
Section D
Credit risk management
Page 185
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
Segment revenue and expenses
Page 157
Note A.5
Taxes
Page 162
Note B.2
Exploration and evaluation
Page 168
Note B.3
Property, plant and equipment
Page 169
Note B.4
Impairment of exploration and evaluation,
property, plant and equipment and goodwill
Page 171
Note B.5
Business combination
Page 176
Note B.6
Intangible assets
Page 178
Note B.7
Significant production and growth asset
acquisitions
Page 179
Note D.5
Provisions
Page 187
Note D.6
Other financial assets and liabilities
Page 189
Note D.7
Leases
Page 191
Note E.6
Joint arrangements
Page 198
2024 ANNUAL REPORT 155
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
Page 157
A.2 Finance costs
Page 161
A.3 Dividends paid and proposed
Page 161
A.4 Earnings per share
Page 161
A.5 Taxes
Page 162
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 commodity 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 $27 million (2023:
$123 million net asset) exposed to commodity price risk. An increase in relevant commodity prices of 10% would decrease the instruments’
carrying value by $239 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 and dividend payments.
As at the reporting date, the Group held hedging foreign currency financial instruments with a net liability carrying value of $45 million
(2023: net asset carrying value of $8 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 (+10%/-10% (2023: +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 2024.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
156 WOODSIDE ENERGY GROUP LTD
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.
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 liquefied 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.
New energy/Corporate:
New energy/Corporate comprise Woodside's new energy
portfolio and corporate non-segmental items. Corporate non-
segmental items of revenue and expenses and associated
assets and liabilities are 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 each respectively
account for 7% and 6% of the Group’s external revenue. The sales
are generated by the Australia and Marketing operating segments
(2023: two major customers; 8% and 7% generated by the Australia
and Marketing operating segments and 2022: two major customers;
12% and 9% generated by the Australia and Marketing operating
segments).
Geographical information
Geographical information
Revenue from external customers1
2024
2023
2022
US$m
US$m
US$m
Asia Pacific
8,445
9,823
12,521
Americas
2,462
2,564
1,545
Europe
2,272
1,607
2,751
Consolidated
13,179
13,994
16,817
1. Revenue is attributable to geographic location based on the location of the customers.
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.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
2024 ANNUAL REPORT 157
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
For the year ended 31 December 2024
Australia
International
Marketing
New energy/
Corporate
Consolidated
2024
2024
2024
2024
2024
US$m
US$m
US$m
US$m
US$m
Liquefied natural gas
5,361
-
1,040
-
6,401
Pipeline gas
1,119
230
-
-
1,349
Crude oil and condensate
1,668
3,143
76
-
4,887
Natural gas liquids
196
39
71
-
306
Revenue from sale of hydrocarbons
8,344
3,412
1,187
-
12,943
Intersegment revenue1
(23)
(7)
30
-
-
Processing and services revenue
220
-
-
-
220
Shipping and other revenue
-
-
16
-
16
Other revenue
197
(7)
46
-
236
Operating revenue2
8,541
3,405
1,233
-
13,179
Production costs
(1,051)
(528)
-
-
(1,579)
Royalties, excise and levies
(349)
(23)
-
-
(372)
Insurance
(27)
(9)
-
11
(25)
Inventory movement
55
29
-
-
84
Costs of production
(1,372)
(531)
-
11
(1,892)
Property, plant and equipment depreciation and amortisation
(2,621)
(1,848)
-
(54)
(4,523)
Shipping and direct sales costs
(89)
(86)
(130)
-
(305)
Trading costs
(4)
-
(691)
-
(695)
Other hydrocarbon costs
(51)
-
-
-
(51)
Other cost of sales
(22)
(7)
-
(6)
(35)
Movement in onerous contract provision
-
-
-
-
-
Other cost of sales
(166)
(93)
(821)
(6)
(1,086)
Cost of sales
(4,159)
(2,472)
(821)
(49)
(7,501)
Gross profit
4,382
933
412
(49)
5,678
Other income3
568
50
23
(17)
624
Exploration and evaluation expenditure4
(44)
(276)
-
-
(320)
Amortisation of permit acquisition
-
(8)
-
-
(8)
Write-offs
(3)
(6)
-
-
(9)
Exploration and evaluation
(47)
(290)
-
-
(337)
General, administrative and other costs
-
-
-
(445)
(445)
Amortisation of intangible assets
-
-
-
(21)
(21)
Depreciation of lease assets
(58)
(1)
(101)
(50)
(210)
Restoration movement
(176)
6
-
(29)
(199)
Other5
(55)
(97)
93
(517)
(576)
Other costs
(289)
(92)
(8)
(1,062)
(1,451)
Other expenses
(336)
(382)
(8)
(1,062)
(1,788)
Impairment losses
-
-
-
-
-
Impairment reversals
-
-
-
-
-
Profit/(loss) before tax and net finance costs
4,614
601
427
(1,128)
4,514
1. 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 $13,163 million and sub-lease income of $16 million disclosed within shipping and other revenue.
3. Includes fees and recoveries and other income not associated with the ongoing operations of the business. The Australia segment includes $209 million from the gain on the sell-down of Scarborough to LNG
Japan and JERA.
4. Includes seismic and general permit activities and other exploration costs.
5. Includes gains and losses on hedging activities, a $314 million fair value loss on embedded derivatives and other expenses not associated with the ongoing operations of the business.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
158 WOODSIDE ENERGY GROUP LTD
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
For the year ended 31 December 2023
Australia
International
Marketing
New energy/
Corporate
Consolidated
2023
2023
2023
2023
2023
US$m
US$m
US$m
US$m
US$m
Liquefied natural gas
6,867
-
1,298
-
8,165
Pipeline gas
1,088
286
-
-
1,374
Crude oil and condensate
1,611
2,246
124
-
3,981
Natural gas liquids
218
32
31
-
281
Revenue from sale of hydrocarbons
9,784
2,564
1,453
-
13,801
Intersegment revenue1
(166)
(15)
181
-
-
Processing and services revenue
184
-
-
-
184
Shipping and other revenue
-
-
9
-
9
Other revenue
18
(15)
190
-
193
Operating revenue2
9,802
2,549
1,643
-
13,994
Production costs
(1,173)
(389)
-
-
(1,562)
Royalties, excise and levies
(462)
(41)
-
-
(503)
Insurance
(41)
(11)
-
(8)
(60)
Inventory movement
(40)
3
-
-
(37)
Costs of production
(1,716)
(438)
-
(8)
(2,162)
Property, plant and equipment depreciation and amortisation
(2,754)
(1,168)
-
(34)
(3,956)
Shipping and direct sales costs
(164)
(83)
(54)
(18)
(319)
Trading costs
(12)
-
(1,056)
-
(1,068)
Other hydrocarbon costs
(7)
-
-
-
(7)
Other cost of sales
(7)
-
-
-
(7)
Movement in onerous contract provision
-
-
-
-
-
Other cost of sales
(190)
(83)
(1,110)
(18)
(1,401)
Cost of sales
(4,660)
(1,689)
(1,110)
(60)
(7,519)
Gross profit
5,142
860
533
(60)
6,475
Other income3
160
54
26
82
322
Exploration and evaluation expenditure4
(24)
(253)
-
(2)
(279)
Amortisation of permit acquisition
-
(4)
-
-
(4)
Write-offs
(31)
(46)
-
-
(77)
Exploration and evaluation
(55)
(303)
-
(2)
(360)
General, administrative and other costs
-
-
-
(453)
(453)
Amortisation of intangible assets
-
-
-
(2)
(2)
Depreciation of lease assets
(50)
(14)
(75)
(40)
(179)
Restoration movement
(125)
(22)
-
-
(147)
Other5
(51)
-
(109)
(272)
(432)
Other costs
(226)
(36)
(184)
(767)
(1,213)
Other expenses
(281)
(339)
(184)
(769)
(1,573)
Impairment losses6
(534)
(1,383)
-
-
(1,917)
Impairment reversals
-
-
-
-
-
Profit/(loss) before tax and net finance costs
4,487
(808)
375
(747)
3,307
1. 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, a $35 million fair value loss on embedded derivatives and other expenses not associated with the ongoing operations of the business.
6. Impairment on property, plant and equipment and goodwill. Refer to Note B.4 for more details.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
2024 ANNUAL REPORT 159
A.1 SEGMENT REVENUE AND EXPENSES (CONT.)
For the year ended 31 December 2022
Australia
International
Marketing
New energy/
Corporate
Consolidated
2022
2022
2022
2022
2022
US$m
US$m
US$m
US$m
US$m
Liquefied natural gas
8,855
-
2,434
-
11,289
Pipeline gas
1,086
276
-
-
1,362
Crude oil and condensate
2,467
1,273
18
-
3,758
Natural gas liquids
171
26
9
-
206
Revenue from sale of hydrocarbons
12,579
1,575
2,461
-
16,615
Intersegment revenue1
(455)
(5)
460
-
-
Processing and services revenue
175
-
-
-
175
Shipping and other revenue
-
-
27
-
27
Other revenue
(280)
(5)
487
-
202
Operating revenue2
12,299
1,570
2,948
-
16,817
Production costs
(975)
(313)
-
7
(1,281)
Royalties, excise and levies
(540)
(39)
-
(17)
(596)
Insurance
(35)
(7)
-
(1)
(43)
Inventory movement
44
(3)
-
-
41
Costs of production
(1,506)
(362)
-
(11)
(1,879)
Property, plant and equipment depreciation and amortisation
(2,326)
(439)
-
(33)
(2,798)
Shipping and direct sales costs
(312)
(36)
(73)
142
(279)
Trading costs
(14)
-
(1,763)
-
(1,777)
Other hydrocarbon costs
(19)
-
-
-
(19)
Other cost of sales
(4)
-
-
-
(4)
Movement in onerous contract provision3
-
-
216
-
216
Other cost of sales
(349)
(36)
(1,620)
142
(1,863)
Cost of sales
(4,181)
(837)
(1,620)
98
(6,540)
Gross profit
8,118
733
1,328
98
10,277
Other income4
722
4
5
4
735
Exploration and evaluation expenditure5
(20)
(277)
-
1
(296)
Amortisation of permit acquisition
(1)
(9)
-
-
(10)
Write-offs6
-
(164)
-
-
(164)
Exploration and evaluation
(21)
(450)
-
1
(470)
General, administrative and other costs7
(13)
(21)
(10)
(747)
(791)
Depreciation of lease assets
(49)
(11)
-
(80)
(140)
Restoration movement
(234)
(46)
-
8
(272)
Other8
(8)
(84)
(475)
(486)
(1,053)
Other costs
(304)
(162)
(485)
(1,305)
(2,256)
Other expenses
(325)
(612)
(485)
(1,304)
(2,726)
Impairment losses
-
-
-
-
-
Impairment reversals9
900
-
-
-
900
Profit/(loss) before tax and net finance costs
9,415
125
848
(1,202)
9,186
1. 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.
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.
7. Transaction costs of $419 million incurred as a result of the BHPP merger on 1 June 2022 are included in the New energy/Corporate segment.
8. Includes losses on hedging activities and changes in fair value of derivative financial instruments of $960 million in the Marketing and New energy/Corporate segments and other expenses not associated
with the ongoing operations of the business.
9. Impairment reversals on property, plant and equipment.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
160 WOODSIDE ENERGY GROUP LTD
A.2 FINANCE COSTS
2024
2023
2022
US$m
US$m
US$m
Interest on interest-bearing liabilities
350
229
212
Interest on lease liabilities
102
102
103
Accretion charge
293
238
110
Other finance costs
30
49
36
Less: Finance costs capitalised
against qualifying assets
(410)
(311)
(294)
365
307
167
A.3 DIVIDENDS PAID AND PROPOSED
Woodside Energy Group Ltd, the parent entity, paid and proposed
dividends set out below:
2024
2023
2022
US$m
US$m
US$m
(a) Dividends paid during the financial
year
Prior year fully franked final
dividend1
1,139
2,734
1,018
Current year fully franked interim
dividend2
1,310
1,519
2,070
2,449
4,253
3,088
(b) Dividend declared subsequent to
the reporting period (not recorded as a
liability)
Final dividend3
1,006
1,139
2,734
(c) Other information
Franking credits available for subsequent
periods
1,589
1,813
1,406
Current year dividends per share
(US cents)
122
140
253
1. 2024: US$0.60, paid on 4 April 2024
2023: US$1.44, paid on 5 April 2023
2022: US$1.05, paid on 23 March 2022
2. 2024: US$0.69, paid on 3 October 2024
2023: US$0.80, paid on 28 September 2023
2022: US$1.09, paid on 6 October 2022
3. 2024: US$0.53, to be paid on 2 April 2025
2023: US$0.60, paid on 4 April 2024
2022: US$1.44, paid on 5 April 2023
The Dividend Reinvestment Plan (DRP) was approved by the
shareholders at the Annual General Meeting in 2003 for activation
as required to fund future growth. The DRP was reactivated in 2019
and suspended by the Board of Directors on 27 February 2023.
A.4 EARNINGS PER SHARE
2024
2023
2022
Profit attributable to equity
holders of the parent (US$m)
3,573
1,660
6,498
Weighted average number
of shares on issue for basic
earnings per share
1,895,703,924 1,896,498,169
1,511,257,404
Effect of dilution from
contingently issuable shares
16,221,362
14,444,802
13,061,376
Weighted average number of
shares on issue adjusted for
the effect of dilution
1,911,925,286 1,910,942,971
1,524,318,780
Basic earnings per share
(US cents)
188.5
87.5
430.0
Diluted earnings per share
(US cents)
186.9
86.9
426.3
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.
There have been no significant transactions involving ordinary
shares between the reporting date and the date of completion
of these financial statements.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
2024 ANNUAL REPORT 161
2024
2023
2022
US$m
US$m
US$m
(a) Tax expense comprises
Petroleum resource rent tax (PRRT)
Current tax expense
396
367
501
Deferred tax (benefit)/expense
(487)
531
(814)
PRRT (benefit)/expense
(91)
898
(313)
Income tax
Current year
Current tax expense
1,420
1,872
2,256
Deferred tax (benefit)/expense
(484)
(1,255)
701
Adjustment to prior years
Current tax (benefit)/expense
(177)
14
(276)
Deferred tax expense
55
22
231
Income tax expense
814
653
2,912
Tax expense
723
1,551
2,599
(b) Reconciliation of income tax expense
Profit before tax
4,369
3,273
9,174
PRRT benefit/(expense)
91
(898)
313
Profit before income tax
4,460
2,375
9,487
Income tax expense calculated at 30%
1,338
712
2,847
Effect of tax rate differentials
(75)
91
(141)
Effect of deferred tax assets not recognised
76
155
150
Effect of tax losses and credits previously
unrecognised
(442)
(332)
-
Effect of goodwill impairment
-
109
-
Reduction in deferred tax liability due to held
for sale basis
(94)
(78)
-
Foreign exchange impact on tax expense/
(benefit)
87
(58)
(44)
Adjustment to prior years
(122)
36
(45)
Integration and transaction costs non-
deductible
-
4
142
Other
46
14
3
Income tax expense1
814
653
2,912
(c) Reconciliation of PRRT expense
Profit before tax
4,369
3,273
9,174
Non-PRRT assessable profit
(2,631)
(1,780)
(6,197)
PRRT projects profit before tax
1,738
1,493
2,977
PRRT expense calculated at 40%
695
598
1,191
(Recognition)/derecognition of Pluto exploration
expenditure2
(502)
611
(1,362)
Recognition of transferred exploration spend
-
(18)
-
Augmentation
(266)
(292)
(175)
Other
(18)
(1)
33
PRRT (benefit)/expense
(91)
898
(313)
(d) Deferred tax income statement
reconciliation
PRRT
Production and growth assets
(304)
1,206
(710)
Augmentation for current year
(266)
(292)
(175)
Provisions
35
(372)
(12)
Other
48
(11)
83
PRRT (benefit)/expense
(487)
531
(814)
Income tax
Property, plant and equipment
(660)
(529)
292
Exploration and evaluation assets
35
38
14
Lease assets and liabilities
6
(20)
25
Provisions
62
(232)
151
PRRT assets and liabilities
251
(175)
236
Unused tax losses and tax credits
2
(221)
19
Assets held for sale
(36)
(86)
205
Intangible assets
6
-
-
Derivatives
(109)
(21)
21
Other
14
13
(31)
Income tax deferred tax (benefit)/expense
(429)
(1,233)
932
Deferred tax (benefit)/expense
(916)
(702)
118
A.5 TAXES
2024
2023
2022
US$m
US$m
US$m
(e) Deferred tax other comprehensive income
reconciliation
Income tax
Derivatives
34
77
(64)
Other
(8)
7
(2)
Deferred income tax expense/(benefit) via other
comprehensive income
26
84
(66)
1. The global operations effective income tax rate (EITR) of 18.3% (2023: 27.5%, 2022: 30.7%) is
calculated as the Group’s income tax expense divided by profit before income tax. The Australian
operations EITR of 26.9% (2023: 30.2%, 2022: 30.0%) is calculated with reference to all Australian
companies and excludes foreign exchange on settlement and revaluation of income tax liabilities.
The reduction in the 2024 EITR compared to 2023 is predominantly due to a number of one-off
transactions, including the recognition of a net deferred tax asset of $342 million on Sangomar
subsequent to the project achieving first oil and the recognition of a tax benefit of $94 million
related to Woodside’s sale of 15.1% share in the Scarborough project. The EITR would increase
to 28.8% for global operations when excluding these one-off transactions, foreign exchange
on income tax liabilities and income tax adjustments related to prior periods. The Australian
operations EITR would increase to 31.7% when excluding the tax benefit arising from the sale
of Woodside's 15.1% share in the Scarborough project and income tax adjustments related to
prior periods.
2. In 2024, the $502 million increase of the Pluto PRRT deferred tax asset is due to the recognition of
previously unrecognised deductible expenditure that is now considered to be recoverable on the
basis of future taxable profits being available to utilise the expenditure. In 2023, $637 million of the
Pluto PRRT deferred tax asset was derecognised on the basis that it would not be recoverable.
2024
2023
US$m
US$m
(f) Deferred tax balance sheet reconciliation
Deferred tax assets
PRRT
Production and growth assets
784
455
Augmentation for current year
264
231
Provisions
470
445
Other
(70)
(30)
PRRT deferred tax assets
1,448
1,101
Income tax
Property, plant and equipment
(1,291)
(1,388)
Exploration and evaluation assets
51
60
Lease assets and liabilities
58
40
Unused tax losses and tax credits
1,684
1,686
Derivatives
11
-
Provisions
412
227
Other
20
(9)
Income tax deferred tax assets
945
616
Deferred tax assets
2,393
1,717
Deferred tax liabilities
PRRT
Production and growth assets
990
1,309
Augmentation for current year
(2)
(38)
Provisions
(935)
(995)
Other
121
113
PRRT deferred tax liabilities
174
389
Income tax
Property, plant and equipment
2,386
2,939
Exploration and evaluation assets
153
127
Lease assets and liabilities
(24)
(48)
Provisions
(1,615)
(1,856)
PRRT assets and liabilities
369
118
Assets held for sale
-
36
Intangible assets
160
-
Derivatives
(67)
(2)
Other
(39)
(76)
Income tax deferred tax liabilities
1,323
1,238
Deferred tax liabilities
1,497
1,627
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
162 WOODSIDE ENERGY GROUP LTD
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 substantively
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.
PRRT deductions cap
In May 2024, the Parliament of Australia enacted the Treasury Laws
Amendment (Tax Accountability and Fairness) Act 2024 for the PRRT
deductions cap which takes effect from 1 July 2023. If an entity is
an LNG producer and its petroleum projects meet the criteria of
the deduction cap, the entity will have a taxable profit of 10% of the
projects' assessable receipts in the year of tax.
The new legislation has impacted the Pluto and Wheatstone
projects resulting in the Group making payments of $163 million
and recognising a further $27 million as a current tax payable as at
31 December 2024.
Pillar Two legislation
In December 2021, the Organisation for Economic Co-operation and
Development (OECD) published its Pillar Two legislation rules. The
Pillar Two legislation rules aim to ensure that large multinational
groups pay a minimum of 15% tax for each jurisdiction in which they
operate. Pillar Two legislation has been enacted or substantively
enacted in a number of jurisdictions in which the Group operates
with effect from 1 January 2024. The Group applies the exception
to recognising and disclosing information about deferred tax assets
and liabilities related to Pillar Two income taxes. The Group has
estimated that the Pillar Two effective tax rates exceed 15% or
satisfies transitional safe harbour measures in all jurisdictions in
which it operates. On this basis, the Group has not recognised any
Pillar Two tax expense for the year ended 31 December 2024.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
2024 ANNUAL REPORT 163
A.5 TAXES (CONT.)
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
Income tax losses and credits: Deferred tax assets (DTAs) relating to
carry forward unused tax losses and credits arising from the USA Tax
Consolidation Group (USA TCG) of $1,274 million (2023: $1,248 million)
and $410 million (2023: $333 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
$366 million (2023: $232 million) from the USA TCG, $343 million (2023:
$189 million) from USA entities outside of the USA TCG and $715 million
(2023: $763 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.
Subsequent to achieving first oil on the Sangomar project in June 2024,
the Group has recognised a net deferred tax asset of $342 million. In
the prior year, as a result of the final investment decision to develop the
Trion resource, the Group 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 2024, the
Group increased the Pluto PRRT DTA by $502 million ($351 million post-
tax) on the basis of future taxable profits being available to utilise the
deductible expenditure. This is primarily driven by increases in forecast
pricing assumptions and actual pricing realised during the year ended
31 December 2024. 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 2023: 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. $7,490 million (2023:
$7,428 million) relates to the North West Shelf Project, $601 million
(2023: $872 million) relates to remaining Pluto deductible balances and
$795 million (2023: $758 million) relates to Wheatstone. A long-term
bond rate of 3.2% (31 December 2023: 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.
(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.
Notes to the financial statements for the year ended 31 December 2024
A. Earnings for the year
164 WOODSIDE ENERGY GROUP LTD
IN THIS SECTION
This section addresses the strategic growth (exploration and evaluation), core producing, development and new energy (property, plant
and equipment) 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
Page 166
B.2 Exploration and evaluation
Page 168
B.3 Property, plant and equipment
Page 169
B.4 Impairment of exploration and evaluation, property, plant and equipment and goodwill
Page 171
B.5 Business combination
Page 176
B.6 Intangible assets
Page 178
B.7 Significant production and growth asset acquisitions
Page 179
B.8 Disposal of assets
Page 180
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 165
Refer to Note A.1 for descriptions of the Group’s segments and geographical regions.
Australia
International
Marketing
New energy/
Corporate
Consolidated
2024
2024
2024
2024
2024
US$m
US$m
US$m
US$m
US$m
Balance as at 31 December
Asia Pacific
571
-
-
-
571
Americas
-
149
-
-
149
Africa
-
1
-
-
1
Total exploration and evaluation
571
150
-
-
721
Balance as at 31 December
Land and buildings
615
57
-
62
734
Oil and gas properties1
14,320
11,467
-
-
25,787
Projects in development
9,556
4,838
-
1,532
15,926
Other plant and equipment1
-
-
-
189
189
Total property, plant and equipment
24,491
16,362
-
1,783
42,636
Balance as at 31 December
Goodwill
2,887
810
-
169
3,866
Contract assets2
-
-
-
757
757
Software2
-
-
-
203
203
Total intangible assets
2,887
810
-
1,129
4,826
Balance as at 31 December
Land and buildings
102
254
-
247
603
Oil and gas properties3
16
1
-
-
17
Other plant and equipment3
123
-
547
1
671
Total lease assets
241
255
547
248
1,291
Additions to exploration and evaluation:
Exploration
-
22
-
-
22
Evaluation
17
60
-
-
77
Restoration4
-
-
-
-
-
17
82
-
-
99
Additions to property, plant and equipment:
Acquisitions through business combination and asset acquisitions5
-
1,367
-
936
2,303
Property, plant and equipment
2,794
1,828
-
381
5,003
Capitalised borrowing costs6
278
120
-
12
410
Restoration4
(137)
(54)
-
(1)
(192)
2,935
3,261
-
1,328
7,524
Additions to intangible assets:
Acquisitions through business combination and asset acquisitions5
-
-
-
941
941
Contract assets2
-
-
-
1
1
Software2
-
-
-
39
39
-
-
-
981
981
Additions to lease assets:
Acquisitions through asset acquisitions5
-
172
-
-
172
Land and buildings
15
-
-
22
37
Oil and gas properties3
-
-
-
-
-
Other plant and equipment3
-
-
111
-
111
15
172
111
22
320
1. Transferred exploration and evaluation and plant and equipment, which were categories in 2023, have been reviewed and presented in new categories in 2024. Transferred exploration and evaluation and
operational plant and equipment have been combined and presented as 'oil and gas properties'. All remaining plant and equipment have been presented as 'other plant and equipment'. The 2023 amounts
have been reclassified to be presented on the same basis.
2. Intangible assets include software and contract assets which were previously presented within other assets (non-current). The 2023 amounts have been reclassified to be presented on the same basis.
3. Plant and equipment, which was a category in 2023, has been reviewed and presented as 'oil and gas properties' and 'other plant and equipment' in 2024. The 2023 amounts have been reclassified to be
presented on the same basis.
4. Relates to changes in restoration provision assumptions.
5. Refer to Note B.5 for details on business combination and Note B.7 for details on asset acquisitions.
6. Borrowing costs capitalised were at a weighted average interest rate of 4.4%.
B.1 SEGMENT PRODUCTION AND GROWTH ASSETS
As at 31 December 2024
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
166 WOODSIDE ENERGY GROUP LTD
B.1 SEGMENT PRODUCTION AND GROWTH ASSETS (CONT.)
As at 31 December 2023
Australia
International
Marketing
New energy/
Corporate
Consolidated
2023
2023
2023
2023
2023
US$m
US$m
US$m
US$m
US$m
Balance as at 31 December
Asia Pacific
568
-
-
-
568
Americas
-
76
-
-
76
Africa
-
24
-
-
24
Total exploration and evaluation
568
100
-
-
668
Balance as at 31 December
Land and buildings
669
32
-
-
701
Oil and gas properties1
16,858
7,310
-
-
24,168
Projects in development
7,825
7,655
-
244
15,724
Other plant and equipment1
-
-
-
198
198
Total property, plant and equipment
25,352
14,997
-
442
40,791
Balance as at 31 December
Goodwill
3,185
810
-
-
3,995
Contract assets2
-
-
-
15
15
Software2
-
-
-
173
173
Total intangible assets
3,185
810
-
188
4,183
Balance as at 31 December
Land and buildings
94
92
-
244
430
Oil and gas properties3
52
55
-
-
107
Other plant and equipment3
144
2
539
8
693
Total lease assets
290
149
539
252
1,230
Additions to exploration and evaluation:
Exploration
29
59
-
-
88
Evaluation
55
108
-
-
163
Restoration4
(5)
-
-
-
(5)
79
167
-
-
246
Additions to property, plant and equipment:
Property, plant and equipment
3,127
2,000
-
190
5,317
Capitalised borrowing costs5
188
123
-
-
311
Restoration4
779
188
-
-
967
4,094
2,311
-
190
6,595
Additions to intangible assets:
Adjustment to BHPP merger purchase price allocation
33
22
-
-
55
Contract assets2
-
-
-
16
16
Software2
-
-
-
118
118
33
22
-
134
189
Additions to lease assets:
Land and buildings
-
-
-
8
8
Oil and gas properties3
-
-
-
-
-
Other plant and equipment3
6
-
114
-
120
6
-
114
8
128
1. Transferred exploration and evaluation and plant and equipment, which were categories in 2023, have been reviewed and presented in new categories in 2024. Transferred exploration and evaluation and
operational plant and equipment have been combined and presented as 'oil and gas properties'. All remaining plant and equipment have been presented as 'other plant and equipment'. The 2023 amounts
have been reclassified to be presented on the same basis.
2. Intangible assets include software and contract assets which were previously presented within other assets (non-current). The 2023 amounts have been reclassified to be presented on the same basis.
3. Plant and equipment, which was a category in 2023, has been reviewed and presented as 'oil and gas properties' and 'other plant and equipment' in 2024. The 2023 amounts have been reclassified to be
presented on the same basis.
