woodside management meeting

I think this is another of those Woodies memoes that I am mysteriously and anonomously receiving....

Field Development -- Strictly Private and Confiendtial

Remember, good management is all about managing risk and reward. In a time of high oil prices, we don't think its worth taking any development risk - at least while we have producing fields. Other companies have different philosophies, this is ours.

We have had some notable success recently. Our ability to avoid even thinking about Greater Sunrise for years because of the Australian Government dispute with East Timor was sheer brilliance. We have also been sucessful in delaying any planning at Tiof for the last 2 years by telling everyone that it was technically very subtle and too complex to move prematurely.

Our CEO reports however some comment from fellow CEO's overseas who suggested that sitting on 350 mbo recoverable, with no apparent plan, in the current market, may denote more than just normal prudent caution. One company even offered to buy it off us and fast track development. Mr Veolte is concerned that if he does not handle this better, he may not get another job offer, and be forced to stay in Perth. He doesn't mind of course, but its his family he is thinking of.

Therefore we need a plan for Tiof - where to drill some production wells - the usual boilerplate. We need to heavily qualify the choice with the standard obsfucations about uncertain connectivity, permeability, expense accounts, pressure flows and geology. Some extra fluff about really needing more appraisal wells to really get it right would also help shift any future blame for failure. We will announce that the plan will be ready by the end of 2006 - which means we can delay it until say Q1 or even Q2 2007. This means that we don't have to really do any actual planning work for at least another 3-6 months. Remember that we can then delay actual implementation for as long as we need by order necessary equipment using the usual algorithms - and remember to blame world equipment shortages for any delays that become public.

This should still give the committee of increasing company responsiveness and agility a chance to complete its report. Remember that most of the field planning technical staff have been seconded to this important committee.