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Impairment of Exploration and Evaluation and Oil and Gas Properties (Tables)
 12 Months Ended
Dec. 31, 2023
Disclosure of impairment loss and reversal of impairment loss [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 
   
Excess of recoverable amount over
CGU carrying amount
1
           
US$m 
   
US$m 
Australia
   
Pluto-Scarborough
2
   
2,743 
   
3,051
Australia
   
NWS Gas
   
442 
   
784
International
   
Atlantis
   
522 
   
338
International
   
Other goodwill
   
288 
   
1,176
Total
   
 
   
3,995 
   
 
 
1.
Amounts are with reference to the total CGU value including goodwill.
2.
A portion of the goodwill allocated to Pluto-Scarborough was transferred to assets held for sale (refer to Note B.8).
The carrying amount of goodwill allocated to each CGU, or groups of CGUs and excess recoverable amounts were 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 indicators of impairments for cash generating units
As at 30 June 2023, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment reversal existed. The Group identified the following indicators of impairment on CGUs where an impairment loss has been recognised:
 
CGU
  
Description
  
Indicator of impairment
Pyrenees
  
 Oil asset consisting of a floating production storage and offloading (FPSO) facility off the north-west coast of Western Australia. 
  
 Reduction in future production volumes, reflecting a lower-than-expected outcome of drilling activities.
As at 31 December 2023, the Group assessed each AOI and CGU to determine whether an indicator of impairment or impairment reversal existed. The Group identified the following indicators of impairment on CGUs where an impairment loss has been recognised:

 
CGU
  
Description
  
Indicator of impairment
Shenzi
  
 Conventional oil and gas field developed through a tension leg platform (TLP) located in the US Gulf of Mexico.  
  
 Reduction in future production volumes, reflecting lower-than-expected performance of infill sidetracks and performance of the Shenzi North development following start-up.
Wheatstone
  
 LNG processing facility in Western Australia, comprising an offshore production platform and two onshore LNG processing trains, a domestic gas plant and associated infrastructure.
  
 Updated short-term price assumptions (in particular the Japan/Korea Marker (JKM)).
Summary of impairment loss recognised or reversed for cash-generating unit
An impairment was recognised for the Pyrenees CGU (refer to Note A.1), with results as
follows:
 
 
 
 
 
Impairment loss
 
 
 
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
 
Australia
 
Pyrenees
 
 
159
 
 
 
-
 
 
 
-
 
 
 
68
 
 
 
-
 
 
 
68
 
An impairment was recognised in the profit and loss, refer to Note A.1. The results as follows:
 
  
 
Impairment loss
 
      
 
Goodwill   
 
   
 
Oil and gas properties
 
                 
Segment
   
CGU
   
  Recoverable
amount
US$m
     
  Goodwill
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
  
International
  
Shenzi 
  
 
1,862
 
  
 
477
 
  
 
-
 
  
 
-
 
  
 
589
 
 
 
 
317
 
  
 
1,383
 
Australia
  
Wheatstone
  
 
2,418
 
  
 
-
 
  
 
64
 
  
 
20
 
  
 
371
 
 
 
 
11
 
  
 
466
 
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 2023:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
             
Sensitivity (US$m)
2
  
                 
CGU
   
Discount rate
increase
3
    
Discount rate
decrease
3
     
Commodity
price
increase
3
     
Commodity
price
decrease
3
    
FX
increase
3
    
FX
decrease
3
     
Production
increase
3
     
Production
decrease
3
  
                 
Shenzi

   
 
(67
)
   
 
71
 
   
 
359
 
   
 
(359
)
   
 
N/A
 
   
 
N/A
 
   
 
47
 
   
 
(46
)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wheatstone
   
 
(88
)
   
 
94
 
   
 
431
 
   
 
(370
)
   
 
(36
)
   
 
87
 
   
 
90
 
   
 
(42
)
 
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 reasonably possible changes to discount rate, commodity price, FX and production volumes assumptions.
3.
The relationship between the discount rate, commodity price, FX and production and the carrying amount is non-linear in certain circumstances which may include fixed costs impacts as well as economic cut off modelling. As such, sensitivities are unlikely to result in a symmetrical impact and should not be interpreted in isolation
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.
Summary of nominal Brent oil Prices

 
 
 
  
 
 2024 
 
  
 
 2025 
 
  
 
 2026 
 
  
 
 2027 
 
  
 
 2028 
 
  
 
 2029 
 
 
   
31 December 202
3
1
   
 
82 
 
   
 
80 
 
   
 
76 
 
   
 
77 
 
   
 
79 
 
   
 
80 
 
    
                 
   
31 December 202
2
2
   
 
78    
 
   
 
74    
 
   
 
76    
 
   
 
77    
 
   
 
79    
 
   
 
80    
 
    
   
 
1. Long-term oil prices are based on US$70/bbl (2022 real terms) from 202
6
and prices are escalated at 2.0% onwards.
2. Long-term oil prices are based on US$70/bbl (2022 real terms) from 202
5
and prices are escalated at 2.0% onwards.
  
  
    

The nominal
Brent
oil prices (US$/bbl) used for the year ended 31 December 2022 were:
 
 
  
 
  
 
   
 
 2023 
 
   
 
 2024 
 
   
 
 2025 
 
   
 
 2026 
 
   
 
 2027 
 
   
 
 2028 
 
  
 
31 December 2022
3
   
 
87 
 
   
 
78 
 
   
 
74 
 
   
 
76 
 
   
 
77 
 
   
 
79 
 
  
 
31 December 2021
4
   
 
71 
 
   
 
68 
 
   
 
69 
 
   
 
70 
 
   
 
72 
 
   
 
73 
 
  
 
 
3. Long-term oil prices are based on US$70/bbl (2022 real terms) from 2025 and prices are escalated at 2.0% onwards.
4. Long-term oil prices are based on US$65/bbl (2022 real terms) from 2024 and prices are escalated at 2.0% onwards.
  
  
  
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
   
Atlantis
   
 
(5%
) 
  
 
N/A
2
 
1.
Brent price applies to Pluto-Scarborough and NWS Gas. WTI price (Brent - $3/bbl) applies to Atlantis.
2.
Management considers there to be no reasonably possible change in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.
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 change in the respective estimate which, in isolation, would result in the estimated recoverable amount being equal to the carrying amount.