4. Relates to changes in restoration provision assumptions.
5. Borrowing costs capitalised were at a weighted average interest rate of 4.0%.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 167
B.2 EXPLORATION AND EVALUATION
Asia Pacific
Americas
Africa
Total
US$m
US$m
US$m
US$m
Year ended 31 December 2024
Carrying amount at 1 January 2024
568
76
24
668
Additions
17
81
1
99
Amortisation of licence acquisition costs
-
(8)
-
(8)
Expensed
(3)
-
(6)
(9)
Transferred exploration and evaluation
(11)
-
(18)
(29)
Carrying amount at 31 December 2024
571
149
1
721
Year ended 31 December 2023
Carrying amount at 1 January 2023
529
240
38
807
Additions
79
161
6
246
Amortisation of licence acquisition costs
-
(2)
(2)
(4)
Expensed
(31)
(28)
(18)
(77)
Transferred exploration and evaluation1
(9)
(295)
-
(304)
Carrying amount at 31 December 2023
568
76
24
668
Exploration commitments
Year ended 31 December 2024
4
-
10
14
Year ended 31 December 2023
3
1
35
39
1. 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 property, plant and
equipment.
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 projects in development within property, plant
and equipment.
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.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
168 WOODSIDE ENERGY GROUP LTD
Land and buildings
Oil and gas
properties1
Projects in
development2
Other plant and
equipment1
Total
US$m
US$m
US$m
US$m
US$m
Year ended 31 December 2024
Carrying amount at 1 January 2024
701
24,168
15,724
198
40,791
Acquisitions through business combination and asset
acquisitions3
92
-
2,211
-
2,303
Additions4
-
(293)
5,514
-
5,221
Disposals at written down value5
(3)
(4)
(1,178)
-
(1,185)
Depreciation and amortisation
(56)
(4,419)
-
(48)
(4,523)
Completions and transfers6
-
6,335
(6,345)
39
29
Carrying amount at 31 December 2024
734
25,787
15,926
189
42,636
At 31 December 2024
Historical cost
1,830
58,303
16,300
533
76,966
Accumulated depreciation and impairment
(1,096)
(32,516)
(374)
(344)
(34,330)
Net carrying amount
734
25,787
15,926
189
42,636
Year ended 31 December 2023
Carrying amount at 1 January 2023
840
23,377
15,541
161
39,919
Additions
-
836
5,759
-
6,595
Disposals at written down value
(8)
(2)
-
-
(10)
Depreciation and amortisation
(67)
(3,844)
-
(45)
(3,956)
Impairment losses7
(64)
(1,048)
(328)
-
(1,440)
Completions and transfers
-
4,855
(4,633)
82
304
Transfer to assets held for sale
-
(6)
(615)
-
(621)
Carrying amount at 31 December 2023
701
24,168
15,724
198
40,791
At 31 December 2023
Historical cost
1,745
51,755
16,443
496
70,439
Accumulated depreciation and impairment
(1,044)
(27,587)
(719)
(298)
(29,648)
Net carrying amount
701
24,168
15,724
198
40,791
This note was previously presented as Oil and Gas Properties and has been renamed to Property, Plant and Equipment.
1. Transferred exploration and evaluation and plant and equipment, which were categories in 2023, have been reviewed and presented in new categories in 2024. Transferred exploration and evaluation and
operational plant and equipment have been combined and presented as 'oil and gas properties'. All remaining plant and equipment have been presented as 'other plant and equipment'. The 2023 amounts
have been reclassified to be presented on the same basis.
2. $1,407 million of the carrying amount as at 31 December 2024 in projects in development relates to new energy assets.
3. Refer to Note B.5 for details on business combination and Note B.7 for details on asset acquisitions. Projects in development include the fair value ascribed to future phases of certain projects acquired
through business combinations.
4. Includes $5,003 million of capital additions and $410 million of capitalised borrowing costs offset by $192 million following changes in restoration provision.
5. Refer to Note B.8 for details on disposal of assets.
6. Upon first oil in June 2024, the carrying value of the Sangomar project has been transferred from projects in development to oil and gas properties.
7. Refer to Note B.4 for details on impairment.
B.3 PROPERTY, PLANT AND EQUIPMENT
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 169
B.3 PROPERTY, PLANT AND EQUIPMENT
(CONT.)
Recognition and measurement
Property, plant and equipment are stated at cost less accumulated
depreciation and impairment charges.
Projects in development include the construction of oil and gas
assets and new energy assets:
• Projects in development for oil and gas assets 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.
• Projects in development for new energy assets include the costs
to acquire, construct, install or complete infrastructure facilities,
capitalised borrowing costs and the estimated cost of dismantling
and restoration.
When commercial production commences, the accumulated costs in
projects in development will be transferred to oil and gas properties
or new energy assets.
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
Property, plant and equipment 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. 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 property, plant and equipment are depreciated
using the straight-line method over their useful life. They are
depreciated as follows:
• Buildings – 24-40 years;
• Other plant and equipment – 5-40 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 $3,841 million
as at 31 December 2024 (2023: $4,245 million). Capital expenditure
commitments relate predominantly to the Scarborough, Trion and
Louisiana LNG projects (2023: Scarborough and Sangomar projects).
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.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
170 WOODSIDE ENERGY GROUP LTD
B.4 IMPAIRMENT OF EXPLORATION AND
EVALUATION, PROPERTY, PLANT AND
EQUIPMENT 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 property, plant and
equipment.
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.
Property, plant and equipment
Impairment testing
The carrying amounts of property, plant and equipment 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 for oil and gas assets,
expected future sales prices or costs.
Property, plant and equipment 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 and new energy
assets.
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 property, plant and equipment 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.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 171
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, PROPERTY, PLANT AND EQUIPMENT
AND GOODWILL (CONT.)
For the year ended 31 December 2024
Goodwill allocation
The acquisition of OCI Ammonia Holding B.V. and its Beaumont New Ammonia Project was completed on 30 September 2024 and accounted
for as a business combination (refer to Note B.5). The purchase consideration represents the fair value of assets and liabilities acquired and
goodwill arose from the business combination totalling $169 million.
The Group performed its annual goodwill impairment test as at 31 December 2024. The carrying amount of goodwill allocated to each CGU,
or groups of CGUs, and excess recoverable amounts are as follows:
Segment
CGU
Goodwill carrying amount
Excess of recoverable amount
over CGU carrying amount1
US$m
US$m
Australia
Pluto-Scarborough2
2,445
4,514
Australia
NWS Gas
442
1,612
International
Atlantis
522
98
New energy/Corporate
Beaumont New Ammonia3
169
-
International
Other goodwill
288
879
Total
3,866
1. Amounts are with reference to the total CGU value including goodwill.
2. A portion of the goodwill allocated to Pluto-Scarborough was disposed of due to the sell-down to LNG Japan and JERA (refer to Note B.8).
3. Represents goodwill acquired through business combination. Refer to Note B.5 for further details.
Other goodwill of $288 million (2023: $288 million) has been allocated across a number of CGUs within the International segment.
This represents less than 1% of net assets as at 31 December 2024.
Impairment and impairment reversals
No impairment or impairment reversal was recognised in the current year.
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 for CGUs with goodwill
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% (representing a change of 100 basis points)
• Commodity pricing – plus or minus 10%
• Foreign exchange (FX) rate – plus or minus 10%
• Production volumes – plus or minus 4%
The valuations 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:
CGU
Decrease in commodity price1
Increase in post-tax discount rate
% change
(absolute terms)
Pluto-Scarborough
N/A²
N/A²
NWS Gas
N/A²
N/A²
Atlantis
(1.5%)
0.5%
1. Brent price applies to Pluto-Scarborough and NWS Gas. WTI price (Brent – $4/bbl) applies to Atlantis.
2. Management considers there to be no reasonably possible change in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.
A change in any of the above assumptions would have an impact on other assumptions which when considered together may offset. This
does not incorporate decisions management may take in order to mitigate the change in assumptions. Management considers there to be no
reasonably possible changes in production volumes or foreign exchange rates that would, in isolation, result in the estimated recoverable
amount being equal to the carrying amount. Analysis of key assumptions which could result in the carrying value to equal the recoverable
value provides a basis to assess the magnitude of a reasonably possible change to the carrying amounts of respective CGUs.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
172 WOODSIDE ENERGY GROUP LTD
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, PROPERTY, PLANT AND EQUIPMENT
AND GOODWILL (CONT.)
For the year ended 31 December 2023
Goodwill allocation
The Group performed its annual goodwill impairment test as at 31 December 2023.
The carrying amount of goodwill allocated to each CGU, or groups of CGUs, and excess recoverable amounts were as follows:
Segment
CGU
Goodwill carrying amount
Excess of recoverable amount
over CGU carrying amount1
US$m
US$m
Australia
Pluto-Scarborough2
2,743
3,051
Australia
NWS Gas
442
784
International
Atlantis
522
338
International
Other goodwill
288
1,176
Total
3,995
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: $283 million) has been allocated across a number of CGUs within the International segment.
This represents less than 1% of net assets as at 31 December 2023.
Recognised impairment and impairment reversals
As at 31 December 2023, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment reversal
existed. The Group identified the following indicators of impairment on CGUs where an impairment loss has been recognised:
CGU
Description
Indicator of impairment
Pyrenees
Oil asset consisting of a floating production storage and offloading (FPSO)
facility off the north-west coast of Western Australia.
Reduction in future production volumes, reflecting a lower-than-expected
outcome of drilling activities.
Shenzi
Conventional oil and gas field developed through a tension leg platform
(TLP) located in the United States.
Reduction in future production volumes, reflecting lower-than-expected
performance of infill sidetracks and performance of the Shenzi North
development following start-up.
Wheatstone
LNG processing facility in Western Australia, comprising an offshore
production platform and two onshore LNG processing trains, a domestic
gas plant and associated infrastructure.
Updated short-term price assumptions (in particular the Japan/Korea
Marker (JKM)).
An impairment was recognised in the profit and loss, refer to Note A.1. The results were as follows:
Impairment loss
Intangible
assets
Property, plant and equipment
Recoverable
amount
Goodwill
Land and
buildings
Oil and gas
properties1
Projects in
development
Other plant and
equipment1
Total
Segment
CGU
US$m
US$m
US$m
US$m
US$m
US$m
US$m
Australia
Pyrenees
159
-
-
68
-
-
68
Australia
Wheatstone
2,418
-
64
391
11
-
466
International Shenzi
1,862
477
-
589
317
-
1,383
1. Transferred exploration and evaluation and plant and equipment, which were categories in 2023, have been reviewed and presented in new categories in 2024. Transferred exploration and evaluation and
operational plant and equipment have been combined and presented as 'oil and gas properties'. All remaining plant and equipment have been presented as 'other plant and equipment'. The 2023 amounts
have been reclassified to be presented on the same basis.
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.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 173
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, PROPERTY, PLANT AND EQUIPMENT
AND GOODWILL (CONT.)
For the year ended 31 December 2023 (cont.)
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% (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
Discount rate
increase³
Discount rate
decrease³
Commodity price
increase³
Commodity price
decrease³
FX increase³
FX decrease³
Production
increase³
Production
decrease³
Shenzi
(67)
71
359
(359)
N/A
N/A
47
(46)
Wheatstone
(88)
94
431
(370)
(36)
87
90
(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:
CGU
Decrease in commodity price1
Post-tax discount rate
% change
(absolute terms)
Pluto-Scarborough
N/A²
N/A²
NWS Gas
N/A²
N/A²
Atlantis
(5%)
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.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
174 WOODSIDE ENERGY GROUP LTD
B.4 IMPAIRMENT OF EXPLORATION AND EVALUATION, PROPERTY, PLANT AND EQUIPMENT
AND GOODWILL (CONT.)
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
Judgement is required in the allocation of goodwill from the acquisition
of BHP Petroleum International Ltd to the Group’s CGUs that are
expected to benefit from the synergies of the business combination.
(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 2024 and 31 December 2023 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 2024
and 31 December 2023 Annual Reports.
• Inflation rate – an inflation rate of 2.0% (2023: 2.0%) has been applied
for US based assets and 2.3% (2023: 2.5%) for Australian based
assets.
• Foreign exchange rates – a rate of $0.75 (2023: $0.75) US$:AU$ is
based on management’s view of long-term exchange rates.
• Discount rates – a range of post-tax discount rates between
8.5% and 9.5% (2023: 8.5% and 10.5%) 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 (2024 real terms)
of emissions (2023: US$80/tonne (2022 real terms)) is based on
management’s assumptions on carbon cost pricing and incorporates
an evaluation of climate risk. This is applicable to Australian
emissions that exceed facility-specific baselines in accordance with
Australian regulations, as well as global emissions that exceed
voluntary corporate net emissions targets. Woodside continues to
monitor the uncertainty around climate change risks and will revise
carbon pricing assumptions accordingly. Refer to the Climate change
and energy transition section within the basis of preparation for
further information.
• LNG price – the majority of LNG sales contracts are linked to an oil
price marker and therefore dependent on oil price assumptions. LNG
sold into spot markets is typically based on a gas-hub linked price
(for example the Title Transfer Facility (TTF) or JKM) and therefore
these pricing assumptions are also of relevance in forecasting future
revenues.
• Brent oil prices – derived from long-term views of global supply
and demand, building upon past experience of the industry and
consistent with external sources. Prices are adjusted for premiums
and discounts based on the nature and quality of the product. Brent
oil price estimates have considered the risk of climate policies along
with other factors such as industry investment and cost trends.
There is significant uncertainty around how society will respond
to the climate challenge; Woodside’s pricing assumptions reflect
a ‘best estimate’ scenario in which global governments pursue
decarbonisation goals as well as other goals such as energy security
and economic development. As with carbon pricing, Woodside
continues to monitor this uncertainty and will revise its oil pricing
assumptions accordingly in its transition to a lower carbon economy.
Further information on climate change risk is provided in the Climate
change and energy transition section within the basis of preparation.
The nominal Brent oil prices (US$/bbl) used for the year ended 31
December 2024 were:
2025
2026
2027
2028
2029
2030
31 December 20241
80
82
83
84
86
88
31 December 20232
80
76
77
79
80
82
1. Long-term oil prices are based on US$78/bbl (2024 real terms) from 2027 and prices are
escalated at 2.0% onwards.
2. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2026 and prices are
escalated at 2.0% onwards.
The nominal Brent oil prices (US$/bbl) used for the year ended
31 December 2023 were:
2024
2025
2026
2027
2028
2029
31 December 20233
82
80
76
77
79
80
31 December 20224
78
74
76
77
79
80
3. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2026 and prices are
escalated at 2.0% onwards.
4. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2025 and prices are
escalated at 2.0% onwards.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 175
B.5 BUSINESS COMBINATION
Acquisition of OCI Clean Ammonia Holding B.V.
On 5 August 2024, Woodside entered into a binding agreement
to acquire 100% of OCI Clean Ammonia Holding B.V. (OCI) and its
Beaumont New Ammonia Project for an all-cash consideration of
$2,350 million. The project is under construction and is subject to
cost, schedule and performance guarantees from OCI N.V.
The transaction was completed on 30 September 2024 and
accounted for as a business combination. The Group’s net profit
after tax for the year ended 31 December 2024 incorporates OCI’s
results from acquisition date. The all-cash consideration of
$2,350 million is inclusive of capital expenditure through completion
of phase 1 of the project, with 80% paid and the remaining 20%
to be paid at project completion subject to cost, schedule and
performance guarantees. The acquisition will position the Group
as an early mover in the growing lower carbon ammonia market.
Due to the size, complexity and timing of the transaction, the related
acquisition accounting is not yet finalised and accordingly the assets
acquired and liabilities assumed are measured on a provisional
basis. If new information is obtained within 12 months from the
acquisition date about facts and circumstances that existed at
the acquisition date, adjustments will be made to the provisional
amounts recognised including the value of goodwill.
Details of the purchase consideration and the provisional fair value
of goodwill, identifiable assets and liabilities of OCI acquired are as
follows:
Provisional fair value of net identifiable assets and goodwill
arising on acquisition date
US$m
Cash and cash equivalents
4
Receivables
720
Property, plant and equipment
936
Intangible assets
766
Other assets
2
Payables
(43)
Deferred tax liabilities
(168)
Provisions
(16)
Provisional fair value of net identifiable assets acquired
2,201
Goodwill arising on acquisition
169
Total purchase consideration1
2,370
1. Total purchase consideration includes $20 million of working capital adjustment.
Purchase consideration
US$m
Cash payment
1,900
Contingent consideration2
470
Total purchase consideration
2,370
2. Contingent consideration relating to the remaining 20% of the consideration to be paid to OCI N.V.
at project completion.
Analysis of cash flows on acquisition
US$m
Cash payment
(1,900)
Cash and cash equivalents acquired
4
Net cash flow on acquisition
(1,896)
Acquisition-related costs of $2 million have been included as
an expense in general, administration and other costs in the
consolidated income statement.
Revenue and contribution to the Group
The acquired business contributed a loss before tax of $8 million
to the Group from the acquisition date to 31 December 2024. If the
acquisition had occurred on 1 January 2024, consolidated profit
before tax would have been lower by $21 million.
The acquired business did not recognise any operating revenue
prior to or after the acquisition date.
Receivables
The fair value of receivables includes $715 million of expected
reimbursements from OCI N.V. for forecast capital expenditure. The
full reimbursement is expected to be collected prior to the payment
of the contingent consideration. $155 million has subsequently been
received between acquisition date and 31 December 2024.
Intangible assets
$766 million of intangible assets were recognised on acquisition as
a result of identified contract assets. Refer to Note B.6 Intangible
assets for details.
Goodwill
The goodwill of $169 million arises from the net deferred tax liability
recognised on acquisition as a consequence of asset tax bases
received being lower than the fair value of the assets acquired.
The goodwill is not deductible for tax purposes.
Business combination accounting
The Group accounts for business combinations using the acquisition
method when the acquired set of activities and assets meets the
definition of a business and control is transferred to the Group.
In determining whether a particular set of activities and assets
is a business, the Group assesses whether the set of assets and
activities acquired includes, at a minimum, an input and substantive
process and whether the acquired set has the ability to produce
outputs.
The consideration transferred in the acquisition is generally
measured at fair value, as are the identifiable net assets acquired.
Transaction costs are expensed as incurred, except if related to the
issue of debt or equity securities.
Contingent consideration is measured at fair value at the date
of acquisition and subsequent changes in the fair value of the
contingent consideration are recognised in profit or loss.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
176 WOODSIDE ENERGY GROUP LTD
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
B.5 BUSINESS COMBINATION (CONT.)
Key estimates and judgements
(a) Nature of acquisition
Judgement is required to determine if the acquisition is a business
combination due to the stage of completion of the project and the
timing of transfer of employees.
The project is under construction, with agreements in place to
complete construction and transfer a fully operational asset
together with a workforce to the Group in 2025. The agreements are
in place at acquisition date and provide Woodside with control over
the future economic benefits of the project, and the necessary inputs
and processes to create outputs, meeting the definition of a business
combination.
(b) 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 and the
discount rate used.
On acquisition date, the reproduction cost method was used to fair
value the property, plant and equipment in its construction phase.
The reproduction cost method calculates the cost to construct an
equivalent asset with the same specifications.
(c) Contingent consideration
Judgement is required to determine the fair value of the contingent
consideration which includes consideration on the construction
progress, estimates to complete compared to the schedule and
performance guarantees.
2024 ANNUAL REPORT 177
B.6 INTANGIBLE ASSETS
Goodwill
Contract Assets1
Software1
Total
US$m
US$m
US$m
US$m
Year ended 31 December 2024
Carrying amount at 1 January 2024
3,995
15
173
4,183
Acquisitions through business combination and asset acquisitions2
169
766
6
941
Additions
-
1
39
40
Amortisation
-
(25)
(15)
(40)
Goodwill disposed3
(298)
-
-
(298)
Carrying amount at 31 December 2024
3,866
757
203
4,826
At 31 December 2024
Cost
4,343
784
218
5,345
Accumulated impairment/amortisation
(477)
(27)
(15)
(519)
Net carrying amount
3,866
757
203
4,826
Year ended 31 December 2023
Carrying amount at 1 January 2023
4,614
1
55
4,670
Adjustment to BHPP merger purchase price allocation
55
-
-
55
Additions
-
16
118
134
Amortisation
-
(2)
-
(2)
Impairment losses4
(477)
-
-
(477)
Transfer to assets held for sale
(197)
-
-
(197)
Carrying amount at 31 December 2023
3,995
15
173
4,183
At 31 December 2023
Cost
4,472
17
173
4,662
Accumulated impairment/amortisation
(477)
(2)
-
(479)
Net carrying amount
3,995
15
173
4,183
1. Intangible assets include software and contract assets which were previously presented within other assets (non-current). The 2023 amounts have been reclassified to be presented on the same basis.
2. Refer to Note B.5 for details on business combination and Note B.7 for details on asset acquisitions.
3. Refer to Note B.8 for details of the sell-down of the Scarborough Joint Venture.
4. Refer to Note B.4 for details on impairment.
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.
The contract assets were acquired as part of a business combination and represent the difference in contract pricing and market prices,
adjusted for time value of money. The contracts are recognised at fair value at the acquisition date and are subsequently amortised over
6 months to 17 years.
Software is recognised at historical cost less accumulated amortisation and impairment. All software costs are amortised over the useful
life of 5-15 years on a straight-line basis.
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) Contract assets
In determining the fair value of the contract assets as part of a business combination, estimates are made regarding the pricing assumptions and
discount rate. These estimates require management judgement and changes in economic conditions can impact the fair value assessment of the
contracts.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
178 WOODSIDE ENERGY GROUP LTD
B.7 SIGNIFICANT PRODUCTION AND GROWTH ASSET ACQUISITIONS
(a) Acquisition of Tellurian Inc.
On 22 July 2024, the Group entered into a definitive agreement to
acquire all the issued and outstanding common stock of Tellurian
Inc. (subsequently renamed Woodside Energy (LA) Holdings Inc.),
including its owned and operated Louisiana LNG development
opportunity for a cash payment for shares of $876 million.
As part of the agreement, the Group provided a loan facility of
$230 million to Tellurian Inc. to ensure site activity maintained
momentum prior to the completion of the transaction. At acquisition
date, $146 million had been called.
The transaction was completed on 8 October 2024 and accounted
for as an asset acquisition.
Assets acquired and liabilities assumed
The assets and liabilities acquired as at the date of acquisition
inclusive of transaction costs are:
US$m
Cash and cash equivalents
24
Receivables
32
Other financial assets
6
Property, plant and equipment
1,367
Intangible assets
6
Lease assets
172
Other assets
62
Payables
(46)
Other financial liabilities
(56)
Provisions
(152)
Tax payable
(2)
Lease liabilities
(178)
Interest-bearing liabilities
(169)
Fair value of net identifiable assets on acquisition
1,066
Acquisition cost
US$m
Cash paid for shares
876
Loan facility
146
Payments for employee related awards
32
Transaction costs
12
Total acquisition cost
1,066
Analysis of cash flows on acquisition
US$m
Acquisition cost
(1,066)
Cash and cash equivalent acquired
24
Net cash flow on aquisition
(1,042)
Asset acquisition accounting
Purchase consideration, including capitalised transaction cost, has
been allocated against identifiable assets and liabilities acquired on
the following basis:
• Assets and liabilities initially measured at an amount other than
cost, are measured by the Group at the amounts specified in
the applicable accounting standards. Assets and liabilities in
this category include financial assets and financial liabilities
recognised initially at fair value, lease assets and liabilities
measured in accordance with the accounting standard for leases,
and employee benefit liabilities measured in accordance with the
accounting standard for employee benefits.
• The residual transaction price is allocated to the remaining
identifiable assets and liabilities based on their relative fair
values at the date of the acquisition.
Key estimates and judgements
(a) Nature of acquisition
Judgement is required to determine if the transaction is the
acquisition of an asset or a business combination.
The Louisiana LNG project is in its preliminary phase with significant
construction milestones and costs to be incurred prior to the facility
being operational and the acquired assets and liabilities did not
meet the criteria for a business combination due to the absence of
a substantive process and organised workforce required to convert
inputs to outputs.
(b) Employee compensation program
As part of the acquisition, the Group has assumed the obligation of
Tellurian’s compensation programs to its employees. Judgement is
required to determine the measurement of the employee provision
on acquisition as certain conditions in the compensation programs
are linked to future milestones of the Louisiana LNG project. This
includes determining the likelihood and timing of the milestones.
(b) Sale and purchase agreements with Chevron
On 19 December 2024, the Group entered into sale and purchase
agreements with Chevron Australia Pty Ltd (Chevron) to acquire
Chevron’s 16.67% interest in the North West Shelf (NWS) project
and the NWS Oil project and 20% interest in the Angel Carbon
Capture and Storage (CCS) project, and to transfer its 13% non-
operated interest in the Wheatstone project and 65% operated
interest in the Julimar-Brunello project.
Completion of the transaction is subject to the completion of Julimar
Phase 3 project execution and handover and other customary
conditions precedent.
As part of the transaction, Chevron will make a cash payment to
Woodside of up to $400 million which comprises a cash payment
of $300 million at completion, and additional contingent payments
of up to $100 million in aggregate. At completion, there will be
customary adjustments for net working capital and interim period
cash flows.
As at 31 December 2024, the Group has received $100 million
of advance payment from Chevron. The advance payment is
refundable to Chevron if the transaction fails to complete.
The transaction is expected to complete in 2026, with an effective
date of 1 January 2024.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
2024 ANNUAL REPORT 179
B.8 DISPOSAL OF ASSETS
(a) Sell-down of Scarborough Joint Venture to LNG Japan
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 reclassified $823 million
of assets, being the carrying value of the 10% interest in the
Scarborough Joint Venture, to assets held for sale. Liabilities of
$94 million were reclassified to liabilities directly associated with
assets held for sale.
The transaction completed on 26 March 2024, reducing the Group’s
participating interest from 100% to 90%. Proceeds from the sale
were $910 million, including capital reimbursements and escalation.
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. For the year ended 31 December 2024,
the Group recognised a pre-tax gain on sale of $121 million.
(b) Sell-down of Scarborough Joint Venture to JERA
On 23 February 2024, the Group entered into a sale and purchase
agreement with JERA for the sale of a 15.1% non-operating
participating interest in the Scarborough Joint Venture.
As at 30 June 2024, the Group reclassified $1,378 million of assets,
being the carrying value of the 15.1% interest in the Scarborough
Joint Venture within the Australia segment, to assets held for sale.
Liabilities of $119 million were reclassified to liabilities directly
associated with assets held for sale. No impairment of assets
occurred on reclassification to held for sale.
The transaction completed on 31 October 2024, reducing the Group’s
participating interest from 90% to 74.9%. Proceeds from the sale
were $1,425 million which includes the reimbursement from JERA
for its share of expenditure for the Scarborough project from the
effective date of 1 January 2022. For the year ended 31 December
2024, the Group recognised a pre-tax gain on sale of $88 million.
Notes to the financial statements for the year ended 31 December 2024
B. Production and growth assets
180 WOODSIDE ENERGY GROUP LTD
Notes to the financial statements for the year ended 31 December 2024
C. Debt and capital
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
Page 182
C.2 Interest-bearing liabilities and financing facilities
Page 182
C.3 Contributed equity
Page 184
C.4 Other reserves
Page 184
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 2024, the Group had a total of $6,723 million (2023: $7,790 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 $3,923 million (2023: $1,605 million) on cash and cash equivalents and $3,150 million (2023: nil) on interest-bearing liabilities
(excluding transaction costs).
A reasonably possible change in the Secured Overnight Financing Rate (SOFR) (+2.0%/-2.0% (2023: +2.0%/-2.0%)), with all variables held
constant, would not have a material impact on the Group’s equity or the income statement in the current period.
2024 ANNUAL REPORT 181
C.1 CASH AND CASH EQUIVALENTS
2024
2023
US$m
US$m
Cash and cash equivalents
Cash at bank
1,603
1,198
Term deposits
2,320
542
Total cash and cash equivalents
3,923
1,740
Recognition and measurement
Cash and cash equivalents in the consolidated statement of
financial position comprise cash at bank and short-term deposits
with an original maturity of three months or less. Cash and cash
equivalents are stated at face value in the consolidated statement of
financial position. There are no cash and cash equivalents (2023: nil)
restricted by legal or contractual arrangements.
Foreign exchange risk
The following table summarises the Group’s cash and cash
equivalents by currency.
