Woodside remains focused on creating sustained economic value for our partners, shareholders and the communities in which we operate, based on effective investment decision-making.
In 2016 we produced 94.9 MMboe, 3% higher than 2015 and the second-highest ever achieved. This was driven by record LNG production of 63.7 MMboe. Our production generated $4,075 million in operating revenue and we reported a Net Profit After Tax (NPAT) of $868 million.
As Australia’s leading LNG producer, we are proud of our contribution to the community and to the nation. This includes, but is not limited to, a significant financial contribution.
Woodside derives the majority of its income from the sale of petroleum products produced in Australia. The company pays tax in Australia on the profits made in relation to these sales. This tax contribution summary is limited to Australia, given it represents more than 95% of taxes paid globally. In considering the Australian tax contribution made by Woodside, it is important to recognise that hydrocarbon production in Australia is subject to a complex mix of taxes including income tax, Petroleum Resource Rent Tax (PRRT) and Federal royalties and excise (both of which are applicable to the North West Shelf Project). In 2016, Woodside paid approximately A$525 million in taxes and royalties to Australian Federal and State governments as set out in the table provided.
The amount of Australian corporate income tax paid is lower than the prior year mainly due to lower oil prices impacting revenues. The amount of PRRT paid was similarly affected by the industry downturn, the cessation of production, divestment of oil interests and increased capital expenditure in Australia. Woodside is committed to making available additional information in respect of its tax contribution for each income year.