Tom Allen

Tom Allen inquired about the reshaping of the North West Shelf Joint Venture, with Shell reportedly seeking an exit, and asked about Woodside's indicative CapEx and activities for backfill, particularly for Browse, over the next couple of years.

Answer

Acting CEO Liz Westcott acknowledged Shell's interest in offtake and highlighted the NWS JV's existing capability in processing third-party gas. She stated that the Browse JV remains committed, requiring an investable project, commercial agreements with NWS JV, and environmental approvals before progression.

Tom Allen asked about the marketing division's performance, noting margin softening in the second half of the year due to higher trading activity, and sought clarification on the reasons behind this compression, such as tighter JKM and Henry Hub spreads or fewer arbitrage opportunities. He followed up by asking for guidance on how to assess these marketing margins through the cycle, especially considering Louisiana LNG and Woodside's trading capabilities as a key lever for achieving its 13% internal rate of return target.

Answer

Meg O'Neill (CEO and Managing Director, Woodside Energy Group) reiterated that marketing consistently contributes around 10% of Woodside's EBIT, despite quarter-to-quarter volatility. She provided an example of a Q3 optimization strategy involving purchasing a third-party cargo at gas hub prices and delivering it into a crude-linked contract, which can obscure benefits in the accounts but confirms continued uplift from marketing activities. For future guidance on marketing margins, Meg O'Neill stated that the consistent 10% EBIT contribution year-on-year, as demonstrated by the three-year track record, remains the best indicator.

Tom Allen of UBS Group AG asked about the Louisiana LNG equity sell-down, questioning if competition, EPC differences, or the political environment have altered expectations. He also inquired about the schedule slip for the Beaumont ammonia project and the status of potential partner and offtake agreements.

Answer

CEO & Managing Director Meg O’Neill stated that Woodside is being disciplined in seeking the right partner and fair value for Louisiana LNG, noting that the post-FID environment has allowed more potential partners to engage. For the Beaumont project, she clarified the schedule delay is due to construction issues managed by their partner OCI, with no cost impact to Woodside. The company's focus is on marketing the ammonia, and there is no active process to sell down equity in Beaumont.