Woodside, Santos Investors Strike Down Activist's Push for Oil and Gas Operations Wind-down

Thursday, April 15, 2021

Investors in Australia's top two independent oil and gas producers on Thursday rejected an activist group's push to get the companies to spell out plans to wind down their operations to help curb global warming.

The resolutions were ultimately not put to a vote as they required shareholders first to approve a move to amend the companies' constitutions, which they did not. However, their boards did disclose the proxy votes on the resolutions.

Almost one-fifth of votes cast ahead of Woodside Petroleum's annual meeting were in favor of the resolution proposed by shareholder activist group Market Forces, which is affiliated with Friends of the Earth Australia.

That compared with 13% of votes cast ahead of Santos Ltd's annual meeting in favor of pushing the company to get out of oil and gas.

Market Forces had hoped for more backing as another group, the Australasian Centre for Corporate Responsibility (ACCR), last year won strong support for pushing companies to set targets for cutting their customers' carbon emissions, so-called Scope 3 emissions.

"What's disappointing is investors have missed that next step of understanding that reducing Scope 3 emissions means reducing coal, oil and gas production," Market Forces campaigner Will van de Pol said.

He said, however, after the Santos vote: "With today's vote almost doubling the previous record set for a fossil fuel wind-up resolution, all coal, oil and gas producers must take note - investors are increasingly willing to demand drastic action to align with global climate goals."

Both Woodside and Santos see gas as a key fuel in the transition to cleaner energy, and as a source for hydrogen down the track.

Woodside said its net emissions have peaked and will decline, barring any major new acquisitions.

"The point I want all shareholders to understand is we think Woodside prospers in a lower carbon world," Woodside Chairman Richard Goyder told shareholders at the annual meeting in Perth.

In contrast to Europe's oil majors, the leading Australian gas producers are not chasing renewable energy, but instead focusing on carbon capture and storage (CCS) and tree-planting to offset emissions.

"Hydrogen with CCS will ultimately eliminate our emissions, and that's our plan," Santos Chairman Keith Spence told shareholders.

Santos and Woodside also initially faced climate resolutions from ACCR, working with British hedge fund manager Chris Hohn's Say on Climate campaign.

Those were withdrawn after both companies agreed to put their climate reporting to a vote at their annual meetings in 2022.

 (Reporting by Sonali Paul; Editing by Jane Merriman and Jan Harvey)

Categories: Energy Industry News Emissions Activity Production Australia/NZ

Related Stories

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

Fugro Lands Deepwater Gas Field Job in Southeast Asia

BW Opal FPSO Vessel set for Work off Australia

Indonesia's Medco Starts Production at Natuna Sea Fields

CNOOC Puts Into Production New Oil Field in South China Sea

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

CNOOC Starts Production at Two New Oil and Gas Projects

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

Six New Gas Wells in Line for BP’s Shah Deniz Field in Caspian Sea

Current News

MODEC, Carbon Clean to Advance FPSO-Mounted Carbon Capture Tech

Aker Solutions, PTAS JV Hooks Brownfield Services Extension off Brunei

CDWE Wraps Up Pin Pile Installation Job for Taiwanese Offshore Wind Farm

BP Expands Oil and Gas Scope in Azerbaijan with New Projects and Exploration Rights

Azeri SOCAR Plans New Agreements with Oil and Gas Majors

TPAO, SOCAR and BP to Ink Caspian Sea Oil and Gas Production Deal

Fugro Lands Deepwater Gas Field Job in Southeast Asia

OMV Exits Ghasha Gas Project off UAE with Lukoil Stake Sale

China's Sinopec Laucnhes $690M Hydrogen Venture Capital Funds

CIP, ACEN Partner Up for First Large-Scale Offshore Wind Farm in Philippines

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com