Woodside Energy
| Company type | Public |
|---|---|
| Industry | Petroleum exploration and production |
| Predecessor | Woodside Petroleum Ltd |
| Founded | July 26, 1954 |
| Founder | Rees Withers |
| Headquarters | Perth , Australia |
Area served | Australia and internationally (Canada, United States, Senegal, South Korea, New Zealand, Myanmar, Cameroon, Gabon, Morocco, Ireland) |
| Products | Oil, liquefied natural gas (LNG) |
| Website | woodside |
Woodside Energy Group Ltd (previously known as Woodside Petroleum Ltd) is an Australian company specializing in petroleum exploration and production. It operates oil and liquefied natural gas extraction activities within Australia and stands as the nation’s largest independent oil and gas enterprise. The company is publicly listed on the Australian Securities Exchange and is headquartered in Perth, Western Australia. According to the 2020 Forbes Global 2000, Woodside ranked as the 1328th-largest publicly traded company worldwide.
History
Founded on 26 July 1954 as Woodside (Lakes Entrance) Oil Co NL, the company derived its name from the town of Woodside in Victoria. The firm was launched by accountant Rees Withers, who initially faced difficulties in securing investment. In 1956, stockbroker Geoff Donaldson took on the role of chairman, providing crucial support during the company's formative years.
Woodside's early efforts concentrated on the Gippsland Basin in Victoria; however, in 1962, under chief geologist Nicholas Boutakoff, focus shifted to Western Australia where promising prospects were identified in the North West Shelf. Woodside partnered with Shell and Burmah Oil to establish the original North West Shelf Venture. Subsequently, BHP replaced Burmah Oil in this consortium. By 1985, Shell and BHP each controlled 40% of Woodside. BHP scaled back its ownership to 10% by 1990 before fully divesting by 1994, while Shell gradually decreased its shareholding, ultimately selling all remaining shares by November 2017. In 1995, Woodside moved its headquarters from Melbourne to Perth.
In 2001, an Australian government decision blocked Shell's bid to acquire full ownership of Woodside on grounds related to national interest. Shell later reduced its stake from 34% to 24% in 2010 and exited entirely by 2017.
In August 2021, Woodside agreed to merge with BHP’s oil and gas division to form a global energy company, subject to regulatory and shareholder approval. This merger faced criticism from environmental organizations due to concerns over its climate implications. By May 2022, nearly 98% of Woodside shareholders had endorsed the transaction, which was finalized by June and resulted in listings on both the New York Stock Exchange and London Stock Exchange.
In July 2024, Woodside announced its intention to acquire American natural gas firm Tellurian Inc. for US$1.2 billion. The following month, it revealed plans to purchase a "blue ammonia" project based in Texas from OCI Global for US$2.35 billion.
Business overview
Woodside engages in exploration, development, and operational activities across Australia and internationally, with interests spanning Canada, the United States, Senegal, South Korea, New Zealand, Myanmar, Cameroon, Gabon, Morocco, and Ireland. Within Australia, Woodside oversees several liquefied natural gas (LNG) ventures and manages offshore oil fields including Enfield, Vincent, and Pyrenees located near Exmouth in Western Australia.
Scarborough project
Situated off the coast of Pilbara, the Scarborough gas field project includes a floating production facility, drilling of thirteen wells, and construction of a pipeline connecting to the Pluto LNG processing plant near Karratha—which will undergo expansion. Production is anticipated to commence in 2026 following environmental clearance.
A study conducted in 2021 projected that the Scarborough-Pluto development will generate approximately 1.4 billion tonnes of greenhouse gas emissions over its operational life—equivalent to more than three times Australia's current yearly emissions and roughly fourteen times those of Western Australia annually.
Sunrise LNG development
The Greater Sunrise gas project in the Timor Sea encompasses the Sunrise and Troubadour fields, initially discovered in 1974. Situated roughly northwest of Darwin and southeast of East Timor, approximately 80% of these fields fall within Australian maritime boundaries. The reserves contain contingent dry gas resources estimated at , along with condensate volumes of .
The joint venture operating Sunrise includes Woodside as the operator holding a 33.4% stake, ConocoPhillips with 30%, Shell owning 26.6%, and Osaka Gas at 10%. In April 2010, Shell’s floating LNG technology was chosen to develop the Greater Sunrise fields. Woodside’s consortium is currently consulting with regulatory bodies regarding the project's preferred development concept.
Australia Oil
Woodside manages multiple offshore oil operations off Western Australia, such as the Ngujima-Yin FPSO, Pyrenees FPSO, and Okha FPSO units.
Burrup Hub
The Burrup Hub, led by Woodside, represents the largest proposed fossil fuel initiative in Australia. It targets six undeveloped gas fields with plans to drill a total of 84 wells along the Western Australian coastline.
Criticism
In 2006, Mauritania’s military government criticized modifications made to an oil agreement with Woodside, initially signed in 2004 for a US$600 million investment in the Chinguetti offshore project. These contract changes, considered irregular under standard legal norms, were projected to potentially cost Mauritania up to US$200 million annually. That same year, the Australian Federal Police launched an investigation into Woodside over allegations of bribery and corruption linked to Mauritania.
