Woodside Energy Group Ltd (formerly Woodside Petroleum Ltd) is an Australian petroleum exploration and production company. Woodside is the operator of oil and LNG production in Australia and also Australia's largest independent dedicated oil and gas company. It is a public company listed on the Australian Securities Exchange and has its headquarters in Perth, Western Australia. In the 2020 Forbes Global 2000, Woodside was ranked as the 1328th-largest public company in the world.
Woodside initially focused its exploration activities on Victoria's Gippsland Basin. In 1962 the company recruited Nicholas Boutakoff as chief geologist, who turned the company's activities towards Western Australia. He correctly hypothesised that the North West Shelf contained petroleum reserves, and in 1962 Woodside applied for exploration licences over a large offshore area. Woodside subsequently joined up with Shell Australia and Burmah Oil to form the original North West Shelf Venture. BHP later replaced Burmah, and with Shell, each became a 40% shareholder in Woodside in 1985. Shell will not support BHP Canberra Times 10 April 1986 page 18 BHP reduced its shareholding to 10% in July 1990. BHP sells gas stake for $525m Canberra Times 29 June 1990 page 13 In October 1994, BHP sold its remaining shares while Shell sold down to 34%. BHP, Shell in $501m sale of Woodside Canberra Times 1 November 1994 page 17 In 1995, Woodside moved its head office from Melbourne to Perth. Woodside to finally move west Canberra Times 7 December 1995 page 17
In 2001 Shell sought to buy out the remaining portion of the company that it did not already own at the time; however, the takeover move was blocked by Treasurer of Australia, Peter Costello, on national interest grounds. In November 2010, Shell reduced its 34% stake to 24%. In November 2017, Shell sold its remaining shares.
In August 2021, Woodside entered into an agreement with BHP to merge the latter's oil and gas assets with Woodside. The deal is subject to regulatory and shareholder approval
In May 2022, the merger with the BHP oil and gas assets was approved by approximately 98% of Woodside shareholders. As of June 2022, the merger was completed and the combined entity was listed on the New York Stock Exchange and the London Stock Exchange.
Woodside agreed to buy American natural gas company, Tellurian Inc., for a total enterprise value of US$1.2 billion in July 2024. The following month, Woodside announced it would acquire a "blue ammonia" project in Texas from OCI Global for US$2.35 billion.
A 2021 study found estimated that the full Scarborough-Pluto project will emit almost 1.4 billion tonnes of over its lifetime. That's over three times Australia's current annual emissions, and around 14 times WA's annual emissions.
Production is expected to begin in 2026. The project has received environmental approval.
In April 2010 Shell's floating liquefied natural gas technology was selected by the Sunrise Joint Venture for developing the Greater Sunrise gas fields in the Timor Sea. The Woodside-operated JV is now seeking to engage regulators on the concept selection process.
In 2006–2007, as part of the Pluto LNG project, Woodside faced opposition over plans to build an onshore processing plant on the Burrup Peninsula in Western Australia, as the site is home to significant up to 30,000 years old.
It has been suggested that intense lobbying by Woodside Petroleum contributed to the coalition Howard government's initial decision against emissions trading in August 2000. The company also opposed the Rudd Labor government's Carbon Pollution Reduction Scheme in 2009.Macdonald-Smith A Woodside ‘Remains Dismayed’ at Australia Carbon Plan Bloomberg Press, 10 March 2009
Woodside is among six companies accused of making deceptive public statements in an attempt to get free carbon permits. The Australian Conservation Foundation says the companies exaggerated in public, but told a different story to their shareholders and investors. In June 2009, the ACF lodged an official complaint[11] with the Federal consumer affairs watchdog asking that the matter be investigated. The Australian Competition & Consumer Commission took no action against the companies.Senate gives resources giants nod on ETS evidence, by Laura Tingle, Australian Financial Review, 8 September 2009
In April 2011 Australia's Fair Work Ombudsman began an investigation into claims that foreign workers were underpaid on two North West Shelf oil rigs operated by Woodside Petroleum. In April 2013, the Federal Court in WA heard allegations that the workers were paid less than A$3 an hour to work on the oil rigs. Documents tendered to the court claimed that the four men worked as painters on Woodside rigs on the North West Shelf off northern WA from July 2009 until early 2011.
In the corporation's annual offshore performance report, published in mid-2013, the failure of an oil mist detector at Woodside Petroleum's Vincent oilfield in Western Australia was caused by faulty wiring and inadequately designed equipment. The issue was identified during a visit by a third party at Woodside's largest single source of oil production.
In April 2016, Woodside concealed a oil spill off the coast of Western Australia, which went on for two months without anyone from the company noticing. Woodside's responsibility only came to light after intense public pressure.
