Woodside Energy Group Ltd (WDS) 2007 Q4 法說會逐字稿

[Good morning everybody]. 2007 was a very significant year for Woodside. A number of important decisions and achievements have put the company in a great position to capture our future growth. I'm really quite pleased where our company is positioned right now and very happy what our position is for 2008.

Now how I see it is everybody's doing an awful lot of talking out there. Our competitors are doing a lot of talking and one thing I'm happy about is Woodside's doing a lot of building and we're bringing on a lot of production.

I'm going to give you a brief summary for 2007 before handing it over to Woodside's CFO, Mark Chatterji. He'll provide you the details on the results. I'll then come back on the phone and take you through the company's outlook.

I'm going to go to slide two here, and that's our usual disclaimer. And then moving quickly over to slide three, our financial results, our (inaudible) is good in the current challenging environment.

The production, 70.6 million barrels, up 4%, it's a record. Annual revenue, a little bit over $4 billion, up 5%, that's a record. Net operating cash flow, a little but under $3 billion, that's up 26% and that's a record. Our production revenue cash flow results all continue upward trends that we've had for the last few years.

Our underlying net profit after tax, $1.182 million, that's down 15%, which is not a record. Of course, we wish our profit had continued its upward trend too, however we had to make some pretty hard choices and I think we've made some good decisions that we believe will pay off in the future.

In fact, I really believe we're going to start to see the benefit of these decisions here in 2008, but we'll talk more about that here in a little while.

I'm going to turn over to slide four. On the project front, we've made great progress this year.

As you know, we've added a new project called Pluto, no surprise to anybody on the phone, and we're going down that list. Enfield, which gave us a lot of concern in 2006, our engineers outperformed -- or have put performance into that field better than we expected. We had a good 2007 out there. Stybarrow started up strongly, still going strong. We had hoped it'll be followed by Neptune in the Gulf of Mexico at the end of this quarter. Now Vincent, Angel and Train 5, are all in the final stages of construction, and they're on schedule to deliver production this year as we've projected. All are either on or ahead of schedule and I'm going to tell you here first, Otway is producing I'm happy to say.

Moving over to slide five, our gas marketing team, they've had another excellent year. I'm just really proud of what they've done. As you know, we signed multi billion dollars sales and purchase agreements at Tokyo Gas and Kansai Electric for Pluto in August, and all eight North West Shelf Venture foundation customers are rolling over their contract, plus we have an additional two contracts as shown on the slide.

Our key terms agreement with PetroChina and CPC Corporation, they start our journey at Browse and I think that sales journey will be a fairly rapid journey over the coming year. Our customers have demonstrated they have faith in our ability to deliver from our existing facilities and our new projects such as Pluto, Browse and Sunrise. Now they're paying market prices and they're committing to long-term relationships with Woodside. Let me just tell you this, I think the market wants Australia gas, but more specifically, they want Woodside gas because we deliver.

Going to slide six, health safety environmental performance. Over the last five years, the work hours for our company has more than doubled. In fact, we worked 32 million man hours last year, that's our sales and our contractors. Now that swamps all the other Australian [E&T] workload, yet at the same time there's a favorable long-term trend, where incidents and accidents are becoming less frequent. Now probably what we've accomplished to date, but there's much more work to be done here, we want to achieve continuous perfect days where no-one gets hurt and there's no incidents in our company.

On slide seven, we're pretty proud of our reserves record, and the trend that's upticking. This year we've added to both our proved and probable reserve base as foreshadowed in November, we booked additional volumes for Pluto now that we've sanctioned that project. We've also had new gas bookings from the North West Shelf giving us overall net gain of 108 million barrels of oil equivalent. And this continues our reserve replacement ratio over a three year period, we're at 334%, we'll put that up against any of our competitors.

As you can see in the pie chart on this slide, bottom left-hand corner, only 27% of our [2P] reserves are currently developed and producing. Therefore, we have a lot of growth in this company still ahead of us.

So before we look into the future, I'm going to hand it over here to Mark to take you through our 2007 performance in a bit more detail.

Thanks Don. We'll start on slide number nine. Slide number nine of the presentation shows the variance between Woodside's reported results and our underlying profit. In 2007 we divested several assets in order to better focus on our core portfolio. These assets were the Legendre field in Australia, the sale of the Kuda Tasi and Jahal fields in the Timor sea, a small gas discovery in Papua New Guinea and, most significantly, all of Woodside's operations in Mauritania.

This Mauritanian sale was made after management conducted its review of the business. In 2006, Mauritania had made a profit for Woodside of $65 million, but in 2007, this swung to a $6 million loss and Chinguetti was needing considerable additional capital to recover the kind of volumes that we wanted to see.

In addition the [pay off] discovery continued to look exceptionally challenging to develop. The bottom line, Mauritania was taking up too many technicals, financials and management resources that are needed here in Australia.

On slide number ten, we show the key drivers of the movement between our 2006 and 2007 reported profit. In 2007, volumes were up which increased revenues, but it also contributed to a higher cost of sales in PRRT. Still when you look, the net effect of the volume change was a positive contribution to earnings.

On the macro side of things, the impact of tire commodity prices in 2007 was largely offset by a stronger Australian dollar since with those revenues are substantially all received in US dollars. Again though, the net effect of the macro environment was a positive contribution to earnings.

Turning to the downward movement, the largest variance in impact relates to that disposal of Mauritania, which is shown on the slide towards the end of the right side of the page as discontinued operations. Woodside recognized the book loss of $233 million on the sale of Mauritania, the remainder of that $304 million number you see on the slide is accounted for by the swing from $65 million profit in 2006 to the $6 million loss in 2007.

Moving on to slide 11, Woodside has declared a fully franked final dividend of $0.55 per share, which will be paid on March 31, 2008. This full year 2007 dividend is $1.04 per share and equates to a pay out ratio of 60% over underlying profit for the year, which is consistent with Woodside's historical practice.

On slide 12, net cash flow from operating activities of just under $3 billion was 26% higher than the previous year largely due to increased sales volumes and commodity prices. And this continued the pattern of strong operating cash flows which we have had growing since 2003.

Slide 13 -- slide number 13 shows a similar story with Woodside revenues. Woodside achieved record revenues of $4 billion in 2007. That 5% increase in sales revenues resulted from higher production and commodity prices which outweighed the adverse exchange rate movements between the Australian and US dollar.

On the next slide, slide number 14, you can see that record production of 70.6 million barrels of oil equivalent was achieved this year through improved infill performance plus continued strong North West Shelf Venture production and the start-up of Stybarrow.

