Woodside Petroleum : 20.04.2017 First Quarter 2017 Report

Thursday, 20 April 2017

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

FIRST QUARTER REPORT FOR PERIOD ENDED 31 MARCH 2017

Operational excellence

• First quarter delivered sales revenue of US$895 million and production of 21.4 MMboe.

• North West Shelf onshore and offshore gas facilities achieved over 98% reliability.

• Production uptime for the Australian portfolio was over 90% despite being impacted by a once in 50-year rainfall event, Tropical Cyclone Blanche and three potential cyclones.

  Managing risk and volatility

• Executed mid-term LNG sales and purchase agreements for up to 16 cargoes from Woodside's portfolio for delivery in the period 2017 - 2019.

• Executed a US$100 million term loan and guarantee facility with Norway's export credit agencies and DNB Bank ASA.

  Creating and building near-term value growth

• Continued appraisal of the SNE field in Senegal is further improving confidence in the SNE development plan.

• Production testing of the Thalin field in Myanmar established high reservoir deliverability and reservoir properties in line with expectations.

• Pluto LNG expansion studies have commenced; contractors have been engaged to develop concept options by mid-year.

  Woodside CEO Peter Coleman said the first quarter demonstrated progress against the company's 2017 priorities.

  "We continue to work with the Wheatstone operator on final onshore and offshore commissioning activities ahead of expected first LNG mid-year.

  "Woodside's significant appraisal and exploration programs in Senegal and Myanmar are underway. In Myanmar, our interpretation of seismic data has identified an additional low-cost exploration target with upside potential in Block A-6, which contains the Shwe Yee Htun-1 discovery. This increases our Myanmar firm well schedule for 2017 to five.

  "Operational performance remains strong with the North West Shelf gas facilities and the Nganhurra FPSO achieving 98% reliability during the quarter. Pluto production was approximately 5% lower than expected; a positive outcome given the significant weather impacts experienced during the quarter.

  "Woodside also successfully executed mid-term LNG sales and purchase agreements for up to 16 cargoes for delivery between 2017 and 2019.

  "We look forward to providing further details on how we will deliver future shareholder value at our investor briefing day in May," he said.

  Contacts:

  MEDIA Michelle Grady W: +61 8 9348 5995 M: +61 418 938 660 E: michelle.grady@woodside.com.au

  INVESTORS Damien Gare W: +61 8 9348 4421 M: +61 417 111 697 E: investor@woodside.com.au

  FIRST QUARTER 2017 REPORT Contents Sales Revenue 2 Production 3 Projects 4 Exploration and Appraisal 5 Corporate 7 Data Tables 8

  Sales Revenue

  Higher average realised prices

  1,200

  Previous quarter

  1,009		26	-140
  895

  (Q4 2016 to Q1 2017)

  1,000

  US$ million

  800

  2

  Inventory build

  600

  400

  200

  0

  1,200

  1,000

  US$ million

  800

  1

  Q4 2016 Realised price Volume Q1 2017

  Corresponding period

  (Q1 2016 to Q1 2017)

  982 56 -143

  895

  • Higher realised prices reflect a continued strengthening in the oil market.

  • Sales revenue impacted by lower production and inventory build due to timing of LNG sales:

- LNG production was 0.8 MMboe more than LNG sales.

600

400

200

0

Q1 2016 Realised price 1

Volume Q1 2017

1. Includes exchange rate impact.

2. Inventory build is the difference between production and sales, valued using first quarter 2017 realised prices.

20 April 2017 Woodside first quarter 2017 report 2

Production

Greater than 90% uptime, despite significant weather impacts

Previous quarter

30 (Q4 2016 to Q1 2017)

25 23.8 -1.4

Mmboe

20

-0.4 -0.6

21.4

-

Weather impact

15

10

5

0

Q4 2016 LNG Liquids1 Other 2 Discontinued 3

operations

30 Corresponding period

(Q1 2016 to Q1 2017)

25 23.7 -0.6 -0.1 -1.1 -0.5

MMboe

20

15

10

5

Q1 2017

21.4

• Production for the quarter was lower predominantly due to:

  • adverse weather related events:

    • 21 days of tropical system weather impacts or threatened impacts, well above the average of ~13 days

    • Once in 50-year rainfall event at LNG production facilities

  • normal seasonal variation in production capacity

  • completion of a NWS pipeline gas supply contract in Q4 2016.

• 2017 production guidance is unchanged.

0

Q1 2016 LNG Liquids1

Other 2

3

Discontinued

operations

Q1 2017

1. Liquids includes oil and condensate.

2. Other includes NWS pipeline gas, LPG and Canada pipeline gas.

3. Discontinued operations include Balnaves and Laminaria-Corallina.

20 April 2017 Woodside first quarter 2017 report 3