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Additional Information | 12 Months Ended
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Dec. 31, 2022
Text Block [abstract] |
Additional Information |
SECTION 6: ADDITIONAL INFORMATION |  |
SECTION 6.1 Supplementary information on oil and gas - unaudited In accordance with the requirements of the Financial Accounting Standards Board (FASB) Accounting Standard Codification ‘Extractive Activities-Oil and Gas’ (Topic 932) and SEC requirements set out in Subpart 1200 of Regulation S-K, the Group is presenting certain disclosures about its oil and gas activities. These disclosures are presented below as supplementary oil and gas information, in addition to information relating to the reserves and production disclosed in section 3.9 of this report. The information set out in this section is referred to as unaudited as it is not included in the scope of the audit opinion of the independent auditor on Woodside’s Financial Statements. Reserves Proved oil and gas reserves information is included in section 3.9 - Reserves Statement. Capitalised costs relating to oil and gas production activities The following table shows the aggregate capitalised costs related to oil and gas exploration and production activities, and the related accumulated depreciation, depletion, amortisation and valuation provisions.
|  | Australia US$m |  |  | International US$m |  |  | Total US$m |
2022 |  |  |  |  |  |  |  |  |  |  |  |
Unproved properties |  |  | 1,154 |  |  |  | 1,834 |  |  |  | 2,988 |
Proved properties 1 |  |  | 49,190 |  |  |  | 15,546 |  |  |  | 64,736 |
Total costs |  |  | 50,344 |  |  |  | 17,380 |  |  |  | 67,724 |
Less: Accumulated depreciation, depletion, amortisation and valuation provisions |  |  | (24,353) |  |  |  | (2,491) |  |  |  | (26,844) |
Net capitalised costs |  |  | 25,991 |  |  |  | 14,889 |  |  |  | 40,880 |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Unproved properties |  |  | 1,172 |  |  |  | 1,703 |  |  |  | 2,875 |
Proved properties 1 |  |  | 38,352 |  |  |  | 2,517 |  |  |  | 40,869 |
Total costs |  |  | 39,524 |  |  |  | 4,220 |  |  |  | 43,744 |
Less: Accumulated depreciation, depletion, amortisation and valuation provisions |  |  | (22,738) |  |  |  | (1,958) |  |  |  | (24,696) |
Net capitalised costs |  |  | 16,786 |  |  |  | 2,262 |  |  |  | 19,048 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Unproved properties |  |  | 2,709 |  |  |  | 1,750 |  |  |  | 4,459 |
Proved properties 1 |  |  | 35,892 |  |  |  | 1,377 |  |  |  | 37,269 |
Total costs |  |  | 38,601 |  |  |  | 3,127 |  |  |  | 41,728 |
Less: Accumulated depreciation, depletion, amortisation and valuation provisions |  |  | (22,305) |  |  |  | (2,111) |  |  |  | (24,416) |
Net capitalised costs |  |  | 16,296 |  |  |  | 1,016 |  |  |  | 17,312 |
1. | Proved properties include the fair value ascribed to future phases of certain projects acquired through business combinations.
Costs incurred relating to oil and gas property acquisition, exploration and development activities The following table shows the costs incurred related to oil and gas property acquisition, exploration and development activities (expensed and capitalised). Amounts shown include interest capitalised.
|  | Australia US$m |  |  | International US$m |  |  | Total US$m |
2022 |  |  |  |  |  |  |  |  |  |  |  |
Acquisitions of proved property |  |  | 8,488 |  |  |  | 11,098 |  |  |  | 19,586 |
Acquisitions of unproved property |  |  | - |  |  |  | 180 |  |  |  | 180 |
Exploration 1 |  |  | 39 |  |  |  | 541 |  |  |  | 580 |
Development 2 |  |  | 2,365 |  |  |  | 1,740 |  |  |  | 4,105 |
Total costs 3 |  |  | 10,892 |  |  |  | 13,559 |  |  |  | 24,451 |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Acquisitions of proved property |  |  | - |  |  |  | 205 |  |  |  | 205 |
Acquisitions of unproved property |  |  | - |  |  |  | 7 |  |  |  | 7 |
Exploration 1 |  |  | 459 |  |  |  | 84 |  |  |  | 543 |
Development |  |  | 1,141 |  |  |  | 935 |  |  |  | 2,076 |
Total costs 3 |  |  | 1,600 |  |  |  | 1,231 |  |  |  | 2,831 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Acquisitions of proved property |  |  | - |  |  |  | 540 |  |  |  | 540 |
Acquisitions of unproved property |  |  | - |  |  |  | 26 |  |  |  | 26 |
Exploration 1 |  |  | 279 |  |  |  | 117 |  |  |  | 396 |
Development |  |  | 987 |  |  |  | 256 |  |  |  | 1,243 |
Total costs 3 |  |  | 1,266 |  |  |  | 939 |  |  |  | 2,205 |
1. | Represents gross exploration expenditure, including capitalised exploration expenditure, geological and geophysical expenditure and development evaluation costs charged to income as incurred.