Between 2006 and 2007, Woodside encountered resistance against its Pluto LNG project's onshore processing facility located on Western Australia’s Burrup Peninsula—a site renowned for its Aboriginal rock art.
Woodside has been associated with lobbying campaigns aimed at shaping Australian government climate policies, including opposing emissions trading schemes during both the Howard and Rudd administrations. The company was among six entities accused of making misleading public claims to obtain free carbon permits; nonetheless, no enforcement action was taken by the Australian Competition & Consumer Commission.
From 2011 to 2013, investigations and legal proceedings addressed accusations that foreign workers on Woodside-operated North West Shelf oil platforms were paid wages as low as A$3 per hour.
A 2013 offshore operational review uncovered a safety equipment malfunction at Woodside’s Vincent oilfield caused by defective wiring and design shortcomings.
In 2016, Woodside failed to disclose an oil spill off Western Australia amounting to 10,500 liters that persisted undetected for two months before becoming public knowledge.
In 2019, Woodside spearheaded lobbying efforts against new climate protection guidelines proposed by the Western Australia Environmental Protection Authority, drawing criticism from the Australian Centre for Corporate Responsibility.
In 2020, Woodside sought to avoid decommissioning expenses by proposing to dispose of equipment from its Echo-Yodel field as an “artificial reef,” including approximately 400 tonnes of plastic materials. Additionally, the company secured substantial government funding through a restricted tender process to provide consultancy services for cleaning up a decommissioned gas facility rather than covering over A$200 million in cleanup costs itself.
Woodside has also been condemned for involvement in wiretapping the East Timor government to negotiate more advantageous revenue-sharing arrangements.
In 2023, criticism arose over Woodside’s sale of the Northern Endeavour vessel in 2016 to a company that collapsed four years later, leaving decommissioning responsibilities to be assumed by the Australian Government.
James Price Point gas industrial development
The "Save The Kimberley" initiative actively resisted Woodside's plan to establish a gas industrial complex at James Price Point within Western Australia's Kimberley region. Demonstrations included musical events held at Federation Square in October 2012 and at Esplanade Park, Fremantle in early 2013, featuring prominent individuals such as Bob Brown, former leader of the Australian Greens. The Fremantle concert was accompanied by a march where participants carried banners and signs. Delays to the project arose from community blockades, extensive public submissions, and legal challenges.
Due to sustained protest and political opposition—including resistance from certain local Aboriginal communities—the proposal was ultimately abandoned in April 2013. Despite this, the A$1.5 billion social benefits agreement negotiated between the Kimberley Land Council, Woodside and its joint venture partners, along with the Barnett government, remained a subject of debate.
Wayne Bergmann, who formerly led the Kimberley Land Council and facilitated the agreement before stepping down, controversially remarked that Woodside and its partners were politically, but not legally, bound to uphold the deal.
By April 2013, Woodside had disbursed A$3.7 million to Aboriginal organisations under this arrangement and pledged to maintain voluntary social investment initiatives within the West Kimberley region.
Certain shareholders contended that Woodside’s directors breached their fiduciary responsibilities under the Corporations Act by authorizing payments after the project's cancellation, alleging that funds were misallocated without effectively aiding those genuinely disadvantaged.
Scarborough development
The Scarborough-Pluto project has drawn criticism for conflicting with Australia's commitment to restrict global warming to 1.5 °C as outlined in the Paris Agreement. In November 2021, approximately 50 residents in Karratha protested against this significant oil and gas venture by Woodside and BHP. The Murujuga Aboriginal Corporation is not participating in approval processes for the project; however, investigations into potential effects on the Dampier Rock Art Precinct on Murujuga continue.
In June 2022, the Environmental Defenders Office (EDO), acting on behalf of the Australian Conservation Foundation (ACF), sought an injunction to halt Woodside’s Scarborough development due to climate-related threats to the Great Barrier Reef. By August 2024, Woodside had obtained all key environmental clearances after the ACF withdrew its legal opposition.
Further activism
Woodside has faced additional resistance from environmental advocates. In 2023, activists defaced notable Australian artworks with Woodside branding to protest the company’s impact on Murujuga rock art located in the Burrup Peninsula. Other protests targeted Woodside’s corporate offices, involving acts of vandalism and stink bomb deployments. Campaigners seek to label Woodside’s Burrup Hub as Australia’s most hazardous fossil fuel project to increase public awareness and exert political pressure against its growth. Some methods, including demonstrations at CEO Meg O'Neill’s private residence, attracted widespread criticism from academic circles, political figures, and business leaders.
Media reports emphasized Woodside’s robust endorsement of the 2023 Indigenous Voice referendum, although the company has not committed to adhering to its recommendations.
Pride demonstration
Since 2019, Woodside Energy's role as a sponsor of Perth's PrideFEST has generated debate within the LGBTQ+ community. Critics argue that the corporation's financial backing attempts to eclipse the movement’s activist origins and shift focus away from the company's environmental footprint.
In 2019, the Rainbow Rebellion organized a demonstration in Perth’s central business district, accusing Pride WA of favoring corporate alliances such as Woodside’s sponsorship instead of prioritizing political activism. Additionally, the Western Australian Greens called on Pride WA to sever ties with Woodside, emphasizing how the climate emergency disproportionately impacts vulnerable groups and urging support for sponsors genuinely committed to tackling these issues.