62 Woodside Petroleum Ltd|Annual Report 2018
Woodside must have
the right capability
and capacity, with
sta performing to the
required level, to deliver
base business and growth.
Failure to establish sucient capability and
organisational culture to support global
operations may impact achievement of
our objectives.
As we progress into a major growth phase,
our focus has been on reinforcing our
Compass values, the establishment of the
right talent and capability to support the
fast-paced development portfolio timeline,
and establishment of employer of choice
credentials to attract high talent in the market.
We proactively engage our tier 1 contractors,
strengthening alignment with our Compass
values, and are locking in capability and
price to meet upcoming business demands.
Woodside’s technology
strategy is focused on
maintaining competitive
advantage through
innovation to generate
value for our business.
Unsuccessful development and delivery of new
technology and new products through innovation
may impact competitive advantage.
We are reducing unit costs for developments
and deploying technology solutions in new
business opportunities to deliver our strategic
objectives. We aim to respond nimbly to
emerging trends, disruptive innovations and
complementary technologies.
Our business activities
are subject to extensive
regulation and
government policy. Our
business performance
is underpinned by our
licence to operate.
In each of the countries where we do business,
Woodside is subject to various national and local
laws, regulations and approvals, and stakeholder
expectations. These relate to the exploration,
development, production, marketing, pricing,
transportation and storage of our products, and
changes or failure to comply with these may
impact our licence to operate.
As we increase our global footprint, we
continue to strengthen our regulatory
compliance framework and supporting tools.
We also proactively maintain relationships
with governments, regulators and
stakeholders within countries in which
we operate and those of interest.
Bribery and corruption present a significant threat
to commercial organisations and communities
worldwide. Violation of anti-bribery and corruption
laws may expose Woodside to fines, criminal
sanctions and civil suits, and negatively impact
our international reputation.
Our Fraud and Corruption Control Program
provides a clear framework to help
prevent, detect and respond to dishonest
or unethical behaviour. The framework
incorporates policies, programs, training,
standards and guidelines that help ensure
that all activities are conducted ethically,
honestly and to a high standard.
Woodside faces climate
change related risks
including changes in
product demand, carbon
pricing, uncertainty
surrounding future
regulatory frameworks
and increased stakeholder
Demand for oil and gas may subside as lower
carbon substitutes take market share. Global
climate change policy remains uncertain and
has the potential to constrain Woodside’s ability
to create and deliver stakeholder value from the
commercialisation of our hydrocarbons.
We are focusing on ensuring our portfolio
is robust in a carbon constrained market,
improving our energy eciency, and
maintaining engagement with key industry
and government stakeholders. We are
implementing strategies to diversify our
product mix, diversify use of our products,
broaden our customer base and increase
our portfolio resilience.