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Additional Information
 12 Months Ended
Dec. 31, 2023
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
3.1
0 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 3.10 - 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
 
 
  2023
 
  
 
 
 
  
 
 
 
  
 
 
 
  Unproved properties
   
 
1,193
 
   
 
1,109
 
   
 
2,302
 
       
  Proved properties
1
   
 
52,563
 
   
 
18,039
 
   
 
70,602
 
       
  Total costs
   
 
53,756
 
   
 
19,148
 
   
 
72,904
 
       
  Less: Accumulated depreciation, depletion, amortisation and valuation provisions
   
 
(27,548)
 
   
 
(3,994)
 
   
 
(31,542)
 
       
  Net capitalised costs
   
 
26,208
 
   
 
15,154
 
   
 
41,362
 
                            
 
  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
 
 
  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
  
       
  2023
                               
  Acquisitions of proved property
   
 
-
 
     
 
-
 
     
 
-
 
  Acquisitions of unproved property
   
 
-
 
     
 
-
 
     
 
-
 
  Exploration
1
   
 
103
 
     
 
420
 
     
 
523
 
  Development
2
   
 
3,315
 
     
 
2,124
 
     
 
5,439
 
       
  
Total costs
3
   
 
3,418
 
     
 
2,544
 
     
 
5,962
 
    
   
 
    
 
     
 
    
 
     
 
    
 
       
  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
2
   
 
1,141
 
     
 
935
 
     
 
2,076
 
       
  
Total costs
3
   
 
1,600
 
     
 
1,231
 
     
 
2,831
 
 
  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 $5,128 million of expenditure and $311 million of capitalised interest in 2023.
  3.
Total costs include $5,683 million (2022: $23,991 million, 2021: $2,777 million) capitalised during the year.
 
Results of operations from oil and gas production activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
Australia
US$m
     
International
US$m
     
Total
US$m
  
 
  2023
 
                           
       
  Oil and gas revenue
   
 
9,699
 
   
 
2,564
 
   
 
12,263
 
       
  Production costs
   
 
(1,396
)
   
 
(402
)
   
 
(1,798
)
       
  Exploration expenses
   
 
(55
)
   
 
(299
)
   
 
(354
)
       
  Depreciation, depletion, amortisation and valuation provision
1
   
 
(3,288
)
   
 
(2,555
)
   
 
(5,843
)
       
  Production taxes
2
   
 
(363
)
   
 
(29
)
   
 
(392
)
       
  Accretion expense
3
   
 
(179
)
   
 
(58
)
   
 
(237
)
       
  Income taxes
   
 
(1,449
)
   
 
-
 
   
 
(1,449
)
       
  Royalty-related taxes
4
   
 
(367
)
   
 
-
 
   
 
(367
)
       
  
Results of oil and gas producing activities
5
   
 
2,602
 
   
 
(779
)
   
 
1,823
 
    
   
 
    
 
   
 
    
 
   
 
    
 
 
  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
 
 
1.
Includes valuation provision
recognition
of $1,917 million (2022: reversal of $900 million; 2021: reversal of $1,048 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 $531 million (2022: $(814) million; 2021: $297 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 prove 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
 
 
 
 
 
 
 2023
  
    
    
 Future cash inflows
   
 
114,168
 
     
 
41,307
 
     
 
155,475
 
 Future production costs
   
 
(31,945)
 
     
 
(11,344)
 
     
 
(43,289)
 
 Future development costs
1
   
 
(10,758)
 
     
 
(8,216)
 
     
 
(18,974)
 
  Future income taxes
   
 
(27,527)
 
     
 
(5,375)
 
     
 
(32,902)
 
  Future net cash flows
   
 
43,938
 
     
 
16,372
 
     
 
60,310
 
  Discount at 10% per annum
   
 
(20,024)
 
     
 
(8,133)
 
     
 
(28,157)
 
  Standardised measure
   
 
23,914
 
     
 
8,239
 
     
 
32,153
 
            
       
