Woodside Petroleum Ltd|  Overview 9
promising developments in Senegal and Myanmar. Those plans
received strong backing from shareholders via our US$2 billion
equity raising, maintaining our strong balance sheet as we
progress through this growth phase. This positions us well as
we compete with other resource developers to take advantage
of the growing global demand for gas.
The world needs more gas as growing populations, particularly in
Asia, demand extra energy and cleaner air. For some years, there
was abundant gas and little investment globally in new projects,
but now a shortfall looms and there is strong competition to
sanction new projects that can meet the growing demand.
Woodside’s ability to use its existing facilities gives us a head
start in this global race. We have the opportunity to grow our
safe and reliable operations in an ecient way, rather than
duplicating facilities. We are working with our joint venture
partners and other stakeholders in finalising agreements on the
use of this infrastructure. Our plans are gaining momentum, but
we know there are still hurdles to jump, tough decisions to make
and cooperation needed from all our partners.
Some things that are beyond our control can influence our
operations. It is important to have a stable industrial relations
environment because we’re not going to invest significant
capital if there is a risk of cost blow-outs due to changing
employment conditions.
As we approach big investment decisions, we carefully weigh a
range of factors. It’s an uncertain world, and we try to account
for those uncertainties – around geopolitics, around climate
change and the world’s response to it. The role of business is
to take calculated risks, with the Board overseeing appropriate
governance around investment decisions. We will manage risks
across an investment cycle. It is true that we won’t always get it
right, but we take a very diligent and rigorous approach as we
make long-term decisions to invest significant capital on behalf
of our shareholders.
I am pleased to chair a diverse Board of highly capable
directors, who are focused on the interests of the company
and shareholders and oer expertise that is broad and deep.
Peter Coleman leads an astute and dedicated management
team, with the right skills and vision to take us through this
important phase.
This report outlines our new remuneration scheme, which
we think is measured, appropriate and aligned to shareholder
experience. A significant part of the scheme involves equity,
which vests and is earned through long-term performance,
linked to major strategic deliverables in the coming years.
On behalf of the Board, I would like to thank Michael Chaney
for his leadership of Woodside as Chairman for 12 years.
Over that timeframe, which was marked globally by
significant volatility and rapid change, Michael has overseen
disciplined investment decisions and ensured that Woodside
maintained a strong financial position. I would also like to
thank Melinda Cilento, who steps down as a director at the
AGM, for the valuable contribution she has made during the
past decade, including her diligence and commitment as
Chair of the Human Resources & Compensation Committee.
Over the past year, your company has outlined bold growth
plans and made a good start on delivering them. The next few
years will be crucial for Woodside as we build on our history as
the pioneer of LNG in Australia.
Richard Goyder, AO
14 February 2019
Our shareholders will benefit as we
prepare to produce extra LNG right at
a time when the world needs it.