Capital allocation framework

We can only supply our products profitably where we have customers who want to buy them and find them affordable. Whilst oil and gas markets are strong today, demand for new energy and CCS is still emerging. Therefore, we need to invest with discipline, testing our opportunities against our capital allocation framework.

Woodside’s disciplined capital allocation approach includes robust assessment of opportunities, portfolio outcomes and shareholder returns while maintaining focus on safe, reliable and efficient operations.

Our capital allocation framework sets target investment criteria for oil, gas and new energy opportunities. We use this capital allocation framework to create a diversiﬁed and flexible portfolio, which allows us to respond to changes in demand and supply for our products.

For example, our investment decisions are informed by energy market analysis including supply, demand and price outlooks. We test the robustness of potential investments against a range of scenarios to support our investment decisions with the goal of remaining proﬁtable and resilient through various commodity cycles and climate outcomes.

CCUS refers to carbon capture utilisation and storage.
Payback refers to RFSU + X years.
Targets and aspiration are for net equity Scope 1 and 2 greenhouse gas emissions relative to a starting base of 6.32 Mt CO2-e which is representative of the gross annual average equity Scope 1 and 2 greenhouse gas emissions over 2016-2020 and which may be adjusted (up or down) for potential equity changes in producing or sanctioned assets with a final investment decision prior to 2021. Net equity emissions include the utilisation of carbon credits as offsets.

Capital allocation framework

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