Woodside Petroleum - $WPL.AU

What’s Woodside Petroleum Business Model?

Woodside Petroleum Ltd. operates as a petroleum exploration and production company. The Company offers crude oil, natural gas, and other petroleum products. Woodside Petroleum serves customers worldwide.

What Woodside Petroleum is doing in more details?

Woodside Petroleum has focused portfolio and is recognized for its world-class capabilities as an integrated upstream supplier of energy. The company has a robust hydrocarbon business with a focus on LNG.

LNG is a lower-emissions, competitive fuel ideally suited to supporting decarburization and improving air quality. Woodside has proved reserves of 100.3 million barrels of oil equivalent.

In Western Australia, it is building on and progressing development of the Scarborough gas resource through the world-class Pluto LNG facility.

Offshore, it operates two floating production storage and offloading (FPSO) facilities, the Okha FPSO and Ngujima-Yin FPSO. The Asian markets account for the majority of its sales.

Where Woodside Petroleum is Operating?

The company’s segment includes Pluto (about 45% of sales), North West Shelf (over 25%), Wheatstone (about 15%), Australian Oil (over 10%), and Development and Other.

Pluto LNG includes the exploration, evaluation, development, production and sale of liquefied natural gas, pipeline natural gas and condensate in assigned permit areas.

North West Shelf Project includes the exploration, evaluation, development, production and sale of liquefied natural gas, pipeline natural gas, condensate and liquefied petroleum gas in assigned permit areas.

Wheatstone includes exploration, evaluation, development, production and sale of liquefied natural gas, pipeline natural gas and condensate in assigned permit areas.

Australia Oil includes exploration, evaluation, development, production and sale of crude oil in assigned permit areas (North West Shelf, Greater Enfield and Vincent).

The development segment comprises exploration, evaluation and development of liquefied natural gas, crude oil and condensate in the Browse, Scarborough, Kitimat, Sunrise and Sangomar projects.

Other segment includes trading and shipping activities and activities undertaken in other international locations.

Overall, around 95% of sales were generated from the sale of hydrocarbons.

Where is the geographical reach of Woodside Petroleum?

Headquartered in Perth, Western Australia, the Asian markets account for approximately 85% of sales, followed by Oceania with nearly 10% and Other with over 5%.

What is Woodside Petroleum’s Sales and Marketing Strategy?

The company has two major customers which account for around 15% of its external revenue each. The sales are generated by the Pluto and North West Shelf operating segments.

What is Woodside Petroleum Financial Performance?

Company’s revenue for fiscal 2020 increased to AU$3.6 billion compared from the prior year with AU$4.9 billion.

Loss for fiscal 2020 was AU$4.0 billion compared from the prior year with a profit of AU$382 million.

Cash held by the company at the end of fiscal 2020 decreased to AU$3.6 billion. Cash provided by operations was AU$1.8 billion while cash used for investing and financing activities were AU$2.1 billion and AU$203 million, respectively.

Main uses of cash were payments for capital and exploration expenditure, and dividends paid.

What is Woodside Petroleum Future Strategy?

Woodside have a clear strategy to deliver superior stakeholder outcomes through its world-class assets and portfolio of low-cost and low-carbon growth opportunities.

The company strategy is shaped to successfully respond to the energy transition, and underpinned by industry-leading technology and a prudent approach to capital allocation.

Woodside’s operations are characterized by strong LNG reliability, cost discipline and strong safety and environmental performance. The company maximize value by developing and deploying technology across its portfolio of assets, enabled by its close collaboration with world-leading experts.

Woodside have delivered near-term growth opportunities in recent years and are progressing subsea tieback developments for the NWS Project, Pluto LNG and Wheatstone.

As the company look to the future, Woodside are transforming existing onshore infrastructure to process third-party gas and create new revenue streams. Woodside are focused on providing affordable energy solutions that deliver enduring value to shareholders, communities, governments and other stakeholders.

What is Woodside Petroleum’s History?

The operator of the North West Shelf Project initially explored for oil and gas on the other side of Australia. In 1954 Rees Withers founded Woodside (Lake Entrance) Oil to explore in southeastern Victoria.

Broker Geoff Donaldson, who helped finance the new company, became chairman in 1956. When Woodside failed to hit paydirt, the firm searched for better opportunities off the Australian coast.

In 1963 Woodside acquired permits to explore the relatively uncharted, storm-tossed waters off the remote northwestern coast of Australia.

The expensive and risky venture prompted Woodside to get financial and technical support from major oil players, including Royal Dutch Shell, Burmah Oil, BP, and Chevron.

The company discovered three major gas fields in 1971. The North Rankin, Goodwyn, and Angel fields subsequently formed the nucleus of the North West Shelf Project, Australia’s biggest energy resource development scheme.

Woodside and Burmah combined their interests to form Woodside Burmah Oil, the project’s manager. When Burmah Oil struggled financially in the 1970s, it sold its part of Woodside Burmah to Broken Hill Proprietary (BHP) in 1975.

As the major shareholders, Royal Dutch Shell and BHP guided the firm during the late 1970s. The company became Woodside Petroleum Ltd. in 1977.

To bring the project’s gas onshore, the firm and its partners built one of the world’s largest offshore gas production platforms in the North Rankin field. In 1984 Woodside began piping natural gas to a processing plant near Dampier and delivering it under long-term contracts with western Australia’s state-owned energy utility.

That year Donaldson stepped down as chairman, and in 1985 Shell and BHP upped their stake in Woodside to 80%.

In 1985 Woodside moved into the second phase of the North West Shelf Project: liquefied natural gas (LNG) gas for export. This venture was divided among Woodside, BHP, BP, Royal Dutch Shell, Chevron, and a Mitsubishi-Mitsui joint venture.

Over the next four years, the Woodside-led consortium built two LNG processing trains and four LNG storage tanks. It began exporting LNG in 1989 under 20-year contracts with eight Japanese power and gas utilities.

Woodside regained some of its independence when BHP sold most of its shares in 1990; Royal Dutch Shell became Woodside’s largest shareholder.

In the late 1980s the firm found crude oil on the North West Shelf, and in the Timor Sea in 1994. It began exporting liquefied petroleum gas in 1995.

To expand its resource base, Woodside began exploring in other areas in the late 1990s, including offshore Cambodia, Mauritania, and Papua New Guinea. In 1999 the company acquired a stake in a Gulf of Mexico exploration company.

In 2000 Royal Dutch Shell announced a proposal to increase its stake in Woodside to 60%, but the Australian government blocked the deal the next year. Also in 2001 the company struck oil in Mauritania for the first time.

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