Turning to slide 15, we'll talk about lifting costs. Woodside's gas lifting costs increased to $133.8 million, which equates to $2.93 per barrel of oil equivalent. Now this includes the Ohanet asset in Algeria, which is a revenue entitlement.

The increase in gas lifting costs was largely attributable to higher maintenance costs associated with the Karratha gas plant in North West Shelf offshore platforms.

Oil lifting costs, which exclude FPSO leasing charges, increased to $133.4 million, primarily due to the full year impact on infill production and commencement of production from Stybarrow. The unit lifting costs for oil decreased to $5.87 per boe largely as a result of a change in the mix of production as infill production increased from 21% of total oil production in 2006 to 45% in 2007.

On slide number 16 we examine trends and costs relative to Woodside's peer group, as tabulated by industry for (inaudible) JS Herold. The Woodside 2006 performance is a red column while our peer Group are in the blue column. Now we show Woodside's 2007 performance with an area marked -- the 2007 performance versus the 2006 performance in the column. You can see that Woodside is performing well against its peer Group, and we're particularly pleased with the improvement in production cost relative to last year, as well as continuing good performance within the corporate cost structure.

Showing the slide 17, Woodside's end of the year was gearing below 15% which was a result of those higher commodity prices and proceeds received from disposal of Mauritania. As we've mentioned in the past, while our capital needs over the next couple of years are substantial, Woodside has its strong underlying cash flow, and when prudent may live to suspend the use of the dividend reinvestment program. Given our low level of gearing and continued strength in the commodity price, we have decided to suspend the DRP for the 2007 final dividend. Our current intention is to reactivate the DRP for the 2008 interim dividend but we will continue to actively manage our capital program in order to achieve the best outcome for our shareholders.

I'll close with slide number 18, which updates Woodside's capital spending forecast for 2008. While there have been some minor downward revisions since our November investor presentation, the basic messages are the same. Namely that we expect to spend around $5 billion in 2008 with close to two-thirds going towards the Pluto LNG project. Given though Pluto is the headline of this chart, don't forget that we have a number of other projects that we will be working on this year and that you can see from the chart we will also continue to [vote] appropriate resources to our exploration programs both inside of Australia and abroad.

In fact I'm now going to turn it over to Don to discuss these programs and our 2008 outlook.

Thanks Mark, if you can turn with me to slide twenty, even though we have the [cyclones] Melanie and Nicholas that have come through our operations and our North West Shelf power [plant] in January, we're maintaining our production target of 80 to 86 million barrels of oil equivalent this year.

I'm looking for a big revenue, big cash flow, big profit year this year. We've not yet updated our target of 80 million to 86 million to allow for the extra [profit] production from the North West Shelf's equity purchase that we announced on February 11. We're going to wait until the transaction is completed, probably around May or June, and then we'll review our production target and get back to you all.

On slide number 21, we show our areas of activity outside of Australia. In the US we see additional production coming online this year and we're still exploring. In Brazil 25% interest in nine blocks in the Santos Basin, we've acquired the 3D seismic in 2007 and we may drill one or two wells either this year or next.

In Asia we have our blocks in Korea. 50% interest in Block 8/6-1N as operator. We're going to acquire a 2D seismic in 2008 continuing to progress the exploration potential of that block. Now we're actively acquiring attractive new additional acreage with a strategic bid and it's available at the right price. Now I just want to note here that shown on the slide, we're continuing to review our Africa portfolio.

On slide 22, Australia oil. Now Australia oil is a big revenue producer for us. It's very important to us. People think of us as just an LNG plant, but oil production is just as important. It made up last year's 49% of our revenue and it's going to be even a higher percentage this year in 2008.

The Cossack Pioneer, despite a relatively small reserve reduction due to the drilling results, we liked the cash and profit margin, especially with the innovative future production scheme we've designed for the field. Consequently, Woodside's going to go ahead and purchase here, Shell's North West Shelf oil assets for less than $19 per barrel.

Woodside's examining replacement of the Cossack Pioneer FPSO with a new leased FPSO in 2010. Now the advantage of this replacement option is, is that we come up with a design -- or that our engineers have come up with a design that allows us to change out some subsea equipment and also replace the facility and minimize the downtime to just an estimated 70 days, and includes all of the work in the field that we've planned on for so many years. Now all these options are still being reviewed by our joint venture.

At Enfield, ENA-01 has a rig coming to it. We're going to sidetrack the operation here in the next couple of weeks. The Sedco 703 is coming. We've got production scheduled for it later on in Q2. And until we get that raw drill we've choked back ENA-02 to protect the well board from the pressures that we have in the reservoir. ENA-03 ,which we re-drilled last year, sidetrack, well it's come up, we've been producing through a little bit of a gas cap there, got that taken care of. It's now producing 18,000 barrels a day.

So we anticipate the field will reach -- now I'll just say this, with (inaudible) work, we anticipate the infill's going pay out on a cash basis some time in Q2 this year.

Over at Stybarrow, it's currently performing better than we expected at an average around 75,000 barrels per day since it started up last November. Now this is going to decline over time of course, but it has had such a prolific performance. We expect payout of that field also in Q2 of this year. So, very good performance in both of these fields. Oil's really, at the price we're getting here, is a much different proposition than when we FID'd these projects.

Our new project coming onstream out there that we operate is Vincent. Initial production from the first manifold is expected now in late Q2 of this year and may even -- and that's from the first manifold. And we think there are going to be four wells there that are ready to produce when we bring that first manifold on. Now expect that initial production rate to be around 40,000 barrels to 50,000 barrels of oil per day. As many of you know, we're going to follow that with the second manifold of production that'll kick in, in the fourth quarter of this year.

Laminaria Corallina, you know last September we lost the riser for the Corallina field, we told you it'll take us until August of this year to replace that riser. However our subsea engineers and other folks in this operating part of our company have come up with a very innovative way. They're giving it a shot of high risk, but they're trying to restore production early on before August through a Corallina gas lift riser as a temporary solution until a Corallina riser can be replaced there in August. Now if we're successful at that, expect 20,000 barrels to 25,000 barrels a day once that riser is replaced.

Going over to slide 23, Australia gas. Let me first start with our domestic gas or what we call pipeline natural gas. Now this includes the North West Shelf domestic gas, in other words the gas that we sell along the West Coast to residential but more importantly the industrial customers, and also Otway over in South East Australia.

Now prices for domestic gas are firming. We see this -- in fact they're firming so much we see this as a new business opportunity which we're actively pursuing. And in Otway, as I mentioned earlier, we've recommenced gas production earlier this month and we're now in the process of commencing the LPG in [condensate] production in parts of the terrain.

