Company Announcements

Woodside Energy Group Ltd

ACN 004 898 962

Mia Yellagonga

11 Mount Street

Perth WA 6000

Australia

T +61 8 9348 4000

www.woodside.com

ASX: WDS

NYSE: WDS

LSE: WDS

Announcement

Friday, 21 April 2023

FIRST QUARTER REPORT FOR PERIOD ENDED 31 MARCH 2023

Woodside CEO Meg O'Neill said Woodside delivered outstanding operational performance in the quarter, particularly at Pluto LNG where reliability averaged 99.9%.

"Our operations teams continued to achieve strong outcomes. Production was 122% higher than the corresponding quarter last year, demonstrating the significant value generated by the merger with BHP's petroleum business.

"Production and revenue declined from Q4 2022 primarily due to planned turnaround and maintenance activities at Australian assets and lower realised prices.

"We are making good progress on all major growth projects in Australia and globally. The Scarborough and Pluto Train 2 projects are now 30% complete, with construction of key offshore and onshore infrastructure ramping up. First concrete has now been poured on the Pluto Train 2 site. Engagement with stakeholders and regulators on secondary environmental approvals for offshore execution activities continued.

"The Sangomar development drilling program is nearing its half-way point, with ten of 23 wells completed. Installation and testing of the rigid flowlines, which total 101km in length, were successfully and safely completed. This is a key milestone on the path to targeted first oil later this year.

"At the Trion project in the GoM, we have received tenders for key equipment and activities including the floating production unit, long-lead rotating equipment, subsea equipment, drilling rig and installation scopes as we target FID readiness this year.

"Mad Dog Phase 2 in the US GoM achieved a significant milestone with first production in April 2023. Mad Dog is one of several low cost producing assets for Woodside in the region with significant expansion potential and in close proximity to infrastructure and attractive markets.

"Within our new energy business, we continue to progress activities and approvals for our H2OK project in support of achieving FID readiness this year," she said.

Comparative performance at a glance

Operational overview

Production

·      Production decreased compared to the previous quarter to 46.8 MMboe, primarily due to:

o  planned turnaround on Ngujima-Yin FPSO

o  planned onshore and offshore maintenance activities and lower Australian east coast gas market demand on Bass Strait

·      Production was more than double the corresponding quarter last year, driven by the expanded operations portfolio post-merger.

·      Delivered high reliability at Pluto LNG, achieving 99.9% reliability for the quarter, and maintained strong reliability at NWS Project, achieving 98.3% reliability for the quarter.

Australian LNG

·      Commenced front-end engineering design (FEED) and identified long-lead order requirements for the Lambert West development. Lambert West consists of one production well developed via a subsea tie-back to the Angel Platform to support ongoing production from the NWS Project.  

Bass Strait

·      Significant planned turnaround and maintenance activities were completed on the onshore and offshore facilities.

·      The Gippsland Basin Joint Venture (GBJV) executed an agreement to charter a fourth semi-submersible vessel from the end of 2023 to support decommissioning activities in the Gippsland Basin.

Gulf of Mexico

·      The SN102 well was completed and SN101 well completion activities commenced on the Shenzi North project. The project is 67% complete.

Australia Oil

·      The Pyrenees Phase 4 infill campaign, comprising a workover well and one infill well, was completed.

·      The Enfield plugging and abandonment (P&A) campaign continued with four wells permanently plugged. At the end of the quarter, the plugging of nine of 18 Enfield wells and removal of 13 of 18 xmas trees had been completed.

·      The Ngujima-Yin FPSO commenced a planned five-yearly maintenance turnaround in a Singapore drydock and is expected to return to production in Q3 2023.

Project and development activities

Scarborough

·      Scarborough upstream pipeline manufacturing is 86% complete. Subsea structure manufacturing and trunkline shore crossing preparations at Pluto commenced. Fabrication of the floating production unit topsides and hull has ramped up.

·      Engagement with regulators on secondary environmental approvals for offshore execution activities continued.