2024
2023
US$m
US$m
US dollar
3,617
1,480
Australian dollar
173
112
Other
133
148
Total cash and cash equivalents
3,923
1,740
C.2 INTEREST-BEARING LIABILITIES AND FINANCING FACILITIES
Liquidity
Facilities
Bilateral
Facilities
Syndicated
Facilities
JBIC Facility
US Bonds
Medium Term
Notes
Other
Total
US$m
US$m
US$m
US$m
US$m
US$m
US$m
US$m
Year ended 31 December 2024
At 1 January 2024
(1)
(6)
594
-
4,087
200
-
4,874
Debt acquired through asset acquisitions1
-
-
-
-
-
-
169
169
Repayments1,2
-
-
-
-
-
-
(169)
(169)
Drawdowns2
-
500
1,650
1,000
2,000
-
-
5,150
Transaction costs capitalised and amortised
1
1
(11)
-
(18)
-
-
(27)
Carrying amount at 31 December 2024
-
495
2,233
1,000
6,069
200
-
9,997
Current
-
(2)
(4)
-
996
-
-
990
Non-current
-
497
2,237
1,000
5,073
200
-
9,007
Carrying amount at 31 December 2024
-
495
2,233
1,000
6,069
200
-
9,997
Undrawn balance at 31 December 2024
-
1,600
1,200
-
-
-
-
2,800
Year ended 31 December 2023
At 1 January 2023
-
(5)
591
83
4,084
385
-
5,138
Repayments2
-
-
-
(83)
-
(201)
-
(284)
Fair value adjustment and foreign exchange
movement
-
-
-
-
-
16
-
16
Transaction costs capitalised and amortised
(1)
(1)
3
-
3
-
-
4
Carrying amount at 31 December 2023
(1)
(6)
594
-
4,087
200
-
4,874
Current3
(1)
(2)
(3)
-
(3)
-
-
(9)
Non-current
-
(4)
597
-
4,090
200
-
4,883
Carrying amount at 31 December 2023
(1)
(6)
594
-
4,087
200
-
4,874
Undrawn balance at 31 December 2023
1,800
2,250
2,000
-
-
-
-
6,050
1. Refer to Note B.7 for details on asset acquisitions. The debt acquired through asset acquisitions was repaid during the year.
2. Included in cash flows classified within financing activities in the consolidated statement of cash flows.
3. The balance relates to capitalised costs amortised within 12 months. This balance was reclassified to other assets (current) for presentation on the consolidated 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.
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.
Notes to the financial statements for the year ended 31 December 2024
C. Debt and capital
182 WOODSIDE ENERGY GROUP LTD
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 $6,069 million (2023: $4,087 million) and a fair value of
$5,879 million (2023: $3,936 million). The medium term notes have a
carrying amount of $200 million (2023: $200 million) and a fair value
of $191 million (2023: $188 million). Fair value is calculated based
on the present value of future principal and interest cash flows,
discounted at the market rate of interest at the reporting date and
classified as Level 1 on the fair value hierarchy. Where these cash
flows are in a foreign currency, the present value is converted to US
dollars at the foreign exchange spot rate prevailing at the reporting
date. The Group’s repayment obligations remain unchanged.
Foreign exchange risk
All interest-bearing liabilities are denominated in US dollars.
Maturity profile of interest-bearing liabilities
The table below presents the contractual undiscounted cash flows
associated with the Group’s interest-bearing liabilities, representing
principal and interest. The figures will not necessarily reconcile with
the amounts disclosed in the consolidated statement of financial
position.
2024
2023
US$m
US$m
Due for payment in:
1 year or less
1,480
212
1-2 years
1,747
1,181
2-3 years
1,262
962
3-4 years
1,325
907
4-5 years
1,965
883
More than 5 years
5,815
1,534
13,594
5,679
Amounts exclude transaction costs.
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.
In July 2024, the Group cancelled liquidity facilities totalling
$1,450 million. The remaining $350 million liquidity facilities were
cancelled in September 2024.
Bilateral facilities
The Group has 13 bilateral loan facilities totalling $2,100 million
(2023: 15 bilateral loan facilities totalling $2,250 million). Details
of bilateral loan facilities at the reporting date are as follows:
Number of facilities
Term (years)
Currency
Extension option
1
5-6
US$
Evergreen
4
4-5
US$
Evergreen
4
3-4
US$
Evergreen
4
3 years or less
US$
Evergreen
Interest rates are based on SOFR plus 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.
In January 2024, the Group drew down on two bilateral facilities,
totalling $500 million.
Syndicated facility
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. The facility was
fully drawn in 2020.
In 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 20 June 2024, the Group entered into a $450 million syndicated
term loan facility with a tenor of 10 years. Interest is based on daily
SOFR plus CAS and margin. The facility was fully drawn in
June 2024.
On 19 September 2024, the Group entered into a $1,200 million
syndicated term loan facility with a tenor of 7 years. Interest is
based on daily SOFR and margin. The facility was fully drawn in
September 2024. In conjunction with the execution of the new term
loan facility, the Group cancelled $800 million of the syndicated
facility which was due to expire on 11 October 2024.
Japan Bank for International Cooperation (JBIC) facility
On 30 May 2024, the Group entered into a $1,000 million loan facility
with JBIC with a term of 10 years, to support the funding of the
Scarborough Energy Project. Interest is based on daily SOFR plus
margin. The facility was fully drawn in July 2024.
Medium term notes
On 28 August 2015, the Group established a $3,000 million Global
Medium Term Notes Programme listed on the Singapore Stock
Exchange. One note is currently issued under this programme as
set out below:
Maturity date
Currency
Carrying amount
(million)
Nominal interest
rate
29 January 2027
US$
200
3.07%
The unutilised program is not considered to be an unused facility.
US bonds
The Group has four series of unsecured bonds issued in reliance
on Rule 144A of the US Securities Act of 1933 and two series
of unsecured bonds issued in accordance with the registration
requirements of the US Securities Act of 1933 (SEC-registered
bonds) as set out below:
Maturity date
Carrying amount
US$m
Nominal interest
rate
Bond type
5 March 2025
1,000
3.65%
144A
15 September 2026
800
3.70%
144A
15 March 2028
800
3.70%
144A
4 March 2029
1,500
4.50%
144A
12 September 2034
1,250
5.10%
SEC-registered
12 September 2054
750
5.70%
SEC-registered
Interest on the bonds is payable semi-annually in arrears.
Notes to the financial statements for the year ended 31 December 2024
C. Debt and capital
2024 ANNUAL REPORT 183
C.3 CONTRIBUTED EQUITY
Recognition and measurement
Issued capital
Ordinary shares are classified as equity and recorded at the value of
consideration received. The cost of issuing shares is shown in share
capital as a deduction, net of tax, from the proceeds.
Reserved shares
Reserved shares are the Group’s own equity instruments, which
are used in employee share-based payment arrangements or the
Dividend Reinvestment Plan (DRP). The DRP was suspended on 27
February 2023. These shares are deducted from equity. No gain or
loss is recognised in the income statement on the purchase, sale,
issue or cancellation of the Group’s own equity instruments.
(a) Issued and fully paid shares
Number of shares
US$m
Year ended 31 December 2024
Opening balance
1,898,749,771
29,001
Amounts as at 31 December 2024
1,898,749,771
29,001
Year ended 31 December 2023
Opening balance
1,898,749,771
29,001
Amounts as at 31 December 2023
1,898,749,771
29,001
Year ended 31 December 2022
Opening balance
969,631,826
9,409
DRP – ordinary shares issued at
US$23.14 (2021 final dividend)1
14,348,997
332
Ordinary shares issued at US$21.06 for
the acquisition of BHPP2
914,768,948
19,265
Transaction costs associated to the
issue of shares
-
(5)
Amounts as at 31 December 2022
1,898,749,771
29,001
1. Relates to ordinary shares issued for the DRP as part of the 2021 final dividend. The Group
purchased on-market shares for the issuance of DRP as part of the 2022 interim dividend.
Refer to Note C.3(b) for details of the on-market purchases and allocation.
2. 914,768,948 new Woodside shares were issued as consideration for the BHPP merger.
All shares are a single class with equal rights to dividends, capital,
distributions and voting. Woodside does not have authorised capital
nor par value in relation to its issued shares.
(b) Reserved shares
Employee share plans
Dividend
reinvestment plan
Number of
shares
US$m
Number of
shares
US$m
Year ended 31 December 2024
Opening balance
2,140,927
(49)
-
-
Purchases during the year
4,293,699
(81)
-
-
Vested/allocated during the year
(3,353,784)
72
-
-
Amounts at 31 December 2024
3,080,842
(58)
-
-
Year ended 31 December 2023
Opening balance
1,873,777
(38)
-
-
Purchases during the year
2,332,121
(57)
-
-
Vested/allocated during the year
(2,064,971)
46
-
-
Amounts at 31 December 2023
2,140,927
(49)
-
-
Year ended 31 December 2022
Opening balance
1,819,744
(30)
-
-
Purchases during the year
2,232,589
(45)
6,823,092
(144)
Vested during the year
(2,178,556)
37
(6,823,092)
144
Amounts at 31 December 2022
1,873,777
(38)
-
-
C.4 OTHER RESERVES
2024
2023
2022
US$m
US$m
US$m
Other reserves
Employee benefits reserve
281
290
278
Foreign currency translation reserve
795
795
796
Hedging reserve
1
88
(586)
Distributable profits reserve1
3,069
4,118
3,541
Other reserves
(38)
(30)
2
4,108
5,261
4,031
1. For the year ended 31 December 2024, the Group transferred $1,400 million of retained earnings
to the distributable profits reserve. The increase was offset by the 2023 final and 2024 interim
dividend payments of $2,449 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.
Notes to the financial statements for the year ended 31 December 2024
C. Debt and capital
184 WOODSIDE ENERGY GROUP LTD
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
Page 186
D.2 Receivables
Page 186
D.3 Inventories
Page 186
D.4 Payables
Page 187
D.5 Provisions
Page 187
D.6 Other financial assets and liabilities
Page 189
D.7 Leases
Page 191
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 2024, the Group had 23 customers (2023: 19 customers) that owed the Group more than $10 million each and accounted for
approximately 88% (2023: 82%) 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 2024, the Group had a provision for credit losses of nil (2023: nil). Subsequent to 31 December 2024, 96% (2023: 97%) of
product-related trade receivables balance of $972 million (2023: $885 million) has been received.
Credit risk from balances with banks is managed by the Treasury function in accordance with the Group’s policy. The Group
places funds from time to time as short-term deposits with reputable financial institutions with investment grade credit ratings. At 31
December 2024 and 31 December 2023, there were no significant concentrations of credit risk within the Group and financial instruments
are spread amongst a number of financial institutions to minimise the risk of counterparty default. The maximum exposure to financial
institution credit risk is represented by the sum of all cash deposits plus accrued interest, bank account balances and fair value of derivative
assets. The Group’s counterparty credit policy limits this exposure to commercial and investment banks, according to approved credit limits
based on the counterparty’s credit rating.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
2024 ANNUAL REPORT 185
D.1 SEGMENT ASSETS AND LIABILITIES
2024
2023
US$m
US$m
(a) Segment assets
Australia
29,678
31,602
International
19,556
17,923
Marketing
754
835
New energy/Corporate
11,276
5,001
61,264
55,361
2024
2023
US$m
US$m
(b) Segment liabilities
Australia
6,953
7,833
International
2,616
2,624
Marketing
1,115
751
New energy/Corporate
14,427
8,983
25,111
20,191
Refer to Note A.1 for descriptions of the Group’s segments. New
energy/Corporate assets mainly comprise cash and cash equivalents,
deferred tax assets, new energy assets in development and lease
assets. New energy/Corporate liabilities mainly comprise interest-
bearing liabilities, deferred tax liabilities and lease liabilities.
Segment assets include non-current assets¹ of $29,466 million (2023
$30,432 million) in Australia, $13,847 million (2023: $10,967 million)
in USA, $5,268 million (2023: $5,295 million) in Senegal, $1,357
million (2023: $567 million) in Mexico, $1,370 million (2023: $1,265
million) in other locations.
1. Excluding deferred tax assets of $2,393 million (2023: $1,717 million).
D.2 RECEIVABLES
2024
2023
US$m
US$m
(a) Receivables (current)
Trade receivables1
972
963
Other receivables1,2
1,270
456
Loans receivable
133
73
Lease receivables
9
24
Interest receivable
6
1
2,390
1,517
(b) Receivables (non-current)
Other receivables
51
21
Loans receivable
776
771
Lease receivables
49
47
876
839
1. Interest-free and settlement terms are usually between 14 and 30 days.
2. $560 million of the carrying amount as at 31 December 2024 relates to expected reimbursements
from OCI N.V. for forecast capital expenditure. Refer to Note B.5 for details.
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 8 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 (2023: nil).
Fair value
The carrying amount of trade and other receivables approximates
their fair value.
Foreign exchange risk
The Group held $479 million of receivables at 31 December
2024 (2023: $305 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 $464 million at 31
December 2024 (2023: $435 million), which approximates its fair
value. The remaining balance of loans receivable is due from non-
controlling interests.
D.3 INVENTORIES
2024
2023
US$m
US$m
(a) Inventories (current)
Petroleum products
Goods in transit
85
41
Finished stocks
135
93
Warehouse stores and materials
457
476
Carbon credits
7
6
684
616
(b) Inventories (non-current)
Warehouse stores and materials
18
3
Carbon credits
195
117
213
120
Recognition and measurement
Inventories include hydrocarbon stocks, consumable supplies,
maintenance spares and carbon credits expected to be utilised to
offset future emissions. Inventories are valued at the lower of cost
and net realisable value. Cost is determined on a weighted average
basis and includes direct costs and an appropriate portion of fixed
and variable production overheads where applicable. Inventories
determined to be obsolete or damaged are written down to net
realisable value, being the estimated selling price less selling costs.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
186 WOODSIDE ENERGY GROUP LTD
D.4 PAYABLES
2024
2023
US$m
US$m
Trade and other payables1
2,075
1,655
Interest payable2
110
69
2,185
1,724
1. Interest-free and normally settled on 30 day terms.
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 $140 million of payables at 31 December 2024
(2023: $534 million) in currencies other than US dollars
(predominantly Australian dollars).
Maturity profile of payables
The Group’s payables balances at 31 December 2024 and
31 December 2023 are due for payment within 12 months.
D.5 PROVISIONS
Restoration1
Employee benefits
Other
Total
US$m
US$m
US$m
US$m
Year ended 31 December 2024
At 1 January 2024
7,154
522
281
7,957
Acquisitions through business combination and asset acquisitions2
16
104
48
168
Change in provision
(936)
28
37
(871)
Unwinding of present value discount
292
-
1
293
Carrying amount at 31 December 2024
6,526
654
367
7,547
Current
753
402
167
1,322
Non-current
5,773
252
200
6,225
Net carrying amount
6,526
654
367
7,547
Year ended 31 December 2023
At 1 January 2023
6,253
517
409
7,179
Change in provision
664
5
(128)
541
Unwinding of present value discount
237
-
-
237
Carrying amount at 31 December 2023
7,154
522
281
7,957
Current
1,011
351
144
1,506
Non-current
6,143
171
137
6,451
Net carrying amount
7,154
522
281
7,957
1. 2024 change in provision is due to provisions used of $887 million, changes in macroeconomic factors increasing the provisions by $647 million, offset by changes in estimates of $598 million.
Changes in estimates are due to new activities, revisions to cost and removal scope assumptions and rate changes supported by most recent estimates and benchmarks.
2. Refer to Note B.5 for details of business combination and Note B.7 for details of asset acquisitions.
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.
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 property, plant and equipment
or expensed for late life projects with no corresponding asset.
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 property, plant and equipment 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.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
2024 ANNUAL REPORT 187
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 including for new energy assets. 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.
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 2024.
A range of pre-tax discount rates between 4.0% and 4.9% (2023: 3.7%
and 5.0%) has been applied. If the discount rates were decreased
by 0.5% then the provision would be $336 million higher. If the cost
estimates were increased by 10% then the provision would be
$653 million higher. The proportion of the non-current balance not
expected to be settled within 10 years is 53% (2023: 55%).
D.5 PROVISIONS (CONT.)
Employee benefits
Provision is made for employee benefits accumulated as a result of
employees rendering services up to the end of the reporting period.
These benefits include wages, salaries, annual leave and long
service leave.
Liabilities in respect of employees’ services rendered that are not
expected to be wholly settled within one year after the end of the
period in which the employees render the related services
are recognised as long-term employee benefits.
These liabilities are measured at the present value of the estimated
future cash outflow to the employees using the projected unit
credit method. Liabilities expected to be wholly settled within one
year after the end of the period in which the employees render
the related services are classified as short-term benefits and are
measured at the amount due to be paid.
Onerous contract provision
Provision is made for loss-making contracts at the present value of
the lower of the net cost of fulfilling and the cost arising from failure
to fulfill each contract.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
188 WOODSIDE ENERGY GROUP LTD
D.6 OTHER FINANCIAL ASSETS AND
LIABILITIES
2024
2023
US$m
US$m
Other financial assets
Financial instruments at fair value through profit
and loss
Derivative financial instruments designated
as hedges
186
248
Other financial assets
28
53
Financial instruments at fair value through other
comprehensive income
Other financial assets
89
28
Total other financial assets
303
329
Current
185
209
Non-current
118
120
Net carrying amount
303
329
Other financial liabilities
Financial instruments at fair value through profit
and loss
Derivative financial instruments designated
as hedges
169
74
Embedded derivative
349
35
Total other financial liabilities
518
109
Current
139
67
Non-current
379
42
Net carrying amount
518
109
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.
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.
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.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
2024 ANNUAL REPORT 189
D.6 OTHER FINANCIAL ASSETS AND
LIABILITIES (CONT.)
Hedging activities
During the period, the following hedging activities were undertaken:
• As at 31 December 2024, the Group hedged approximately
30 MMboe of 2025 oil production at an average price of
approximately $78.7 per barrel.
• The Group also has a hedging program for Corpus Christi LNG
volumes designed to protect against downside pricing risk. These
hedges are HH and TTF commodity swaps. Approximately 94% of
2025 and 67% of 2026 volumes have been hedged.
• Through foreign exchange forward contracts, the Group hedged
the Australian dollar to US dollar exchange rate for a portion of
the Australian dollar denominated capital expenditure expected
to be incurred for the Scarborough development.
2024
2023
Brent commodity swaps (cash flow hedges)
Carrying amount (US$m)
137
(14)
Notional amount (MMbbl)1
31
29
Maturity date
2025
2024
Hedge ratio
1:1
1:1
Weighted average hedged rate (US$/MMbbl)
79
76
HH Natural Gas commodity swaps (cash flow
hedges)
Carrying amount (US$m)
8
(44)
Notional amount (TBtu)1
79
38
Maturity date
2025-2026
2024-2025
Hedge ratio
1:1
1:1
Weighted average hedged rate (US$/MMBtu)
3.6
4.4
TTF LNG commodity swaps (cash flow hedges)
Carrying amount (US$m)
(118)
181
Notional amount (TBtu)1
69
32
Maturity date
2025-2026
2024-2025
Hedge ratio
1:1
1:1
Weighted average hedged rate (US$/MMBtu)
11.9
18.3
Interest rate swap (cash flow hedges)
Carrying amount (US$m)
35
43
Notional amount (US$m)
600
600
Maturity date
2027
2027
Hedge ratio
1:1
1:1
Weighted average hedged rate
1.7%
1.7%
FX forwards (cash flow hedges)
Carrying amount (US$m)
(45)
8
Notional amount (AUD$m)2
2,484
1,834
Maturity date
2025
2024-2025
Hedge Ratio
1:1
1:1
Weighted average hedged rate (AUD:USD)
0.67
0.68
1. The notional amounts relate to unrealised volumes of the hedge item included in the cash flow
hedge reserve.
2. This notional amount represents total since inception of which AUD$985 million is unrealised
volumes of the hedge item included in the cash flow hedge reserve.
Hedge ineffectiveness loss of $5 million (2023: $15 million loss) has
been recognised in the profit and loss.
Embedded commodity derivative
In 2023, the Group entered into a revised long-term gas sale and
purchase contract (GSPA) with Perdaman, where a component of
the selling price is linked to the price of urea. The contract was
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 2024 amounted to a net liability of $349 million (2023:
net liability of $35 million). The derivative is remeasured to fair
value at each reporting date in accordance with the urea price at
that date. For the year ended 31 December 2024, an unrealised
loss of $314 million (2023: unrealised loss of $35 million) has been
recognised through other expenses.
Key estimates and judgements
(a) Embedded commodity derivative
The fair value of the Perdaman embedded derivative has been
estimated using a Monte Carlo simulation model. The assessment
requires management to make certain assumptions about the
model inputs, including forecast pricing, discount rate, credit risk
and volatility. These assumptions require significant management
judgement and are subject to risk and uncertainty. The present
value of the embedded derivative was estimated using the
assumptions set out below.
• Inflation rate – 2.5% (2023: 2.5%) has been applied.
• Discount rate – a pre-tax interest rate curve with a range
of 5.80% to 6.95% (2023: range of 5.39% to 7.12%).
• Domestic gas pricing – forecast sales are subject to urea pricing.
Price assumptions are based on the best market information
available at measurement date and derived from short- and
long-term views of global supply and demand, building upon
past experience of the industry and consistent with external
sources. The long-term urea price is determined with reference
to the prevailing gas hub (TTF) prices available in the market at
reporting date.
The embedded derivative is most sensitive to changes in discount
rates and pricing, which may result in unrealised gains or losses
recognised in other income/expenses in the future.
The nominal impact of the effects of changes to discount rate and
long-term price assumptions are estimated as follows:
Change in assumption1
US$m
Urea sales price: increase of 10%
125
Urea sales price: decrease of 10%
(125)
Discount rate: increase of 1.5%2
(163)
Discount rate: decrease of 1.5%2
201
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.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
190 WOODSIDE ENERGY GROUP LTD
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
Land and buildings
Oil and gas properties1
Other plant and
equipment1
Total
US$m
US$m
US$m
US$m
Lease assets
Year ended 31 December 2024
Carrying amount at 1 January 2024
430
107
693
1,230
Acquisitions through asset acquisitions2
172
-
-
172
Additions
37
-
111
148
Disposals at written down value
-
(1)
(1)
(2)
Lease remeasurements
16
17
10
43
Depreciation
(52)
(106)
(142)
(300)
Carrying amount at 31 December 2024
603
17
671
1,291
At 31 December 2024
Historical cost and remeasurements
825
518
1,235
2,578
Accumulated depreciation, impairment and disposals
(222)
(501)
(564)
(1,287)
Net carrying amount
603
17
671
1,291
Lease liabilities
Year ended 31 December 2024
At 1 January 2024
607
130
878
1,615
Acquisitions through asset acquisitions2
178
-
-
178
Additions
37
-
111
148
Disposals
-
(7)
(1)
(8)
Repayments (principal and interest)
(83)
(118)
(210)
(411)
Accretion of interest
26
4
72
102
Lease remeasurements
(31)
24
6
(1)
Carrying amount at 31 December 2024
734
33
856
1,623
Current
55
32
102
189
Non-current
679
1
754
1,434
Carrying amount at 31 December 2024
734
33
856
1,623
Lease assets
Year ended 31 December 2023
Carrying amount at 1 January 2023
464
225
575
1,264
Additions
8
-
120
128
Transfer to assets held for sale
-
(3)
-
(3)
Lease remeasurements
7
59
125
191
Depreciation
(49)
(174)
(127)
(350)
Carrying amount at 31 December 2023
430
107
693
1,230
At 31 December 2023
Historical cost and remeasurements
600
502
1,115
2,217
Accumulated depreciation, impairment and disposals
(170)
(395)
(422)
(987)
Net carrying amount
430
107
693
1,230
Lease liabilities
Year ended 31 December 2023
At 1 January 2023
623
238
773
1,634
Additions
24
-
121
145
Transfer to liabilities directly associated with assets held for sale
-
(6)
(1)
(7)
Repayments (principal and interest)
(78)
(188)
(203)
(469)
Accretion of interest
27
12
63
102
Lease remeasurements
11
74
125
210
Carrying amount at 31 December 2023
607
130
878
1,615
Current
54
114
130
298
Non-current
553
16
748
1,317
Carrying amount at 31 December 2023
607
130
878
1,615
1. Plant and equipment, which was a category in 2023, has been reviewed and presented as 'oil and gas properties' and 'other plant and equipment' in 2024. The 2023 amounts have been reclassified to be
presented on the same basis.
2. Refer to Note B.7 for details of asset acquisitions.
D.7 LEASES
2024 ANNUAL REPORT 191
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.
Foreign exchange risk
The Group held $408 million of lease liabilities at 31 December
2024 (2023: $447 million) in currencies other than the US dollar
(predominantly Australian dollars).
Maturity profile of lease liabilities
The table below presents the contractual undiscounted cash flows
associated with the Group’s lease liabilities, representing principal
and interest. The figures will not necessarily reconcile with the
amounts disclosed in the consolidated statement of financial
position.
2024
2023
US$m
US$m
Due for payment in:
1 year or less
286
415
1-2 years
218
240
2-3 years
198
194
3-4 years
195
180
4-5 years
195
181
More than 5 years
899
1,032
1,991
2,242
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
192 WOODSIDE ENERGY GROUP LTD
D.7 LEASES (CONT.)
Lease commitments
The table below presents the contractual undiscounted cash flows
associated with the Group’s future lease commitments for non-
cancellable leases not yet commenced, representing
principal and interest.
2024
2023
US$m
US$m
Due for payment:
Within one year
32
33
After one year but not more than five years
775
889
Later than five years
2,360
1,242
3,167
2,164
Payments of $292 million (2023: $121 million) for short-term leases
(lease term of 12 months or less) and payments of $17 million
(2023: $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 $689 million (2023:
$575 million), with $293 million (2023: $361 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 $276 million (2023: $232 million).
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 $2,113 million (2023: $2,000 million) were not included in the
measurement of lease liabilities.
(c) lnterest in joint arrangements
Judgement is required to determine the Group’s rights and
obligations for lease contracts within joint operations, to assess
whether lease liabilities are recognised gross (100%) or in
proportion to the Group’s participating interest in the joint operation.
This includes an evaluation of whether the lease arrangement
contains a sublease with the joint operation.
(d) Discount rates
Judgement is required to determine the discount rate, where the
discount rate is the Group’s incremental borrowing rate if the rate
implicit in the lease cannot be readily determined. The incremental
borrowing rate is determined with reference to the Group’s
borrowing portfolio at the inception of the arrangement or
the time of the modification.
Notes to the financial statements for the year ended 31 December 2024
D. Other assets and liabilities
2024 ANNUAL REPORT 193
IN THIS SECTION
This section addresses information on items which require disclosure to comply with Australian Accounting Standards and the Corporations
Act 2001, however are not considered critical in understanding the financial performance or position of the Group.
This section includes Group structure information and other disclosures.
E. Other items
E.1 Contingent liabilities and assets
Page 195
E.2 Employee benefits
Page 195
E.3 Related party transactions
Page 198
E.4 Auditor remuneration
Page 198
E.5 Events after the end of the reporting period
Page 198
E.6 Joint arrangements
Page 198
E.7 Parent entity information
Page 200
E.8 Subsidiaries
Page 200
E.9 Other accounting policies
Page 204
Notes to the financial statements for the year ended 31 December 2024
E. Other items
194 WOODSIDE ENERGY GROUP LTD
E.1 CONTINGENT LIABILITIES AND ASSETS
2024
2023
US$m
US$m
Contingent liabilities at reporting date
Contingent liabilities
281
260
Guarantees
1
2
282
262
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 $30 million as at 31 December
2024 (2023: $47 million).
E.2 EMPLOYEE BENEFITS
2024
2023
2022
US$m
US$m
US$m
Employee benefits
521
494
415
Share-based payments
23
39
26
Defined contribution plan costs
51
53
41
Defined benefit plan expense
7
17
9
602
603
491
(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:
2024
2023
2022
US$
US$
US$
Short-term employee benefits
6,810,215
5,245,763
5,730,340
Post-employment benefits
262,790
215,856
155,086
Share-based payments
5,265,736
3,693,072
3,114,043
Long-term employee benefits
483,452
213,562
4,300
Termination benefits
724,287
-
152,531
13,546,480
9,368,253
9,156,300
In 2024, the number of executive KMPs increased from 4 to 6. Refer
to the Remuneration Report for more details.
(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 and subsequent to 2022, participants are
entitled to receive a Woodside share on the vesting date, three
years after the grant date. Awards made in 2021 and 2020 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.
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.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
2024 ANNUAL REPORT 195
E.2 EMPLOYEE BENEFITS (CONT.)
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
2023 Restricted Shares and Performance Rights were granted on
27 February 2024 for Executives and 24 April 2024 for the CEO and
have been included in the table below. The expense estimated as at
31 December 2023 in relation to the 2023 performance year
was updated to the fair value on grant date during the period.