Now moving over to LNG at our North West Shelf Venture, our price outside the range negotiations are under way. The interim prices are in place until the negotiations are complete and the contract in 2009 begins. We've had really good run times on our four trains in 2007. We had excellent production there. We met our target of 48 million barrels or equivalent. Really an excellent performance by our operating folks.

Our projects are all progressing well at North West Shelf. Train 5 hookup is nearly complete and we're well into commissioning. Our schedule for deliveries in Q4 this year are looking really good.

The Angel projects, in one of those projects just about everything's gone right. I hope I don't jinx the project. We're still working on it. It's running, they tell me, are on $200 million under cost on a 100% basis and is running ahead of schedule.

Our North Rankin 2 project, the sister platform, the North Rankin A, which involves that new construction and the bridging to the North Rankin, it's going to go out to the JVPs, our joint venture partners for the final investment decision in the next few months. So expect a total decision on that sometime first half of this year.

The North West Shelf is looking good. All the Brownfield projects, its operations, it's continuing to be that steady spine, that runs -- that supports this company.

Over on slide 24, let's talk a little bit about Pluto. Instruction is underway. I'm happy to say that all the rock art on the site has been relocated and we're really pleased to say without damage, it's been disturbed we've moved it, but no damage to the rock art itself. And I got to tell you that really, really makes us pleased. Now the site is nearly cleared for all of our construction. We've got the concrete slabs for the LNG tanks that have been poured. And as you can see in the picture here on the slide, the reinforced steel for the walls of the tank are now going in. And I'll tell you, here we've got a picture of it, but the fabrication of our modules are underway in Thailand, and we're cutting steel, and basically getting all that put together up in Thailand. However, many of those modules will start making their way down in the next 18 to 24 months.

Now, as I mentioned earlier, we've booked the additional reserves for Pluto this year to fill the capacity of the first train and as you know, we originally contracted the 3.25 million tons to 3.75 million tons for Kansai Electric and Tokyo Gas. That spare capacity still remains. We can either sell it on the spot market, which was our present plan, or contract it if somebody just makes an offer that we just can't refuse.

Turning over to slide number 25, let's talk about our Pluto Train 2 or Train 3, the Train 4 someday in the future. Our engineers, they're working really hard at design on Train 2, and they'll be ready to FID it by the end of this year. Now that would put our RFSU in 2012, and let me just tell you that the timing of the FID will be dependent on our ability to maximize the economics of Train 2, maximize the profitability by finding just the right combination of our gas from exploration discoveries, and the right amount of contracted gas at the right terms of third party gas.

And, as you can see, when we took FID on Pluto Train 1, we designed expansion into the infrastructure with free investment for Trains 2 and 3. And Louisiana, we call that [Lania], and we think it's really set us up well for good economics for Train 2 and 3 in the future, on top of a really solid Train 1. Now, Train 3 could be ready to go soon after Train 2 but we've got to get the gas and the deals we want to make that happen.

I'm going to turn over to slide number 26, Sunrise. Sunrise, is possibly a surprise here. We expected to move forward quite rapidly. The CEOs of the equity interest in Sunrise got together in January this year, just last month, went around and talked with the owners at ConocoPhillips and Shell, and they got together, we've come to a complete alignment on how to move forward. In fact, ConocoPhillips probably was the first one out of the box when Jim Mulva, late last month, made the comment. We feel the time has come to advance and develop Sunrise. I know his team feels the same way. And this is a quote from Chief Executive Officer, Jim Mulva, a friend of mine over at ConocoPhillips. This is the year, he goes on to say, that we'll be moving out on Sunrise. Now, Woodside and Shell agree with this, and the project needs to move forward this year.

And change in resources, we will reduce them this year to make sure that we make solid economic decisions on what we know we have there, and make sure that these conservative resources are in place to make the final appropriate economic decisions for Sunrise. Now, 5.8 Tcf is more than enough for a viable development. This is -- there is pretty good liquids associated with Sunrise, and we'll look forward to an early development.

Now, expect rapid progress towards a concept selection this year. We have agreement by the joint ventures to make that concept selection this year, and we have a way to evaluate which way to get there that's been agreed by all parties. Now, we're targeting internally at Woodside FID by at least the end of 2009. For RFSU, we're ready for start-up, that could be as early as 2013.

Let's move over to slide number 27 on Browse. Again, we've worked hard, myself and Mark Chatterji, we've visited with every JV CEO or senior executive at their headquarters in January, and we got alignment on to go forward, to accelerate the economic development of Browse.

Now, we've moved up the timing of concept select and also to find the final address for our LNG plant for Browse. We're working on five options, there's really three of the them that are coming to the fore, in fact, two of them are the two leading ones, and the Kimberley and the Burrup option, but we've made certain agreements to move forward with our JV.

And number one is Woodside's going to market all the Woodside and JV gas going forward, Woodside's going to lodge the field development plans in 2009 with the state, we're anticipating an FID sometime in the 2010 timeframe, and we're still committed to looking at a gas delivery out of Browse, as our KTAs have indicated, in the 2013 to 2015 timeframe.

Now, moving over to slide 28, I think Woodside is always talked about in more and more glowing terms from our competitors. They'd love to have the situation we have. It stands apart from the peers. Even with the -- with our base of great resources, we're continuing to add to them, yet our 2007 production rates [got the same] production for about 25 years from just what we have on our books at this time. If you add all of our contingent resources, and they were all to somehow be commercialized, current production rates could be maintained for 50 years to 60 years.

Now, some of our peers and many of our majors are struggling to replace their production, and most are really struggling to replace their reserves so [it is all] very fortunate for our situation. So it's all about execution for Woodside.

Woodside's focus for 2008, build growth and value through maturing our resources into reserves and production, and I think you can tell from last year's slide that's what we intend to do. Now, we've had to adjust our organization, Mark told you about selling Mauritania, we are putting more and more of our horsepower where it counts. We're moving key executives into our expanding LNG portfolio here in Australia.

Let me just finish up with a couple of slides here on slide 29, last year our competitors I think underestimated Woodside's ability. They said we wouldn't build Pluto, they didn't believe we'd Pluto. This -- I've heard, somebody say it's just a [bolting] marketing scheme.

I think now the CEOs of our competitors and our joint venture understand that this early position is [pertaining to the] advantage, really created an opportunity for Woodside to exploit in the future. I think they're pretty dark about how it all turned out, but now they're trying to align with Woodside and gain that advantage back. A lot of jockeying is going on, that's good for us.