In March 2019, Woodside led a lobbying effort to force the Western Australia EPA to abandon new guidelines to protect the climate. The Australian Centre for Corporate Responsibility described the affair as a ‘week of shame.’
In mid-2020, Woodside tried to avoid decommissioning costs by convincing regulators that dumping all the equipment from its Echo-Yodel field, including 400 tonnes of plastic, under the pretence of the waste being an 'artificial reef'. The same year, after calls to pay over A$200 million to clean up an old gas processing facility they had decommissioned, Woodside convinced the government to instead grant them millions of taxpayer dollars, through a shadowy limited tender process, to ‘consult’ on the clean up. Woodside have attracted condemnation for their role in the wiretapping of the East Timor government in order to "force East Timor, one of the poorest countries in the world, to surrender most of the revenues" to Woodside.
In 2023, Woodside continued to face criticism for the sale of the Northern Endeavour in 2016, to a company that then collapsed 4 years later, leaving responsibility for decommissioning to the Australian Government.
The proposal was eventually abandoned in April 2013 because of protestors and political resistance, including from some local Aboriginal people, but the A$1.5 billion social benefits package that had been brokered between the Kimberley Land Council and Woodside, together with its joint-venture partners and the Barnett Ministry, remained an ongoing issue.
Former head of the Kimberley Land Council Wayne Bergmann, who brokered the deal prior to his resignation, controversially demanded in the media: "We no legal right to that deal; it was broached politically and now they Woodside, need to honour the bargain."
As of 15 April 2013, Woodside had paid A$3.7 million to Aboriginal organisations in accordance with the agreement and a Woodside spokesperson stated that the corporation would "continue to support a range of voluntary social investment activities in the West Kimberley".
Some shareholders have argued that the directors of Woodside have breached their duties under the Corporations Act by authorizing any payments because the project did not proceed and the local Aboriginal leaders were just being gifted free money that would never be appropriately accounted for, and would not assist any truly disadvantaged person to change their lives for the better.
In November 2021, around 50 local people rallied at Karratha to protest against one of the biggest oil and gas developments ever undertaken in Australia, by Woodside and BHP, known as the Scarborough project; The Murujuga Aboriginal Corporation has no role in approving such industrial projects, but there is research being undertaken as to whether increased emissions would affect the ancient rock art of the Dampier Rock Art Precinct on Murujuga.
In June 2022, the Environmental Defenders Office (EDO) on behalf of the Australian Conservation Foundation (ACF) sought an injunction against Woodside's Scarborough gas project due to its potential climate impacts on the Great Barrier Reef. As of August 2024, Woodside now has all primary environmental approvals in place after the ACF agreed to dismiss its legal challenge.
In 2023, iconic Australian artworks were vandalised with the Woodside logo as a protest against the company's "ongoing desecration of Murujuga rock art" in the Burrup area. Other actions have been staged at the company headquarters, including further vandalism and the use of stink bombs. The aim of campaigning, including such actions, was described by a member of Disrupt Burrup Hub as 'to brand Woodside’s Burrup Hub as the most toxic fossil fuel project in the country, and develop messaging around that to create public awareness of the Burrup Hub and its impacts, and to convert that into political pressure to prevent its further expansion. Some of the actions taken by these groups have faced significant backlash, such as a protest staged at CEO Meg O'Neill's private residence, which was widely condemned by academic, political and business leaders as "unacceptable" conduct.
Further media coverage covered Woodside's strong support for the 2023 Indigenous Voice referendum, while also not committing to follow its advice.
The Rainbow Rebellion group staged a protest in Perth's city centre in 2019, criticising Pride WA for prioritising corporate partnerships over political activism. They argued that corporations like Woodside Energy were using Pride events to distract from their harmful environmental practices.
The Western Australian Greens party has also expressed concerns about Woodside's involvement in Pride events. In a letter to Pride WA, party leader Brad Pettitt called on the organisation to reconsider its association with the fossil fuel company. Pettit emphasised the devastating impact of climate change on marginalised communities and urged Pride WA to prioritise sponsors who are actively working to address these issues.
target="_blank" rel="nofollow"> Shell further reduces its interest in Woodside Royal Dutch Shell 13 November 2017
target="_blank" rel="nofollow"> Shell upsizes sell down of shares in Woodside Royal Dutch Shell 13 November 2017 Shell sells out of Woodside Petroleum for $2.7 billion Reuters 13 November 2017
target="_blank" rel="nofollow"> Woodside and BHP to create a global energy company BHP 17 August 2021 and has been described by environmentalists as 'a disastrous outcome for Woodside shareholders and the climate'.
Business overview
Scarborough project
Sunrise LNG development
Australia Oil
Burrup Hub
Criticism
James Price Point gas industrial complex
Scarborough project
Additional protests
Pride protest
External links
|
|