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

Chairman

14 February 2019

Our shareholders will beneﬁt as we

prepare to produce extra LNG right at

a time when the world needs it.