We've been working offshore for over 30 years at -- 40 years at Woodside. We've been operating gas assets for 25 years. We've been liquefying gas for 18 years. We know how to build platforms. Our first one, North Rankin, still working today, it will keep working for the next 40 years.

With each new platform we gain more experience. Angel this year, very similar to the Pluto platform we'll launch in a couple of years. We know how to build and operate LNG plants. In fact, we're currently building Australia's sixth and seventh LNG trains as we speak, and, in fact, out of all the seven trains been built in Australia, we've built six of them.

In 2005 we pioneered the Modular design concept for LNG trains, everybody's looking to copy that, and we started that with Train 5 at Karratha gas plant. We're using the same design but improved for Pluto. It reduces the cost and schedule uncertainty, and allows parallel progression of projects. And this competitive advantage in Modular LNG underpins our aspiration for LNG leadership on a global basis.

Slide 30, I can't tell you enough about our people. I just love this company, I love the management team that we've developed, and also the people in it. They continue to perform. We're planning for our future, we're trying to get the organization aligned to our strategies, what we're trying to execute. We're developing our leaders, we're ensuring the succession plan, we're switching a few people around to gain more knowledge. We're growing our people, we're building a good graduate program, we've got apprentice training going on, and importantly, we're diversifying our demographics gender, indigenous. All people contribute to the Woodside success story.

Technology, I'd be remiss if I didn't mention it. Maybe we're not the leader in every facet but we aim to be a fast follower, and a technology implementer leader in Australia. We've got several examples of where we've led the pack in Australia, I won't go through all of them, but the exploration folks and the engineers can feel very proud of what they've done here to find 60% of the gas that's been discovered in this country.

Finally, I'd say on page 31, we had a clear aspiration. I think we've got the right assets, we've clearly got the right people, and I think right now we've got the right attitude, and I expect it even to get better and better. Now let me just repeat one thing. There's a lot of people doing a lot of talking in this industry but we're doing a lot of building.

I'd like just to mention one last thing. It would be remiss of me also not to mention one last person that's been a big part of the success, a very special person to us, Keith Spence, as I believe you all know, has been a big part of laying the foundation of Woodside for the future. He's been contemplating retirement, and recently announced his retirement for mid-year. Everybody in this company owe a deep gratitude, debt of gratitude, to Keith. He'll go down in Woodside history as a legend, a real Woodside icon. I know everybody here in the management team plan to keep in touch with him. He's going to continue to do some work for us, and we wish him the best in his retirement years. But he's just a fantastic person, and I just need to spend the 30 seconds to mention him before I finished here.

And, with that, I think we'll open it up for questions.

Your first question comes from Mr. Gordon Ramsay from UBS. Please go ahead.

Thank you very much. I'd just like to reiterate what you said about Keith, Don, he's certainly provided a lot of assistance to the analysts over the years in terms of his understanding of the company. We all appreciate it.

Just very quickly on your major projects, very pleasing to hear that they're all on or ahead of schedule, and certainly Angel, $200 million under budget at the moment, that's fantastic news. You haven't said anything about some of the other projects though, Pluto, Neptune, or Vincent. How are they going in terms of cost, scheduling versus budget, let's say?

Okay, thank you, Gordon. Mark can help me with this, but bottom line is Train 5 is at the very same budget level that we had at the beginning of last year, so that last testament has been holding true for us for the last 18 months. Moving down to Vincent, I believe right now we're within the FID range and we have no update on that one to announce because basically we're still within range. Let me think what other projects. Stybarrow, I think we announced our final cost on that somewhere along the way, or the operator did.

On Pluto, yes, Pluto, Mark reminds me here, yes, that's a big one for us. Pluto at this point is clearly the $11.2 billion FID, is still, well I'll just say we just got started there. We're locking in contracts, and we're getting more and more firm. A lot of those are reimbursable, though. But what we see right now is clearly within the range. We mentioned at the time that we did Pluto a little bit different. We put quite a - and we didn't say how we did this, but we really anticipated escalation of cost into the original FID and also contingency in there. So we're well within that range at this point.

Let me think if there's anything else. Neptune. I haven't got a latest update on that. They're still in commissioning phase there. I suspect to get an update down the road on that one. We're only 20% interest in that one, though.

Okay, just one other if I may. In terms of Vincent you mentioned a second manifold coming on stream in fourth quarter '08. You didn't give any indication on production guidance. Is that similar to the first manifold?

Yes, let me just say that the -- I said 40,000 barrels to 50,000 barrels a day on the first manifold. That's because we've drilled those wells and we've been able to look at the logs and we know the completions we have there. We're still drilling the second manifold out and I hesitate to give any production figures until we drill it out and take a look. Those are big, long horizontal wells about 2 kilometers long, and they're very tight drilling conditions, and we're over in a part of the reservoir. I'd rather take a look at it and have my reservoir engineers tell me what they expect before I put it out there.

Okay, thank you very much.

Your next question comes from Mr. Mark Greenwood from JP Morgan. Please go ahead.

Oh, good day, Don. Just interested in some of the timing you've provided on the three LNG growth projects. It looks like, based on your timing ,you could have three LNG projects coming on within -- anywhere as short as a one to three year timeframe. Is that the right way to interpret your presentation today, or are they the targets for each of the projects, and if one goes, then the other might be deferred somewhat?

Yes, well, that's a good question, I'll refer over to slide number 31. Well, the first thing that we know is that in addition to the four operating trains we have, Train 5 will be on this year, and it's on schedule. In fact it's looking really good. So that's for sure.

The next one is our Pluto Train 1. We're still scheduling the end of 2010, just as we FID'd, and that looks good at this time. Then we indicated that we'll be ready to FID Train 2, but we also indicated that we haven't got the right mixture yet of final deals yet to take an FID, but it won't be engineering that holds us up on that. We just want to make sure we optimize the economics for our shareholders.

So if we did, for instance, have that put together by the end of this year, and we FID'd by the end of this year, we would schedule Train 2 to be completed in the end of 2012 timeframe. But I do put the caution out there, I won't mind waiting a few months to get the right deals put together on that one.

Sunrise is the one I think that we're pleased with. There's complete alignment among the JV about how to get this thing done. We see this as an opportunity that's economically viable. I've got a really good team leader -- well, he's a manager on our [ex comm]Paul Moore, that's focusing in on Browse and Sunrise to get these done, and frankly we might get a little help on getting those trains built, depending on what option we pick up there. So, the point is, is that it may not always be Woodside folks working that one. Clearly, we'll be the operator at Sunrise, and we'll handle the offshore production. But how the train gets built, we may get some support from our JV partners. And that would be good, we could use that help, obviously.