·      Pluto Train 2 site pre-works progressed with first concrete pour for permanent structures completed and LNG train module construction ramping up.

·      Pluto Train 1 modifications scope progressed into pre-execution phase, engineering and long-lead item procurement commenced.

·      The project was 30% complete at the end of the period and first LNG cargo is targeted in 2026.

Sangomar Field Development Phase 1

·      Installation and testing of the rigid flowlines, totalling 101km in length, were successfully and safely completed.

·      The subsea installation campaign progressed, with umbilical installation now 37% complete.

·      The development drilling program continued with ten of 23 wells completed.

·      FPSO topsides integration and pre-commissioning works continued in Singapore.

·      The project was 82% complete at the end of the period and first oil is targeted in late 2023.

Mad Dog Phase 2

·      Subsequent to the period, first production was successfully achieved at the Argos platform in the GoM. Production will ramp-up through 2023.

Trion

·      Tenders were received and are being evaluated for key scopes including the floating production unit (FPU), long-lead rotating equipment, subsea equipment, drilling rig and installation scopes.

·      Woodside is collaborating with PEMEX and the National Hydrocarbons Commission (CNH) on the draft field development plan (FDP), which would be submitted to the regulator following a positive FID.

·      Woodside is targeting FID readiness in 2023.

Sunrise

·      In February 2023, the Sunrise Joint Venture committed to undertake a concept select program for the development of the Greater Sunrise fields in parallel with the ongoing negotiation of a new production sharing contract and associated agreements with the Timor-Leste and Australian Governments.

New energy

H2OK

·      Woodside is progressing negotiations for access to wastewater and the ~200MW of power required.

·      Discussions with potential H2OK customers are ongoing.

·      The air quality permit approval was received from Oklahoma Department of Environment and Quality.

·      Contracting activities for construction tender and other schedule critical packages are progressing.

·      H2OK is targeting FID readiness in 2023.

Woodside Solar

·      The Woodside Solar development application was submitted to the City of Karratha.

·      The Ngarluma and Woodside Power Project Indigenous Land Use Agreement (ILUA) was listed on the Register of ILUAs by the National Native Title Tribunal on 10 March 2023.

·      Woodside Solar is targeting FID readiness in 2023.

Corporate activities

Hedging (as at 31 March 2023)

·      Woodside has placed oil price hedges for approximately 21.8 MMboe of 2023 production at an average price of $74.5 per barrel of which approximately 5.8 MMboe has been delivered.

·      Woodside also has a hedging program for Corpus Christi LNG volumes to protect against downside pricing risk. These hedges are Henry Hub and Title Transfer Facility (TTF) commodity swaps. Approximately 83% of Corpus Christi volumes for the remainder of 2023 and approximately 29% of 2024 volumes have reduced pricing risk as a result of hedging activities.

·      The year-to-date pre-tax expense related to hedged positions is approximately $166 million, with $79 million pre-tax expense related to Corpus Christi hedges, $70 million pre-tax expense related to oil price hedges and $17 million pre-tax expense related to other hedge positions. Hedging losses will be included in "other expenses" in the full-year financial statements.

2023 Annual General Meeting

·      The 2023 Annual General Meeting (AGM) of Woodside Energy Group Ltd will be held at 10.00am (AWST) on Friday, 28 April 2023 at the Perth Convention & Exhibition Centre, 21 Mounts Bay Road, Perth, Western Australia.

·      The AGM will also be available online at https://web.lumiagm.com/333232445.

Climate reporting and non-binding shareholder vote

·      Woodside intends to put its climate reporting to a non-binding, advisory vote of shareholders at its 2024 AGM. It is intended that subsequent shareholder votes will be held at three-year intervals, except in exceptional circumstances.

Half-year report

·      Woodside's half-year report 2023 will be released on Tuesday, 22 August 2023.

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

Production summary

Product sales

Revenue (US$ million)

Realised prices

·      Average realised price was A$6.9/GJ in Western Australia, A$11.9/GJ in east coast Australia and $7.2/Mcf for International in Q1 2023.