2. | Total development costs includes $3,812 million of expenditure and $294 million of capitalised interest in 2022.
3. | Total costs include $23,991 million (2021: $2,777 million, 2020: $2,138 million) capitalised during the year.
Results of operations from oil and gas production activities
|  | Australia US$m |  |  | International US$m |  |  | Total US$m |
2022 |  |  |  |  |  |  |  |  |  |  |  |
Oil and gas revenue |  |  | 12,453 |  |  |  | 1,575 |  |  |  | 14,028 |
Production costs |  |  | (1,277 | ) |  |  | (353 | ) |  |  | (1,630 | )
Exploration expenses |  |  | (20 | ) |  |  | (440 | ) |  |  | (460 | )
Depreciation, depletion, amortisation and valuation provision 1 |  |  | (1,476 | ) |  |  | (460 | ) |  |  | (1,936 | )
Production taxes 2 |  |  | (429 | ) |  |  | (16 | ) |  |  | (445 | )
Accretion expense 3 |  |  | (85 | ) |  |  | (23 | ) |  |  | (108 | )
Income taxes |  |  | (2,707 | ) |  |  | (151 | ) |  |  | (2,858 | )
Royalty-related taxes 4 |  |  | (501 | ) |  |  | - |  |  |  | (501 | )
Results of oil and gas producing activities 5 |  |  | 5,958 |  |  |  | 132 |  |  |  | 6,090 |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Oil and gas revenue |  |  | 5,624 |  |  |  | - |  |  |  | 5,624 |
Production costs |  |  | (504 | ) |  |  | - |  |  |  | (504 | )
Exploration expenses |  |  | (6 | ) |  |  | (48 | ) |  |  | (54 | )
Depreciation, depletion, amortisation and valuation provision 1 |  |  | (501 | ) |  |  | (268 | ) |  |  | (769 | )
Production taxes 2 |  |  | (218 | ) |  |  | - |  |  |  | (218 | )
Accretion expense 3 |  |  | (23 | ) |  |  | (1 | ) |  |  | (24 | )
Income taxes |  |  | (1,312 | ) |  |  | - |  |  |  | (1,312 | )
Royalty-related taxes 4 |  |  | - |  |  |  | - |  |  |  | - |
Results of oil and gas producing activities 5 |  |  | 3,060 |  |  |  | (317 | ) |  |  | 2,743 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Oil and gas revenue |  |  | 3,339 |  |  |  | - |  |  |  | 3,339 |
Production costs |  |  | (550 | ) |  |  | - |  |  |  | (550 | )
Exploration expenses |  |  | (8 | ) |  |  | (59 | ) |  |  | (67 | )
Depreciation, depletion, amortisation and valuation provision 1 |  |  | (5,833 | ) |  |  | (1,137 | ) |  |  | (6,970 | )
Production taxes 2 |  |  | (82 | ) |  |  | - |  |  |  | (82 | )
Accretion expense 3 |  |  | (27 | ) |  |  | (1 | ) |  |  | (28 | )
Income taxes |  |  | 948 |  |  |  | - |  |  |  | 948 |
Royalty-related taxes 4 |  |  | - |  |  |  | - |  |  |  | - |
Results of oil and gas producing activities 5 |  |  | (2,213 | ) |  |  | (1,197 | ) |  |  | (3,410 | )
1. | Includes valuation provision reversal of $900 million in 2022 (2021: reversal of $ 1,048 million and 2020: recognition of $5,269 million).
2. | Includes royalties and excise duty.
3. | Represents the unwinding of the discount on the closure and rehabilitation provision.
4. | Includes petroleum resource rent tax and petroleum revenue tax where applicable. Excludes deferred tax expense/ (benefit) of $(814) million (2021: $297 million; 2020: $(439) million).
5. | This table reflects the results of our oil and gas activities as reported in Note A.1 Segment revenue and expenses in section 5 – Financial Statements. Other income, other expenses, general and administrative costs and amounts relating to the marketing and corporate/other segments within the note are excluded.