Browse will probably come a little bit behind these, but still, it's a good timeframe, we're getting good agreement with the JV to move forward the gas marketing and to get the engineering done by -- we want to get an address this year. We gave you an initial indication of timing, but we've already done that through our KPAs.

So, just to clarify, end of -- yes --best case scenario, end of 2012 for Pluto-2, and even if that went ahead, you still think you can start up Sunrise in 2013, and Browse potentially 2013 as well? Is that a viable scenario, because I guess most contractors and consultants would have seen the skilled labor constraints as an issue?

Yes, that's -- I'm glad you put that point up. I'll just say this. We have a process that we've got in place here for Pluto. Pluto-2, we clearly have a way to make sure that we have the contractors and engineers for that project. I just indicated that we might get some help on Sunrise. I clearly would not see a problem with a Pluto-2 and a Sunrise going along at the same time. I think if you started looking at the possibility of all three at one time -- we're not going to put those bets out there yet. That is a lot. There's clearly issues there. But I would just say that there's a combination. I think what we try to do on slide 31 is show you that any sorts of combinations would work.

There's a lot of obstacles to these things. What we told you on Pluto, we had over 450 agreements to get one train off the ground, so at the end of the day, we can give you our best projections at this time, but things do come up, and we're working hard. We have all of these teams fully staffed within this building. We have the Sunrise team staffed, we have the Browse team staffed, and of course we have our Pluto team staffed.

Mark, do you want to add something to that?

Hi, Mark, how are you doing? The only thing I'd add to that is, if you look at the three project thing with Pluto expansion, Browse and Sunrise, there's only one case where you're really looking at a true Greenfield development, which would be Browse in the Kimberleys. If Browse went to (inaudible) there'd be a Brownfield expansion; Pluto-2 is obviously a Brownfield expansion. And as Don indicated with Sunrise, part of the agreement that Don stuck with his counterparts at Shell and Conoco will really take a lot of the downstream burden off Woodside.

So, certainly I don't disagree with your comment about, we've got to be careful with the industry constraints. You've heard us say that again and again, but you have to keep in mind that largely what we're talking about for most of these cases is a Brownfield scenario.

Okay, thank you.

Your next question comes from Mr. John Hirjee from Deutsche Bank. Please go ahead.

Hi, gentlemen. A couple of question on LNG, as that is clearly the key focus. Now Pluto-2 Mark, would you able to give us some idea of the additional CapEx required for that particular train? I guess it wouldn't be double, but (inaudible) the economics work that out, but could you give us an idea there?

Yes, look John, as far as the actual number, that's going to be subject to the engineers going through their proper due diligence. You've obviously seen the train (inaudible), and that gives you one benchmark. The other thing to keep in mind though, with Pluto, and I think we showed in on slide 25, is that we did in the Pluto-1 FID of reasonable amount, to the tune of several hundred million dollars of pre-investment and in Pluto-2. And so there is effectively some head start when you think about the upstream facilities, the trunk line, and some of the site prep work that's already going on.

Alright. Don another question then in terms of -- you're drilling three wells around the Pluto area this year, I think in the joint venture with Totale. What sort of reserves are you looking there to commit to that Train 2?

Yes, well, if we can just get done with the site [forms] we'll get some drilling done out there, but actually I've got to add (inaudible) Head of Exploration, here and maybe he can give you a better idea what he's looking for out in that area. Hang on a second as I move a microphone over there.

Yes, John, in that area around 370-P and 269-P, yes the volume range that we're carrying here, and I think it's pretty realistic, is between 0.5 Tcf and [3T] but that's just in that area. 404 and the [Greater Casadories] area are separate again. [In the venture] with Totale, as I said, anywhere from 0.5 Tcf to [3T], obviously 0.5 Tcf would be a disappointing result for us. I'm pretty confident we'll get one and obviously the case we're going for by drilling more than the three wells would be up to [3T].

Right. Presumably Don the joint venture scenario for Train 2 will be different to that of Train 1?

Yes we've always said that Pluto would be a [park], the underlying infrastructure of Pluto is owned by us. And basically we've always invited in outside parties to come through Pluto to make their gas available to the marketplace. Of course, we'll get some profitability out of that obviously, but clearly we're trying to figure out right now what kind of mixture of our gas versus outside people's gas to bring through there. But at the end of the day we'll try to -- our intent is to maximize the profitability for our shareholders but it will not have to have the same ownership on each of the different trains.

So in terms of that you're drilling pretty well as you try to get proven up for FID towards year end, can we take it then that the possibility of third party gas is quite real?

Yes I think that's a reasonable assumption is, is that we've got people that have all of a sudden figured out, gee whiz Pluto's being built, we can get our gas out here to the marketplace in an expedient fashion. So yes, I think that there's a lot of gas out there and frankly a lot of people missed the boat with us when they didn't think we'd ever build Pluto. Now they've got it figured out and now people are trying to figure out how to maximize their own situation.

Yes, well one final question then Don, Sunrise your CEO summit, is that the principal reason that Sunrise is all of a sudden being escalated up the ladder, if you like, in terms of getting off to development? It's now ranking ahead in FID terms in front of Browse. So what's been the real change there in terms of getting that from, which was nowhere, in say a year or two ago, to now a real possibility of a train?

Well there's a couple of things, number one, let me just reiterate, I still think there's a competition our there what goes first, I like a competition. I would just say that, of course, the government agreement at Timor-Leste was a big help with this.

Sometimes company leaders have to lead their people. Folks are great, they work their -- they work so hard to get these projects off but you get different -- lots of people involved in the room. Sometimes the CEO's just got to come out and provide some leadership. And frankly we thought it was time at Sunrise to help the joint ventures get to where we knew where their management wanted to go. And we really just wanted to make sure that the workforces got aligned, that the JV people that are doing the day-to-day work got aligned as what the intent was. And I guess (inaudible) the CEO statement among the equity partners was, there's no reason this thing shouldn't move quickly along to get to a place where it provides economic benefit to the shareholders of all the four different equity owners.

Thanks Don.

So I guess you'd say we just kind of kicked it a little bit.

Yes, thank you.

Your next question comes from Mr. Peter Klinger from the West Australian, please go ahead.

Yes, good day Don. Just a couple of questions on Browse if I may. First of all can you maybe explain why Darwin is no longer an option for you seeing that [you're still now] down to Kimberley and above?

Secondly, can you remind me again what sort of ballpark CapEx we're looking at for Browse?

And thirdly, how happy are you with the government's progress in selecting a site for Browse in particular given their plan to come with a Browse industry hub?

Okay, thank you Peter, there's three questions there.

