The ratings on Woodside Petroleum Ltd. reflect its improved business profile, cost-competitive operations, predictable cash flows from long-term domestic gas and liquefied natural gas (LNG) contracts, strong cash flows from new oil projects, and its long reserve life. These strengths are marginally offset by the company's limited geographic diversity, and vulnerability to oil price and currency movements. The strengthening of Woodside's business position reflects the planned expansion of its North West Shelf Venture (NWSV), and increasing diversification into oil, with its Laminaria-Corallina (LC) project, which commenced in November 1999, and start-up of the Legendre oil fields in offshore Western Australia in May 2001. Strong cash flows from the LC project and the company's existing operations, together with existing debt facilities,