Standardised measure of discounted future net cash flows relating to proved oil and gas reserves (standardised measure) The following tables set out the standardised measure of discounted future net cash flows, and changes therein, related to the Group’s estimated proved reserves as presented in Reserves, and should be read in conjunction with that disclosure. The analysis is prepared in compliance with FASB Oil and Gas Disclosure requirements, applying certain prescribed assumptions under Topic 932 including the use of unweighted average first-day-of-the-month market prices for the previous 12-months, year-end cost factors, currently enacted tax rates and an annual discount factor of 10% to year-end quantities of net proved reserves. Certain key assumptions prescribed under Topic 932 are arbitrary in nature and may not prove to be accurate. The reserve estimates on which the Standard measure is based are subject to revision as further technical information becomes available or economic conditions change. Discounted future net cash flows like those shown below are not intended to represent estimates of fair value. An estimate of fair value would also take into account, among other things, the expected recovery of reserves in excess of proved reserves, anticipated future changes in commodity prices, exchange rates, development and production costs as well as alternative discount factors representing the time value of money and adjustments for risk inherent in producing oil and gas. Woodside standardised measure year ended 31 December.
|  | Australia US$m |  |  | International US$m |  |  | Total US$m |
2022 |  |  |  |  |  |  |  |  |  |  |  |
Future cash inflows 1 |  |  | 197,194 |  |  |  | 38,256 |  |  |  | 235,450 |
Future production costs 1 |  |  | (31,157) |  |  |  | (9,698) |  |  |  | (40,855) |
Future development costs 2 |  |  | (12,259) |  |  |  | (4,487) |  |  |  | (16,746) |
Future income taxes |  |  | (62,182) |  |  |  | (4,823) |  |  |  | (67,005) |
Future net cash flows |  |  | 91,596 |  |  |  | 19,248 |  |  |  | 110,844 |
Discount at 10% per annum |  |  | (48,924) |  |  |  | (7,777) |  |  |  | (56,701) |
Standardised measure |  |  | 42,672 |  |  |  | 11,471 |  |  |  | 54,143 |
2021 |  |  |  |  |  |  |  |  |  |  |  |
Future cash inflows 1 |  |  | 76,202 |  |  |  | 5,695 |  |  |  | 81,897 |
Future production costs 1 |  |  | (22,193) |  |  |  | (899) |  |  |  | (23,092) |
Future development costs 2 |  |  | (8,296) |  |  |  | (2,481) |  |  |  | (10,777) |
Future income taxes |  |  | (16,266) |  |  |  | (90) |  |  |  | (16,356) |
Future net cash flows |  |  | 29,447 |  |  |  | 2,225 |  |  |  | 31,672 |
Discount at 10% per annum |  |  | (14,793) |  |  |  | (1,142) |  |  |  | (15,935) |
Standardised measure |  |  | 14,654 |  |  |  | 1,083 |  |  |  | 15,737 |
2020 |  |  |  |  |  |  |  |  |  |  |  |
Future cash inflows 1 |  |  | 14,629 |  |  |  | - |  |  |  | 14,629 |
Future production costs 1 |  |  | (3,862) |  |  |  | - |  |  |  | (3,862) |
Future development costs 2 |  |  | (3,800) |  |  |  | - |  |  |  | (3,800) |
Future income taxes |  |  | (1,023) |  |  |  | - |  |  |  | (1,023) |
Future net cash flows |  |  | 5,944 |  |  |  | - |  |  |  | 5,944 |
Discount at 10% per annum |  |  | (860) |  |  |  | - |  |  |  | (860) |
Standardised measure |  |  | 5,084 |  |  |  | - |  |  |  | 5,084 |
1. | Woodside have entered multiple term contracts relating to LNG volumes from our producing and sanctioned assets. Under a 2P reserves outcome, we produce a sufficient quantity of LNG to satisfy these contracts within expected timeframes. Therefore, we have not included the revenue and cost impact of LNG shortfalls under a SEC 1P reserves outcome.
2. | Future development costs include decommissioning.
Changes in the standardised measure are presented in the following table.
|  | 2022 US$m |  |  | 2021 US$m |  |  | 2020 US$m |
Changes in the standardised measure |  |  |  |  |  |  |  |  |  |  |  |
Standardised measure at the beginning of the year |  |  | 15,737 |  |  |  | 5,084 |  |  |  | 10,324 |
Revisions: |  |  |  |  |  |  |  |  |  |  |  |
Prices, net of production costs |  |  | 22,558 |  |  |  | 7,741 |  |  |  | (5,800) |
Changes in future development costs |  |  | (873) |  |  |  | 20 |  |  |  | (29) |
Revisions of reserves quantity estimates |  |  | 5,898 |  |  |  | 2,109 |  |  |  | 269 |
Accretion of discount |  |  | 4,051 |  |  |  | 430 |  |  |  | 1,038 |
Changes in production timing and other |  |  | 2,371 |  |  |  | 3,485 |  |  |  | (1,180) |
Sales of oil and gas, net of production costs |  |  | (10,202) |  |  |  | (5,698) |  |  |  | (2,666) |
Acquisitions of reserves-in-place |  |  | 28,309 |  |  |  | - |  |  |  | - |
Sales of reserves-in-place |  |  | - |  |  |  | - |  |  |  | - |
Previously estimated development costs incurred |  |  | 3,339 |  |  |  | 565 |  |  |  | 702 |
Extensions, discoveries, and improved recoveries, net of future costs |  |  | - |  |  |  | 8,346 |  |  |  | 44 |
Changes in future income taxes |  |  | (17,045) |  |  |  | (6,345) |  |  |  | 2,382 |
Standardised measure at the end of the year |  |  | 54,143 |  |  |  | 15,737 |  |  |  | 5,084 |
1. | Changes in reserves quantities are shown in section 3.9 - Reserves Statement.