Expenditure (US$ million)

Key project expenditure (US$ million)

Exploration

·      In the US Gulf of Mexico (GoM) Woodside was the highest bidder on 12 leases in lease sale 259 with the final lease award pending regulatory approval. The bids were concentrated in the central GoM Miocene and western GoM Paleogene trends. Two of the 12 bids were joint bids with Oxy, in which Woodside would hold a 40% non-operating interest.[24] 

·      In Egypt, the regulator has approved Woodside's acquisition of a 27% interest in two non-operated blocks in the Herodotus Basin.  

·      Woodside signed an option agreement to acquire at least a 56% interest in Namibia Petroleum Exploration License 87, located in the Orange Basin offshore Namibia. The decision to exercise the option will follow evaluation of seismic data acquired as part of the agreement.

Exploration or appraisal wells drilled

Permits and licences

Key changes to permit and licence holding during the quarter ended 31 March 2023 are noted below.

Seismic and geophysical survey activity

Production rates

Average daily production rates (100% project) for the quarter ended 31 March 2023:

Forward looking statements and other conversion factors

Disclaimer and important notice

This announcement contains forward-looking statements with respect to Woodside's business and operations, market conditions, results of operations and financial condition which reflect Woodside's views held as at the date of this announcement. All statements, other than statements of historical or present facts, are forward-looking statements and generally may be identified by the use of forward-looking words such as 'guidance', 'foresee', 'likely', 'potential', 'anticipate', 'believe', 'aim', 'estimate', 'expect', 'intend', 'may', 'target', 'plan', 'forecast', 'project', 'schedule', 'will', 'should', 'seek' and other similar words or expressions. Similarly, statements that describe the objectives, plans, goals or expectations of Woodside or other statements about Woodside's future plans for projects and the timing thereof, the implementation of Woodside's new energy strategy and Woodside's expectations and guidance with respect to production and certain financial results for 2023, are or may be forward- looking statements. Forward-looking statements are not guarantees of future performance and are subject to inherent known and unknown risks, uncertainties, assumptions and other factors, many of which are beyond the control of Woodside, its related bodies corporate and their respective officers, directors, employees, advisers or representatives. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, fluctuations in commodity prices; actual demand; currency fluctuations; geotechnical factors; drilling and production results; gas commercialisation; development progress; operating results; engineering estimates; reserve estimates; loss of market; industry competition; environmental risks; climate related risks; physical risks; legislative, fiscal and regulatory developments; changes in accounting standards; economic and financial markets conditions in various countries and regions; political risks; project delay or advancement; regulatory approvals; the impact of armed conflict and political instability (such as the ongoing conflict in Ukraine) on economic activity and oil and gas supply and demand; the effect of future regulatory or legislative actions on Woodside or the industries in which it operates, including potential changes to tax laws; as well as general economic conditions, inflationay conditions, prevailing exchange rates and interest rates and conditions in financial markets. Details of the key risks relating to Woodside and its business can be found in the "Risk" section of Woodside's most recent Annual Report which was released to the Australian Securities Exchange on 27 February 2023 and in Woodside's filings with the U.S. Securities and Exchange Commission, including Woodside's Annual Report on Form 20‑F. You should review and have regard to these risks when considering the information contained in this announcement.

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 announcement.

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. All information included in this announcement, including any forward-looking statements, speak only as of the date of this announcement and, except as required by law or regulation, Woodside does not undertake to update or revise any information or forward-looking statements contained in this announcement, whether as a result of new information, future events, or otherwise.

All figures are Woodside share for the quarter ending 31 March 2023, unless otherwise stated.

All references to dollars, cents or $ in this presentation are to US currency, unless otherwise stated.

References to "Woodside" may be references to Woodside Energy Group Ltd or its applicable subsidiaries.

The LNG conversion factor from tonne to boe is specific to volumes produced
at each facility and is based on gas composition which may change over time.