The 2024 Restricted Shares and Performance Rights have not been
included in the table below as they have not been approved as at
31 December 2024. An expense related to the 2024 performance
year has been estimated for the Restricted Shares and Performance
Rights, using fair value estimates based on inputs at 31 December
2024.
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 2023 Restricted Shares were
granted on 27 February 2024 and have been included in the table
below. The expense estimated as at 31 December 2023 in relation to
the 2023 performance year was updated to the fair value on grant
date during the period.
The 2024 Restricted Shares have not been included in the table
below as they have not been approved as at 31 December 2024. An
expense related to the 2024 performance year has been estimated
for the Restricted Shares, using fair value estimates based on inputs
at 31 December 2024.
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.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
196 WOODSIDE ENERGY GROUP LTD
E.2 EMPLOYEE BENEFITS (CONT.)
The number of awards and movements for all share plans are summarised as follows:
Number of performance awards
Employee plans
Executive plans
WEP
SWEP
Short-term awards4
Long-term awards4
Year ended 31 December 2024
Opening balance
9,125,440
1,556,573
1,066,237
2,696,552
Granted during the year1,2,3
5,188,220
48,179
918,543
364,378
Vested during the year
(1,833,896)
(1,038,583)
(231,156)
(250,149)
Forfeited during the year
(716,686)
(108,599)
(201,956)
(361,735)
Awards at 31 December 2024
11,763,078
457,570
1,551,668
2,449,046
US$m
US$m
US$m
US$m
Fair value of awards granted during the year
70
1
18
8
Number of performance awards
Employee plans
Executive plans
WEP
SWEP
Short-term awards4
Long-term awards4
Year ended 31 December 2023
Opening balance
6,629,681
2,884,076
993,197
2,554,422
Granted during the year1,2,3
3,445,234
100,811
420,429
658,969
Vested during the year
(600,271)
(1,071,291)
(286,979)
(106,430)
Forfeited during the year
(349,204)
(357,023)
(60,410)
(410,409)
Awards at 31 December 2023
9,125,440
1,556,573
1,066,237
2,696,552
US$m
US$m
US$m
US$m
Fair value of awards granted during the year
60
2
10
12
1. For the purpose of valuation, the share price on grant date for the 2024 WEP allocations was $13.54 (2023: $17.54).
2. For the purpose of valuation, the share price on grant date for the 2024 SWEP allocations was $16.04 (2023: $20.78).
3. For the purpose of valuation, the share price on grant date for Restricted Shares was $19.74 and $19.33 (2023: $23.48 and $23.33) and Performance Rights was $12.89 (2023: $15.96).
4. Includes awards issued under Executive Incentive Plan (EIP), EIS and PBP Plus. Short-term awards relate to awards with a vesting period of less than 5 years. Long-term awards relate to awards
with a vesting period of 5 years.
For more detail on these share plans and Performance Rights issued to KMPs, refer to the Remuneration Report.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
2024 ANNUAL REPORT 197
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
$42,162 thousand (2023: $71,407 thousand), sale of goods/services
of $5,720 thousand (2023: $27,142 thousand) and dividend income
of $14,776 thousand (2023: $15,296 thousand). As at 31 December
2024, the total amounts owing to related parties is $2,015 thousand
(2023: $1,559 thousand) and amounts owing from related parties
is $92 thousand (2023: $1,960 thousand). All transactions to/from
related parties are made at arm’s length (normal market rates and
on normal commercial terms).
There were no transactions with directors during the year, other
than directors' fees. Key management personnel compensation is
disclosed in Note E.2(b) and the Remuneration Report.
E.4 AUDITOR REMUNERATION
The auditor of Woodside Energy Group Ltd is
PricewaterhouseCoopers Australia (PwC).
2024
2023
2022
US$000
US$000
US$000
(a) Auditors of the Group
Amounts received or due and
receivable to:
PricewaterhouseCoopers (Australia)
Audit and review of financial reports
5,472
6,510
2,878
Assurance services
140
138
129
Assurance services required by
legislation to be provided by the auditor
399
-
-
Other assurance and agreed upon
procedures services
204
332
832
Tax services
10
-
-
Other services
-
-
41
Other overseas member firms of
PricewaterhouseCoopers (Australia)
Audit of the financial reports of
controlled entities
1,961
1,557
1,274
Tax services
760
1,081
258
8,946
9,618
5,412
(b) Other auditors and their related
network firms
Ernst & Young1
Audit and review of financial reports
-
-
48
Assurance services
-
-
611
Other assurance and agreed upon
procedures services
-
-
2,335
-
-
2,994
1. The disclosure of auditor remuneration is not required as EY is no longer bound by auditor
independence requirements for the years ended 31 December 2023 and 31 December 2024.
E.5 EVENTS AFTER THE END OF THE
REPORTING PERIOD
The Group increased its currency hedge positions by AUD$354
million to protect against foreign exchange risks associated with
anticipated capital expenditure on the Scarborough Energy Project.
E.6 JOINT ARRANGEMENTS
(a) Interest percentage in joint ventures
Group Interest %
Entity
Principal activity
2024
2023
North West Shelf Gas Pty Ltd Contract administration
services for venturers
for LNG sales to Japan.
Marketing and administration
services for venturers for
gas processing.
33.33
33.33
North West Shelf Liaison
Company Pty Ltd
Liaison for venturers in the
sale of LNG to the Japanese
market.
33.33
33.33
China Administration
Company Pty Ltd
Contract administration
services for venturers for
LNG sales to China.
33.33
33.33
North West Shelf Shipping
Service Company Pty Ltd
LNG vessel fleet advisor.
33.33
33.33
North West Shelf Lifting
Coordinator Pty Ltd
Allocating, scheduling and
administering the lifting of
LNG and pipeline gas.
33.33
33.33
Notes to the financial statements for the year ended 31 December 2024
E. Other items
198 WOODSIDE ENERGY GROUP LTD
E.6 JOINT ARRANGEMENTS (CONT.)
(b) Interest percentage in joint operations
Group Interest %
2024
2023
Producing and developing assets
Australia
Scarborough1
74.9
100.0
North West Shelf
25.0 - 66.7
25.0 - 66.7
Greater Enfield and Vincent
60.0
60.0
Pluto
90.0
90.0
Wheatstone
13.0 - 65.0
13.0 - 65.0
Bass Strait
25.0 - 50.0
25.0 - 50.0
Macedon
71.4
71.4
Pyrenees
40.0 - 71.4
40.0 - 71.4
International
Sangomar
82.0
82.0
Atlantis
44.0
44.0
Mad Dog
23.9
23.9
Shenzi
72.0
72.0
Trion
60.0
60.0
Greater Angostura
45.0 - 68.5
45.0 - 68.5
Exploration and evaluation assets
Oceania
Browse Basin
30.6
30.6
Carnarvon Basin2
31.6 - 70.0
31.6 - 70.0
Bonaparte Basin3
26.7 - 35.0
26.7 - 35.0
Africa
Congo
22.5
22.5
Senegal
90.0
90.0
Egypt4
25.0 - 45.0
25.0 - 45.0
Americas
US Gulf of Mexico5
23.9 - 75.0
23.9 - 75.0
Liard
50.0
50.0
Kitimat
50.0
50.0
Asia
Myanmar
45.0
45.0
Sunrise
33.4
33.4
Caribbean
Barbados6
60.0
60.0
Calypso
70.0
70.0
Other Joint Operations
Angel
20.0
20.0
Bonaparte Basin
21.0
21.0
1. The Group sold down a total of 25.1% interest in the Scarborough project in 2024; 10% to LNG
Japan and 15.1% to JERA.
2. The Group surrendered WA-356-P for Carnarvon in 2024.
3. The Group surrendered NT/P86 for Bonaparte in 2024.
4. The Group exited Herodotus Block 2 for Egypt in 2024.
5. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the
“Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the
change on 24 January 2025 and US federal agencies are currently in the process of implementing
the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the
area in which its Shenzi, Mad Dog and Atlantis projects are located, as that term was in effect
during the period covered by this report. Woodside will adopt the naming conventions required by
applicable laws and regulations in relation to US waters.
6. The Group relinquished Carlisle Bay for Barbados in 2024.
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.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
2024 ANNUAL REPORT 199
E.7 PARENT ENTITY INFORMATION
2024
2023
US$m
US$m
Woodside Energy Group Ltd:
Current assets
162
236
Non-current assets
34,062
35,151
Current liabilities
-
(743)
Non-current liabilities
(1,027)
(527)
Net assets
33,197
34,117
Issued and fully paid shares
29,001
29,001
Reserved shares
(58)
(49)
Employee benefits reserve
136
156
Foreign currency translation reserve
296
296
Distributable profits reserve
3,069
4,118
Retained earnings
753
595
Total shareholders equity
33,197
34,117
Profit of parent entity
1,558
5,340
Total comprehensive income of parent entity
1,558
5,340
Guarantees
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 are parties
to a Deed of Cross Guarantee 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.
E.8 SUBSIDIARIES
(a) Subsidiaries
Name of entity
Country of
incorporation
Notes
Ultimate Parent Entity
Woodside Energy Group Ltd
Australia
(1,2,3)
Subsidiaries
Company name
Woodside Energy Ltd
Australia
(2,3,4)
Woodside Browse Pty Ltd
Australia
(2,4)
Woodside Burrup Pty Ltd
Australia
(2,3,4)
Burrup Facilities Company Pty Ltd
Australia
(5)
Burrup Train 1 Pty Ltd
Australia
(5)
Pluto LNG Pty Ltd
Australia
(5)
Woodside Burrup Train 2 A Pty Ltd
Australia
(2,4)
Woodside Energy (Karratha Services) Pty Ltd
Australia
(2,4)
Woodside Energy (LNG Fuels and Power) Pty Ltd
Australia
(2,4)
Woodside Energy (Domestic Gas) Pty Ltd
Australia
(2,4)
Woodside Energy (Algeria) Pty Ltd
Australia
(2,4)
Woodside Energy Australia Asia Holdings Pte Ltd
Singapore
(4)
Woodside Energy Holdings International Pty Ltd
Australia
(2,4)
Name of entity
Country of
incorporation
Notes
Woodside Energy International (Canada) Limited
Canada
(4)
Woodside Energy (Canada LNG) Limited
Canada
(4)
Woodside Energy (Canada PTP) Limited
Canada
(4)
KM LNG Operating General Partnership
Canada
(9)
KM LNG Operating Ltd
Canada
(4)
Woodside Energy Holdings Pty Ltd
Australia
(2,3,4)
Woodside Energy Holdings (USA) Inc
United States
(4)
Woodside Energy (USA) Inc
United States
(4)
Gryphon Exploration Company
United States
(4)
Woodside Energy Holdings (NA) LLC
United States
(4)
Woodside Energy (LA) Holdings Inc.
United States
(4,18)
Woodside Energy (LA) Holdings Investments LLC
United States
(4,18)
Woodside Energy (LA) Production Holdings LLC
United States
(4,18)
Woodside Energy (LA) Production LLC
United States
(4,18)
Woodside Energy (LA) Production Investments LLC
United States
(4,18)
Woodside Energy (LA) OpCo LLC
United States
(4,18)
Louisiana LNG Gas Management LLC
United States
(4,18)
Woodside Energy (LA) Capital Holdings LLC
United States
(4,18)
Woodside Energy (LA) Operating LLC
United States
(4,18)
Louisiana LNG Expansion LLC
United States
(4,18)
Louisiana LNG Expansion II LLC
United States
(4,18)
Louisiana LNG LLC
United States
(4,18)
Driftwood Pipeline LLC
United States
(4,18)
Louisiana LNG Common Facilities LLC
United States
(4,18)
Louisiana LNG Infrastructure LLC
United States
(4,18)
Woodside Energy (LA) Corporate Services LLC
United States
(4,18)
Woodside Energy (LA) Asset Services LLC
United States
(4,18)
Woodside Energy (LA) Services LLC
United States
(4,18)
Woodside Energy (LA) Management LLC
United States
(4,18)
Delhi Connector LLC
United States
(4,18)
Woodside Energy (LA) Trading LLC
United States
(4,18)
Woodside Energy (LA) Marketing Ltd
United Kingdom
(4,18)
Woodside Energy (LA) Trading UK Ltd.
United Kingdom
(4,18)
Tellurian LNG Singapore Pte Ltd
Singapore
(4,18)
Woodside Energy (LA) UK Ltd
United Kingdom
(4,18)
Woodside Energy (LA) Supply LLC
United States
(4,18)
PT Woodside Energy Indonesia
Indonesia
(6)
Woodside Energy (Cameroon) SARL
Cameroon
(4)
Woodside Energy (Gabon) Pty Ltd
Australia
(2,4)
Woodside Energy (Indonesia) Pty Ltd
Australia
(2,4)
Woodside Energy (Indonesia II) Pty Ltd
Australia
(2,4)
Woodside Energy (Malaysia) Pty Ltd
Australia
(2,4)
Woodside Energy (Ireland) Pty Ltd
Australia
(2,4)
Woodside Energy (Korea) Pte Ltd
Singapore
(4)
Woodside Energy (Korea II) Pte Ltd
Singapore
(4)
Woodside Energy (Myanmar) Pte Ltd
Singapore
(4)
Woodside Energy (Morocco) Pty Ltd
Australia
(2,4)
Woodside Energy (New Zealand) Limited
New Zealand
(4)
Woodside Energy Holdings (New Zealand) Limited
New Zealand
(4)
Woodside Energy (Peru) Pty Ltd
Australia
(2,4)
Woodside Energy (Tanzania) Limited
Tanzania
(7)
Woodside Energy Holdings II Pty Ltd
Australia
(2,4)
Woodside Power Pty Ltd
Australia
(2,4)
Woodside Power (Generation) Pty Ltd
Australia
(2,4)
Woodside Energy Holdings (South America) Pty Ltd
Australia
(2,4)
Woodside Energia (Brasil) Apoio Administrativo Ltda
Brazil
(8)
Woodside Energy Holdings (UK) Pty Ltd
Australia
(2,4)
Woodside Energy (UK) Limited
United Kingdom
(4)
Woodside Energy Finance (UK) Limited
United Kingdom
(4)
Woodside Energy (Congo) Limited
United Kingdom
(4)
Woodside Energy (Bulgaria) Limited
United Kingdom
(4)
Woodside Energy Holdings (Senegal) Limited
United Kingdom
(4)
Woodside Energy (Senegal) B.V.
Netherlands
(4)
Woodside Energy (France) SAS
France
(4)
Woodside Energy Iberia S.A.
Spain
(4)
Woodside Energy (N.A.) Limited
United Kingdom
(4)
Woodside Energy (Namibia) Limited
United Kingdom
(4)
Woodside Energy Services (Qingdao) Co Ltd
China
(4)
Woodside Energy Julimar Pty Ltd
Australia
(2,3,4)
Woodside Energy (Norway) Pty Ltd
Australia
(2,4)
Woodside Energy Technologies Pty Ltd
Australia
(2,4,14)
Woodside Technology Solutions Pty Ltd
Australia
(2,4)
Notes to the financial statements for the year ended 31 December 2024
E. Other items
200 WOODSIDE ENERGY GROUP LTD
E.8 SUBSIDIARIES (CONT.)
Name of entity
Country of
incorporation
Notes
Woodside Energy Scarborough Pty Ltd
Australia
(2,3,4)
Woodside Energy Carbon Holdings Pty Ltd
Australia
(2,4)
Woodside Energy Carbon (Assets) Pty Ltd
Australia
(2,4)
Woodside Energy Carbon (Services) Pty Ltd
Australia
(2,4)
Woodside Energy (Financial Advisory Services) Pty Ltd
Australia
(2,4)
Woodside Energy Trading Singapore Pte Ltd
Singapore
(4)
WelCap Insurance Pte Ltd
Singapore
(4)
Woodside Energy Shipping Singapore Pte Ltd
Singapore
(4)
Metasource Pty Ltd
Australia
(2,4)
Mermaid Sound Port and Marine Services Pty Ltd
Australia
(2,4)
Woodside Finance Limited
Australia
(2,4)
Woodside Petroleum (Timor Sea 19) Pty Ltd
Australia
(2,4)
Woodside Petroleum (Timor Sea 20) Pty Ltd
Australia
(2,4)
Woodside Petroleum Holdings Pty Ltd
Australia
(2,4,15)
Woodside Energy Global Holdings Pty Ltd
Australia
(2,3,4)
Woodside Energy Global Pty Ltd
Australia
(2,3,4)
Perdido Mexico Pipeline Holdings, S.A. de C.V.
Mexico
(10)
Perdido Mexico Pipeline, S. de R.L. de C.V.
Mexico
(10)
Woodside Energy Investments Pty Ltd
Australia
(2,4)
Woodside Energia Brasil Investimentos Ltda.
Brazil
(11)
Woodside Energia Brasil Exploração e Produção Ltda.
Brazil
(11)
Woodside Energy (Great Britain) Limited
United Kingdom
(4)
Woodside Energy (North West Shelf) Pty Ltd
Australia
(2,3,4,15)
Woodside Energy (Trinidad) Holdings Ltd
Saint Lucia
(4)
Woodside Energy (Trinidad-3A) Ltd
R. of Trinidad and
Tobago
(4)
Woodside Energy USA Operations Inc
United States
(12)
Hamilton Brothers Petroleum Corporation
United States
(4)
Hamilton Oil Company LLC
United States
(4)
Woodside Energy Boliviana Inc.
United States
(4)
Woodside Energy (North America) LLC
United States
(4)
Woodside Energy (Americas) Inc.
United States
(4)
Woodside Energy (GOM) Inc.
United States
(4)
Woodside Energy Hawaii Inc.
United States
(4,16)
Woodside Energy Resources Inc.
United States
(4)
Woodside Energy Holdings (Resources) Inc.
United States
(4)
Woodside Energy USA Services Inc.
United States
(4)
Woodside Energy Marketing Inc.
United States
(4)
Woodside Energy (Deepwater) Inc.
United States
(4,17)
Woodside Energy (USA New Energy Holdings) LLC
United States
(4)
Woodside Energy (H2 Oklahoma) LLC
United States
(4)
Woodside Energy (Foreign Exploration Holdings) LLC
United States
(4)
Woodside Energy (Trinidad Block 3) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 5) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 6) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 7) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 14) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 23A) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 23B) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 28) Limited
United Kingdom
(4)
Woodside Energy (Trinidad Block 29) Limited
United Kingdom
(4)
Woodside Energy (Bimshire) Limited
United Kingdom
(4)
Woodside Energy (Egypt) Limited
United Kingdom
(4)
Woodside Energy (Carlisle Bay) Limited
United Kingdom
(4)
Woodside Energy (Mexico) Limited
United Kingdom
(4)
Woodside Energía Servicios Administrativos, S. de R.L.
de C.V.
Mexico
(13)
Woodside Energía Servicios de México, S. de R.L. de C.V.
Mexico
(13)
Woodside Energy (Mexico Holdings) LLC
United States
(4)
Operaciones Conjuntas, S. de R.L. de C.V.
Mexico
(13)
Woodside Energía Holdings de México, S. de R.L. de C.V.
Mexico
(13)
Woodside Petróleo Operaciones de México, S. de R.L. de
C.V.
Mexico
(13)
Woodside Energy (Australia) Pty Ltd
Australia
(2,3,4)
Woodside Energy (International Exploration) Pty Ltd
Australia
(2,4)
Woodside Energy (Bass Strait) Pty Ltd
Australia
(2,3,4)
Woodside Energy (Victoria) Pty Ltd
Australia
(2,4)
Woodside Energy Holdings LLC
United States
(2,4)
Woodside Energy (Trinidad-2C) Ltd
Canada
(4)
OCI Clean Ammonia Holding BV
Netherlands
(4,19)
OCI Clean Ammonia LLC
United States
(4,19)
Woodside Energy (Canada) Corporation
Canada
(4)
Koolbardi Pte Ltd
Singapore
(2,4,20)
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 2024.
3. These companies were parties to the Deed of Cross Guarantee at 31 December 2024.
4. All subsidiaries are wholly owned except those referred to in Notes 5 to 13.
5. Kansai Electric Power Australia Pty Ltd and MidOcean Pluto Pty Ltd (previously 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 2024, 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 2024, 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 2024, 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 2024, 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. Country of incorporation reflects
the place of formation.
10. As at 31 December 2024, Woodside Energy Global Holdings Pty Ltd held a 99.99% interest in
shares of Perdido Mexico Pipeline Holdings, S.A. de C.V. Woodside Energy Investments Pty Ltd
held the remaining 0.01% interest. As at 31 December 2024, Perdido Mexico Pipeline Holdings S.A.
de C.V. held a 99.99% interest in shares of 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 2024, 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 2024, 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 2024, 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 2024, 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. and Operaciones Conjuntas, 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 1% and 0.01% interests. As at 31 December 2024, Woodside
Energía Holdings de México, S. de R.L. de C.V. held a 99% interest in shares of Woodside Petróleo
Operaciones de México, S. de R.L. de C.V. Woodside Energy (Mexico Holdings) LLC held the
remaining 1% interest.
14. As at 31 December 2024, Woodside Energy Technologies Pty Ltd held 16.17% of the shares in Blue
Ocean Seismic Services Limited which is accounted for as an investment in associate.
15. As at 31 December 2024, 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 2024, 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 2024, 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. Subsidiaries acquired as part of the acquisition of Tellurian which completed on 8 October 2024.
19. Subsidiaries acquired as part of the acquisition of OCI which completed on 30 September 2024.
20. Koolbardi Pte Ltd was incorporated on 21 February 2024.
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.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
2024 ANNUAL REPORT 201
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
Principal place
of business
% held
by NCI
Burrup Facilities Company Pty Ltd
Australia
10%
Burrup Train 1 Pty Ltd
Australia
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:
2024
2023
2022
US$m
US$m
US$m
Burrup Facilities Company Pty Ltd
Current assets
332
513
567
Non-current assets
5,069
5,020
5,047
Current liabilities
(51)
(58)
(68)
Non-current liabilities
(553)
(568)
(528)
Net assets
4,797
4,907
5,018
Accumulated balance of NCI
480
491
502
Revenue
873
839
889
Profit
450
400
489
Profit allocated to NCI
45
40
49
Dividends paid to NCI
(56)
(51)
(43)
Operating
549
570
601
Investing
(47)
(58)
(45)
Financing
(502)
(512)
(556)
Net increase/(decrease) in cash and cash
equivalents
-
-
-
Burrup Train 1 Pty Ltd
Current assets
291
453
429
Non-current assets
3,009
2,806
2,900
Current liabilities
(239)
(121)
(119)
Non-current liabilities
(322)
(341)
(325)
Net assets
2,739
2,797
2,885
Accumulated balance of NCI
274
280
289
Revenue
1,448
1,393
1,471
Profit
284
222
282
Profit allocated to NCI
28
22
28
Dividends paid to NCI
(34)
(31)
(29)
Operating
497
321
391
Investing
(242)
(80)
(55)
Financing
(255)
(241)
(336)
Net increase/(decrease) in cash and cash
equivalents
-
-
-
(c) Deed of Cross Guarantee and Closed Group
The following entities are parties to a Deed of Cross Guarantee
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
ASIC Corporations (Wholly-owned Companies) Instrument 2016/785
and the Deed of Cross Guarantee.
For the year ended 31 December 2024, Woodside Energy Ltd,
Woodside Burrup Pty Ltd, Woodside Energy Julimar Pty Ltd,
Woodside Energy (Australia) Pty Ltd, Woodside Energy (Bass Strait)
Pty Ltd and Woodside Energy (North West Shelf) Pty Ltd have
relied on relief from the Corporations Act 2001 requirements for the
preparation, audit and publication of accounts.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
202 WOODSIDE ENERGY GROUP LTD
E.8 SUBSIDIARIES (CONT.)
(c) Deed of Cross Guarantee and Closed Group (cont.)
The consolidated income statement and consolidated statement of financial position of the members of the Closed Group are set out below:
2024
2023
US$m
US$m
Closed Group Consolidated Income Statement and Statement of Retained Earnings
Profit before tax
3,984
3,915
Tax expense
(96)
(1,390)
Profit after tax
3,888
2,525
Retained (losses)/earnings at the beginning of the financial year
(128)
2,177
Transfer of retained earnings to distributable profits reserve
(1,400)
(4,830)
Retained earnings/(losses) at the end of the financial year
2,360
(128)
Closed Group Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
926
375
Receivables
2,086
3,325
Inventories
358
308
Other financial assets
167
186
Assets held for sale
-
826
Tax receivable
256
57
Other assets
25
12
Total current assets
3,818
5,089
Non-current assets
Receivables
691
283
Inventories
17
-
Other financial assets
38,633
30,122
Exploration and evaluation assets
52
63
Property, plant and equipment
16,715
18,382
Deferred tax assets
1,402
1,037
Lease assets
439
488
Intangible assets1
3,067
3,028
Other assets1
67
318
Total non-current assets
61,083
53,721
Total assets
64,901
58,810
Current liabilities
Payables
2,211
2,687
Other financial liabilities
156
94
Liabilities directly associated with assets held for sale
-
94
Provisions
911
1,237
Tax payable
189
893
Lease liabilities
95
108
Other liabilities
689
169
Total current liabilities
4,251
5,282
Non-current liabilities
Payables
18,829
12,977
Deferred tax liabilities
214
395
Other financial liabilities
379
42
Provisions
4,211
4,454
Lease liabilities
484
559
Other liabilities
524
648
Total non-current liabilities
24,641
19,075
Total liabilities
28,892
24,357
Net assets
36,009
34,453
Equity
Issued and fully paid shares
29,001
29,001
Reserved shares
(58)
(49)
Other reserves
4,706
5,629
Retained earnings/(losses)
2,360
(128)
Total equity
36,009
34,453
1. Intangible assets include software which were previously presented within other assets (non-current). The 2023 amounts have been reclassified to be presented on the same basis.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
2024 ANNUAL REPORT 203
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
The Group has two separate USA Tax Consolidation Groups as at 31
December 2024:
• 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.
• Woodside Energy Holdings (USA) Inc. and its wholly owned USA
controlled entities have elected to file a consolidated tax return,
with Woodside Energy Holdings (USA) Inc. as the parent of the
tax consolidated group. The consolidated tax return will include
the subsidiaries acquired as part of the Tellurian acquisition
from acquisition date. The deferred tax assets and liabilities
arising from temporary differences of the members of this tax
consolidated group have not been recognised.
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 2024 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. The assessment of the impact of AASB 18/IFRS
18 Presentation and Disclosure in Financial Statements effective
from 1 January 2027 is currently in progress.
Notes to the financial statements for the year ended 31 December 2024
E. Other items
204 WOODSIDE ENERGY GROUP LTD
In accordance with the requirements of subsection 295(3A) of the Corporations Act 2001, the table below sets out the consolidated entity
disclosure statement of Woodside Energy Group Ltd and its controlled entities as at 31 December 2024.
Consolidated entity disclosure statement
As at 31 December 2024
Body corporates
Tax residency
Name of entity
Type of entity
Country of
incorporation
Percentage of
share capital held
Australian
or foreign1
Foreign
jurisdiction
Ultimate Parent Entity
Woodside Energy Group Ltd
Body corporate
Australia
100%
Australian
N/A
Subsidiaries
Woodside Energy Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Browse Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Burrup Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Burrup Facilities Company Pty Ltd
Body corporate
Australia
90%
Australian
N/A
Burrup Train 1 Pty Ltd
Body corporate
Australia
90%
Australian
N/A
Pluto LNG Pty Ltd
Body corporate
Australia
90%
Australian
N/A
Woodside Burrup Train 2 A Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Karratha Services) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (LNG Fuels and Power) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Domestic Gas) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Algeria) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Australia Asia Holdings Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy Holdings International Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy International (Canada) Limited2,3
Body corporate
Canada
100%
Foreign
Canada
Woodside Energy (Canada LNG) Limited3
Body corporate
Canada
100%
Foreign
Canada
Woodside Energy (Canada PTP) Limited
Body corporate
Canada
100%
Foreign
Canada
KM LNG Operating General Partnership4
Partnership
N/A
N/A
Foreign
Canada
KM LNG Operating Ltd2
Body corporate
Canada
100%
Foreign
Canada
Woodside Energy Holdings Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Holdings (USA) Inc
Body corporate
United States
100%
Foreign
United States
Woodside Energy (USA) Inc
Body corporate
United States
100%
Foreign
United States
Gryphon Exploration Company
Body corporate
United States
100%
Foreign
United States
Woodside Energy Holdings (NA) LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Holdings Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Holdings Investments LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Production Holdings LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Production LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Production Investments LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) OpCo LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG Gas Management LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Capital Holdings LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Operating LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG Expansion LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG Expansion II LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG LLC
Body corporate
United States
100%
Foreign
United States
Driftwood Pipeline LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG Common Facilities LLC
Body corporate
United States
100%
Foreign
United States
Louisiana LNG Infrastructure LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Corporate Services LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Asset Services LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Services LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Management LLC
Body corporate
United States
100%
Foreign
United States
Delhi Connector LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Trading LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (LA) Marketing Ltd
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (LA) Trading UK Ltd.
