Woodside Petroleum : 02.09.2016 2016 Half-Year Shareholder Review

Friday, 2 September 2016

ASX: WPL OTC: WOPEY

Woodside Petroleum Ltd.

ACN 004 898 962

Woodside Plaza

240 St Georges Terrace Perth WA 6000 Australia

www.woodside.com.au

The attached Half-Year Shareholder Review provides a summary of Woodside's Half-Year Report 2016 and the Half-Year 2016 results, which were released to the ASX on 19 August 2016.

These documents are available on the company's website at www.woodside.com.au.

RESULTS FOR FIRST HALF 2016

EVENTS CALENDAR 2016-2017

Key calendar dates for Woodside shareholders in 2016-2017.

Please note dates are subject to review.

21 July Second quarter

2016 report

19 August Half-year report 2016

1. August Ex-dividend date for

   interim dividend

2. August Record date for

interim dividend

30 September Payment date for

interim dividend

20 October Third quarter

2016 report

31 December Woodside financial

year end

2016 HALF-YEAR SHAREHOLDER REVIEW

30 JUNE 2016

Share registry: Enquiries

19 January Fourth quarter

2016 report

ABOUT WOODSIDE

Woodside is Australia's largest independent oil and gas company

Our global exploration portfolio includes emerging and frontier

*Refer to page 3 of the 2016 Half-Year Report for definitions.

1H 2016

Production volume Sales revenue

Investors seeking information about their shareholdings should contact the company's share registry:

Computershare Investor Services Pty Limited

Level 11, 172 St Georges Terrace, Perth WA 6000

with a global presence, recognised for our world-class capabilities - as an explorer, a developer, a producer and a supplier.

Our mission is to deliver superior shareholder returns through realising

provinces in Australia and the Asia- Pacific region, the Atlantic Margins, Sub-Saharan Africa and Latin America.

We have significant equity interests in high-quality development opportunities in Australia (Browse), Canada (Kitimat)

45.9

MMboe

MMboe %*

Total 45.9

*Small differences are due to rounding.

1,807

US$m

US$m %

Total 1, 807

Postal address: GPO Box D182 Perth WA 6840

Telephone: 1300 558 507 (within Australia)

+61 3 9415 4632 (outside Australia)

Facsimile: +61 3 9473 2500

Email: web.queries@computershare.com.au

Website: www.investorcentre.com/wpl

Head Office:

Woodside Petroleum Ltd 240 St Georges Terrace Perth WA 6000 Australia

our vision of becoming a global leader in upstream oil and gas.

Our assets are renowned for their safety, reliability and efficiency, and we are Australia's most experienced liquefied natural gas (LNG) operator.

Our producing assets in Australia include the landmark North West Shelf Project, which has been operating since 1984. In 2012, we commenced production from the Pluto LNG Plant and will add additional volumes from our non-operated Wheatstone LNG interests in mid-2017.

and Myanmar and are pursuing new concepts, technology and contracting strategies to enable the earliest commercialisation of these resources.

We believe technology and innovation are essential to bringing down costs and unlocking future growth. Today, we are pioneering remote support and the application of artificial intelligence and advanced analytics in our operations.

We recognise long-term meaningful relationships with communities are fundamental to maintaining our licence to operate, and we work to build mutually beneficial relationships.

PEER-LEADING PERFORMANCE

EBITDA margin Return on capital employed

Postal Address:

GPO Box D188

Perth WA 6840 Australia

Telephone: +61 8 9348 4000

Facsimile: +61 8 9214 2777

Email: companyinfo@woodside.com.au

We also operate a fleet of floating

production storage and offloading (FPSO) facilities. From mid-2019, we will add additional oil production from

Woodside is characterised by strong safety and environmental performance in all locations where we are active and

100

Percent

80

60

40

20

0

2012 2013 2014 2015 1H16

20

Percent

10

0

-10

-20

2012 2013 2014 2015 1H16

Follow us

www.woodside.com.au

This review provides a summary of Woodside's Half-Year Report 2016 and 2016 Half-Year Results Briefing (ASX releases dated 19 August 2016) which are available on the company's website. The

the Greater Enfield Project via our existing Ngujima-Yin FPSO facility.

We continue to expand our capabilities in marketing, trading and shipping

and have enduring relationships that span more than 25 years with

foundation customers throughout the Asia-Pacific region.

we are committed to upholding our values of integrity, respect, working sustainably, discipline, excellence and working together.

Our proven track record and distinctive capabilities are underpinned by more than 60 years of experience, making us a partner of choice.

Peer range

Woodside

Peer range

Woodside

#expo design

notes to petroleum resource estimates are provided on page 17 of the report. All dollar figures are expressed in US currency unless otherwise stated. Production and sales volumes, reserves and

*Refer to 2016 Half-Year Results Briefing for peer group and definitions.

resources are quoted as Woodside share.

OUR STRATEGY

Woodside is focused on delivering superior shareholder value by maximising

our core business; leveraging our capabilities; and growing our portfolio to deliver long-term value growth to our shareholders.

We do so across the exploration and production life cycle through a disciplined approach to capital management and a focus on working sustainably.

We are:

• delivering operational excellence to maximise returns and grow value;

• managing risk and volatility across revenue streams and our balance sheet; and

• creating and building near-term value growth by leveraging our financial strength, core competencies, and lean organisation.

