Unlocking Myanmar’s Deepwater Potential:...

Myanmar-Norway Business Council: 24 May 2016

Unlocking Myanmar’s Deepwater Potential: Woodside’s Offshore Exploration 2015/16

Unlocking Myanmar’s Deepwater Potential 224 May 2016

About Woodside


• Australia’s largest

independent O&G company:

market cap ~A$23 billion

• A leading global LNG producer:

25+ years of supply to Asia

• Operation, exploration

and marketing interests

in 17 countries

• Operating in Myanmar

since 2013 through Woodside

Energy (Myanmar) Pte Ltd

Why Myanmar?

Unlocking Myanmar’s Deepwater Potential

424 May 2016

• Under explored deep water

areas

• Early-mover opportunities

• Aligned to Woodside’s core

deepwater skills and

technologies

• Partnerships with proven

operators

• An under-supplied but rapidly

growing domestic energy

market; plus export opportunities

Woodside Offshore Acreage


• Leading acreage holder in the

Rakhine Basin (46,000km2)

• Farm-ins to AD-7 and A-6

early 2013

o 3D surveys acquired within

first 12 months in each

block

• Four blocks awarded in 2013

offshore bid round; two as

operator

o Production Sharing

Contracts signed March

2015

Joint Venture Structure


BLOCK PARTICIPANTS SHARE OPERATOR

Block A-7 Woodside Energy (Myanmar) Pte Ltd 45% Woodside

BG Exploration & Production Myanmar Pte Ltd (BGEPM) 45%

Myanmar Petroleum Exploration & Production Company

Limited (MPEP)

10%

Block AD-5 Woodside Energy (Myanmar) Pte Ltd 55% Woodside


Block A-6 Woodside Energy (Myanmar) Pte Ltd 40% Woodside,

excepting

government

relations

(MPRL)

Total E&P Myanmar 40%

Myanmar Petroleum Resources (MPRL) E&P Pte Ltd 20%

Block AD-7 Posco Daewoo Corporation (operator) 60% Daewoo &

Woodside Woodside Energy (Myanmar) Pte Ltd (deepwater drilling

operator)

40%

Block A-4 Woodside Energy (Myanmar) Pte Ltd 45% BG Group


Myanmar Petroleum Exploration & Production Co. Ltd (MPEP) 10%

Block AD-2 Woodside Energy (Myanmar) Pte Ltd 45% BG Group


An Active Exploration Program


• Most active explorer offshore

Myanmar in 2015-16.

• Two exploration wells; first

deepwater discoveries in

Rakhine Basin

• More than 30,000 km2 of

seismic acquisition (16,000

km2 operated).

Shwe Yee

Htun-1 well

Nov 2015

Thalin-1 well

Jan 2016

3D seismic

Dec 2015

3D seismic

Dec 2015

3D seismic

April 2016

2D seismic

April 2016

Challenges of an Emerging Basin


• Proven petroleum system in

shallow water (Shwe).

• Deep water heightens the

challenges:

• Limited accessible data

• Complex geology

• Limited infrastructure;supply

chain

• Long lead times

• Limited weather windows.

• The 2015/16 drilling and

seismic campaign has

provided valuable learnings.

• Now gearing towards year-

round drilling windows.

Key

WEM holdings

3D surveys

2D surveys

Expl. wells

A-6: Shwe Yee Htun-1 Exploration Well


• 37 days drilling / logging, total

depth of 5306m

• 129m gas column; ~32m net

pay; 0.9 Tcf (2C gross)

• Under budget, no significant

HSE events

• Multiple channels running over

a large anticline

• 3D seismic to determine extent

of play

• Preparing for 2017 appraisal

drilling

Thalin-1A

Shwe Yee Htun-1

Shwe Field

Yadana Field

AD-2

A-6

AD-5 A-7

A-4

AD-7

AD-7: Thalin-1A Exploration Well


• 18 days drilling / logging, total

depth of 3034m

• 64m gas column; ~62m net pay;

1.5 Tcf (2C gross)

• Under budget, no significant HSE

events

• 3D seismic to evaluate further

prospects

• Preparing for 2017 appraisal

drilling

• Located adjacent to Shwe field

(existing third party infrastructure)

Thalin-1A

Shwe Yee Htun-1

Shwe Field

Yadana Field

AD-2

A-6

AD-5 A-7

A-4

AD-7

A7 / AD-5 Seismic Campaign


• 18 streamer configuration –

15.6km2 surface area

• Peak acquisition rate of

160km2 per day – survey

completed in 125 days

• Under budget, no significant

HSE incidents

• Survey extended into A-6 block

to build regional knowledge

• PSTM and PSDM

interpretation to determine

drillable prospects

Suitable technical image

A Responsible Operator


• Conducted environmental impact

assessments prior to all activities

• Engagement with potentially

affected communities

• Social investment program,

including:

Internship Placements at Woodside

Head Office

Post-graduate scholarship

Early Childhood Development

Program in Ayeyarwady Region

Capacity building at Pathein

University – marine research

Flood relief assistance

Next steps


• Four firm appraisal and exploration wells planned for 2017

• Interpret seismic acquired on new permits and progress to drill-drop

decisions late 2017

Indicative schematic –not to scale

AD7(Thalin)

Shwe Platform

Onshore Gas

Terminal

A6 (Shwe Yee Htun)

Indicative schematic –not to scale

Yadana

Yangon

Thalin

Shwe Yee Htun

AD-7, Thalin-1A 1.5 Tcf, 2C gross1

Subsea tieback option via Shwe

Platform2

Shwe has design capacity for an

additional 320 mmscf/d train

Planned full appraisal before end Q2

2017

Targeting Discovery to Concept Select

in 15 months

Pipeline gas Myanmar and China

A-6, Shwe Yee Htun 0.9 Tcf, 2C gross1

Tieback via Yadana or standalone2

Focused appraisal to continue volume

build

Pipeline gas Myanmar and Thailand

Unlocking Myanmar’s Deepwater Potential:...

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