The first one is Darwin, yes we've pretty well discounted Darwin and let me tell you why. We're sitting out there off in Western Australia, frankly all of the logistic support, all of the ports, all of the facilities -- our offshore operation will be massive out there. And basically it all has to be supported through the Western Australia government, most of the employees will come from Western Australia etc., etc.

The idea of getting permits and moving that gas around up to the Northern territories, and trying to get around Western Australia, we just believe is not any place we want to go. And I'm not sure it's where Western Australia really wants us to go either. But at the end of the day you've got to realize what the situation is, where the gas is, where it's found and where it's located. One thing we can't do is move gas resources. So at the end of the day we just believe it's politically, environmentally and it's a big cost too, let me tell you it's a heck of a long pipeline. At the end of the day that's where we've come out; it's more of a judgment of doability than economics.

Number two was cost estimate for Browse; our guys are working to the different numbers, we're nowhere near at a point to release what our estimate is, that's something that we have to work over with the JVs. But we'll look at the economic viability of the three or two options and we certainly see that Browse is an economic proposition going forward or we wouldn't be marketing the gas obviously.

Number three, your question was on the site selection as a [core] for Northern development task force, well we just think the Western Australian government's doing a wonderful job in getting that put up. We've told them what our timeframe is to make a decision this year for an address. Jim Limerick, who's headed that up to this point, has done a wonderful job working up in the area. I think they've committed to narrowing the site selections down to two or three here in a very short period of time and would like to come up with the final location in a timeframe that absolutely matches what we need to have done.

So we clearly support the government's call for a single site location that co-mingles, or co-locates all the gas that is found out there. We totally support that and we think that would be a very, very viable economic solution for everybody involved.

And Don, how -- just a quick follow-up, how confident are you that Jim Limerick's taskforce will actually come up with a site this year, or will be able to do?

Well I've got to tell you, I never doubt Jim Limerick or the Western Australia government. They pulled off a world class due diligence on our permitting for Pluto. They made sure that they absolutely protected the interest of everybody and they basically broke down the barriers along with us and we got Pluto permitted in, in I'd say world class time. So I'm never going to doubt these guys, if they say they're going to do it, I'm all for them, we'll be extremely supportive. And I wouldn't bet against them.

Thanks.

Your next question comes from Mr. Stuart Baker from Morgan Stanley. Please go ahead.

Yes, hi Don, just a couple of questions. The first thing, with respect to your resources statement, we're seeing about 2.5 Tcf taken off contingent gas reserves. I just wanted to get a bit of definition on that, I presume the bulk of that is on Sunrise, is that correct?

One of the bigger features on that is, is that the SPE has redefined their flare and their fuel gas. We had always, according to the rules, included that along the way as part of contingent resources, because it is consumed in the project. And that was about 40% of the reduction, was based on that. The other, like I said, we really want to make sure we know what solid resources are for the economic underpinning since we're accelerating Sunrise at this time. And basically we've revised downward the contingent resources at Sunrise to make sure that we got a solid basis there to go forward.

We've only got four wells in the -- well we've got four really good wells and good logs etc. in Sunrise field. As we appraise that field in parallel with designing the liquefaction plant and the offshore facilities, that will tend I'm sure to change. But we wanted to make sure that we knew what we had.

The other big item of course is, we moved a lot of Pluto reserves out into P2, P1 and then of course that can reduce the contingent resource listing.

Yes thanks, just an extension into that question, I note also that you've got about 960 Bcf there in Pluto and Xena as a contingent resource. I just wondered whether that was related to technical uncertainties or whether that's mismatched between what you're contracted versus what you currently have? And whether or not, if that's the case, that could be available for future plot sales for example?

Okay, the Xena resource that we discovered was not included in our reserves for Pluto. It's still sitting out there until we get it fully appraised. We just drilled a Xena appraisal well and a Xena 3 sidetrack. Now we have three bores down through Xena. Those wells met our expectations, our engineers are working on those wells as we speak and are coming up with a determination of a P1, I'm sorry, a P10, P50, P90 split for that.

So at the end of the day, we now, unlike at the end of last year, we now have a better idea of what Xena is all about. And, like I said, we're happy with the drilling there and that will help us in the future. So that's still out there to be [converted].

Our FID, Pluto, did not include the development of Xena in the FID.

Right thanks. Just a final question, if I may, and that is related to financing strategies. Surely some of the stuff is coming pretty thick and fast, Browse, Sunrise, possibly Pluto-2, these are all kind of multi-billion dollars a pop and I guess you've got a number of possible financing options including [sales] (inaudible) interests or raising equity or (inaudible) or borrowing a truckload of money or whatever. I'm just wondering what your financing strategy would be, given what could be a pretty chunky CapEx ahead of the cash flow?

Hi Stuart. Our financing strategy hasn't changed since we last talked. It's a mixture of the debt market, we'll start with our internal cash flow. You saw this year, we just essentially produced a truckload of cash, and next year we expect that we'll produce oil prices staying the same even more. On top of that, we've got debt financing options both in the bank markets and the bond markets. We're actually working on one financing facility that we hope to close over the next couple of months.

Obviously, with the capital markets, you know that they've been shaken up over the last few months, but when you do look at the market for energy credits, I think it's still reasonable out there. And then on top of that, we do have the choice of equity. We've chosen up to this point to not actually do an equity offering, just to use the dividend reinvestment program.

We're really taking the capital management part of our job quite seriously. We'll look every six months about where we are with [gearing], where we think our capital needs are going to be and what the oil price is and make a call if we need to use that DRP. You saw that we used it twice last year. If we don't need to, we're not going to.

Thanks very much, Don.

Your next question comes from Mr. Bernard Picchi of Wall Street Access. Please go ahead, sir.

Hi Don. You discussed how you have aligned people and financial resources within the company to better maximize your tremendous LNG resources, and specifically of course everybody would think about Africa as being a classic example of that. But in that context, where does the United States kind of fit in to your portfolio? Does it still have the same, do you still have the same burning ardor for the United States, that you -- for the Gulf of Mexico that you did say three years ago, given everything you have currently on your plate in Australia?

Well you might not put all your eggs in one basket, obviously, although we like to have one basket quite a bit right now. We have a lot of trust in our exploration department to find a diversity of resources around the world. One of the things you do like over there is, I've always said I'd like to have a gas position over in that part of the world.

As the, I must say, over the last twelve months, one of the things that continues to surprise us is the strength in North Asian LNG markets, all the way from Singapore and Hong Kong, up through China, Korea and Japan. And its strength is really, for our logistic advantage compared to other LNG players, it's really an opportunity for us. So that's not answering your question. What it does say is that the US, on that strategy that we had at one time is, at least at this point, it's a weaker strategy for us in the respect that we really just don't need it as much.