  Our company is operating in a challenging low commodity price environment. In response, we increased liquidity, extended our debt maturity profile, reduced our cost structure and concluded numerous price reviews. We continue to progress term sales while growing the business through exploration and acquisitions.

  With our financial strength, excellent contingent resource position, leading development and marketing capabilities and a refreshed exploration portfolio, we are well placed to execute our growth strategy.

  Peter Coleman

  Chief Executive Officer and Managing Director

  PRODUCTION VOLUME

  9%higher

  We delivered production of

  45.9 MMboe, which was 9% higher than in 1H 2015, primarily due to higher LNG capacity and availability. Pluto LNG annualised loaded production rate of 4.9 mtpa

  (total project) was 14% higher than expected at FID.

  45.9

  42.0

  SALES REVENUE

  $1.8 billion

  First half sales revenue was 22% lower than in 1H 2015, mainly due to lower average realised prices, partly offset by higher sales volumes and favourable price review outcomes. This emphasises the resilience of our sales revenue, as benchmark

  oil prices1 fell by 46% from 1H 2015 to 1H 2016.

  2,305

  US$ million

  1,807

  UNIT PRODUCTION COST

  38%lower

  Our unit production cost of US$5.2/boe was 38% lower than in 1H 2015. This was primarily driven by operational efficiencies, higher throughput, asset

  management and the impact of the Pluto turnaround in

  1H 2015.

  8.4

  MMboe

  US$/boe

  5.2

  REPORTED PROFIT

  $340 million

  Profit was down on 1H 2015 mainly due to Brent oil price reaching cycle lows of US$28/bbl at the start of 2016. Lower sales revenue was partly offset by lower production costs.

  679

  US$ million

  340

  HIGHLIGHTS

  Operational excellence

• Increased 2016 production guidance to 90-95 MMboe.

• North West Shelf plateau extension work is progressing well.

  The Persephone Project remains on budget with a revised earlier start-up

  1H

  2015

  1H

  2016

  1H

  2015

  1H

  2016

  1H

  2015

  1H

  2016

  1H

  2015

  1H

  2016

• Production of 45.9 MMboe was 9% higher than 1H 2015, while unit production costs reduced by 38%.

  Managing risk profile

• De-risked our 2017 to 2018 revenue stream with 85-90% of expected production now either committed under term contracts or subject to finalisation of sale and purchase agreements.

• Secured over $600 million in funding at competitive rates.

• Negligible near-term debt maturities.

• Liquidity of $2 billion.

• Investment grade credit ratings affirmed.

  Capturing and building near-term value growth

• The Wheatstone Project (Woodside 13%, non-operator) remains on track for first LNG from Train 1 in mid-2017. First LNG production from Train 2 is expected 6-8 months later.

  US$ million

  Percent (%)

  1H	1H	1H	1H	1H	1H	1H	1H
  2015	2016	2015	2016	2015	2016	2015	2016

• The Julimar Project (Woodside 65%, operator) remains on budget and on schedule to be ready for start-up in 2H 2016.

  expected in 2H 2017 and GWF-2 on track for start-up in 2H 2019.

• Approved the Greater Enfield Project, developing oil reserves (2P) of

  41 MMbbl (Woodside share) as a tie-back to the Ngujima-Yin FPSO, targeting first oil mid-2019.

• Discoveries offshore Myanmar in Block A-6 (Shwe Yee Htun-1) and Block AD-7 (Thalin-1A) increased contingent resources by 83 MMboe (Woodside share, 2C).

• Agreed to acquire ConocoPhillips Senegal B.V., a company that holds a 35% interest in the 560 MMbbl SNE deep water oil discovery (100%, at the 2C confidence level)1.

• Entered agreement to acquire a 65% participating interest and operatorship of AGC Profond Block in Senegal - Guinea-Bissau2.

• Expanded our acreage position offshore Gabon by acquiring a 40% interest in the Luna Muetse Block2.

• Continued progressing work on reducing capital cost at the Kitimat LNG Project in British Columbia. Appraisal drilling of the Liard resource continued with well performance

CASH FLOW FROM OPERATIONS

Cash flow from operating activities was 4% higher than in 1H 2015, with strong cash delivery from our core, cash generating assets despite the challenging external environment.

1,083 1,124

1. Three month lagged Japan Customs-cleared Crude (JCC).

INTERIM DIVIDEND

cents per sh

The Board has approved a fully franked interim dividend of 34 cps. This compares

to 66 cps (fully franked) in 1H 2015. The Dividend

Reinvestment Plan has been suspended for the interim dividend.

66

US$ cps

34

GEARING

At the end of the reporting period, our gearing level was 23%. This reflects Woodside's strong financial position and remains within our target range of 10-30%.

23

20

LIQUIDITY

At the end of 1H 2016, liquidity was US$2.0 billion, comprising US$0.3 billion of cash at hand and

US$1.7 billion in undrawn facilities. We have achieved our target liquidity level and are able to fully fund our committed activities and growth opportunities.

3.2

US$ billion

2.0

exceeding initial expectations.

1. Subject to Government of Senegal approval and any applicable pre-emption.

2. Subject to satisfaction of conditions precedent.