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Impairment of Exploration and Evaluation and Oil and Gas Properties (Tables)
 12 Months Ended
Dec. 31, 2022
Text Block [abstract]  
Summary of Carrying amount of goodwill allocated to CGUs
The carrying amount of goodwill allocated to each CGU, or groups of CGUs and excess recoverable amounts are as follows:
 
  Segment
   
CGU
   
Goodwill carrying
amount
1
 
   
Excess of recoverable amount over
CGU carrying amount
2
           
US$m 
   
US$m 
Australia
   
Pluto-Scarborough
   
2,955 
   
7,656
Australia
   
NWS Gas
   
394 
   
1,399
International
   
Shenzi
   
469 
   
401
International
   
Atlantis
   
513 
   
189
International
   
Other goodwill
   
283 
   
107
Total
        
4,614 
  
 
 
1.
Carrying amount of goodwill as at 31 December 2021 was nil.
2.
Amounts are with reference to the total CGU value including goodwill.
Summary of impairment loss recognised or reversed for cash-generating unit
 
An impairment reversal was recognised for Wheatstone (refer to Note A.1), with results as follows:
 
     
 
Impairment reversal
 
 
 
Oil and gas properties
 
             
Segment
  
CGU
  
        Recoverable
amount
US$m
    
        Land and
buildings
US$m
    
Transferred
        exploration and
evaluation
US$m
    
        Plant and
equipment
US$m
    
        Total
US$m
  
Australia
  
Wheatstone
  
 
3,456
 
  
 
87
 
  
 
30
 
  
 
783
 
  
 
900
 
Summary of sensitivity analysis of fair value measurement to changes in unobservable inputs, assets oil and gas properties
Changes in the following key assumptions have been estimated to result in a higher or lower carrying amount
1
than what was determined as at 31 December 2022:
 
            
Sensitivity (US$m)
2
  
                 
CGU
   
Discount rate
increase
3
    
Discount rate
decrease
3
     
Brent price
increase
     
Brent price
decrease
    
FX
increase
    
FX
decrease
     
Production
increase
4
     
Production
decrease
4
  
                 
Wheatstone
   
 
(117
) 
  
 
127
 
   
 
294
 
   
 
(294
) 
  
 
(79
) 
  
 
79
 
   
 
116
 
   
 
(43
) 
 
1
Increases to carrying amounts are limited to historical impairment losses recognised, net of depreciation and amortisation, that would have been recognised had no impairment taken place.
2
The sensitivities represent the reasonable possible changes to discount rate, oil price, FX and production volumes assumptions.
3
The relationship between the discount rate and the carrying amount is non-linear and as such, sensitivities are unlikely to result in a symmetrical impact. Due to the non-linear relationship, the impact of changing the discount rate is likely to be greater at a lower discount rate than at a higher discount rate.
4
The relationship between production and the carrying amount is non-linear due to the proportion of fixed costs. Sensitivities are therefore unlikely to result in a symmetrical impact. A significant change in production volumes would typically require a reassessment of the asset concept and should not be interpreted in isolation.
Changes in the following key assumptions were estimated to result in a higher or lower carrying amounts
1
than what was determined as at 31 December 2021:
 
              
Sensitivity (US$m)
2
  
                 
              
Discount rate:
increase of
1%
3,4
    
Discount rate:
decrease of
1%
    
Brent price:
increase of
10%
    
Brent price:
decrease of
10%
    
FX:
increase of
12%
5
    
FX:
decrease of
12%
  
Oil and gas properties
  
Producing and Development
  
Pluto-Scarborough
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
  
 
-
 
   
Producing
  
North West Shelf
  
 
-
 
  
 
-
 
  
 
-
 
  
 
(13)
 
  
 
-
 
  
 
-
 
       
Wheatstone
  
 
(159)
 
  
 
178
 
  
 
438
 
  
 
(438)
 
  
 
(122)
 
  
 
122
 
       
NWS Oil (Okha)
  
 
(4)
 
  
 
4
 
  
 
39
 
  
 
(39)
 
  
 
(28)
 
  
 