When you get down to it, the viability of the exploration capabilities of our Group and what they find in the tax regime and the opportunities, we're pretty good in deep water. Our drilling of Terrebonne and Corona del Mar, although they did not result in successes, I will say that our partners, Chevron and Exxon Mobil were extremely impressed with our capability to drill the wells under cost and under budget, and we're still giving it a go. There's a big lease sale coming up here shortly and our portfolio is set over there and we're continuing to look at it and we're continuing to try to develop that area as another opportunity for us.

We did get into 14 new leases last year that we think have promise to us. So I never say that we're going to fund something for ever and ever. It's one of those things that we're committed to at this point, we'll stay committed to it until (inaudible) says that we shouldn't be committed to it.

Fair enough, Don. If I could just switch back to Australia for a moment. You talked about the domestic gas prices firming within the country and talked about how that could become an even more robust business for you in the future than it has been. Two questions on it. Could you give me an index of -- I know you probably can't give precise numbers but, a bit of an index indication of what happened to the domestic gas price last year versus the year before?

And then also what you expect this year? And then how do you expect to sort of balance the opportunities domestically against the export opportunities in the LNG market?

Yes. Bernie, these are pretty good questions for the middle of the night for you over there in the States. I'll just say that I want to be clear about one thing. I don't want to predict the firming of gas prices on the East Coast of Australia, I'm specifically talking about the West Coast where the majority of our domestic gas is. So let me talk about that for a minute.

In Western Australia, Bernie, there's a lot of new industry that's coming onstream. The miners of copper, nickel and especially iron ore are developing new mines as we speak. It's a real boom over here. Commodity markets are driving that change. With that, they need more power. They need a lot of electricity, etc, so there's an awful lot of usage of fuel source in their operations, so they're putting quite a demand on the local infrastructure.

Historically, prices have ran, I don't know what they've been, but anywhere from about [AUD50 to AUD250] is kind of a base load price over the last 15 years to 20 years. We've seen deals done out here - and I'm not going to talk specifically about Woodside deals in our Northwest Shelf because I'm not sure which kind of confidentialities I'll be breaking. But the ones that have been announced in the industry, not necessarily our own, we've seen prices anywhere from [$7.50] up past double-digit, up to the $10, $11, £12. Now, those vary on price, terms, those could be short spot market sales or those could be short, this that or the other thing. And I won't say how thick that market is, it could be quite thin, and it could be for other reasons, but we believe that a lot of people have knocked on our door for gas. There appears to be a bit of a shortage until some of the new gas projects come onstream, and I'll just basically leave it at that.

I think Mark wanted to jump in here with a couple of comments, and I do know, I'll say this, I do know about three or four other contracts that have been announced what the pricing is, and that's what I referenced a few seconds ago.

Hey Bernie. The only thing I was going to add is Don's absolutely right. When you look at the industrial demand for gas, certainly a lot of that is going into products that are going into the export market and they're getting world scale prices for that. So certainly their ability to pay increasing prices for gas is not disputed.

I think the other thing that you have to keep in mind is the rising cost of finding gas here in Australia. To be perfectly honest, and (inaudible) I think will back me up on this, that the easy gas has already been found and it all gets harder and harder. So when you look at the cost base of developing gas resources in Australia, even for the domestic market, forget putting LNG plants into operation, it's very costly to supply the domestic market and so prices are rising as a result of that, it's just a realistic signal to producers, please keep investing in exploration because we will pay you a fair rate of return for your gas domestically.

Thank you.

Your next question comes from Nigel Wilson from News Limited. Please go ahead.

Good morning. Don, first of all, could I just ask you on Otway, how much do you think the costs have risen since the original estimate?

Yes, I think we've announced that, we've said that the costs from the original, original FID over the time up to this point, I think we've said, I think the estimate was 20% over totally at that point for bringing [it on] production.

And that hasn't altered since the more recent problems?

No.

Okay. Could I also take you on a bit? In talking about the US, I note that on your slide 21, you've resumed the management of Woodside Energy USA. Was that any particular reason for that, other than a concern about where you might be going?

Yes, basically. We put a five year -- I think the presumption is a reference to the explorer enterprise management team we had over there. Yes, frankly, we had a five year term on that, but we always knew, working with them, when the end would be. And I must say there's smiles and handshakes around the table when we all concluded that Woodside would take over the management. They did exactly what we wanted them to do. They built us a 100-person strong organization down there, they hired people in for us from all the different exploration groups that we thought were really good, and their work is more finished at that point.

We came to a really good solution, and we've got our management developed down there to take over, and in this respect we purchased their interest back into the company. I would just say that we're pretty excited about what they developed for us down there. We wish them well. We suspect they'll be our partners in the future in a few opportunities.

Now, sorry. Could you explain what that actually means? Does that mean that Gryphon is no longer doing it for you, or how does that work?

Yes, let me just say that Gryphon was an acquisition that we made in, with a bunch of [Shell's] properties. [Those] have continued to produce for us, and we own those outright and -- of course, some of those have joint equity with other companies obviously. But we're not focusing as much on the shelf as we develop our deepwater portfolio. Our main focus will be on material, large opportunities for us. Something that makes a difference to Woodside in the future.

And Don my final point is on Sunrise. You've mentioned in the past that Sunrise could be a floater. Is that yet firming up?

Yes, let me just say that there's several options for development. Let this run through, then obviously there's --number one is, there's the ConocoPhillips Darwin plant we understand has an available footprint. Of course, they're a joint equity owner of it, so that makes some sense. Then there's obviously a floater opportunity out there that can maybe bring in some other gas around the area as well as Sunrise. And then there's Timor-Leste opportunities [yet].

So there's lots of different options out there. We're very happy to go with the best economic solution there. We'd be very happy for people like Shell, who have a lot of technology in the floaters to help us with that technology and to work cooperatively with the rest of the joint venture. We're very happy for ConocoPhillips to mimic their current Train 1 and work through there.

So there's lots of opportunities. We're not -- we've got enough on our plate. If we have somebody help us with some of those opportunities, we'd be more than pleased with that. We've got a great Sunrise team ourselves that will handle the offshore development and also the government relations, as well as all the government permitting, etc.

And by the way, Nigel, I liked your article today in The Australian.

Not too sure Fern Logan did. Thank you, Don.

Your next question comes from Rebecca Lemay from AAP. Please go ahead.

Hi, gentlemen. Just a very straightforward question on the impact on your bottom line for the targeted 22% increase in production?

