About this report On the cover This Annual Report 2020 is a summary of Woodside’s operations Pluto LNG onshore processing facility, a key component and activities for the 12-month period ended 31 December 2020 of Woodside’s proposed Scarborough development. and financial position as at 31 December 2020. Woodside Petroleum Ltd (ABN 55 004 898 962) is the ultimate holding Forward-looking statements company of the Woodside group of companies. In this report, This report contains forward-looking statements. Please refer to unless otherwise stated, references to ‘Woodside’, the ‘Group’, page 132 which contains a notice in respect of these statements. the ‘company’, ‘we’, ‘us’ and ‘our’ refer to Woodside Petroleum Ltd and 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. In this report, references to a year are to the calendar and financial year We are working with Green ReportsTM on ended 31 December 2020 unless otherwise stated. an initiative ensuring that communications All dollar figures are expressed in US currency, Woodside share, minimise environmental impact and create a unless otherwise stated. more sustainable future for the community. Sustainable Development Report 2020 A summary of Woodside’s sustainability approach, health and safety performance and other material information for the 12-month period ended 31 December 2020 is included in our Sustainable Development Report 2020. SUSTAINABLE DEVELOPMENT The Annual Report and Sustainable Development REPORT Report together provide a complementary review of Woodside’s business. APPENDIX 4E Results for announcement to the market 2020 2019 Revenue from ordinary activities Decreased 26.1% to US$3,600 million US$4,873 million Profit/(loss) from ordinary activities after tax attributable to members Decreased 1,274.3% to (US$4,028) million US$343 million Net profit/(loss) for the period attributable to members Decreased 1,274.3% to (US$4,028) million US$343 million Dividends Amount Franked amount per security Final dividend (US cents per share) Ordinary 12¢ Ordinary 12¢ Interim dividend (US cents per share) Ordinary 26¢ Ordinary 26¢ None of the dividends are foreign sourced Previous corresponding period: Final dividend (US cents per share) Ordinary 55¢ Ordinary 55¢ Interim dividend (US cents per share) Ordinary 36¢ Ordinary 36¢ Ex-dividend date 25 February 2021 Record date for determining entitlements to the final dividend 26 February 2021 Payment date for the final dividend 24 March 2021 31 December 2020 31 December 2019 Net tangible asset per security1 $12.55 $17.64 1. Includes lease assets of $984 million and lease liabilities of $1,278 million (2019: $948 million and $1,170 million) as a result of AASB 16 Leases. CONTENTS Overview 4 About Woodside 4 Operational highlights 5 2020 summary 6 Chairman’s report 8 Chief Executive Officer’s report 10 Executive management 12 Focus areas 14 Financial Performance and Strategy 16 Financial summary 16 Strategy and capital management 20 Business model and value chain 22 Energy markets 23 Operations 24 Developments 32 Corporate 38 Risk 38 Climate 42 Reserves and resources 48 Governance 52 Woodside Board of Directors 52 Corporate governance 56 Directors’ report 57 Remuneration Report 59 Financial Statements 83 Shareholder Information 130 Shareholder statistics 130 Key announcements 2020 132 Events calendar 2021 132 Business directory 133 Asset facts 134 Glossary, units of measure and conversion factors 135 Ten-year comparative data summary 138 Woodside’s Operating and Financial Review is contained on pages 4-51. Woodside Petroleum Ltd Overview 3 ABOUT WOODSIDE Woodside led the development of the LNG industry in Australia and is applying this same pioneering spirit to solving future energy challenges. We have a focused portfolio and are recognised for our world- Technology and innovation are essential to our long-term class capabilities as an integrated upstream supplier of energy. sustainability. We are growing our carbon and new energy businesses. We use technology to reduce emissions and the We have a robust hydrocarbon business with a focus on LNG. carbon footprint of our products. We are pioneering remote As Australia’s leading LNG operator, we operated 6% of global support and the application of artificial intelligence, embedding LNG supply in 2020. advanced analytics across our operations. LNG is a lower-emissions, competitive fuel ideally suited to We take a disciplined and prudent approach to capital supporting decarbonisation and improving air quality. We are management, ensuring we manage financial risks and maintain working to improve our energy efficiency, offset our emissions, a resilient financial position. This allows us to maximise the value reduce our emissions intensity and explore options for lower- delivered from our portfolio of opportunities. carbon energy. We have set clear targets to reduce our net emissions in line with our aspiration to achieve net zero by 2050. We continue to expand our capabilities in marketing, trading