Predictable cash flows from long-term domestic gas and liquefied natural gas (LNG) contracts Low-cost and long-life gas assets Successful reserve-replacement strategy Improving geographical and product diversity Moderately conservative financial policies Volatile oil prices and increasing long-term export competition in LNG markets Large capital-development requirements Exploration and potential commissioning risks into higher-risk sovereign regions Requirement to accelerate replacement of depleting oil reserves due to a maturing oil portfolio The rating on Woodside Petroleum Ltd. (Woodside) reflects its cost-competitive operations, incremental cash flow and geographical diversification from new oil projects, and long reserve life. These strengths are offset by the company's limited, although improving, geographic diversity, higher-risk exploration and development projects, and vulnerability to oil price and currency movements. Woodside's strong business