And secondly, on the Karratha gas plant problems recently, do you think you're seeing an underlying problem there, and is that something that you think needs to be rectified, or is it just a short, one-off problem?

I'm sorry, could you repeat both of your questions? We're a little confused with at least the second one. Try both of them again, one more time.

My apologies. Just looking at your targeted increase in production at 22%. I wonder what sort of impact you might imagine that's going to have on the company's bottom line?

And the second question was with regard to the recent problems with the Karratha gas plant shutdown do you think that that pointed to any underlying problems, or would you consider that just a one-off aberration?

Okay, let me -- and Mark will probably want to help a little bit with this first one. I think, basically, we don't project earnings here, and we don't project future profitability. You have to take your oil price projection and gas projection, times that 22% increase. What we did say today, though, is that we reiterated our 80 million barrels to 86 million barrels, and also reiterated that if Cossack Pioneer is approved by our shareholders and approved by the Shell Board that we will adjust that 80 million to 86 million later on down the year to acknowledge that purchase. So I'm not going to sit here and make any earnings forecast on that situation. I think that everybody's capable of doing that.

As for number two on Karratha, yes, I would sit here and say that I wish that problem would not have happened. We know it had something to do with the new Train 5 features being installed around the existing four trains. I will just say this, that no, we absolutely don't want that to happen again. We're protecting ourselves in all manners possible to make sure that it doesn't happen again.

But I will say this, the plant shut itself down -- when it acknowledged the problem, the plant logic shutdown system went into effect, shut the plant down safely, we had no injuries. We've got a fantastic operating group up there. It's phenomenal they got that plant back up from a cold start in 50-some hours. I would not have ever guessed that they could do what they said they were going to do. We trust them completely in what they're doing up there. They did it safely. So hats off to a fantastic operating group up there. The crisis management team that we have here notified all our customers within the first hour of the event. We had complete communications with the State Government. Frankly, we think it was all handled just according to how we train our people to do it. And I couldn't have been more pleased with the management of this company nor with all of the operating folks that handle what was really a problem that we don't see too often happen in this company. So I was really pleased with the aftermath. Yes, let's not let it happen again.

Thank you.

Your next question comes from Andrew Blakely from Macquarie. Please go ahead.

Good afternoon, gents. I'd actually given up hope. I just have a couple of quick questions. I think you must have to have your question ready before the start of the conference. Just on the LNG and the different options, obviously you've got a lot coming and there's a lot of questions there with regard to how you've structured that, and how you financed it. But I was looking at the Pluto-2 with interest and I'm assuming that you would do a Pluto-2, that would be a carbon copy of Pluto-1 from the onshore facilities, is that a reasonable assumption?

I think that's a good assumption at this point.

Okay. And with regard to -- I know there've been a couple of questions on this as well, the 80 million to 86 million, taking the acquisition of Shell out of the mix, because obviously you'll adjust for that when it's completed, but with Stybarrow above expectation, Vincent early, Train 5 [cargo in] Q4, you would have been pretty comfortable with the upper end of that range, I would have taken it, at this stage?

Well, we had two cyclones rip down right through our fields, they don't have any oil production as we speak right now as we're hooking it all back up. And we have these other things that, how much of that we count on versus all this upside opportunity we have, I just say we feel very comfortable reiterating our 80 million to 86 million at this time.

Okay. Well thanks for that. I'll stick with my numbers at the upper end then. Cheers.

Your next question comes from Angela Macdonald from Bloomberg. Please go ahead.

Hello, it's just another quick question on LNG actually. With the acceleration of the plant for Summer, I was just wondering if you can give an indication of the likely markets for that gas, and also for the rest of the Browse gas?

Yes, let me just say that, you know how we've marketed the Pluto gas, obviously, on Browse, we're taking the lead for the joint venture in selling out all the gas for the initial contracts. And Sunrise, a little bit different because the plant size and the ownership, I think we're just all going to take our own equity in kind for marketing and do our own thing with it.

And what about the actual likely markets? You envisaged it going to Japan, obviously you've got Osaka Gas in there, but would you envisage directing your share to Japan?

Hi, Angela, it's Mark Chatterji. Listen, on the marketing, I think as you've seen already, we actually sell to a variety of customers, both in Japan, we've already signed two contracts with PetroChina and CPC regarding Browse. There's interest out of Korea, there's interest out of a number of other countries who are effectively new to the LNG scene. And so I think the takeaway for this is there's certainly no shortage in both North and Southeast Asia of customers to take the gas from Woodside.

Okay. Just one other thing on Browse, though. With that joint marketing of Browse LNG, does that now mean that the sales accords you signed with PetroChina and CPC will be shared throughout the rest of the venture partners?

What our plan is, is to lead the marketing effort on behalf of the joint ventures and bring the deals back and offer them to the joint ventures.

Okay, thanks.

And this has been agreed to by their top management.

Great.

Your final question comes from Di Brookman from Citi. This will be the last question taken today. Thank you.

Hi, are you able to hear me?

Yes, Di, go ahead.

I think most of my questions have been answered, but really just an observation, [staring] at figure 31 in the presentation. It looks like Pluto-2, you are expecting to have about, almost 100% of the equity gas going into that fund (inaudible) is that a correct assumption?

I wouldn't read too much into that chart. That's still to be determined. What we should be showing there is capacity of the plant. You can get economic rent for the opportunities that we built either through selling equity gas or an arrangement for moving other people's gas.

Okay, so this shouldn't read production, it should read installed capacity? Is that correct?

Number one is, it's a cartoon, so take it as a cartoon, basically. It's a replica of how we see the aspiration of what we're going to build here. If you get a ruler out there and try and scale this off, it's probably not what we're trying to get across in this representation.

So the production could actually be quite a bit different to the installed capacity?

Well, the capacity of the plant, we assume -- well I don't want to say assume. What we're designing is a carbon copy of Train 1, so the capacity is going to be exactly the same. The equity and the contractual ownership of that gas could be different.

Okay, great Thank you.

Ladies and gentlemen, that does conclude our Q&A session. Those of you who did ask a question, you will be contacted via e-mail. Sir, I'd like to hand the call back to you for closing.

Yes, okay. Again, I just want to appreciate -- tell everybody I appreciate the time, I know there's some folks in the US, Europe, and stuff, that are hanging on, and it's wild times.

We'll be over on the East Coast of Australia the next couple of days, and looking forward to visiting with everybody. Thank you very much for your questions, and if we didn't get to them, we'll try and find a way to answer them. As always, Mike Lynn and Christine Bishop's here to help you all along with it. So, at the end of the day, thanks a lot, and thanks for tuning in.