  2022
             
 Future cash inflows
   
 
197,194
 
     
 
38,256
 
     
 
235,450
 
 Future production costs
   
 
(31,157)
 
     
 
(9,698)
 
     
 
(40,855)
 
 Future development costs
1
   
 
(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
   
 
76,202
 
     
 
5,695
 
     
 
81,897
 
 Future production costs
   
 
(22,193)
 
     
 
(899)
 
     
 
(23,092)
 
 Future development costs
1
   
 
(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
 
 
1.
Future development costs include decommissioning.
 
Changes in the standardised measure are presented in the following table:
 
       
2023
   US$m
       
2022
   US$m
       
2021
   US$m
  
  Changes in the standardised measure
     
 
 
 
     
 
 
 
     
 
 
 
  Standardised measure at the beginning of the year
     
 
54,143
 
     
 
15,737
 
     
 
5,084
 
  Revisions:
     
 
 
 
     
 
 
 
     
 
 
 
  Prices, net of production costs
     
 
(41,132)
       
 
22,558
 
     
 
7,741
 
  Changes in future development costs
     
 
(2,288)
       
 
(873)
 
     
 
20
 
  Revisions of reserves quantity estimates
     
 
3,156
 
     
 
5,898
 
     
 
2,109
 
  Accretion of discount
     
 
8,039
 
     
 
4,051
 
     
 
430
 
  Changes in production timing and other
     
 
(707)
       
 
2,371
 
     
 
3,485
 
  Sales of oil and gas, net of production costs
     
 
(10,500)
       
 
(10,202)
 
     
 
(5,698)
 
  Acquisitions of
reserves-in-place
     
 
-
 
     
 
28,309
 
     
 
-
 
  Sales of
reserves-in-place
     
 
-
 
     
 
-
 
     
 
-
 
  Previously estimated development costs incurred
     
 
5,276
 
     
 
3,339
 
     
 
565
 
  Extensions, discoveries, and improved recoveries, net of future costs
     
 
1,174
 
     
 
-
 
     
 
8,346
 
  Changes in future income taxes
     
 
14,992
 
     
 
(17,045)
 
     
 
(6,345)
 
  Standardised measure at the end of the year
     
 
32,153
 
     
 
54,143
 
     
 
15,737
 
Changes in reserves quantities are shown in section 3.10 - 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 2023, 31 December 2022 and 31 December 2021.
 
      
2023
US$m
       
2022
US$m
       
2021
US$m
  
       
  Movement in capitalised exploratory well costs
1
     
 
 
 
     
 
 
 
     
 
 
 
  At the beginning of the year
     
 
807
 
     
 
614
 
     
 
2,045
 
  Acquisitions 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
     
 
169
 
     
 
111
 
     
 
501
 
  Capitalised exploratory well costs expensed
2
     
 
(4)
       
 
(62)
 
     
 
(268)
 
  Capitalised exploratory well costs reclassified to wells, equipment and facilities based on the determination of proved reserves
     
 
(304)
       
 
(36)
 
     
 
(1,664)
 
  Sale of suspended wells
     
 
-
 
     
 
-
 
     
 
-
 
  At the end of the year
     
 
668
 
     
 
807
 
     
 
614
 
 
 
1.
Suspended exploratory well costs represent capitalised exploration, evaluation and permit acquisition costs.
 
2.
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.
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.
 
       
2023
US$m
       
2022
US$m
       
2021
US$m
  
 Ageing of capitalised exploratory well costs
     
 
 
 
     
 
 
 
     
 
 
 
 Exploratory well costs capitalised for a period of one year or less
     
 
    71
 
     
 
124
 
     
 
19
 
 Exploratory well costs capitalised for a period greater than one year
     
 
597
 
     
 
683
 
     
 
595
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 At the end of the year
     
 
668
 
     
 
807
 
     
 
    614
  
       
2023
US$m
       
2022
US$m
       
2021
US$m
  
 Number of projects that have been capitalised for a period greater than one year
     
 
17
 
     
 
21
 
     
 
25