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Tellurian LNG Singapore Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy (LA) UK Ltd
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (LA) Supply LLC
Body corporate
United States
100%
Foreign
United States
PT Woodside Energy Indonesia
Body corporate
Indonesia
100%
Foreign
Indonesia
Woodside Energy (Cameroon) SARL
Body corporate
Cameroon
100%
Foreign
Cameroon
Woodside Energy (Gabon) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Indonesia) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Indonesia II) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Malaysia) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Ireland) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Korea) Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy (Korea II) Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy (Myanmar) Pte Ltd2
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy (Morocco) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (New Zealand) Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Woodside Energy Holdings (New Zealand) Limited
Body corporate
New Zealand
100%
Foreign
New Zealand
Woodside Energy (Peru) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Tanzania) Limited
Body corporate
Tanzania
100%
Foreign
Tanzania
2024 ANNUAL REPORT 205
Consolidated entity disclosure statement
As at 31 December 2024
Body corporates
Tax residency
Name of entity
Type of entity
Country of
incorporation
Percentage of
share capital held
Australian
or foreign1
Foreign
jurisdiction
Woodside Energy Holdings II Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Power Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Power (Generation) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Holdings (South America) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energia (Brasil) Apoio Administrativo Ltda
Body corporate
Brazil
100%
Foreign
Brazil
Woodside Energy Holdings (UK) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (UK) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy Finance (UK) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Congo) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Bulgaria) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy Holdings (Senegal) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Senegal) B.V.2
Body corporate
Netherlands
100%
Foreign
Netherlands
Woodside Energy (France) SAS
Body corporate
France
100%
Foreign
France
Woodside Energy Iberia S.A.
Body corporate
Spain
100%
Foreign
Spain
Woodside Energy (N.A.) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Namibia) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy Services (Qingdao) Co Ltd
Body corporate
China
100%
Foreign
China
Woodside Energy Julimar Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Norway) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Technologies Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Technology Solutions Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Scarborough Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Carbon Holdings Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Carbon (Assets) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Carbon (Services) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Financial Advisory Services) Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Trading Singapore Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
WelCap Insurance Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Woodside Energy Shipping Singapore Pte Ltd
Body corporate
Singapore
100%
Foreign
Singapore
Metasource Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Mermaid Sound Port and Marine Services Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Finance Limited
Body corporate
Australia
100%
Australian
N/A
Woodside Petroleum (Timor Sea 19) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Petroleum (Timor Sea 20) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Petroleum Holdings Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Global Holdings Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Global Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Perdido Mexico Pipeline Holdings, S.A. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Perdido Mexico Pipeline, S. de R.L. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Energy Investments Pty Ltd
Body corporate
Australia
100%
Australian
N/A
Woodside Energia Brasil Investimentos Ltda.
Body corporate
Brazil
100%
Foreign
Brazil
Woodside Energia Brasil Exploração e Produção Ltda.
Body corporate
Brazil
100%
Foreign
Brazil
Woodside Energy (Great Britain) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (North West Shelf) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Trinidad) Holdings Ltd
Body corporate
Saint Lucia
100%
Foreign
Saint Lucia
Woodside Energy (Trinidad-3A) Ltd2
Body corporate
R. of Trinidad and Tobago
100%
Foreign
R. of Trinidad and Tobago
Woodside Energy USA Operations Inc
Body corporate
United States
100%
Foreign
United States
Hamilton Brothers Petroleum Corporation
Body corporate
United States
100%
Foreign
United States
Hamilton Oil Company LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy Boliviana Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy (North America) LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (Americas) Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy (GOM) Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy Hawaii Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy Resources Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy Holdings (Resources) Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy USA Services Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy Marketing Inc.
Body corporate
United States
100%
Foreign
United States
Woodside Energy (Deepwater) Inc.2
Body corporate
United States
100%
Foreign
United States
Woodside Energy (USA New Energy Holdings) LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (H2 Oklahoma) LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (Foreign Exploration Holdings) LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (Trinidad Block 3) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 5) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 6) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 7) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 14) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 23A) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 23B) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 28) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Trinidad Block 29) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Bimshire) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Egypt) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
206 WOODSIDE ENERGY GROUP LTD
Body corporates
Tax residency
Name of entity
Type of entity
Country of
incorporation
Percentage of
share capital held
Australian
or foreign1
Foreign
jurisdiction
Woodside Energy (Carlisle Bay) Limited2
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energy (Mexico) Limited
Body corporate
United Kingdom
100%
Foreign
United Kingdom
Woodside Energía Servicios Administrativos, S. de R.L. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Energía Servicios de México, S. de R.L. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Energy (Mexico Holdings) LLC
Body corporate
United States
100%
Foreign
United States
Operaciones Conjuntas, S. de R.L. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Energía Holdings de México, S. de R.L. de C.V.
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Petróleo Operaciones de México, S. de R.L. de C.V. 2
Body corporate
Mexico
100%
Foreign
Mexico
Woodside Energy (Australia) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (International Exploration) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Bass Strait) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy (Victoria) Pty Ltd2
Body corporate
Australia
100%
Australian
N/A
Woodside Energy Holdings LLC5
Body corporate
United States
100%
Australian
United States
Woodside Energy (Trinidad-2C) Ltd2
Body corporate
Canada
100%
Foreign
Canada
OCI Clean Ammonia Holding BV
Body corporate
Netherlands
100%
Foreign
Netherlands
OCI Clean Ammonia LLC
Body corporate
United States
100%
Foreign
United States
Woodside Energy (Canada) Corporation
Body corporate
Canada
100%
Foreign
Canada
Koolbardi Pte Ltd
Body corporate
Singapore
100%
Australian
N/A
Trusts
2013 Woodside Equity Plans Trust
Trust
N/A
N/A
Australian
N/A
1. Residency for Australian tax purposes has been determined in accordance with the Commissioner of Taxation’s existing public guidance, including Taxation Ruling TR 2018/5 and Practical Compliance
Guideline PCG 2018/9. For this reporting period the Corporations Act does not contain a method for determining tax residency for partnerships and trusts. The disclosure statement has therefore been
prepared in accordance with recent amendments to specify how the tax residency of partnerships and trusts should be determined (these amendments will apply to subsequent reporting periods).
2. Entities or its branches are participants of joint ventures or joint operations.
3. Entity is a partner in the KM LNG Operating General Partnership.
4. The partners of this partnership are incorporated in Canada.
5. Treated as a partnership for Australian tax purposes.
Consolidated entity disclosure statement
As at 31 December 2024
2024 ANNUAL REPORT 207
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 2024 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 2024 and
of the performance of the Group for the financial year ended 31 December 2024;
(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 2024 Financial Statements;
(d) the consolidated entity disclosure statement required by subsection 295(3A) of the Corporations Act 2001 disclosed on pages 205-207
is true and correct;
(e) 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
(f) 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 2024.
For and on behalf of the Board
R J Goyder, AO
Chair of the Board
Melbourne, Victoria
25 February 2025
M E O’Neill
Chief Executive Officer and Managing Director
Sydney, New South Wales
25 February 2025
208 WOODSIDE ENERGY GROUP LTD
Independent auditor's report
PricewaterhouseCoopers, ABN 52 780 433 757
Brookfield Place, Level 15, 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.
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 2024 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 financial report comprises:
the consolidated statement of financial position as at 31 December 2024
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 consolidated entity disclosure statement as at 31 December 2024
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. 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) 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.
2024 ANNUAL REPORT 209
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
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
The Group has major business units located in
Australia and internationally. 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 auditor, or component auditors
from other PwC network firms operating under our
instruction. Where the work was performed by
component auditors, we determined the level of
involvement we needed to have in the audit work
at those components to be able to conclude
whether sufficient appropriate audit evidence had
been obtained as a basis for our opinion on the
Group financial statements as a whole.
Amongst other relevant topics, we communicated
the following key audit matters to the Audit and
Risk Committee:
OCI Clean Ammonia Holding B.V. business
combination – valuation of the fair value of net
assets acquired,
Impairment assessment of certain property,
plant and equipment and goodwill,
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
OCI Clean Ammonia Holding B.V. business
combination – valuation of the fair value of net
assets acquired
As described in Note B.5 to the Group financial report,
the Group completed the acquisition of OCI Clean
Ammonia Holding B.V. and its Beaumont New
Ammonia project for total purchase consideration of
$2,370 million on 30 September 2024. The acquisition
method of accounting was used by the Group to
account for this business combination, under which the
fair value of net identifiable assets was provisionally
estimated at acquisition date to be $2,201 million,
giving rise to goodwill from the acquisition of $169
Our procedures included, among others:
(i)
testing the effectiveness of controls relating to
the Group’s assessment of business
combinations,
(ii)
assessing the nature of the acquisition to
determine if the acquisition is a business
combination due to the stage of completion on
the Beaumont New Ammonia project and the
timing of transfer of employees,
210 WOODSIDE ENERGY GROUP LTD
Key audit matter
How our audit addressed the key audit matter
million. Estimating the fair value of net assets acquired
requires the selection of appropriate valuation
methodologies which included the reproduction cost
method to value the property, plant and equipment
acquired, and the use of cash flow models underpinned
by significant estimates and assumptions to value the
acquired intangible assets.
The principal considerations for our determination that
performing procedures relating to the valuation of the
fair value of net assets acquired as part of the OCI
Clean Ammonia Holding B.V. business combination is
a key audit matter are:
(i)
there is a significant level of judgment applied
by the Group in determining the fair value of
net assets acquired, including the use of the
Group’s experts to assist in the estimation of
fair value,
(ii)
this in turn led to a high degree of auditor
judgement, effort and subjectivity in
performing procedures and evaluating the
Group’s valuation methodology, significant
assumptions and estimates, and
(iii)
the nature and extent of audit effort required to
perform the procedures and evaluate the
Group’s valuation methodology, significant
assumptions and estimates required the use
of professionals with specialised skill and
knowledge.
(iii)
evaluating the Group’s accounting for the fair
value of net assets acquired in a business
combination against the requirements of
Australian Accounting Standards, and our
understanding of the acquisition agreement and
the acquired net assets of OCI Clean Ammonia
Holding B.V.,
(iv)
assessing the valuation methodology applied by
the Group to estimate the fair value of net
assets acquired at 30 September 2024,
including assessing the appropriateness of
significant estimates and assumptions,
(v)
evaluating the work of the Group’s experts
involved in the determination of significant
assumptions and estimates,
(vi)
evaluating the disclosures made regarding the
business combination in the Group financial
report against the requirements of Australian
Accounting Standards, and
(vii) professionals with specialised skill and
knowledge were used to assist in evaluating the
appropriateness of the Group’s fair value
estimates.
Impairment assessment of certain property, plant
and equipment and goodwill
As described in Notes B.3 and B.4 to the Group
financial report, the Group’s property, plant and
equipment (PP&E) balance was $42,636 million, and
the Group’s goodwill balance was $3,866 million as of
31 December 2024. As further described in Note B.4 to
the Group financial report, cash-generating units
(CGUs) with allocated goodwill are tested for
impairment at least annually, while CGUs without
allocated goodwill are tested for impairment when there
is an indicator of impairment. Certain CGUs meeting
those criteria were tested for impairment as at 31
December 2024, whereby the recoverable amount of
the CGU is compared with its carrying value. The
recoverable amounts of those CGUs were estimated
using the fair value less costs of disposal approach,
utilising cash flow models. The Group’s cash flow
models included significant judgments and
assumptions relating to oil and gas reserves and
resources, estimates of future production and
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,
(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 assessment of PP&E and goodwill
in the consolidated financial statements against
the requirements of Australian Accounting
Standards, and
(v)
professionals with specialised skill and
knowledge were used to assist in evaluating the
2024 ANNUAL REPORT 211
Key audit matter
How our audit addressed the key audit matter
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 impairment
assessment of certain PP&E and goodwill is a key
audit matter are:
(i)
there is a significant level of judgment 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
judgment, 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 Company has recognised deferred tax assets of
$2,393 million as of 31 December 2024, of which
$1,448 million relates to PRRT, including the Pluto
PRRT DTA which increased by $502 million during the
year on the basis of future taxable profits 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. The Group’s estimation of
the PRRT DTAs involves significant judgments 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, future
augmentation 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:
(i)
there is a significant level of judgment applied
by the Group in determining the recoverability of
appropriateness of the Group’s recoverable
amount estimates.
Our procedures included, among others:
(i)
testing the effectiveness of controls relating to
the Group’s assessment of the significant
judgments and assumptions included within the
PRRT modelling and recoverability
assessment,
(ii)
assessing the appropriateness of significant
judgments 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
judgments and estimates,
(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.
212 WOODSIDE ENERGY GROUP LTD
Key audit matter
How our audit addressed the key audit matter
the PRRT DTAs, including having regard to the
judgments 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
judgment, 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 2024, 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.
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 in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that 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.
2024 ANNUAL REPORT 213
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 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://auasb.gov.au/media/bwvjcgre/ar1_2024.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 2024.
In our opinion, the remuneration report of Woodside Energy Group Ltd for the year ended 31
December 2024 complies with section 300A of the Corporations Act 2001.
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
A G B Hodge
Partner
Perth, Western Australia
25 February 2025
Partner
Perth, Western Australia
25 February 2025
214 WOODSIDE ENERGY GROUP LTD
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 US SEC 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.
Australia
US$m
International
US$m
Total
US$m
2024
Unproved properties
1,358
895
2,253
Proved properties1
54,189
20,032
74,221
Total costs
55,547
20,927
76,474
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
(30,244)
(5,936)
(36,180)
Net capitalised costs
25,303
14,991
40,294
2023
Unproved properties
1,193
1,109
2,302
Proved properties1
52,563
18,039
70,602
Total costs
53,756
19,148
72,904
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
(27,548)
(3,994)
(31,542)
Net capitalised costs
26,208
15,154
41,362
2022
Unproved properties
1,154
1,834
2,988
Proved properties1
49,190
15,546
64,736
Total costs
50,344
17,380
67,724
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
(24,353)
(2,491)
(26,844)
Net capitalised costs
25,991
14,889
40,880
1. Proved properties include the fair value ascribed to future phases of certain projects acquired through business combinations.
6.1
2024 ANNUAL REPORT 215
2024 ANNUAL REPORT 215
Additional Information • Supplementary information on oil and gas - unaudited
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.
Australia
US$m
International
US$m
Total
US$m
2024
Acquisitions of proved property
-
-
-
Acquisitions of unproved property
-
-
-
Exploration1
61
358
419
Development2
3,072
1,714
4,786
Total costs3
3,133
2,072
5,205
2023
Acquisitions of proved property
-
-
-
Acquisitions of unproved property
-
-
-
Exploration1
103
420
523
Development
3,315
2,124
5,439
Total costs3
3,418
2,544
5,962
2022
Acquisitions of proved property
8,488
11,098
19,586
Acquisitions of unproved property
-
180
180
Exploration1
39
541
580
Development
2,365
1,740
4,105
Total costs3
10,892
13,559
24,451
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 $4,403 million of expenditure and $383 million of capitalised interest in 2024.
3. Total costs include $4,885 million (2023: $5,683 million, 2022: $23,991 million) capitalised during the year.
216 WOODSIDE ENERGY GROUP LTD
RESULTS OF OPERATIONS FROM OIL AND GAS PRODUCTION ACTIVITIES
Australia
US$m
International
US$m
Total
US$m
2024
Oil and gas revenue
8,276
3,412
11,688
Production costs
(1,147)
(579)
(1,726)
Exploration expenses
(47)
(282)
(329)
Depreciation, depletion, amortisation and valuation provision1
(2,679)
(1,857)
(4,536)
Production taxes2
(287)
(29)
(316)
Accretion expense3
(223)
(66)
(289)
Income taxes
(1,140)
(249)
(1,389)
Royalty-related taxes4
(91)
-
(91)
Results of oil and gas producing activities5
2,662
350
3,012
2023
Oil and gas revenue
9,699
2,564
12,263
Production costs
(1,396)
(402)
(1,798)
Exploration expenses
(55)
(299)
(354)
Depreciation, depletion, amortisation and valuation provision1
(3,288)
(2,555)
(5,843)
Production taxes2
(363)
(29)
(392)
Accretion expense3
(179)
(58)
(237)
Income taxes
(1,449)
-
(1,449)
Royalty-related taxes4
(367)
-
(367)
Results of oil and gas producing activities5
2,602
(779)
1,823
2022
Oil and gas revenue
12,453
1,575
14,028
Production costs
(1,277)
(353)
(1,630)
Exploration expenses
(20)
(440)
(460)
Depreciation, depletion, amortisation and valuation provision1
(1,476)
(460)
(1,936)
Production taxes2
(429)
(16)
(445)
Accretion expense3
(85)
(23)
(108)
Income taxes
(2,707)
(151)
(2,858)
Royalty-related taxes4
(501)
-
(501)
Results of oil and gas producing activities5
5,958
132
6,090
1. Includes valuation provision recognition of nil (2023: a valuation provision recognition of $1,917 million; 2022: reversal of $900 million).
2. Includes royalties and excise duty.
3. Represents the unwinding of the discount on the closure and rehabilitation provision.
4. Includes petroleum resource rent tax and petroleum revenue tax where applicable. Excludes deferred tax (benefit)/expense of $(487) million (2023: $531 million; 2022: $(814) million).
5. This table reflects the results of our oil and gas activities as reported in note A.1 ‘Segment revenue and expenses’ in Section 5.1 – financial statements. Other income, other expenses, general and
administrative costs and amounts relating to the marketing and new energy/corporate segments within the note are excluded.
2024 ANNUAL REPORT 217
STANDARDISED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING TO PROVED OIL AND GAS
RESERVES (STANDARDISED MEASURE)
The following tables set out the standardised measure of discounted future net cash flows, and changes therein, related to the Group’s
estimated proved reserves as presented in the Reserves and Resources Statement, and should be read in conjunction with that disclosure.
The analysis is prepared in compliance with FASB Oil and Gas Disclosure requirements, applying certain prescribed assumptions under
Topic 932 including the use of unweighted average first-day-of-the-month prices for the previous 12-months, year-end cost factors, currently
enacted tax rates and an annual discount factor of 10% to year-end quantities of net proved reserves.
Certain key assumptions prescribed under Topic 932 are arbitrary in nature and may not prove to be accurate. The reserve estimates on which
the Standard measure is based are subject to revision as further technical information becomes available or economic conditions change.
Discounted future net cash flows like those shown below are not intended to represent estimates of fair value. An estimate of fair value
would also take into account, among other things, the expected recovery of reserves in excess of proved reserves, anticipated future
changes in commodity prices, exchange rates, development and production costs as well as alternative discount factors representing the
time value of money and adjustments for risk inherent in producing oil and gas.
Woodside standardised measure year ended 31 December
Australia
US$m
International
US$m
Total
US$m
2024
Future cash inflows
67,576
37,800
105,376
Future production costs
(24,198)
(11,150)
(35,348)
Future development costs1
(9,350)
(6,766)
(16,116)
Future income taxes
(11,631)
(4,776)
(16,407)
Future net cash flows
22,397
15,108
37,505
Discount at 10% per annum
(8,157)
(6,493)
(14,650)
Standardised measure
14,240
8,615
22,855
2023
Future cash inflows
114,168
41,307
155,475
Future production costs
(31,945)
(11,344)
(43,289)
Future development costs1
(10,758)
(8,216)
(18,974)
Future income taxes
(27,527)
(5,375)
(32,902)
Future net cash flows
43,938
16,372
60,310
Discount at 10% per annum
(20,024)
(8,133)
(28,157)
Standardised measure
23,914
8,239
32,153
2022
Future cash inflows
197,194
38,256
235,450
Future production costs
(31,157)
(9,698)
(40,855)
Future development costs1
(12,259)
(4,487)
(16,746)
Future income taxes
(62,182)
(4,823)
(67,005)
Future net cash flows
91,596
19,248
110,844
Discount at 10% per annum
(48,924)
(7,777)
(56,701)
Standardised measure
42,672
11,471
54,143
1. Future development costs include decommissioning.
218 WOODSIDE ENERGY GROUP LTD
Changes in standardised measure are presented in the following table:
2024
US$m
2023
US$m
2022
US$m
Changes in the standardised measure
Standardised measure at the beginning of the year
32,153
54,143
15,737
Revisions:
Prices, net of production costs
(12,139)
(41,132)
22,558
Changes in future development costs
(2,695)
(2,288)
(873)
Revisions of reserves quantity estimates
1,848
3,156
5,898
Accretion of discount
4,496
8,039
4,051
Changes in production timing and other
662
(707)
2,371
Sales of oil and gas, net of production costs
(9,963)
(10,500)
(10,202)
Acquisitions of reserves-in-place
-
-
28,309
Sales of reserves-in-place
(3,492)
-
-
Previously estimated development costs incurred
5,061
5,276
3,339
Extensions, discoveries, and improved recoveries, net of future costs
160
1,174
-
Changes in future income taxes
6,764
14,992
(17,045)
Standardised measure at the end of the year
22,855
32,153
54,143
Changes in reserves quantities are shown in section 3.10 – Reserves and Resources Statement.
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
property, plant and equipment.
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 2024, 31 December 2023 and 31 December 2022.
2024
US$m
2023
US$m
2022
US$m
Movement in capitalised exploratory well costs1
At the beginning of the year
668
807
614
Acquisitions to the capitalised exploratory well costs
pending the determination of proved reserves
-
-
180
Additions to the capitalised exploratory well costs
pending the determination of proved reserves
90
169
111
Capitalised exploratory well costs expensed2
(8)
(4)
(62)
Capitalised exploratory well costs reclassified to wells, equipment
and facilities based on the determination of proved reserves
(29)
(304)
(36)
Sale of suspended wells
-
-
-
At the end of the year
721
668
807
1. Suspended exploratory well costs represent capitalised exploration, evaluation and permit acquisition costs.
2. Includes amortisation of licence acquisition costs.
2024 ANNUAL REPORT 219
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.
2024
US$m
2023
US$m
2022
US$m
Ageing of capitalised exploratory well costs
Exploratory well costs capitalised for a period of one year or less
97
71
124
Exploratory well costs capitalised for a period greater than one year
624
597
683
At the end of the year
721
668
807
2024
2023
2022
Number of projects that have been capitalised for a period
greater than one year1
7
12
21
1. 2023 has been restated
220 WOODSIDE ENERGY GROUP LTD
THREE-YEAR PRICING OVERVIEW
Woodside’s results from operations are significantly influenced by
global energy market conditions. 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, however remained above historic
averages with the decline triggered by milder weather conditions
and higher stock levels across Europe. Despite ongoing geopolitical
events in 2024, energy prices were range bound. Supported by
OPEC+ market management, dated Brent averaged $80/bbl
and LNG prices dropped from the highs of 2022 as countries
prioritised energy security and maintaining storage levels. However,
uncertainty remains, particularly due to the ongoing conflict in
Ukraine and geopolitical events in the Middle East.
SEASONALITY
Woodside’s revenue is exposed to commodity price fluctuations
through the sale of hydrocarbons. Commodity pricing can be affected
by seasonal energy demand movements in different markets.
Financial results
2024
US$m
2023
US$m
2022
US$m
Operating revenue
13,179
13,994
16,817
Cost of sales
(7,501)
(7,519)
(6,540)
Gross profit
5,678
6,475
10,277
Other income
624
322
735
Other expenses
(1,788)
(1,573)
(2,726)
Impairment losses
-
(1,917)
-
Impairment reversals
-
-
900
Profit before tax and net finance costs
4,514
3,307
9,186
Net finance costs
(145)
(34)
(12)
Total tax expense
(723)
(1,551)
(2,599)
Profit after tax
3,646
1,722
6,575
Attributable to equity holders of the
parent
3,573
1,660
6,498
Attributable to non-controlling
interests
73 62
77
Profit for the period
3,646
1,722
6,575
Woodside’s profit after tax attributable to equity holders of the
parent increased to $3,573 million in 2024 from $1,660 million in
2023 and $6,498 million in 2022. Operating revenue of $13,179
million decreased by $815 million, or -6%, from 2023. The decrease
was primarily due to lower average Brent, WTI, TTF, and JKM price
markers, natural field decline at Bass Strait and NWS, Trinidad
planned turnaround and reduced third-party trades.
This decrease was partly offset by the start of production at
Sangomar. Operating revenue decreased by $2,823 million, or -17%,
from 2022 to 2023. The decrease was driven by lower average Brent,
TTF and JKM price markers which was partly offset by an additional
five months of production from BHP’s petroleum business acquired
on 1 June 2022.
Cost of sales decreased by $18 million, or nil percent movement,
to $7,501 million compared to 2023, primarily due to fewer external
LNG trades and lower royalties, excise and levies driven by lower
prices offset by cost of sales associated with Sangomar’s first
production. Cost of sales increased by $979 million, or 15%, from
2022 to 2023. The increase was driven by an additional five months
of activity from the assets acquired as part of the merger with
BHP’s petroleum business.
Other income increased by $302 million, or 94%, to $624 million
from 2023, primarily due to profit on the sell-down of non-operating
interests in Scarborough to LNG Japan and JERA. Other income
decreased by $413 million, or 56% from 2022 to 2023, primarily due to
profit on the sell-down of Pluto Train 2 in 2022.
Other expenses increased by $215 million, or 14%, to $1,788 million
from 2023, primarily due to a fair value reduction for an embedded
derivative associated to urea and increased restoration provision
estimates at closed sites partially offset by lower losses on hedging
activities. Other expenses decreased by $1,153 million, or 42% from
2022 to 2023, primarily due to lower losses on hedging activities and
the incurrence of merger transaction costs in 2022.
In 2024, there were no impairment losses, compared to an
impairment loss totaling $1,917 million for the Shenzi, Wheatstone
and Pyrenees assets in 2023. For more information on impairment
refer to Note B.4 Impairment of exploration and evaluation,
property, plant and equipment and goodwill in section 5 - Financial
Statements.
Net finance costs increased by $111 million, or 326%, from 2023,
to $145 million. This was primarily due to reduced average cash
in term deposits and higher debt drawdown. Net finance costs
increased by $22 million, or 183%, from 2022 to 2023. 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.
Total tax expense comprises income tax and petroleum resource
rent tax (PRRT). Income tax expense increased from 2023 to 2024 by
$161 million, or 25%, to $814 million driven by higher taxable profit.
PRRT was a $91 million benefit in 2024, up $989 million, or 110%
from 2023 following the recognition of a PRRT deferred tax asset
(DTA) at Pluto due to an increase in forecast assessable income due
to higher prices. Income tax expense decreased from 2022 to 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.
Three-year financial analysis
6.2
2024 ANNUAL REPORT 221
2024 ANNUAL REPORT 221
Additional Information • Three-year financial analysis
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 2024, 2023 and 2022.
Units
2024
2023
2022
Production volumes1
LNG
Bcf
487.3
505.0
485.1
Pipeline gas
Bcf
219.6
226.3
163.0
Crude oil and condensate
MMbbl
63.2
51.8
38.7
NGLs
MMbbl
6.6
7.1
5.3
Total production2
Mmboe
193.9
187.2
157.7
Sales volumes3,4
LNG
Bcf
547.8
595.7
550.6
Pipeline gas
Bcf
215.5
225.7
161.9
Crude oil and condensate
MMbbl
63.2
50.3
39.3
NGLs
MMbbl
6.4
7.1
4.6
Total sales volumes2
Mmboe
203.5
201.5
168.9
Average realised prices4
LNG
$/Mcf
11.7
13.7
20.5
Pipeline gas
$/Mcf
6.3
6.1
8.4
Crude oil and condensate
$/bbl
77.2
79.0
95.8
NGLs
$/bbl
48.0
39.5
44.4
Volume – weighted average
$/boe
63.6
68.6
98.4
Operating revenue3,4
LNG
$m
6,401
8,165
11,289
Pipeline gas
$m
1,349
1,374
1,362
Crude oil and condensate
$m
4,887
3,981
3,758
NGLs
$m
306
281
206
Other revenue
$m
236
193
202
Operating revenue
$m
13,179
13,994
16,817
LNG
Revenue from the sale of LNG in 2024 decreased by $1,764 million,
or 22%, to $6,401 million for 2024 from 2023, primarily due to
decreases in Brent, JCC JKM and TTF price markers and lower
volumes due to NWS natural field decline.
