Woodside Energy Group Ltd. | 10(d) Decommissioning at Woodside Energy

Status
Withdrawn
AGM date
Previous AGM date
Proposal number
10
Resolution details
Company ticker
WDS
Lead filer
ACCR
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
Australia
Resolved clause
Subject to and conditional on Item 10(a) being passed by
the required majority, to consider and, if thought fit,
pass the following resolution as an ordinary resolution:
“Shareholders request that the Board disclose annually
from 2023:
Subject to and conditional on Item 10(a) being passed by the required majority, to consider and, if thought fit, pass the following resolution as an ordinary resolution: “Shareholders request that the Board disclose annually from 2023:
1. A list of all onshore and offshore oil and gas infrastructure which may be decommissioned over the medium-term
2. Audited asset-level provisions for the decommissioning of this infrastructure and restoration of sites, along with the major assumptions underpinning these provisions, and
3. Analysis of the useful life of all assets using different oil and gas demand scenarios, including the IEA Net Zero by 2050 scenario
Supporting statement
As Australia's oil and gas industry matures, decommissioning liabilities are increasing. In 2020, Wood Mackenzie estimated the current cost of Australia's onshore and offshore decommissioning at more than US$49 billion (A$60 billion) over the next 30 years. For the offshore oil and gas industry alone, decommissioning over the next 50 years has been estimated at USD$40.5 billion ($56 billion), with 51% of activities likely to occur before 2030.
Australia’s national offshore regulator, NOPSEMA, warns the task ahead is significant - expensive, complex, and high-risk. As decommissioning is in its infancy in Australia, high-level cost estimates have not been reconciled to actual costs.
Decommissioning is an evolving, material issue that intersects with a broad range of risk areas, including financial, regulatory, safety, environmental and climate change. These escalating risks call for improvements to company disclosures.

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