Mutually creating a competitive advantage

Mutually creating a
competitive
advantage
Hendrik Snyman
Chief Procurement Officer
Convention & Exhibition Centre
Wednesday, 11 March 2015
Disclaimer and important notice
This presentation contains forward looking statements that are subject to risk factors associated
with oil and gas businesses. It is believed that the expectations reflected in these statements are
reasonable but they may be affected by a variety of variables and changes in underlying
assumptions which could cause actual results or trends to differ materially, including but not
limited to: price fluctuations, actual demand, currency fluctuations, drilling and production
results, reserve estimates, loss of market, industry competition, environmental risks, physical
risks, legislative, fiscal and regulatory developments, economic and financial market conditions
in various countries and regions, political risks, project delay or advancement, approvals and
cost estimates.
All references to dollars, cents or $ in this presentation are to US currency, unless otherwise
stated.
References to “Woodside” may be references to Woodside Petroleum Ltd. or its applicable
subsidiaries.
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Local content and AIP trends
 Woodside commitment to Australian Industry Participation
o Three approved Australian Industry Participation Plans
o Industry briefings
 Submitted and received approval for 1st compliance report under Australian Jobs Act
 Government and industry continue to focus on Indigenous participation
 Increasing requirement to provide meaningful opportunities at a regional level
 Global trend towards increased industry collaboration driving better local content outcomes
 Benefits of local industries
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Oil & Gas industry context
 ~50% decline in oil prices during 2014
 Escalation of industry costs
 Global oil & gas investment has slowed
 Industry is challenging costs, expenditure and norms
 Risks of delays for construction projects
 Potential for tightening in the LNG market by 2020
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External environment is changing
 20 years of unprecedented growth
 Eight years of strong investment in WA
 Construction boom has ended
 Commodities market in decline
 Rise in unemployment
 Slowing Australian economy
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Creating a competitive advantage
Challenging environment creates opportunity to:
 Be innovative
 Challenge the status quo
 Drive efficiency
 Get the best ‘bang for our buck’
 Build partnerships through shared problem solving
a drive towards
“Performance Excellence”
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Woodside productivity improvements
 The drive towards Performance Excellence
 2014 Productivity Challenge
 In excess of $560 million in benefits delivered in 2014
 2015 requires further improvements
 We are reshaping the way we work through continuous improvement by
o getting better and better at what we do and how we do it
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Mutually created competitive advantage
 Sharing the same challenges and opportunities:
o Effectiveness and efficiency of operations
o Maintaining competitiveness
o Building resilience
o Changing past behaviours
 “Fair profit for a fair day’s work”
 Control what we can
 Position for growth in a resources downturn
 Stay committed to being a true partner of choice, looking to contractors for the same
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