Revenue from the sale of LNG in 2023 decreased by $3,124 million,
or 28%, for 2023 from 2022, primarily due to decreasing gas price
markers. Lower prices were partially offset by five additional months
of increased volumes following the merger with BHP Petroleum.
Pipeline gas
Revenue from the sale of pipeline gas in 2024 decreased by $25 million,
or 2%, to $1,349 million for 2024 from 2023, primarily due to Bass Strait
natural field decline, planned turnaround and lower prices at Trinidad.
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.
1. Production volumes for 2024, 2023 and 2022 include 1.2 MMboe, 1.1 MMboe and 0.9 MMboe, respectively, of production from feed gas purchased from Pluto non-operating participants processed through
the Pluto-KGP Interconnector.
2. LNG and Pipeline gas volumes are converted to oil equivalent volumes via a constant conversion factor, which for Woodside is 5.7 billion cubic feet (bcf) of gas per 1 million barrel of oil equivalent
(MMboe). Volumes of NGLs, oil and condensate are converted from MMbbl to MMboe on a 1:1 ratio.
3. Sales volumes for 2024, 2023 and 2022 include 12.3 MMboe, 15.6 MMboe and 14.7 MMboe, respectively, of purchased volumes sourced from third parties. These third-party volumes are primarily LNG
cargoes purchased from Corpus Christi LNG through a long-term offtake agreement and from the spot market. Sales volumes also include feed gas purchased from Pluto non-operating participants
processed through the Pluto-KGP Interconnector.
4. Sales volumes differ from production volumes primarily due to the timing of liftings and the exclusion of third-party purchased volumes. Average realised prices and operating revenue include third-party purchased volumes.
Crude oil and condensate
Revenue from the sale of crude oil and condensate in 2024
increased by $906 million, or 23%, to $4,887 million for 2024 from
2023, primarily due to Sangomar first production.
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.
NGLs
Revenue from the sale of NGLs in 2024 increased by $25 million,
or 9%, to $306 million for 2024 from 2023, due to higher traded
volumes via third party purchases.
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.
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 2024 remain consistent to
2023 and 2022.
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 2024, 2023 and 2022.
Key metric
Units
2024
2023
2022
Operating revenue
$m
8,541
9,802
12,299
Profit before tax and net
finance costs
$m
4,614
4,487
9,415
Total production
MMboe
139.5
145.1
136.6
Average realised prices
LNG
$/Mcf
11.0
13.4
19.0
Pipeline gas
$/Mcf
7.1
6.8
8.3
Crude oil and condensate
$/bbl
78.7
80.0
99.9
Natural gas liquids
$/bbl
51.2
39.1
47.2
222 WOODSIDE ENERGY GROUP LTD
Financial results
Operating revenue of $8,541 million decreased by $1,261 million,
or 13%, from 2023 primarily due to lower LNG realised prices and
natural field decline of Bass Strait and NWS, partially offset by
higher realised prices for pipeline gas and NGL, planned turnaround
activities in 2023 and higher Wheatstone mitigation cargoes. The
section entitled ‘Three-year pricing overview’ has more information.
Profit before tax and net finance costs of $4,614 million increased by
$127 million, or 3%, from 2023 primarily due to pre-tax impairments
incurred in 2023 and profit from the sale of non-operating interest in
the Scarborough project, partially offset by lower prices.
Operating revenue decreased by $2,497 million, from 2022 to 2023
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. The section
entitled ‘Three-year pricing overview’ has more information.
Profit before tax and net finance costs of $4,487 million decreased
by $4,928 million, or 52%, from 2022 to 2023 primarily due to lower
prices and the pre-tax impairment of Wheatstone and Pyrenees
assets of $534 million.
Production
Production volumes for the Australia segment decreased by
5.6 MMboe in 2024 compared to 2023, primarily due to natural field
decline at Bass Strait and NWS partially offset by absence of Pluto
planned turnaround activities.
Production volumes for the Australia segment increased by
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.
International
Financial and operating information for our international operations
comparing 2024, 2023 and 2022 is detailed below.
Key metric
Units
2024
2023
2022
Operating revenue
$m
3,405
2,549
1,570
Profit/(loss) before tax
and net finance costs
$m
601
(808)
125
Total production
MMboe
54.4
42.1
21.1
Average realised prices
Pipeline gas
$/Mcf
4.0
4.3
8.6
Crude oil and condensate
$/bbl
75.3
76.8
88.7
Natural gas liquids
$/bbl
24.8
21.1
31.3
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
Financial results
Operating revenue of $3,405 million in 2024 increased by $856
million in 2024 from 2023 primarily due to the start of production
at Sangomar partially offset by planned turnaround and timing
of crude lifts at Trinidad. For more information refer to Note A.1
Segment revenue and expenses in section 5 - Financial Statements.
Profit before tax and net finance costs of $601 million increased by
$1,409 million primarily due to the absence of pre-tax impairment of
the Shenzi asset of $1,383 million.
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.1
Loss before tax and net finance costs of $808 million was primarily
due to the pre-tax impairment of the Shenzi asset of $1,383 million.
Production
The International segment achieved an increase in production
volumes of 12.3 MMboe in 2024 compared to 2023, primarily due to
the start of production at Sangomar.
Production volumes for the International segment increased by 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.
Marketing
Financial and operating information for our marketing operations
comparing 2024, 2023 and 2022 is detailed below.
Key metric
Units
2024
2023
2022
Operating revenue
$m
1,233
1,643
2,948
Profit before tax and net
finance costs
$m
427
375
848
Average realised prices
LNG
$/Mcf
12.1
13.4
29.0
Liquids
$/boe
61.5
78.9
165.6
Financial results
Operating revenue of $1,233 million, decreased by $410 million, or
25%, from 2023 to 2024 primarily due to lower average realised
price and fewer third-party trades.
Profit before tax and net finance costs of $427 million, increased
by $52 million, or 14%, from 2023 to 2024 primarily due to higher
volumes marketed and hedge gains partially offset by lower
average realised price.
Operating revenue of $1,643 million, decreased by $1,305 million,
or 44%, from 2022 to 2023 primarily due to lower average realised
price and fewer third-party trades.
Profit before tax and net finance costs of $375 million, decreased
by $473 million, or 56%, from 2022 to 2023 primarily due to lower
average realised price.
2024 ANNUAL REPORT 223
New Energy/Corporate items
Financial information for our New Energy/Corporate items
comparing 2024, 2023 and 2022 is detailed below.
Key metric
Units
2024
2023
2022
Loss before tax and net
finance costs
$m
(1,128)
(747)
(1,202)
Loss before tax and net finance costs of $1,128 million increased
by $381 million, or 51%, from 2023 to 2024 primarily due to an
embedded derivative fair value adjustment as a result of weaker
urea forward curve and higher discount rate.
Loss before tax and net finance costs of $747 million decreased by
$455 million, or 38%, from 2022 to 2023 primarily due to the absence
of merger cost in 2023.
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 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 Property,
plant and equipment in section 5 - Financial Statements.
Capital and exploration expenditure 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.
Capital and exploration expenditure geographical split1
Units
2024
2023
2022
Australia
$m
3,297
3,515
2,440
International2
$m
2,351
2,588
2,093
Total
$m
5,648
6,103
4,533
1. Includes capital additions on other corporate spend. The 2022 amounts have been restated to be
presented on the same basis.
2. Capital and exploration expenditure incurred in all other locations excluding Australia.
Australian capital and exploration expenditure decreased by
$218 million, or 6%, to $3,297 million from 2023 to 2024 primarily
due to the sell down of non-operating interests in Scarborough
partially offset by continued investment in Pluto Train 2 asset.
Australian capital and exploration expenditure increased by
$1,075 million, or 44%, to $3,515 million from 2022 to 2023, primarily
due to continued investment into the Scarborough and Pluto Train
2 assets.
International capital and exploration expenditure decreased by
$237 million, or 9%, to $2,351 million from 2023 to 2024, primarily
due to completion of the Sangomar project in 2024 and Argos in
2023, completion of Shenzi North in 2023 and less drilling activity at
Atlantis partially offset by continued investment into the Trion asset.
International capital and exploration expenditure increased by
$495 million, or 24%, to $2,588 million from 2022 to 2023, primarily
due to continued investment into the Sangomar and Trion assets
Cash flow analysis
The following section describes movements in Woodside’s cash
flows for the years ending 31 December 2024, 2023 and 2022.
Key metric
2024
US$m
2023
US$m
2022
US$m
Net cash from operating activities
5,847
6,145
8,811
Net cash used in investing activities
(5,747)
(5,585)
(2,265)
Net cash from/(used in) financing
activities
2,101
(5,000)
(3,364)
Net increase/(decrease) in cash
2,201
(4,440)
3,182
Net cash from operating activities
Net cash from operating activities in 2024 decreased $298 million,
or 5%, to $5,847 million from 2023, primarily due to higher payments
for restoration ($358 million); return of collateral on Brent hedges in
2023 ($506 million); offset in part by lower settled hedge payments
($311 million) and lower income tax paid largely due to a balancing
income tax payment in 2023 for record 2022 profits ($361 million).
Net cash from operating activities decreased $2,666 million, or
30%, to $6,145 million from 2022 to 2023, primarily due to lower
EBITDA 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 versus 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 used in investing activities
Net cash used in investing activities in 2024 increased $162 million,
or 3%, to $5,747 million from 2023, primarily due to the acquisition
of Beaumont New Ammonia ($1,896 million) and Louisiana LNG
($1,042 million) offset in part by the Scarborough sell-downs to LNG
Japan and JERA Scarborough Pty Ltd ($2,285 million).
Net cash used in investing activities increased $3,320 million,
or 147%, to $5,585 million from 2022 to 2023, primarily due to
investments in major projects at Scarborough, Sangomar and Trion.
These new investments are intended to generate future operating
cash flows and returns across the price cycle.
Net cash from/(used in) financing activities
Net cash from financing activities in 2024 increased $7,101 million,
or 142%, to $2,101 million from 2023, primarily due to lower final
prior year dividend paid to shareholders ($1,804 million) due to the
record 2022 net profit after tax; issue of two series of unsecured
bonds ($2,000 million); drawdown of syndicated term loan facilities
($1,650 million); drawdown of JBIC Facility ($1,000 million) and
drawdown of bilateral facilities ($500 million).
Net cash used in financing activities increased $1,636 million, or
49%, to $5,000 million from 2022 to 2023, 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.
224 WOODSIDE ENERGY GROUP LTD
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:
Net exploratory wells
Net development wells
Productive
Dry
Total
Productive
Dry
Total
Total
Year ended 31 December 2024
Australia
-
-
-
-
-
-
-
International1
-
0.5
0.5
11.0
-
11.0
11.5
Total
-
0.5
0.5
11.0
-
11.0
11.5
Year ended 31 December 2023
Australia
-
0.7
0.7
0.7
-
0.7
1.4
International2
0.2
0.4
0.7
6.3
0.4
6.7
7.4
Total
0.2
1.1
1.3
7.0
0.4
7.4
8.8
Year ended 31 December 20223
Australia
-
-
-
0.9
-
0.9
0.9
International4
0.9
2.0
2.9
1.2
-
1.2
4.0
Total
0.9
2.0
2.9
2.1
-
2.1
4.9
1. International includes United States, Senegal, Egypt and Republic of the Congo.
2. International is primarily United States and Trinidad and Tobago.
3. Includes BHP Petroleum from 1 June to 31 December 2022.
4. International is primarily United States and Sangomar.
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 2024, productive development wells included one Atlantis well and three Argos wells in the Gulf of Mexico and 12 Sangomar production
wells.1 Dry exploratory wells included the Corvus well in the Gulf of Mexico and the Niamou Marine-1 well in Republic of the Congo.1
Present development activities continuing as of 31 December 2024
The number of wells in the process of drilling and/or completion as of 31 December 2024 was as follows:
Exploratory wells
Development wells
Total
Gross
Net
Gross
Net
Gross
Net
Australia
-
-
9.0
6.9
9.0
6.9
International1
1.0
0.3
4.0
1.6
5.0
1.9
Total
1.0
0.3
13.0
8.5
14.0
8.8
1. International is primarily the United States.
Development wells in progress include Scarborough development wells, one Pluto well and four Gulf of Mexico wells.1 Exploration wells
included the Khendjer-1X in Egypt, which completed operations subsequent to the period.
6.3
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
2024 ANNUAL REPORT 225
2024 ANNUAL REPORT 225
Additional Information • Additional disclosures
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 2024. 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 2024 was as follows:
Crude oil wells
Natural gas wells
Total
Gross
Net
Gross
Net
Gross
Net
Australia
44.0
26.7
173.0
80.2
217.0
106.9
International1
103.0
52.6
16.0
7.7
119.0
60.3
Total
147.0
79.3
189.0
87.9
336.0
167.2
1. International is primarily the United States, Senegal and Trinidad and Tobago.
Of the productive crude oil and natural gas wells, 80 (net: 46.5) 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 2024 is shown in this table.
Developed acreage
Undeveloped acreage
Thousands of acres
Gross
Net
Gross
Net
Australia
2,441
1,217
1,760
1,187
United States
98
45
645
384
Other International1,2
219
167
11,622
4,876
Total
2,758
1,429
14,027
6,447
1. Developed acreage in Other International primarily consists of Trinidad and Tobago and Senegal.
2. Undeveloped acreage in Other International primarily consists of Myanmar (~50%), Egypt (~25%) and Barbados, Republic of the Congo, Ireland, Timor-Leste, Canada and Trinidad and Tobago.
Woodside has initiated exits from our Myanmar, Ireland and Barbados positions, totalling approximately 5,820 thousand acres gross (2,874
thousand acres net). Approximately 2,413 thousand acres gross (760 thousand acres net), 784 thousand acres gross (457 thousand acres
net) and 278 thousand acres gross (179 thousand acres net) of undeveloped acreage will expire in the years ending 31 December 2025,
2026 and 2027 respectively if Woodside does not establish production or take any other action to extend the terms of the licences and
concessions. There are no proved undeveloped reserves associated with the near-term expiring acreage.
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 of 31 December 2024, delivery commitments were as follows:
Natural gas (MMboe)
Crude oil (MMbbl)
Condensate (MMbbl)
NGLs (MMbbl)
Year ended 31 December
2025 to 2029
380.6
5.1
1.6
2.6
Thereafter
355.0
-
-
-
Total oil and gas delivery commitments
735.6
5.1
1.6
2.6
226 WOODSIDE ENERGY GROUP LTD
PRODUCTION
The following table details production by product and geographic location for each of the three years ended 31 December 2024, 2023 and
2022. 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.
Units
20241
20231
20221
Production volumes
LNG2
Australia
bcf
482.2
499.3
481.1
International
bcf
-
-
-
Total LNG
bcf
482.2
499.3
481.1
Pipeline gas2
Australia
bcf
159.7
159.6
130.5
International
bcf
58.5
65.6
31.9
Total pipeline gas
bcf
218.2
225.2
162.5
Crude oil and condensate
Australia
MMbbl
20.7
22.7
24.0
International
MMbbl
42.5
29.1
14.7
Total crude oil and condensate
MMbbl
63.2
51.8
38.7
Natural gas liquids (NGLs)
Australia
MMbbl
5.0
5.7
4.4
International
MMbbl
1.6
1.4
0.8
Total NGLs
MMbbl
6.6
7.1
5.2
Total petroleum products
Australia
MMboe
138.3
144.0
135.7
International
MMboe
54.4
42.1
21.1
Total production
MMboe
192.7
186.1
156.8
Average sales price per produced boe
LNG
Australia
US$/Mcf
11.6
13.4
18.2
International
US$/Mcf
-
-
-
Total LNG
US$/Mcf
11.6
13.4
18.2
Pipeline gas
Australia
US$/Mcf
7.0
6.8
8.3
International
US$/Mcf
3.9
4.4
8.6
Total pipeline gas
US$/Mcf
6.2
6.1
8.4
Crude oil and condensate
Australia
US$bbl
82.8
70.8
103.3
International
US$bbl
73.9
77 .0
86.7
Total crude oil and condensate
US$bbl
77.2
74.3
97.0
Natural gas liquids (NGLs)
Australia
US$bbl
57.5
38.3
40.6
International
US$bbl
24.6
22.9
34.5
Total NGLs
US$bbl
38.0
35.2
39.7
Total average production cost per produced boe
Australia
(US$/boe)
$8.2
11.2
10.4
International
(US$/boe)
$10.6
8.5
16.9
Total average production cost per produced boe3
(US$/boe)
$8.9
10.6
11.2
1. Production volumes exclude production from feed gas purchased from Pluto non-operating participants processed through the Pluto-KGP Interconnector (2024: 1.2 MMboe, 2023: 1.1 MMboe, 2022: 0.9 MMboe)
2. LNG and Pipeline gas volumes are converted to oil equivalent volumes via a constant conversion factor, which for Woodside is 5.7 billion cubic feet (Bcf) of gas per 1 million barrel of oil equivalent (MMboe).
Volumes of NGLs, oil and condensate are converted from MMbbl to MMboe on a 1:1 ratio.
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.
2024 ANNUAL REPORT 227
NPAT RECONCILIATION
The following table summarises the variance between the 2023 and 2024 results for the contribution of each line item to NPAT.
$ Million
Primary reasons for variance
2023 reported NPAT
1,660
Revenue from sale of hydrocarbons
Volume
299
Primarily due to Sangomar first oil offset by lower third-party trades and natural field decline.
Price
(1,157)
Lower average realised prices across all products.
Other operating revenue
43
Primarily due to increase in tolling revenue.
Cost of sales
18
Primarily due to lower trading costs and royalties, excise & levies offset by higher depreciation
expense due to Sangomar first oil.
Other income
302
Primarily due to profit on Scarborough sell-downs.
General administrative costs
8
Other
(345)
Primarily due to mark to market adjustment to embedded derivative.
Income tax and PRRT
828
Primarily due to recognition of Pluto PRRT deferred tax asset (DTA), Sangomar DTA and 2023
derecognition of Pluto PRRT DTA offset by higher taxable profit.
Impairment and impairment reversals
1,917
Primarily due to impairments recognised on Shenzi, Wheatstone and Pyrenees in 2023.
2024 reported NPAT
3,573
2024 NPAT adjustments
(693)
Adjustments for Sangomar and Pluto DTA recognition.
2024 underlying NPAT
2,880
EMPLOYEES
As at 31 December 2024, Woodside had approximately 4,718
employees, the majority of whom are located in Australia and the
United States. The increase in the number of employees from
2023 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
2024
2023
2022
Australia
3,576
3,563
3,338
Africa and Middle East
49
57
50
Asia
87
77
71
Caribbean
112
105
108
Europe
19
24
11
Americas
875
841
849
Total
4,718
4,667
4,427
Total number of contractors (TPCs)
424
474
394
1. Vacation students, cadets and scholarship students are included in relevant metrics where
appropriate.
2. ‘Secondees in’ are excluded from these metrics; ‘secondees out’ are included.
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 2024, the majority (approximately 67%) of Woodside’s
production was attributed to natural gas, comprising LNG, NGLs
and pipeline gas and the remaining portion (approximately 33%) of
Woodside’s production was attributed to oil and condensate.
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 startup 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 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
United States was based on a component linked to movements in
228 WOODSIDE ENERGY GROUP LTD
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 that 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 environmental, social, governance 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 we can produce economically, reduce the economic
viability of planned projects or assets that we plan to acquire or
have 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 property, plant and equipment.
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
Note A and note C in the Notes to the financial statements contain
further information on foreign exchange and interest rate risks.
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 Cybersecurity Framework.
Woodside’s Cyber Resilience Process consists of various Group-
wide policies, procedures and guidelines concerning cybersecurity
matters. These documents, published within the Woodside
Management System (WMS), have these aims:
1. to 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. to monitor and strengthen Woodside’s cybersecurity posture
while preventing, detecting, analysing and responding to
cybersecurity incidents.
3. to embed a cyber-safe culture across Woodside and foster
industry collaboration.
4. to enable compliance with all applicable legislation.
2024 ANNUAL REPORT 229
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 defences and help us with identifying weaknesses and
vulnerabilities within our environment. These assessment findings
are risk ranked and prioritised for remediation. Woodside’s 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. This is done through up-front cybersecurity
assessment processes that leverage independently verified security
programs including ISO 27001 certification and SOC 2 Type II
compliance, and through contractual terms and conditions.
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 and additional role based training
if applicable. 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
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.
Cybersecurity governance and internal control
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 at which cybersecurity risks and the Group’s management of
such risks are 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 VP Digital and a
group of competent and experienced cybersecurity professionals.
Our VP Digital 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, periodic
reporting in person at Audit & Risk Committee meetings or as
required through Woodside’s crisis and emergency management
process.
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.
GOVERNMENT REGULATIONS
Woodside’s assets and exploration, development, extraction and
production and decommissioning operations are subject to a
wide range of laws and regulations imposed by governments
and regulatory bodies. These regulations touch all aspects of our
businesses, including how we extract, process and explore for
oil and natural gas and how we conduct our business, including
regulations governing matters related to environmental protection,
land rehabilitation, facility decommissioning, occupational health
and safety, human rights, the rights and interests of First Nations
and Indigenous Peoples, competition, foreign investment, export,
marketing of our products, royalties and taxes.
The ability to extract and process oil and natural gas is fundamental
to our business. In most jurisdictions, where we operate or have
assets, the rights to explore for and to 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 petroleum
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.
Many of the laws and regulations to which we are subject require us
to obtain permits or other authorisations from state and/or federal
agencies before initiating exploration, certain drilling, construction,
production, operation, or other activities, and to maintain these
permits and compliance with their requirements for on-going
operations. These permits are generally subject to protest, appeal, or
litigation, which can in certain cases delay or halt projects and cease
production or operation of wells, pipelines, and other operations.
In certain jurisdictions where we have assets, such as Trinidad
and Tobago and Senegal, a production sharing contract governs
230 WOODSIDE ENERGY GROUP LTD
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 production sharing contracts,
the government awards exclusive rights for the execution of
exploration, development and production activities to the contractor
in accordance with the contract’s terms. Generally speaking,
the contractor bears the financial risk of the initiative to explore,
develop and ultimately produce the resource. When successful, the
contractor is permitted to use a specified 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 contract.
The production sharing contract 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. Production sharing
contracts 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 flora and fauna 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 amenity considerations relating to noise, odour and dust,
worker health and community notification procedures.
In addition, from time to time, certain trade sanctions are adopted by
the United Nations (UN) Security Council 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 oil or natural gas
to or 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 production 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
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 that are
subject to various pieces of state and federal 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
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, an offshore project
proposal and new or revised environment plan may be required.
Subsequent environment plans for each activity are required to be
submitted after an 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 GHG emissions and energy
production and consumption as part of a single, national reporting
scheme. The National Greenhouse and Energy Reporting
(Safeguard Mechanism) Rule 2015 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 remains uncertainty regarding future changes to climate
change regulation in Australia and the effect it may have on
Woodside’s business.
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
2024 ANNUAL REPORT 231
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, cleaning-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) and
other related laws have been introduced over the past year or two.
In December 2022, the Australian Government passed the Fair Work
Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth)
(SJBP Act) which introduced a raft of amendments into the Fair
Work 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 Fair Work 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 list of
protected attributes in the anti-discrimination provisions (namely,
by introducing gender identity, intersex status and breastfeeding),
broadening the ability of employees to extend and request access
to 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 has the power to enforce
from 12 December 2023. Additionally, the Australian Human Rights
Commission Amendment (Costs Protection) Bill 2024 (Cth) has
commenced, a key purpose of which is to reduce the financial
barriers for sexual harassment complainants to bring claims.
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
requirements for approving enterprise agreements (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 Fair Work 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 Fair Work Act
(from 1 January 2024).
A further package of significant reforms is contained in the
Australian Government’s Fair Work Legislation Amendment (Closing
Loopholes) Act 2023 (Cth) (Closing Loopholes Act). To secure
the passage of the Closing Loopholes Act, the Government split
the legislation into two tranches, the first passing both Houses
on 7 December 2023 and the second on 12 February 2024. The
first tranche dealt with matters including: ‘same job, same pay’
for labour hire workers; workplace delegate rights (except those
relating to regulated workers); criminalisation of intentional wage
and superannuation theft; enhanced discrimination protections;
amendments regarding conciliation conferences related to
industrial action; a new federal criminal offence of industrial
manslaughter; and right of entry changes for union officials
assisting health and safety representatives. The second tranche
dealt with matters including: changes to intractable bargaining
powers, provisions relating to multi-enterprise agreements, casual
employment, the definition of employee, workplace delegate rights
for regulated workers and the introduction of a right to disconnect.
Both tranches of reforms have passed both Houses and have
commenced operation (except for one limited change relating to
model enterprise agreement flexibility, consultation and dispute
terms, which will commence on 26 February 2025).
The “same job, same pay” provisions 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 direct
employees of that host (provided that the host’s employees perform
work of the same kind). The 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 is also significant as is the new criminal wage theft
offence in respect of intentional underpayments.
Woodside believes that it is well placed to comply with the
numerous new employment and industrial relations obligations that
have been introduced over the past year. Moving forward, as these
reforms have now taken effect, compliance costs are anticipated to
increase in 2025.
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 the National Offshore Petroleum
232 WOODSIDE ENERGY GROUP LTD
Safety and Environmental Management Authority, as required under
the OPGGSA. Subsequently, the management authority 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.
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 FID 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 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. Petroleum decommissioning
activities are also subject to the OPGGSA. This includes the trailing
liability regime, whereby the NOPSEMA and the responsible
Commonwealth Minister have the ability to recall any titleholders,
former titleholders and their respective related bodies corporate
and ‘related persons’ to undertake decommissioning activities on
a title or former title area. Trailing liability applies to titles that are
currently in force as well as to titles that ceased to be in force on or
after 1 January 2021.
Within the coastal waters, petroleum operations are covered by the
relevant state or Northern Territory legislation that is substantively
similar to the OPGGSA, including the Offshore Petroleum and
Greenhouse Gas Storage Act 2010 (Vic) in Victoria and the
Petroleum and Geothermal Energy Resources Act 1967 (WA) in
Western Australia.
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.
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 PRRT. In relation to PRRT, in 2024, the
Federal Government enacted the Treasury Laws Amendment (Tax
Accountability and Fairness) Act 2024 (Cth) which introduced a
PRRT deductions cap effective from 1 July 2023. Relevant LNG
projects will be subject to the deductions cap seven years after
the year of first production or from 1 July 2023, whichever is
later. Once the deductions cap applies, the cap limits the use of
deductions to offset assessable PRRT income. The Wheatstone
and Pluto projects will be subject to this new regime. Related
amendments to the PRRT legislation were introduced including
the Treasury Laws Amendment (Delivering Better Financial
Outcomes and Other Measures) Act 2024, which aligns PRRT
anti-avoidance rules with the general anti-avoidance provisions
in Part IVA of the Income Tax Assessment Act 1936 (Cth), and
the Petroleum Resource Rent Tax Assessment Regulations 2024
(Cth), which accommodate commercial tolling arrangements and
enhance the integrity rules.
• Australia’s competition laws contained in the Competition and
Consumer Act 2010 (Cth), which prohibit, among other things,
2024 ANNUAL REPORT 233
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 is supplemented by
the Competition and Consumer (Gas Market Code) Regulations
2023 (Cth) (Gas Code), which allow for the imposition of gas price
controls in the eastern Australian gas market. 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. On 15 January 2024, Woodside was granted a
conditional Ministerial exemption pursuant to the Gas Code. The
exemption relates to the price rules in Division 2 of Part 4 of the
Gas Code.
• The Australian Domestic Gas Security Mechanism, 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 mechanism is intended to be a measure of
last resort where market-based solutions and other regulatory
interventions have failed.
• 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) and complementary 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 the
special regime under joint Australian/Timor-Leste administrative
control.
• The Foreign Acquisitions and Takeovers Act 1975 (Cth), associated
regulations and Australia’s Foreign Investment Policy, all of 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 Foreign Acquisitions
and Takeovers Act , 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 Act.
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
• There is legislation covering work health and safety in both state
and federal jurisdictions, with separate onshore and offshore
regulations. These 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” for each facility that
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 and
workers’ compensation, as well as anti-discrimination and equal
opportunity matters.
• The OPGGSA also provides the legislative framework for CCS and
carbon capture utilisation and storage (CCUS) projects in offshore
areas beyond coastal waters and the grant of assessment
permits, holding leases and injection licences. The Western
Australian petroleum legislation provides for a substantively
similar CCS regulatory regime onshore and in the coastal
waters of Western Australia. On 14 May 2024, the Petroleum
Legislation Amendment Act 2024 (WA) was enacted to enable the
transportation and geological storage of greenhouse gases in
Western Australia.