Accounting for suspended exploratory well costs Expenditure on exploration and evaluation is accounted for in accordance with the area of interest method. Areas of interest are based on a geographical area for which the rights of tenure are current. All exploration and evaluation expenditure, including general permit activity, geological and geophysical costs and new venture activity costs, is expensed as incurred except for the following:
• |  | where the expenditure relates to an exploration discovery for which the assessment of the existence or otherwise of economically recoverable hydrocarbons is not yet complete; or
• |  | where the expenditure is expected to be recouped through successful exploitation of the area of interest, or alternatively, by its sale.
The costs of acquiring interests in new exploration and evaluation licences are capitalised. The costs of drilling exploration wells are initially capitalised pending the results of the well. Costs are expensed where the well does not result in the successful discovery of economically recoverable hydrocarbons and the recognition of an area of interest. Subsequent to the recognition of an area of interest, all further evaluation costs relating to that area of interest are capitalised. Upon approval for the commercial development of an area of interest, accumulated expenditure for the area of interest is transferred to oil and gas properties. In the consolidated statement of cash flows, those cash flows associated with capitalised exploration and evaluation expenditure, including unsuccessful wells, are classified as cash flows used in investing activities. The following table provides the changes to the capitalised exploratory well costs that were pending the determination of proved reserves for the three years ended 31 December 2022, 31 December 2021 and 31 December 2020.
|  | 2022 US$m |  |  | 2021 US$m |  |  | 2020 US$m |
Movement in capitalised exploratory well costs 1 |  |  |  |  |  |  |  |  |  |  |  |
At the beginning of the year |  |  | 614 |  |  |  | 2,045 |  |  |  | 3,809 |
A c quisition to the capitalised exploratory well costs pending the determination of proved reserves |  |  | 180 |  |  |  | - |  |  |  | - |
Additions to the capitalised exploratory well costs pending the determination of proved reserves |  |  | 111 |  |  |  | 501 |  |  |  | 399 |
Capitalised exploratory well costs expensed 2 ,3 |  |  | (62) |  |  |  | (268) |  |  |  | (1,571) |
Capitalised exploratory well costs reclassified to wells, equipment and facilities based on the determination of proved reserves |  |  | (36) |  |  |  | (1,664) |  |  |  | (592) |
Sale of suspended wells |  |  | - |  |  |  | - |  |  |  | - |
At the end of the year |  |  | 807 |  |  |  | 614 |  |  |  | 2,045 |
| 1. | Suspended exploratory well costs represent capitalised exploration, evaluation and permit acquisition costs.
| 2. | Includes $1,557 million of impairment losses in 2020.
| 3 . | Includes amortisation of licence acquisition costs.
The following table provides an ageing of capitalised exploratory well costs, based on the date the drilling was completed, and the number of projects for which exploratory well costs has been capitalised for a period greater than one year since the completion of drilling. 1 Exploration activity typically involves drilling multiple wells, over a number of years, to fully evaluate and appraise a project. The term ‘project’ as used in this disclosure refers primarily to individual wells and associated exploratory activities.
|  | 2022 US$m |  |  | 2021 US$m |  |  | 2020 US$m |
Ageing of capitalised exploratory well costs |  |  |  |  |  |  |  |  |  |  |  |
Exploratory well costs capitalised for a period of one year or less |  |  | 124 |  |  |  | 19 |  |  |  | 330 |
Exploratory well costs capitalised for a period greater than one year |  |  | 683 |  |  |  | 595 |  |  |  | 1,715 |
At the end of the year |  |  | 807 |  |  |  | 614 |  |  |  | 2,045 |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Number of projects that have been capitalised for a period greater than one year |  |  | 21 |  |  |  | 25 |  |  |  | 13 |
1. | Ageing of exploratory wells considers dates prior to the merger with BHP’s petroleum business which completed on 1 June 2022.

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