The ratings on Australian-based oil and gas producer Woodside Petroleum Ltd. reflect the company's cost-competitive operations, long reserve life, and strong development pipeline, and the favorable market outlook for liquefied natural gas (LNG). In addition, Woodside is less exposed to gas prices than its U.S. peers, with the company's LNG pricing linked to oil prices and floor-price protection under offtake agreements for its massive Pluto LNG project. These strengths are partly tempered by the company's limited—although improving—geographic diversity, large capital-expenditure commitments, and exposure to volatile oil prices. Woodside recorded total production of 81.3 million barrels of oil equivalent in 2008, with 50% of production from natural gas, 38% from oil, and 12% from condensate. Woodside's market position is underpinned by