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 and elsewhere in the Outer Continental Shelf.1
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 Gulf of Mexico lease auctions.1 Woodside is also subject to the
following laws and regulatory agencies, among others.
Outer Continental Shelf regulation
The Outer Continental Shelf Lands Act governs Woodside’s
hydrocarbon activities on federal offshore oil and natural gas
leases in the Gulf of Mexico.1 The Act empowers the Department
of the Interior, 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,
to administer and create regulations concerning the exploration and
development of minerals in the outer continental shelf.
Leases, which contain relatively standardised terms, on the outer
continental shelf are awarded under authority of the Act 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. For certain exploration and development activities,
234 WOODSIDE ENERGY GROUP LTD
lessees are also required to obtain environmental permits from
agencies such as the US Environmental Protection Agency (EPA).
On 20 January 2025, President Trump issued an executive order
directing the White House’s Council on Environmental Quality to
issue guidance and propose rescinding existing NEPA regulations to
“expedite and simplify the permitting process”. While the impact of
this development is unclear at this time, any disruption in our ability
to obtain permits could adversely impact our business.
Certain activities on the outer continental shelf are also subject
to regulation under US Maritime Law by the US Coast Guard. In
addition, offshore pipelines, including those located in the Gulf
of Mexico, are subject to federal regulation including under the
jurisdiction of the Federal Energy Regulatory Commission (FERC)
and the Pipeline and Hazardous Materials Safety Administration,
under the US Department of Transportation.1 BSEE has also adopted
regulations for offshore pipelines under its jurisdiction covering
similar matters. Moreover, US operations in the Gulf of Mexico
are subject to extensive requirements related to the plugging and
abandonment of wells and decommissioning of offshore structures
and equipment.1 We may be required to post substantial financial
assurance, such as surety bonds, or to otherwise demonstrate
financial capability to support these decommissioning obligations.
Further, on 15 April 2024, BOEM announced a final rule increasing
the amount of supplemental financial assurance required from
lessees and grant holders conducting operations on the OCS. As a
result of the final rule, BOEM will no longer consider or rely upon the
financial strength of predecessors in determining whether, or how
much, supplemental financial assurance will be required by current
lessees and grant holders. The final rule, which became effective on
29 June 2024, adopts a three-year phased compliance period for full
payment of a supplemental financial assurance demand. The final
rule was challenged in the US District Court for the Western District
of Louisiana by multiple oil and gas industry groups and the States
of Mississippi, Louisiana, and Texas. Although implementation of the
rule is not currently stayed, the outcome of these challenges remains
uncertain. The increased supplemental bonding requirements could
generally drive up our operating costs by increasing the amount of
security we are required to post and/or, 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. However, Woodside
may be exempted from the supplemental financial assurance
requirements by meeting an investment grade credit rating for
our entity which holds our current Gulf of Mexico assets. A parent
company guarantee from an investment grade rated company can
also satisfy the supplemental assurance requirements.
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 greenhouse gas emissions,
including carbon dioxide and methane, from certain sources in the
oil and gas sector due to their association with climate change.
At the international level, the 2015 Paris Agreement requires
member states to individually determine and submit non-binding
emissions reduction targets every five years beginning in 2020.
Although the United States withdrew from the Paris Agreement
under the first Trump administration, President Biden recommitted
the United States in February 2021, and, in April 2021, established
a goal of reducing the United States’ greenhouse gas emissions
by 50-52% below 2005 levels by 2030. However, on 20 January
2025, President Trump signed an executive order once again
withdrawing the United States from the Paris Agreement and
from any other commitments made under the United Nations
Framework Convention on Climate Change. Additionally, President
Trump revoked any purported financial commitments made by the
United States pursuant to the same. The full impact of these recent
developments is uncertain at this time.
In August 2022, President Biden signed into law the Inflation
Reduction Act of 2022, which expanded policy support and
incentives for deployment of CCUS, hydrogen and other low-carbon
projects, including several enhancements to federal tax credits.
The Inflation Reduction Act also established a charge on methane
emissions above a certain methane intensity threshold for facilities
that report their greenhouse gas emissions under the EPA’s
Greenhouse Gas Emissions Reporting Program Part 98 regulations,
beginning with methane emissions reported in calendar year
2024. The Inflation Reduction Act and/or its related impact may be
impacted by challenges, repeals, revisions or other modifications,
by the US Congress or presidential administration, and we
cannot predict at this time when or whether any modification will
take effect, or the impact of any modification on our business.
As adopted, 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 and
facilities. Among other things, the final rule requires the phase-out
of routine flaring of natural gas from new oil wells, requires all well
sites and compressor stations to be routinely monitored for leaks
and provides companies greater flexibility to use innovative and cost
effective methane detection technologies. The final rule is currently
subject to legal challenges, and the US presidential administration
may seek to revise or repeal the rule; however, we cannot predict
with certainty what actions the new administration may take or how
they might affect our business or results of operations.
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
permitting, performance and disclosure requirements, particularly
with respect to the environment, greenhouse gas emissions, natural
2024 ANNUAL REPORT 235
resources, and worker health and safety. The recent change in
US presidential administration contributes to uncertainty on the
future direction of regulatory change. For example, existing climate
change-related regulation has already become a focus of the new
Trump administration. On his first day in office, President Trump
signed several executive orders rescinding many of the previous
administration’s climate-related executive orders and associated
initiatives. President Trump’s directives included, amongst others,
directing the EPA to reconsider its 2009 endangerment findings relating
to greenhouse gas emissions, which provides regulatory justification
for federal greenhouse gas permitting and methane emission control
requirements, and directing the EPA to reconsider its use of Social
Cost of Greenhouse Gas estimates in federal permitting decisions. We
cannot predict with certainty the impact of, and changes in, government
policies, laws and regulations, including any changes or other actions
resulting from the change in US presidential administration.
Export of LNG
The design, construction, operation, maintenance and expansion of
our liquefaction facilities and the transportation of LNG are highly
regulated activities subject to the jurisdiction of the FERC pursuant
to the Natural Gas Act of 1938. On 26 January 2024, President Biden
announced a temporary pause on pending decisions on new exports
of LNG to countries that the United States does not have free trade
agreements with, pending the US Department of Energy’s (“DOE”)
review of the underlying analyses for authorisations. On 1 July 2024,
the federal court for the Western District of Louisiana ordered that
the DOE was enjoined and restrained from halting or pausing the
approval process for pending and future applications for LNG exports
to non-FTA countries. On December 17, 2024, the DOE released an
updated study of US LNG exports with a 60-day comment period
that was later extended to March 20, 2025. On 20 January 2025,
President Trump issued the Unleashing American Energy executive
order directing the DOE Secretary to restart reviews of applications
for approvals of LNG export projects as expeditiously as possible,
consistent with applicable law. On 21 January 2025, the DOE
announced that it was ending the moratorium imposed by the Biden
administration on the approvals of LNG export authorisations by the
DOE following direction given by President Trump in the Unleashing
American Energy executive order. At this time, we cannot predict with
certainty what actions the US presidential administration may take, if
any at all, with respect to the DOE study.
Ammonia in the United States
Woodside’s Beaumont New Ammonia (BNA) project in Beaumont,
Texas is subject to a number of onshore and offshore regulations
from both federal and state US agencies. Both the Federal Clean
Air Act and Texas Clean Air Act, and associated federal and state
regulations, govern emissions of various air pollutants through the
issuance of permits and other authorisation requirements. BNA is
subject to the Texas Commission on Environmental Quality (TCEQ) air
quality management for the state of Texas. TCEQ issues regulations
under authority in the Texas Clean Air Act and BNA will require a
permit issued under this framework. Further, the Clean Water Act
prohibits discharges of pollutants from a point source into the waters
of the United States without a permit. TCEQ manages the pollutant
discharge process under authority assumed from the Environmental
Protection Agency, BNA will require a wastewater discharge permit
under this framework and a construction general permit for certain
stormwater discharges. In addition, the Department of the Army,
acting through the US Army Corps of Engineers, has authority to
permit work and the placement of structures in navigable waters of
the US under the Rivers and Harbors Act of 1899. BNA requires a
Nationwide Permit under this framework.
The Jones Act governs the transportation of goods between
US ports by requiring that vessels involved in such trade be
US-built, US-owned, and US-crewed. The US Coast Guard and
the US Maritime Administration ensure compliance with these
regulations to safeguard the US maritime industry and national
security. Domestic shipments from BNA must be transported on
Jones Act-compliant vessels, which are US-built, US-flagged, US-
owned, and crewed by US citizens or permanent residents. The
Federal Occupational Safety and Health Administration (OSHA),
established pursuant to the Occupational Safety and Health Act
of 1970, establishes and enforces workplace safety standards
for manufacturing facilities in Texas. OSHA regulations address
areas such as hazardous materials handling, machine guarding,
personal protective equipment, and emergency preparedness. As
Texas does not have its own state-run OSHA plan, workplace safety
enforcement is under the jurisdiction of Federal OSHA. For BNA,
OSHA’s responsibilities include setting safety standards, conducting
inspections, issuing citations for violations, and offering training and
outreach programs.
Senegal
In Senegal, Woodside’s production sharing contract 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 production sharing contract PSC
issued before the introduction of the 2019 Petroleum Code retains
its legal regime, and, as such, the 1998 Petroleum Code continues
to apply to Woodside’s contract. 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 - Senegal”
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
236 WOODSIDE ENERGY GROUP LTD
Woodside of a successful claim. Except as set forth below, there are
no governmental, legal or arbitral proceedings (including any such
proceedings that are pending or threatened and of which Woodside is
aware) that 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
was seeking a final injunction to restrain Woodside from carrying
out offshore project activities for the Scarborough project. The action
was dismissed by consent on 20 August 2024.
2024 ANNUAL REPORT 237
Shareholder statistics
Information in this section is current as of 11 February 2025, unless otherwise stated. References to “the company” or “Woodside” on
pages 238-245 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 607,388 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 11 February 2025.
Size of shareholding
Number of holders
Number of shares1
% of issued capital
1-1000
477,092
116,333,988
6.13
1001 – 5000
109,571
236,608,100
12.46
5001 – 10 000
13,415
94,379,559
4.97
10 001 – 100 000
7,125
146,960,661
7.74
Greater than 100 000
185
1,304,467,463
68.70
Total
607,388
1,898,749,771
100.00
1. All issued shares carry voting rights on a one-for-one basis.
UNMARKETABLE PARCELS
There were 75,014 members holding less than a marketable parcel of shares in the company (based on the closing market price of $24.50
per share on 11 February 2025).
GEOGRAPHICAL DISTRIBUTION OF SHAREHOLDERS AND SHAREHOLDING
Registered addressed
Number of holders
Number of shares1
% of issued capital
Australia
587,270
1,884,116,294
99.23
New Zealand
6,997
6,154,145
0.32
United Kingdom
5,099
4,510,116
0.24
United State of America
1,805
1,082,549
0.06
Other
6,217
2,886,667
0.15
Total
607,388
1,898,749,771
100.00
US SHAREHOLDINGS
Type of holding
Number of holders
Number of securities
% of issued capital
Registered holders of voting securities
1,805
1,082,549
0.06
ADR holder
2,214
44,311,320
2.33
6.4
238 WOODSIDE ENERGY GROUP LTD
238 WOODSIDE ENERGY GROUP LTD
Additional Information • Shareholder statistics
DISTRIBUTION OF RIGHTS HOLDINGS
The following table shows the distribution of rights holders in Woodside Energy Group Ltd by size of rights holding and number of rights
holders and rights as of 11 February 2025.
Size of shareholding
Number of rights holders
Number of rights1
% rights on issue
1-1000
504
323,456
2
1001 – 5000
3,446
8,674,267
63
5001 – 10 000
406
2,621,515
19
10 001 – 100 000
95
1,925,245
14
Greater than 100 000
1
220,893
2
Total
4,452
13,765,376
100
1. Unvested rights do not carry any voting rights.
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 11 February 2025.
Shareholder name
Number of fully paid shares held
% of issued capital
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
533,456,387
28.10
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
368,167,932
19.39
CITICORP NOMINEES PTY LIMITED
148,033,900
7.80
CITICORP NOMINEES PTY LIMITED
44,311,320
2.33
BNP PARIBAS NOMS PTY LTD
27,117,832
1.43
BNP PARIBAS NOMINEES PTY LTD
21,656,989
1.14
BNP PARIBAS NOMINEES PTY LTD
18,379,851
0.97
NATIONAL NOMINEES LIMITED
16,245,216
0.86
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
13,793,808
0.73
BNP PARIBAS NOMINEES PTY LTD
11,733,874
0.62
NETWEALTH INVESTMENTS LIMITED
8,677,819
0.46
AUSTRALIAN FOUNDATION
8,095,000
0.43
MUTUAL TRUST PTY LTD
4,913,093
0.26
BUTTONWOOD NOMINEES PTY LTD
4,579,457
0.24
ARGO INVESTMENTS LIMITED
4,371,455
0.23
MCCUSKER HOLDINGS PTY LTD
3,880,000
0.20
NETWEALTH INVESTMENTS LIMITED
3,745,612
0.20
IOOF INVESTMENT SERVICES LIMITED
3,542,008
0.19
CITICORP NOMINEES PTY LIMITED
3,231,982
0.17
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
2,796,720
0.15
Total
1,250,730,255
65.87
SUBSTANTIAL SHAREHOLDERS
The following table shows the substantial shareholders who, together with their associates, hold five per cent or more of the voting rights in
Woodside Energy Group Ltd, as notified to Woodside.
Shareholders
Title of class
Date received
Date of change
Shares held1
% of total voting rights1
BlackRock Group (BlackRock Inc. and subsidiaries)2
Ordinary shares
8 February 2024
5 February 2024
133,581,277
7.03
Vanguard Group (The Vanguard Group, Inc. and its
controlled entities)3
Ordinary shares
1 October 2024
26 September 2024
114,652,665
6.038
State Street Corporation and subsidiaries
Ordinary shares 16 September 2024
12 September 2024
135,185,363
7.12
AustralianSuper Pty Ltd
Ordinary shares
3 September 2024
28 August 2024
116,634,944
6.14
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, BlackRock Group (BlackRock Inc. and subsidiaries) also holds 1,992,368 shares of Woodside Energy Group Ltd ADR 1:1.
3 As stated in its latest substantial shareholder notice, Vanguard Group also holds 80,545 shares of Woodside Energy Group Ltd ADR 1:1.
2024 ANNUAL REPORT 239
BUY BACKS
There are currently no on-market buy backs.
DIVIDEND REINVESTMENT PLAN
Our dividend reinvestment plan remains suspended.
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
Total number of ordinary
shares purchased
Average price paid per share
(A$)
Average price paid per share
(US$)
Number of shares purchased
for employee plans
February 2024
662,082
30.32
19.84
662,082
March 2024
600,000
30.73
20.12
600,000
September 2024
3,031,617
27.02
18.30
3,031,617
Total
4,293,699
28.05
18.79
4,293,699
1. These shares were purchased to satisfy employee incentive plan requirements.
2. Total on-market purchases for Woodside employees incentive plans total 0.23% of total share capital.
ANNUAL GENERAL MEETING
The 2025 Annual General Meeting (AGM) of Woodside Energy
Group Ltd will be held on 8 May 2025. 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.
DOCUMENTS ON DISPLAY
Documents filed by Woodside on the ASX are available at asx.
com.au. 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 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 under the ticker symbol ‘WDS’ and its
American Depositary Shares (ADS) are listed on the NYSE under the
symbol ‘WDS’. As announced on 16 October 2024, as of 08:00 (GMT)
on 20 November 2024, Woodside was delisted and removed from
the London Stock Exchange.
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 USA, where they are paid in US dollars, or in New Zealand (NZ),
where they are paid in NZ dollars.
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.
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.
240 WOODSIDE ENERGY GROUP LTD
AUSTRALIAN SECURITIES EXCHANGE
Investors who hold or have interests in Woodside shares listed
on the ASX seeking information about their shareholdings should
contact Woodside’s Australian share registry:
Computershare Investor Services Pty Limited
Address:
Level 11, 172 St Georges Terrace Perth WA 6000
Postal address:
GPO Box D182 Perth WA 6840
Telephone:
1300 558 507 (within Australia)
+61 3 9415 4632 (outside Australia)
Email:
web.queries@computershare.com.au
Website:
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.
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 (Depositary) 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
Cancellation of ADSs
Up to $0.05 per ADS cancelled
Distribution of cash dividends or other
cash distributions
Up to $0.05 per ADS held
Distribution of securities other than
ADSs or rights to purchase additional
ADSs
Up to $0.05 per ADS held
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 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 2024, direct reimbursements and waived fees
totalled approximately US$1,500,000. 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 11 February 2025, there were 44,311,320
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:
1-866-253-8350
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
Telephone:
+61 8 9348 4000
Email:
investor@woodside.com
Website:
woodside.com
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
2024 ANNUAL REPORT 241
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 AML/CTF Act imposes
certain obligations on ‘designated service’ providers to report
‘threshold transactions. The Autonomous 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
242 WOODSIDE ENERGY GROUP LTD
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 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).
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).
2024 ANNUAL REPORT 243
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 15% 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
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.
244 WOODSIDE ENERGY GROUP LTD
KEY ANNOUNCEMENTS 2024
January
Fourth quarter 2023 report
Appointment of Director and changes to Committee
Membership
February
Woodside concludes discussions with Santos
Woodside releases Reserves Statement and financial
updates
Woodside to sell 15.1% Scarborough interest to JERA
Full-year 2023 results and briefing
Annual Report 2023 and US Annual Report 2023
(Form 20-F)
Climate Transition Action Plan and 2023 Progress
Report
March
Thriving through the energy transition investor
presentation
Woodside completes sale of 10% Scarborough interest
April
Chair’s letter to shareholders
First quarter 2024 report
2024 Annual General Meeting
June
Appointment of Director to Woodside Board
Woodside achieves first oil at Sangomar field in
Senegal
Report on payments to governments 2023
July
Woodside to acquire Tellurian and Driftwood LNG
Second quarter 2024 report
August
Woodside to acquire OCI’s Clean Ammonia Project
Half-year 2024 line-item guidance
Scarborough primary approval challenge to be
dismissed
Half-Year 2024 results
September
Woodside prices US bond offer
US investor event presentation
Woodside completes OCI Clean Ammonia acquisition
October
Woodside completes acquisition of Tellurian
Third quarter 2024 report
Woodside to delist from London Stock Exchange
Woodside completes sale to JERA of 15.1% in
Scarborough
November
2024 investor site visit - Australia
December
Woodside signs agreement for Louisiana LNG
Revised Securities Dealing Policy
Woodside simplifies portfolio and unlocks long-term
value
January 2025
Fourth quarter 2024 report
February 2025
Woodside releases Reserves Statement and
Sangomar Update
EVENTS CALENDAR 2025
Key calendar dates for Woodside shareholders in 2025. Please note
dates are subject to review.
February
25
Full-year 2024 results and briefing
25
Annual Report 2024
25
US Annual Report 2024 (Form 20-F)
March
6
Ex-dividend date for final dividend (ASX)
7
Ex-dividend date for final dividend (NYSE)
7
Record date for dividend entitlements
April
2
Payment date
23
First quarter 2025 results
May
8
Annual General Meeting
June
30
Half-year end 2025
July
23
Second quarter 2025 results
August
19
Half-year 2025 results
October
22
Third quarter 2025 results
Investor Briefing Day 2025
December
31
Year-end 2025
2024 ANNUAL REPORT 245
Asset facts
PRODUCING FACILITIES
Australia
Asset
Role
Equity
Infrastructure
Capacity (100% project)
Product
Pluto LNG
Operator
90%
Pluto LNG Plant
(onshore gas plant)
LNG: 4.9 Mtpa
Domestic gas: 25 TJ/d
Condensate: 1,140 tonnes/d
LNG, pipeline gas and
condensate
Pluto Platform
(steel jacket fixed platform)
Dry gas: 1,320 MMscf/d
Gas and condensate
North West Shelf1,2
Operator
33.33%
Karratha Gas Plant (onshore
gas plant)
LNG: 16.9 Mtpa
Domestic gas: 630 TJ/d
Condensate: 14,385 tonnes/d
LNG, pipeline gas,
condensate and NGLs
North Rankin Complex
(steel jacket fixed platform)
Dry gas: 60,000 tonnes/d
Condensate: 6,200 tonnes/d
Gas and condensate
Goodwyn A Platform
(steel jacket fixed platform)
Dry gas: 38,000 tonnes/d
Condensate: 18,000 tonnes/d
Gas and condensate
Angel Platform
(steel jacket fixed platform)
Dry gas: 21,500 tonnes/d
Condensate: 8,600 tonnes/d
Gas and condensate
Wheatstone2,3
Non-Operator
13%
Wheatstone LNG Plant
(onshore gas plant)
LNG: 8.9 Mtpa
Domestic gas: 230 TJ/d
Condensate: 8,661 sm3/d
LNG, pipeline gas and
condensate
Wheatstone Platform
(steel gravity structure
platform)
Dry gas: 1,970 MMscf/d
Condensate: 8,600 sm3/d
Gas and condensate
Okha FPSO
Operator
50%
FPSO
Oil: 60 kbbl/d
Gas: 82 MMscf/d
Crude oil
Ngujima-Yin FPSO
Operator
60%
FPSO
Oil: 120 kbbl/d
Crude oil
Bass Strait
Non-Operator
50%
Longford
(onshore gas plant)
Gas: 700 TJ/day
Condensate: 2,250 tonnes/d
Liquefied petroleum gas: 1,775
tonnes/d
Ethane: 225 tonnes/d
Pipeline gas, condensate
and NGLs
Long Island Point
(onshore processing and
storage plant)
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)
32.5%
Kipper
(subsea tieback to West Tuna)
Pyrenees FPSO
Operator
40-71.4%
FPSO
Oil: 96,000 bbl/d
Crude oil
Macedon
Operator
71.4%
Onshore single-train gas plant
Gas: 220 MMscf/d
Condensate: 110 bbl/d
Pipeline gas
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. In December 2024 Woodside entered into an asset swap with Chevron. Refer to section 3.1 Australian Operations for details.
3. The Wheatstone assets processes gas from several offshore gas fields, including the Julimar and Brunello fields, for which Woodside has 65% participating interest and is the operator.
6.5
246 WOODSIDE ENERGY GROUP LTD
246 WOODSIDE ENERGY GROUP LTD
Additional Information • Asset facts
International
Asset
Role
Equity
Infrastructure
Capacity (100% project)
Product
Sangomar
Operator
82%
FPSO
Oil:100,000 bbl/d
Crude oil
Greater Angostura
Operator
45%
Angostura – Block 2(c) (steel
jacket fixed platforms)
Oil:100,000 bbl/d
Gas: 340 MMscf/d
Crude oil and pipeline gas
68.46%
Ruby – Block 3(a) (steel jacket
fixed platform)
Greater Shenzi
Operator
72%
Tension leg platform
Oil: 100,000 bbl/d
Gas: 50 MMscf/d
Crude oil, pipeline gas,
condensate and NGLs
Atlantis
Non-Operator
44%
Semi-submersible FPU
Oil: 200,000 bbl/d
Gas: 180 MMscf/d
Crude oil, pipeline gas,
condensate and NGLs
Mad Dog
Non-Operator
23.9%
Phase 1 (A-Spar) (Truss spar)
Oil:100,000 bbl/d
Gas: 60 MMscf/d
Crude oil, pipeline gas,
condensate and NGLs
Phase 2 (Argos)
(Semi-submersible FPU)
Oil: 140,000 bbl/d
Gas: 75 MMscf/d
Crude oil, pipeline gas,
condensate and NGLs
PROJECTS
Post FID
Asset
Role
Equity
Infrastructure
Capacity (100% project)
Product
Scarborough
Operator
74.9%
Semi-submersible FPU
Dry gas: 1,750 MMscf/d
LNG and pipeline gas
51%
Pluto Train 2
(onshore gas plant)
LNG: 5.0 Mtpa
Domestic gas: 225 TJ/d
Trion
Operator
60%
Semi-submersible FPU
Oil: 100,000 bbl/day
Crude oil
Beaumont New
Ammonia
Operator
100%
Ammonia synthesis facility,
supporting infrastructure,
utilities and storage tanks
Phase 1 (under construction): 1.1 Mtpa
Phase 2 (pre-FID): 1.1 Mtpa
Ammonia
DEVELOPMENTS
Asset
Role
Equity
Product
Louisiana LNG
Operator
100%
LNG
Calypso
Operator
70%
Gas and condensate
Browse
Operator
30.6%
LNG, pipeline gas, LPG and condensate
Greater Scarborough1
Operator
100%
Gas
Liard
Non-Operator
50%
Gas
Sunrise
Operator
33.44%
Gas and condensate
1. Greater Scarborough includes the Jupiter and Thebe fields.
NEW ENERGY OPPORTUNITIES1
Asset
Role
Equity
Product
H2OK
Operator
100%
Hydrogen
H2Perth
Operator
100%
Hydrogen
Hydrogen Refueller @H2Perth
Operator
100%
Hydrogen
Woodside Solar
Proponent2
100%
Solar energy
1. Subject to FID and regulatory approvals. Excludes acquisitions subsequent to the period.
2. Solar generation, battery services and transmission access and services will be supplied to Woodside under contracts with third parties.
2024 ANNUAL REPORT 247
GREENHOUSE GAS ASSESSMENT PERMITS
Asset
Permit
Role
Joint Venture
Comment
Australia
G-7-AP
Non-Operator
Bonaparte CCS Assessment Joint Venture
Located in the Bonaparte Basin off the north western
coast of the Northern Territory
G-8-AP
Operator
Browse Joint Venture
For carbon capture and storage evaluation for Browse
G-10-AP
Operator
Angel CCS Joint Venture1
Located in the Northern Carnarvon Basin off the north
west coast of Western Australia
G-18-AP
Non-Operator
Greenhouse Gas Assessment Permit G-18-AP
Joint Venture
Located in the Northern Carnarvon Basin off the north
west coast of Western Australia
G-19-AP
Non-Operator
Gippsland Basin Joint Venture
Located in the Gippsland Basin off the coast of Victoria
EXPLORATION
Country
Permit
Role
Equity
Product
Asia-Pacific
Australia
WA-356-P
Operator
65%
Gas prone basin
WA-536-P
Operator
65%
Gas prone basin
WA-550-P
Operator
100%
Gas prone basin
NT/P86
Operator
100%
Gas prone basin
WA-404-P
Operator
100%
Gas prone basin
WA-28-P
Operator
15.78%
Gas prone basin
WA-93-R
Operator
70%
Gas prone basin
WA-94-R
Operator
70%
Gas prone basin
Europe
Ireland
FEL 5/13
Operator
Exit initiated
Oil or gas prone basin
Africa
Republic of the
Congo
Marine XX
Non-Operator
22.5%
Oil or gas prone basin
Egypt
Red Sea Block 1
Non-Operator
45%
Oil or gas prone basin
Red Sea Block 4
Non-Operator
25%
Expired subsequent to the
period
Tiba Block
Non-Operator
40%
Oil and gas prone basin
North El Dabaa Offshore (Block 4)
Non-Operator
27%
Oil and gas prone basin
Caribbean
Barbados
Bimshire
Operator
60% - exit initiated
Oil or gas prone basin
Latin America
Peru
108
Non-Operator
Exit initiated
Oil or gas prone basin
1. In December 2024 Woodside entered into an asset swap with Chevron. Refer to section 3.1 Australian Operations for details.