28
 
 
1.
Increases to carrying amounts are limited to historical impairment losses recognised, net of depreciation and amortisation that would have been incurred had no impairment taken place.
2.
The sensitivities represent reasonable possible changes to the discount rate, oil price and FX assumptions.
3.
A change of 1% represents 100 basis points.
4.
The relationship between the discount rate and carrying amount is
non-linear
and as such, the sensitivities are unlikely to result in a symmetrical impact. Due to the
non-linear
relationship, the impact of changing the discount rate is likely to be greater at a lower discount rate than at a higher discount rate.
5.
FX sensitivity of
+12%/-12%
was determined based on historical
5-year
standard deviation of AU$/US$.
Impairment of exploration and evaluation, oil and gas properties and goodwill
Impairment reversals were recognised for Pluto-Scarborough and NWS Gas (refer to Note A.1). The results were as follows:
 
 
  
  
  
  
 
  
Impairment reversal
 
  
  
Oil and gas properties
 
Segment
  
CGU
  
Recoverable
amount
US$m
 
  
Land
and
buildings
US$m
 
  
Transferred
exploration and
evaluation
US$m
 
  
Plant and
equipment
US$m
 
  
Projects in
development
US$m
 
  
Total
US$m
 
Producing and
 
Development
   
Pluto-Scarborough
   
 
17,474
 
   
 
42
 
   
 
53
 
   
 
563
 
   
 
24
 
   
 
682
 
Producing
   
North West Shelf
   
 
2,425
 
   
 
2
 
   
 
13
 
   
 
348
 
   
 
13
 
   
 
376
 
    
Total
   
 
19,899
 
   
 
44
 
   
 
66
 
   
 
911
 
   
 
37
 
   
 
1,058
 
Summary of nominal Brent oil Prices
    
  
 
   
 
    2023    
 
   
 
    2024    
 
   
 
    2025    
 
   
 
    2026    
 
   
 
    2027    
 
   
 
    2028    
 
    
   
31 December 2022
1
  
 
87    
 
   
 
78    
 
   
 
74    
 
   
 
76    
 
   
 
77    
 
   
 
79    
 
    
                 
   
31 December 2021
2
  
 
71    
 
   
 
68    
 
   
 
69    
 
   
 
70    
 
   
 
72    
 
   
 
73    
 
    
   
 
1. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2025 and prices are escalated at 2.0% onwards.
2. Long-term oil prices are based on US$65/bbl (2022 real terms) from 2024 and prices are escalated at 2.0% onwards.
  
  
    
    
  
 
   
 
    2022
 
   
 
    2023
 
   
 
    2024
 
   
 
    2025
 
   
 
    2026
 
   
 
    2027
 
  
    
   
31 December 2021
1
  
 
73
 
   
 
71
 
   
 
68
 
   
 
69
 
   
 
70
 
   
 
72
 
    
                 
   
30 June 2020
2
  
 
57
 
   
 
62
 
   
 
67
 
   
 
72
 
   
 
73
 
   
 
75
 
    
   
1. Based on US$65/bbl (2022 real terms) from 2024
with
prices escalated at 2.0% annually thereafter.
2. Based on US$65/bbl (2020 real terms) from 2025 with prices escalated at 2.0% annually thereafter.
  
  
    
Summary of Assuming all Other Variables are Held Constant Reasonably possible changes in these estimates
which could result in the estimated recoverable amount being equal to the carrying amount, assuming all other variables are held constant, are as follows:
 
 
  
CGU
  
Commodity price
1
 
 
Nominal discount rate
 
  
  
  
  
% change
 
 
(absolute terms)
 
Oil and gas properties
  
Pluto-Scarborough
  
 
N/A
2
 
 
 
N/A
2
 
Oil and gas properties
   
NWS Gas
   
 
N/A
2
 
  
 
N/A
2
 
Oil and gas properties
   
Shenzi
   
 
(7%
 )
 
  
 
N/A
2
 
Oil and gas properties
   
Atlantis
   
 
(2%
 )
 
  
 
10%
  
1.
Brent price applies to Pluto-Scarborough and NWS Gas. WTI price (Brent - $3/bbl) applies to Shenzi and Atlantis.
2.
Management considers there to be no reasonably possible changes in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.