ANNUAL REPORT 2015 Strength through resilience ON THE COVER Our world-class Karratha Gas Plant increased annual production capacity from 16.3 to 16.7 million tonnes of LNG following system improvements and debottlenecking. OUR COMPASS WHO WE ARE WHERE WE’RE GOING HOW WE’LL GET THERE INTEGRITY OUR MISSION PARTNER OF CHOICE We are open, honest and fair. We do what we To deliver superior shareholder returns. We are the premium choice for partnerships say we will do. We have the courage to do the based on our distinctive capabilities, culture right thing. OUR VISION and track record as a great partner. Our aim is to be a global leader in upstream RESPECT oil and gas. ENGAGED PEOPLE We give everyone a fair go. We listen. We work for a highly regarded and OUR STRATEGIC DIRECTION successful company. We are part of a team WORKING SUSTAINABLY Maintain our leading Australian position working together for great results and have We are here for the long term. We look by optimising our producing assets and opportunities to contribute and grow. after each other, our communities and the commercialising our growth projects and environment. We keep each other safe. other premium opportunities. FUNCTIONAL EXCELLENCE We leverage our core capabilities and the Grow our portfolio by leveraging our core WORKING TOGETHER latest technology to create new opportunities capabilities for global upstream growth. We are on the same team. and sharpen our competitive edge. We build long-term partnerships. DECISION EFFECTIVENESS DISCIPLINE We make and execute decisions in line with We play by the rules. We set goals and we our business priorities and our values. hold ourselves to account. EXCELLENCE We achieve great results. We learn. We get better. OUR SUSTAINABLE DEVELOPMENT REPORT 2015 This report is a summary of Woodside’s sustainability approach, actions and performance for the 12-month period ended ADDITIONAL INFORMATION SUSTAINABLE DEVELOPMENT REPORT 2015 31 December 2015. In this report, we have indicated where This report will be available in additional information is available online March 2016. and in other sections of this report like this . We have partnered with Green ReportsTM in an initiative that ensures that A glossary of key terms, units of measure and communications minimise environmental impact and creates a more sustainable Further information at woodside.com.au conversion factors is on page 110. future for the community. ii WOODSIDE PETROLEUM LTD ANNUAL REPORT 2015 About Woodside CONTENTS We are an Australian-based oil and gas We operate five floating oil production, Overview company with a global presence, recognised storage and offloading vessels, the largest About Woodside ................................................................................... 1 for our world-class capabilities – as an owner-operated fleet in Australia, and we About this report ................................................................................... 1 explorer, a developer, a producer and a have an excellent track record of efficient and Our areas of activity ........................................................................... 2 supplier. safe production. Performance summary ................................................................. 4 Chairman’s report ............................................................................... 6 Our mission is to deliver superior shareholder We are growing our portfolio through Chief Executive Officer’s report .......................................... 8 returns through realising our vision of becoming acquisitions and exploration while maintaining Woodside executives .....................................................................10 a global leader in upstream oil and gas. a disciplined approach to ensure that we continue to increase shareholder value and Operating and Financial Review 12 Wherever we work, we are committed to appropriately manage risk. Creating sustainable value: living our values of integrity, respect, working our business model .........................................................................14 sustainably, discipline, excellence and working We are transforming to become a global Financial position ...........................................................................16 together. business. We have a portfolio of significant Strategy and outlook .................................................................18 interests in Canada and Timor-Leste and a Risks ...............................................................................................................20 Our operations are characterised by strong growing network of partnerships. safety and environmental performance in Operations remote and challenging locations. Known as a reliable and safe energy supplier, North West Shelf ............................................................... 22 Pluto LNG ..................................................................................24 we have enduring relationships with We recognise that long-term meaningful Australia Oil ............................................................................. 26 foundation customers throughout the Asia- relationships with communities are International – Canada ................................................... 27 Pacific region which span more than 25 years. fundamental to maintaining our licence to LNG marketing ..................................................................... 28 operate, and we work to build mutually We believe technology and innovation are Our people ............................................................................... 30 beneficial relationships in all locations where essential to unlocking future growth and Health, safety, security and we are active. commercialising assets. We continually emergency management .................................. 32 expand our technical knowledge, discover Environment ........................................................................... 34 Our producing liquefied natural gas (LNG) ......................................................................... new solutions and learn valuable lessons. Communities 35 assets in the north-west of Australia are Technology and innovation ........................................ 36 among the world’s best facilities. Innovation has always been in our DNA. Our Reserves and resource statement ..................... 38 knowledge has been built through decades of Growth ...........................................................................................................41 Today, our exploration portfolio includes experience, dating back to the world-record Global exploration ......................................................... 42 emerging and frontier provinces in Australia water depths of wells we drilled in offshore Development and the Asia-Pacific region, the Atlantic southern Australia in the 1950s. Today, we are Wheatstone .................................................................. 44 margins and Latin America and Sub-Saharan pioneering remote support and the application Greater Enfield............................................................. 45 Africa. We have significant equity interests in of artificial intelligence and advanced analytics Greater Western Flank Phase 2 ................... 45 high-quality development opportunities. in our operations. Browse FLNG .............................................................. 46 We are Australia’s most experienced LNG Kitimat LNG.....................................................................47 We are open and honest in our relationships. operator and largest independent oil and gas Sunrise LNG ...................................................................47 Sharing ideas and aspirations, we have company. Business development opportunities ........47 the courage to always do the right thing Our proven track record and distinctive for our people, partners, customers and Governance 48 Board of Directors ............................................................................. 48 capabilities are underpinned by more than communities. Corporate governance statement ................................. 50 60 years of experience, making us a partner Directors’ report ...................................................................................51 of choice. Remuneration report .................................................................... 52 Through collaboration, we leverage our Financial Report 2015 71 capabilities to progress our growth strategy. Since 1984, we have been operating the Shareholder information Shareholder statistics .................................................................107 landmark Australian project, the North West Share registry: enquiries.........................................................108 Shelf, and it remains one of the world’s Investor relations: enquiries................................................108 premier LNG facilities. In 2012, we added Business directory ..........................................................................109 our Pluto LNG Plant to our onshore operating Key announcements 2015 .....................................................109 facilities. Events calendar 2016 ...................................................................109 Glossary, units of measure and conversion factors .......................................................................... 110 Index ..............................................................................................................