248 WOODSIDE ENERGY GROUP LTD
Country
Permit
Role
Equity
Product
North America
US Gulf of Mexico1
GB 780, GB 824, GB 825, GB 821, GB 866, EB 636, EB 637,
EB 550, EB 594, EB 638, KC 859, KC 903, KC 904, KC 905,
KC 948, KC 949, WR 795, WR 796, GB 663, GB 664, GB
678, GC 210, GC211
Operator
100%
Oil prone basin
GB 640, GB 641, GB 685, GB 555, GB 726, GB 770, GB 771,
GB 604, GB 605, GB 647, GB 648, GB 728, 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
57%
Oil prone basin
GC 436, GC 480
Non-Operator
44%
Oil prone basin
GB 501, GB 502, GB 545, GB 630, GB 672, GB 676, GB 677,
GB 716, GB 721, GB 760, GB 762, GB 805, GB 806, GB 851,
GB 852, GB 895
Operator
60%
Oil prone basin
GC 282, GC 237
Non-Operator
50%
Oil prone basin
EB 655, EB 656, EB 699, EB 700, EB 701, EB 566, EB 567,
EB 610, EB 611, AC 34, AC 36, AC 78, AC 80, EB 914
Operator
70%
Oil prone basin
MC 798, MC 842
Non-Operator
45%
Oil prone basin
AC 125, AC 126, AC 81, AC 82
Operator
45%
Oil prone basin
GC 679, GC 768
Non-Operator
31.9%
Oil prone basin
MC 368, MC 369, MC 411, MC 412, MC 455, MC 456
Non-Operator
25%
Oil prone basin
GC 80, GC 123, GC 124, GC 168
Operator
75%
Oil prone basin
GC 870
Non-Operator
23.9%
Oil prone basin
AT 228, AT 273, AT 274, AT 409, AT 452, AT 453, AT 454, AT
424, AT 425, AT 469, AT 470
Non-Operator
30%
Oil prone basin
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
2024 ANNUAL REPORT 249
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-GAAP financial
measures” (as defined in Item 10(e) of Regulation S-K under the US
Securities Act of 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, Cash margin,
Capital expenditure, Exploration expenditure, Liquidity, Net tangible
assets, Net tangible assets per ordinary security, Return on equity,
and Return on average capital employed. 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; Woodside believes that the non-IFRS financial
measures it presents provide a useful means through which to
examine the underlying performance of its business. However,
these measures should not be considered to be an indication of, or
alternative to, corresponding measures of gross profit, net profit,
cash flows from operating activities, or other figures determined
in accordance with IFRS. In addition, such measures may not be
comparable to similar measures presented by other companies.
Undue reliance should not be placed on the non-IFRS financial
measures contained in this report, and the non-IFRS financial
measures should be considered in addition to, and not as a
substitute for, or as superior to, measures of financial performance,
financial position or cash flows reported in accordance with IFRS.
Non-IFRS financial measures are not uniformly defined by all
companies, including those in Woodside’s industry. Accordingly,
they may not be comparable with similarly titled measures and
disclosures by other companies.
Although certain of these data have been extracted or derived from
Woodside’s financial statements, these data have 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
Why is the non-IFRS financial information useful
Calculation methodology
EBIT
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.
Calculated as profit before income tax, PRRT and net
finance costs.
EBITDA excluding
impairment
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.
Calculated as profit before income tax, PRRT,
net finance costs, depreciation and amortisation,
impairment losses, impairment reversals.
Underlying NPAT
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.
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).
Capital expenditure
Used to assess efficient deployment of capital for property, plant and
equipment and evaluation capitalised. Management uses this measure as
support for decision making to maintain and improve productive capacity.
Includes capital additions on property, plant and
equipment and evaluation capitalised.
Exploration expenditure 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.
Free cash flow
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 (excluding
payments to cash reserves) and cash flow from
investing activities.
6.6
250 WOODSIDE ENERGY GROUP LTD
250 WOODSIDE ENERGY GROUP LTD
Additional Information • Alternative performance measures
APMs derived from consolidated income statement
2024
US$m
2023
US$m
2022
US$m
EBIT/EBITDA excluding impairment
Net profit after tax
3,646
1,722
6,575
Adjusted for:
Finance income
(220)
(273)
(155)
Finance costs
365
307
167
PRRT (benefit)/expense
(91)
898
(313)
Income tax expense
814
653
2,912
EBIT
4,514
3,307
9,186
Adjusted for:
Property, plant and equipment depreciation and amortisation
4,523
3,956
2,798
Amortisation of licence acquisition costs
8
4
10
Amortisation of intangible assets
21
-
-
Depreciation of lease assets
210
179
140
Depreciation of other plant and equipment
-
-
-
Impairment losses
-
1,917
-
Impairment reversals
-
-
(900)
EBITDA excluding impairment
9,276
9,363
11,234
Underlying NPAT
Net profit after tax attributable to equity holders of the parent
3,573
1,660
6,498
Adjusted for the following exceptional items:
Less: Sangomar DTA recognition
(342)
-
-
Less: Pluto DTA recognition
(351)
-
-
Add: Reduction in Pluto PRRT (post-tax)
-
446
-
Add: Impairment losses (post-tax)
-
1,533
-
Less: Trion DTA recognition
-
(319)
-
Add: Merger transaction costs
-
-
419
Less: Derecognition of the Corpus Christi onerous contract provision
-
-
(245)
Less: Impairment reversal (post tax)
-
-
(630)
Add: Orphan Basin exit fee
-
-
142
Less: Pluto PRRT DTA recognition
-
-
(954)
Underlying NPAT
2,880
3,320
5,230
Non-IFRS financial
information
Why is the non-IFRS financial information useful
Calculation methodology
Gearing
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.
Liquidity
Used to assess the Group’s ability to access cash and cash equivalents at
short notice.
Total cash and cash equivalents and available undrawn
debt facilities less restricted cash.
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.
Return on equity
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.
Return on average
capital employed
Used to assess the efficiency of the Group’s utilisation of the capital
employed.
Profit before tax and net finance costs divided by
the total average non-current liabilities and equity
attributable to equity holders of the parent.
2024 ANNUAL REPORT 251
APMs derived from consolidated cash flow statement and other notes
2024
US$m
2023
US$m
2022
US$m
Capital expenditure
Capital additions on evaluation
77
163
119
Capital additions on property, plant and equipment
5,003
5,317
3,904
Capital additions on other
226
256
92
Capital expenditure
5,306
5,736
4,115
Exploration expenditure
Exploration and evaluation expenditure
337
360
470
Adjusted for:
Amortisation expense
(8)
(4)
(10)
Prior year expense written off
(9)
(77)
(164)
Exploration capitalised
22
88
122
Exploration expenditure
342
367
418
Capital and exploration expenditure
5,648
6,103
4,533
Free cash flow
Cash flow from operating activities
5,847
6,145
8,811
Cash flow used in investing activities
(5,747)
(5,585)
(2,265)
Free cash flow
100
560
6,546
Liquidity
Cash and cash equivalents
3,923
1,740
6,201
Add: Available undrawn facilities
2,800
6,050
4,050
Less: Restricted cash
-
-
(12)
Liquidity
6,723
7,790
10,239
APMs derived from Consolidated Balance Sheet
2024
US$m
2023
US$m
2022
US$m
Net tangible assets per ordinary security
Net assets
36,153
35,170
37,127
Adjusted for:
Goodwill
(3,866)
(3,995)
(4,614)
Non-controlling interest
(754)
(771)
(791)
Other intangible assets
(960)
(187)
(55)
Net tangible assets
30,573
30,217
31,667
Number of issued and fully paid shares
1,898,749,771
1,898,749,771
1,898,749,771
Net tangible assets per ordinary security
16.10
15.91
16.68
Gearing
Interest-bearing liabilities (Current and non-current)1
9,997
4,874
5,138
Lease liabilities (Current and non-current)
1,623
1,615
1,634
Adjusted for:
Cash and cash equivalents
(3,923)
(1,740)
(6,201)
Add: restricted cash
-
-
12
Net debt
7,697
4,749
583
Equity attributable to equity holders of the parent
35,399
34,399
36,336
Total net debt and equity attributable to equity holders of the parent
43,096
39,148
36,919
Gearing (%)
17.9
12.1
1.6
1. The 2023 balance agrees to Note C.2 which includes capitalised costs to be amortised within the next 12 months.
252 WOODSIDE ENERGY GROUP LTD
APMs derived from consolidated income statement and consolidated balance sheet
2024
US$m
2023
US$m
2022
US$m
Return on equity
Net profit after tax attributable to equity holders of the parent
3,573
1,660
6,498
Equity attributable to equity holders of the parent
35,399
34,399
36,336
Return on equity (%)
10.1
4.8
17.9
Return on average capital employed
Profit before tax and net finance costs
4,514
3,307
9,186
Opening non-current liabilities
15,209
15,586
9,623
Closing non-current liabilities
19,254
15,209
15,586
Average non-current liabilities
17,232
15,398
12,605
Opening equity attributable to equity holders of the parent
34,399
36,336
13,443
Closing equity attributable to equity holders of the parent
35,399
34,399
36,336
Average equity attributable to equity holders of the parent
34,899
35,368
24,890
Total average non-current liabilities and equity attributable to equity
holders of the parent
52,131
50,766
37,495
Return on average capital employed (%)
8.7
6.5
24.5
APMs derived from other notes
2024
US$m
2023
US$m
2022
US$m
Revenue from sale of hydrocarbons (excluding marketing segment)
11,756
12,348
14,154
Cash margin (excluding marketing segment)
Gross profit
5,266
5,942
8,949
Adjusted for:
Other cost of sales
35
7
4
Property, plant and equipment depreciation and amortisation
4,523
3,956
2,798
Other revenue
(190)
(3)
285
Cash margin (excluding marketing segment)
9,634
9,902
12,036
Cash margin %
82.0
80.2
85.0
Production costs (excluding marketing segment)
1,579
1,562
1,281
Production cost margin %
13.4
12.6
9.1
Other cash costs (excluding marketing segment):
Royalties, excise and levies
372
503
596
Insurance
25
60
43
Inventory movement
(84)
37
(41)
Shipping and direct sales costs (excluding marketing segment)
175
265
206
Trading costs
4
12
14
Other hydrocarbon costs
51
7
19
Total other cash costs
543
884
837
Other cash cost margin %
4.6
7.2
5.9
2024 ANNUAL REPORT 253
Glossary, units of measure
and conversion factors
Term
Definition
$, $m
US dollars unless otherwise stated, millions of dollars
1P
Proved reserves
2C
Best estimate of contingent resources
2P
Proved plus probable reserves
Abate/
abatement
Avoidance, reduction or removal of an amount of carbon
dioxide or equivalent
ADR
American Depositary Receipts
Aspiration
Woodside uses this term to describe an aspiration
to seek the achievement of an outcome but where
achievement of the outcome is subject to material
uncertainties and contingencies such that Woodside
considers there is not yet a suitable defined plan or
pathway to achieve that outcome
ASX
Australian Securities Exchange
A$
Australian dollars
Biodiversity
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; thus
including species within species
Board
The Board of Directors of Woodside Energy Group Ltd
Brent
Intercontinental Exchange (ICE) Brent Crude deliverable
futures contract (oil price)
Capital and
exploration
expenditure
Includes capital expenditure and exploration
expenditure
Capital
investment
expenditure
Includes capital additions on property, plant and
equipment and evaluation capitalised
Carbon credit
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
Carbon
sequestration
Carbon sequestration refers to the storage of carbon
dioxide (CO2) after it is captured from industrial
facilities and power plants or removed directly from the
atmosphere1
Cash margin
Gross profit/loss adjusted for other cost of sales,
trading costs, property, plant and equipment
depreciation and amortisation and other revenue.
Excludes the marketing segment. Cash margin % is
calculated as cash margin divided by revenue from sale
of hydrocarbons (excluding marketing segment)
CCS
Carbon capture and storage
CCU
Carbon capture and utilisation
CCUS
Carbon capture utilisation and storge
CO2
Carbon dioxide
1. DOE Explains...Carbon Sequestration | Department of Energy. https://www.energy.gov/science/doe-explainscarbon-sequestration
2. UN CBD COP16 | United Nations Development Programme. https://www.undp.org/events/UN-CBD-COP16
Term
Definition
CO2-e
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
COP-16
The 16th meeting of the Conference of the Parties (COP)
to the Convention on Biological Diversity (CBD) was held
from October 21 to November 1, 2024, in Cali, Colombia2
COP-29
The 29th conference of the Parties of the United Nations
Climate Change Conference taking place in Baku,
Azerbaijan from 11 to 22 November 2024
Condensate
Hydrocarbons that are gaseous in a reservoir but that
condense to form liquids as they rise to the surface
cps
Cents per share
Decarbonisation
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
DRP
Dividend reinvestment plan
EBIT
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
Refers to emissions of greenhouse gases unless
otherwise stated
Environmental
incident
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
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. 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
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
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
6.7
254 WOODSIDE ENERGY GROUP LTD
254 WOODSIDE ENERGY GROUP LTD
Additional Information • Glossary, units of measure and conversion factors
Term
Definition
FID
Final investment decision
Flaring
The controlled burning of gas found in oil and gas
reservoirs
FPIC
Free, Prior and Informed Consent. For further
information, please see Woodside’s First Nations
Communities Policy
FPSO
Floating production storage and offloading
FPU
Floating production unit
Free cash flow
Cash flow from operating activities and cash flow from
investing activities
Frequency
Rates
Frequency rates are calculated per million works hours
Gearing
Net debt divided by the total of net debt and equity
attributable to equity holders of the parent
GHG or
greenhouse gas
The seven greenhouse gases listed in the Kyoto
Protocol, which are: carbon dioxide (CO2); methane
(CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs);
nitrogen trifluoride (NF3); perfluorocarbons (PFCs); and
sulphur hexafluoride (SF6)
Goal
Woodside uses this term to broadly encompass its
targets and aspirations
Gross margin
Gross profit divided by operating revenue. Gross profit
excludes income tax, PRRT, net finance costs, other
income and other expenses
Gulf of Mexico1
Refers to the US Continental Shelf area bounded on
the northeast, north, and northwest by the States of
Texas, Louisiana, Mississippi, Alabama and Florida
and extending to the seaward boundary with Mexico
and Cuba
GWF
Greater Western Flank
H1, H2
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), and administrative
HSE
Health, safety and environment
IFRS
International Financial Reporting Standards
Incident
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
IRR
Internal rate of return
JCC
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
JV
Joint venture
KGP
Karratha Gas Plant
Liquidity
Total cash and cash equivalents and available undrawn
debt facilities
LNG
Liquefied natural gas
1. On 20 January 2025, President Trump issued an Executive Order renaming the area known as the “Gulf of Mexico” as the “Gulf of America”. The US Interior Department formally announced the change on 24 January
2025 and US federal agencies are currently in the process of implementing the change. In this 2024 Annual Report, Woodside uses the term “Gulf of Mexico” to refer to the area in which its Shenzi, Mad Dog and Atlantis
projects are located, as that term was in effect during the period covered by this report. Woodside will adopt the naming conventions required by applicable laws and regulations in relation to US waters.
Term
Definition
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
ammonia
Lower carbon ammonia is characterised here by the use
of hydrogen with emissions abated by carbon, capture,
and storage (CCS), with an expected ammonia lifecycle
(Scope 1, 2 and 3) carbon emissions intensity of 0.8
tCO2/tNH3 (based on contracted intensity threshold with
Linde) relative to unabated ammonia with a lifecycle
(Scope 1, 2 and 3) carbon emissions intensity of 2.3
tCO2/tNH3 (Hydrogen Europe, 2023)
Lower-carbon
economy
A lower-carbon economy is an economy that produces
lower levels of greenhouse gas emissions relative to
today’s economy
Lower-carbon
portfolio
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
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
Woodside’s equity share of net greenhouse gas
emissions
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
Net profit
attributable to
equity holders
of the parent
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
2024 ANNUAL REPORT 255
Term
Definition
Net zero
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)
New energy
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
NGLs
Natural gas liquids
NPAT
Net profit after tax
NWS
North West Shelf
NYSE
New York Stock Exchange
Offsets
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
Offtake
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
Operator,
Operated and
Non-Operated
Oil and gas joint 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
Other cash cost
margin
Other cash costs include royalties, excise and levies,
insurance, inventory movement, shipping and direct
sales costs and other hydrocarbon costs. Excludes
the marketing segment. Other cash cost margin % is
calculated as other cash costs divided by revenue from
sale of hydrocarbons (excluding marketing segment)
Paris aligned
scenarios
Consistent with limiting global warming to below 2°C
above pre-industrial levels and pursuing efforts to limit
warming to 1.5°C1
Potential risks
When used in the Sustainability Report, 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
Production
cost margin
Production cost margin % is calculated as production
costs divided by revenue from sale of hydrocarbons.
Excludes the marketing segment
PRRT
Petroleum resources rent tax
PSC
Production sharing contract
PSE
Process safety event
Renewables
Include modern bioenergy, geothermal, hydropower,
solar photovoltaics, concentrating solar power, wind,
marine (tide and wave) energy, and renewable waste2
1. IFRS Foundation, 2021. “Climate Related Disclosures Prototype”, Appendix A. https://www.ifrs.org/content/dam/ifrs/groups/trwg/trwg-climate-related-disclosures-prototype.pdf The IFRS published a further
consultation document subsequent to the 2021 prototype. As it did not contain an updated definition of Paris-Aligned scenarios Woodside has retained use of the previous edition
2. World Energy Outlook 2024. https://iea.blob.core.windows.net/assets/140a0470-5b90-4922-a0e9-838b3ac6918c/WorldEnergyOutlook2024.pdf
Term
Definition
Residual levels
of emissions
Residual levels of emissions denote 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
Retired,
Retirement
When used in the Sustainability Report or new energy
opportunities section, 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
Revenue
from ordinary
activities
Revenue from the sale of hydrocarbons, processing and
services revenue and shipping and other revenue
RFSU
Ready for startup
RSSD
Rufisque Offshore, Sangomar Offshore and Sangomar
Deep Offshore
Scope 1 GHG
emissions
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
Scope 2 GHG
emissions
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
Scope 3 GHG
emissions
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 Climate datatable on our website for
further information on the Scope 3 emissions categories
reported by Woodside
256 WOODSIDE ENERGY GROUP LTD
Term
Definition
Short-, Medium-
and long-term
When used in the Sustainability Report, this report
refers to ranges of time as follows: short-term means
from now until 2025; medium-term means 2026-2035;
long-term means 2036 and beyond. Woodside also
refers to “near-term” and “medium-term” in the specific
context of its net equity Scope 1 and 2 greenhouse gas
emissions reduction targets. In this context, near-term
refers to the 2025 as a point in time, and medium term
refers to 2030 as a point in time, being the years to
which the targets relate
Starting base
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
Sustainability
(including
sustainable and
sustainably)
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 licence 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
Target
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
TCFD
Taskforce on Climate-related Financial Disclosures. For
more information see www.fsb-tcfd.org/about
Tier 1 PSE
A typical Tier 1 process safety event is loss of
containment of hydrocarbons greater than 500 kg (in
any one-hour period)
Tier 2 PSE
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)
Total recordable
injury rate
(TRIR)
The number of recordable injuries (fatalities, lost
workday cases, restricted work day cases and medical
treatment cases) per million work hours
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
United States of America
USD
US dollars
WA
Western Australia
CONVERSION FACTORS
Product
Unit
Conversion factor
Natural gas
5,700 scf
1 boe
Condensate
1 bbl
1 boe
Oil
1 bbl
1 boe
Natural gas liquids
1 bbl
1 boe
Facility
Unit
Conversion factor
Karratha Gas Plant
1 tonne
8.08 boe
Pluto Gas Plant
1 tonne
8.34 boe
Wheatstone
1 tonne
8.27 boe
The LNG conversion factor from tonne to boe is specific to volumes
produced at each facility and is based on gas composition that may
change over time.
UNITS OF MEASURE
Term
Definition
bbl
barrels
bbl/d
barrels per day
bcf
billion cubic feet of gas
boe
barrel of oil equivalent
CO2-e
carbon dioxide equivalent
GJ
gigajoules
ha
hectare
kt
kilo tonnes
Mbbl
thousand barrels
Mbbl/d
thousand barrels per day
Mboe
thousand barrels of oil equivalent
Mboe/d
thousand barrels of oil equivalent per day
Mcf
thousand cubic feet of gas
MMbbl
million barrels
MMboe
million barrels of oil equivalent
MMBtu
million British thermal units
MMscf
million standard cubic feet of gas
MMscf/d
million standard cubic feet of gas per day
Mt
million tonnes
Mtpa
million tonnes per annum
MW
megawatt
PJ
petajoules
scf
standard cubic feet of gas
TJ
terajoules
tpd
tonnes per day
2024 ANNUAL REPORT 257
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, contingencies and other
factors, many of which are beyond the control of Woodside, its
related bodies corporate and their respective officers, directors,
employees, advisers or representatives.
Important factors that could cause actual results to differ materially
from those in the forward-looking statements and assumptions on
which they are based 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, sustainability and environmental
risks, climate related transition and physical risks, safety and
personnel risks, changes in accounting standards, economic and
financial markets conditions in various countries and regions the
actions of third parties, project delay or advancement, regulatory
approvals, political risks and 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, legislative, fiscal and regulatory developments and
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 or separating 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.
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 nor any person named in this report
or involved in the preparation of the information in this report
6.8
258 WOODSIDE ENERGY GROUP LTD
258 WOODSIDE ENERGY GROUP LTD
Additional Information • Information about this report
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 or results,
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.
Actual performance against Woodside’s targets (including items
that are described as a target) and aspirations or goals may be
affected by various risks associated with the Woodside business, the
uncertainty as to how the global energy transition to a lower carbon
economy will evolve, and physical risks associated with climate
change, many of which are beyond Woodside’s control.
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.
Additionally, the developments of environmental and climate
change-related issues discussed in this report are based on
various frameworks and the interests of various stakeholders
that are subject to evolve independently of our will. Moreover, our
disclosures on such issues, including climate-related disclosures,
may include information that is not necessarily “material” under
US securities laws for SEC reporting purposes or under applicable
securities law.
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.
Such targets are not guidance. Scope 3 targets potentially include
both organic and inorganic investment.
For more information on Woodside’s climate strategy, including
references to “lower-carbon” as part of that strategy, and
emissions data, refer to the Sustainability section 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, section 6.8 – Information about this report
and in this section. 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 2024 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 2024 include the performance of the interests acquired as part
of the merger with BHP’s petroleum business from 1 June 2022.
2024 ANNUAL REPORT 259
Ten-year comparative data summary
2024
2023
2022
2021
2020
20192
2018
20171
2016
2015
Profit and loss
(USDm)1,2
Operating revenues
LNG
6,401
8,165
11,289
5,359
2,519
3,664
3,761
2,674
2,751
3,095
Pipeline gas
1,349
1,374
1,362
43
73
85
89
153
303
296
Natural gas liquids (NGLs)
306
281
206
60
16
44
25
43
34
34
Crude oil and condensate
4,887
3,981
3,758
1,316
843
946
952
813
715
1,071
Processing and services revenue
220
184
175
143
142
119
202
192
202
180
Trading revenue
-
-
-
-
-
-
210
53
70
354
Other hydrocarbon revenue
-
-
-
-
-
-
1
47
-
-
Shipping and other revenue
16
9
27
41
7
15
-
-
-
-
Total
13,179
13,994
16,817
6,962
3,600
4,873
5,240
3,975
4,075
5,030
EBITDAX excluding impairment
9,605
9,719
11,694
4,454
1,991
3,680
4,041
3,095
3,004
3,443
EBITDA excluding impairment
9,276
9,363
11,234
4,135
1,922
3,531
3,814
2,918
2,734
3,063
EBIT
4,514
3,307
9,186
3,493
(5,171)
1,091
2,278
1,714
1,388
441
Exploration and evaluation (excluding amortisation of permit acquisition)
329
356
460
319
69
149
227
177
270
380
Depreciation and amortisation
4,754
4,135
2,938
1,687
1,812
1,688
1,451
1,188
1,320
1,517
Amortisation of licence acquisition costs
8
4
10
3
12
15
46
16
26
22
Impairment/impairment reversal
-
1,917
(900)
(1,048)
5,269
737
39
-
-
1,083
Net finance costs
145
34
12
203
269
229
183
84
48
85
Tax expense
723
1,551
2,599
1,254
(1,465)
480
628
465
367
243
Non-controlling interest
73
62
77
53
53
39
103
96
105
87
Reported NPAT (excluding NCI)
3,573
1,660
6,498
1,983
(4,028)
343
1,364
1,069
868
26
Reported EPS (cents)3
189
88
430
206
(424)
37
148
123
104
3
DPS (cents)
122
140
253
135
38
91
144
98
83
109
Balance sheet
(USDm)2
Total assets
61,264
55,361
59,321
26,474
24,623
29,353
27,088
25,399
24,753
23,839
Debt
11,620
6,498
6,772
6,797
7,492
6,849
4,071
5,065
4,973
4,441
Net debt
7,697
4,749
583
3,772
3,888
2,791
2,397
4,747
4,688
4,319
Shareholder equity (net of non-controlling interest)
35,399
34,399
36,336
13,443
12,075
16,617
17,489
15,081
14,839
14,226
Cashflow (USDm
and capital
expenditure
(USDm)
Cash flow from
Operations
5,847
6,145
8,811
3,792
1,849
3,305
3,296
2,400
2,587
2,475
Investing
(5,747)
(5,585)
(2,265)
(2,941)
(2,112)
(1,238)
(1,772)
(1,568)
(2,473)
(5,555)
Financing
2,101
(5,000)
(3,364)
(1,424)
(203)
317
(159)
(805)
51
(58)
Capital expenditure4
5,306
5,736
4,115
2,638
1,946
1,192
1,721
1,367
2,179
5,614
ROACE5
8.7%
6.5%
24.5%
15.6%
(21.0%)
4.1%
9.3%
7.4%
6.2%
2.0%
Return on equity
10.1%
4.8%
17.9%
14.8%
(33.4%)
2.1%
7.8%
7.1%
5.8%
0.2%
Gearing
17.9%
12.1%
1.6%
21.9%
24.4%
14.4%
12.1%
23.9%
24.0%
23.3%
Volumes1
Sales (million boe)
LNG
96.1
104.5
96.6
91.2
81.2
75.3
69.6
61.2
63.6
57.6
Pipeline gas
37.8
39.6
28.4
2.5
5.3
6.2
5.8
7.6
14.5
13.4
NGLs
5.4
7.1
4.6
0.7
0.4
0.7
0.4
0.7
0.7
0.7
Crude oil and condensate
64.2
50.3
39.3
17.2
19.9
15.2
13.4
14.6
16.2
21
Total
203.5
201.5
168.9
111.6
106.8
97.4
89.2
84.1
95.0
92.7
Production (million boe)6
LNG
85.5
88.6
85.1
70.8
75.0
67.7
71.9
61.7
63.7
57.5
Pipeline gas
38.6
39.7
28.6
2.5
5.3
6.1
5.8
7.3
14.5
13.3
NGLs
6.6
7.1
5.3
0.5
0.5
0.5
0.6
0.6
0.7
0.7
Crude oil and condensate
63.2
51.8
38.7
17.3
19.5
15.3
13.1
14.8
16.0
20.7
Total (million boe)
193.9
187.2
157.7
91.1
100.3
89.6
91.4
84.4
94.9
92.2
Other data
Reserves (Proved plus Probable) Natural gas (Tcf)7
12.59
16.02
16.43
11.67
4.50
5.65
6.05
6.54
7.09
7.59
Reserves (Proved plus Probable) Crude oil and condensate (MMbbl)7
849.7
908.7
710.6
244.4
250.7
222.4
175.9
186.9
198.6
176.1
Reserves (Proved plus Probable) NGLs (MMbbl)7
33.9
37.1
48.0
-
-
-
-
-
-
-
Other
Employees8
4,718
4,667
4,376
3,684
3,670
3,834
3,662
3,597
3,511
3,456
Shares
High (A$)
32.46
39.00
39.16
27.40
36.14
37.40
39.00
33.97
31.88
38.33
Low (A$)
23.10
29.53
21.93
19.20
15.27
30.49
28.45
28.16
23.94
26.20
Close (A$)
24.60
31.06
35.44
21.93
22.74
34.38
31.32
33.08
31.16
28.72
Number (000’s)
1,898,750
1,898,750
1,898,750
969,632
962,226
942,287
936,152
842,445
842,445
823,911
Number of shareholders9
607,388
620,891
649,871
261,019
276,431
220,065
209,753
209,383
214,350
225,138
Market capitalisation (USD equivalent at reporting date)
28,960
40,168
45,759
15,948
16,817
22,666
20,681
21,762
18,922
17,250
Market capitalisation (AUD equivalent at reporting date)
46,709
58,975
67,292
21,264
21,881
32,396
29,320
27,868
26,251
23,663
Finding costs ($/boe) (3-year average)10
11.30
10.19
9.78
14.65
30.44
21.71
29.90
26.21
39.06
107.45
Reported effective income tax rate (%)
18.30%
27.5%
30.7%
32.0%
20.5%
57.2%
31.7%
34.0%
35.9%
49.8%
Net debt/total market capitalisation (%)
26.60%
11.8%
1.3%
23.7%
23.1%
12.3%
11.6%
21.8%
24.8%
25.0%
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 (2024:1,895,703,924, 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. 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 192.7 MMboe (2023: 186.1 MMboe) from Woodside reserves and 1.2 MMboe (2023: 1.1 MMboe) primarily 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. 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).
260 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