and shipping and have enduring relationships that span In Western Australia, we are building on more than 30 years 30 years with customers throughout the Asia-Pacific region of experience and progressing development of the Scarborough and beyond. We are committed to upholding our values of gas resource through the world-class Pluto LNG facility. integrity, respect, discipline, excellence, working sustainably We are also connecting Pluto LNG with the landmark North and working together. West Shelf Project to create an integrated LNG production hub on the Burrup Peninsula. Our success is driven by our people and we aim to attract, develop and retain a diverse, high performing workforce. Offshore, we operate two floating production storage and offloading (FPSO) facilities, the Okha FPSO and Ngujima-Yin We recognise that enduring, meaningful relationships with FPSO. Our operated assets are renowned for their safety, communities are fundamental to maintaining our licence reliability, efficiency and environmental performance and to operate. We actively seek to build relationships with we have a strong track record in project development. stakeholders who are interested in and affected by our activities. We help create stronger communities through We have a participating interest in Wheatstone, which started programs that improve knowledge, build resilience and production in 2017. create shared opportunities. Internationally, we are executing the Sangomar Field Our proven track record and distinctive capabilities are Development in Senegal having achieved final investment underpinned by more than 65 years of experience, making decision in January 2020. This development, targeting first us a partner of choice. oil in 2023, will deliver near-term production. We are also progressing the A-6 Development in Myanmar. 4 Annual Report 2020 Woodside Petroleum Ltd OPERATIONAL HIGHLIGHTS RECORD ANNUAL PRODUCTION 94.9 91.4 100.3 89.6 84.4 MMboe MMboe 2016 2017 2018 2019 2020 BEST-EVER SAFETY RESULT Total recordable 1.64 injury rate (TRIR) 1.29 1.32 TRIR 0.90 0.88 per million work hours 2016 2017 2018 2019 2020 STRONG OPERATIONAL PERFORMANCE PROTECTED AGAINST COVID-19 High operated LNG reliability Record sales volume No interruption to % energy supply 97.6 106.8 MMboe LOW UNIT PRODUCTION COST Portfolio Gas assets 0cases on $ $ Woodside facilities 4.8 per boe 4.2 per boe Woodside Petroleum Ltd Overview 5 2020 SUMMARY Net profit after tax Operating revenue $ $ -4,028 million 3,600million Underlying net profit after tax Operating cashflow $ $ 447 million 1,849 million Full-year dividend Cash margin % 38 US cps 78 Maintained strong balance sheet Challenging external conditions Liquidity Average oil price $ compared to 20191 % 6.7 billion 35 Gearing Average LNG spot price % 1 % 24.4 compared to 2019 37 Cash on hand Unanticipated $ COVID-19 cost $ 3.6 billion 44 million 1. Comparison of the average reported daily Platts Dated Brent and JKM prices in 2020 and 2019. 6 Annual Report 2020 Woodside Petroleum Ltd Advanced growth SANGOMAR FID achieved Execution in January 2020 underway SCARBOROUGH 50% of equity gas Increased offshore offtake contracted design to 8.0 Mtpa NORTH WEST SHELF PROJECT Third-party gas processing agreements executed Energy transition NEW EMISSIONS REDUCTION TARGETS % % NET 15 30 ZERO by 2025 by 2030 aspiration for 2050 NATIVE REFORESTATION Planted 3.6 million trees 2021 priorities Sell-down equity in Sangomar and Pluto Train 2 Targeting Scarborough FID H2 2021 Safe execution and delivery of Sangomar Cost and efficiency transformation Continue growth of carbon abatement business Woodside Petroleum Ltd Overview 7 CHAIRMAN’S REPORT Woodside handled the challenges of 2020 in a professional and safe way, which is a credit to our people, culture and processes and demonstrates the resilience of our business. Although the underlying profit of $447 million is smaller than We are seeing strong interest from customers in export volumes usual, it is still a very sound result given the challenges of 2020 and have further increased the value of this world-class resource and is evidence of our ability to generate cash and manage by improving its development concept. costs in the most adverse conditions. In this report, you can read about how Woodside accounts for the Even in these difficult times, we have maintained the ability risks and opportunities associated with climate change and about to pay a full-year total dividend at 38 US cents per share. the clear targets we have set for emissions reductions by 2025 and by 2030 on the path to net zero direct emissions by 2050. Our reported loss of $4,028 million reflects major writedowns of our assets announced in July as the COVID-19 pandemic and Even in a year when a global pandemic wreaked havoc on the dramatic oil price plunge created uncertainty in global markets world economy, climate change was still the number one issue and slashed our revenue. At a very uncertain time, we took a raised with me by investors.