The head of gas giant Woodside has expressed frustration at delayed federal sign-off for its contentious North West Shelf project, while suggesting lengthy approvals are a productivity drag.
Speaking during the energy producer’s interim results calls, chief executive officer Meg O’Neill said it was “frustrating” not to have official go-ahead for the Western Australian gas plant extension beyond 2030.
Critics of the project warn the emissions produced by the plant will damage nearby ancient rock art, which recently secured World Heritage status, and contribute to climate change.
In late May, Woodside had been given 10 days to respond to Environment Minister Murray Watt’s provisional approval, a timeline that has since blown out and follows six years of waiting for state-level approval.
“It’s frustrating that we still don’t have the final federal approval,” Ms O’Neill said.
“Approval time frames are certainly something that needs to be considered when we’re thinking about lifting productivity in Australia.”
The remarks land as the government’s Economic Reform Roundtable kicks off in Canberra, where ramping up sluggish productivity growth is a desired outcome.
Woodside board member Ben Wyatt is among the attendees.
Senator Watt’s provisional approval for the North West Shelf extension is subject to conditions on air emission levels but the details have not been made public, a point of contention for conservation groups worried about negotiations behind close doors.
Ms O’Neill said Woodside was seeking similar conditions on approval in its talks with the federal government as those outlined by the state government.
The tentative federal approval faces fresh legal action, including a case brought by Murujuga traditional custodian Raelene Cooper due to be heard in Federal Court on Wednesday.
On Tuesday, the company posted an underlying net profit of $US1.24 billion (A$1.91 billion) for the first half, down from $US1.63 billion (A$2.51 billion) previously but a touch higher than market estimates.
The bottom line result was $US1.32 billion ($A2.03 billion), down 32 per cent.
Weaker commodity prices and other factors weighed on the bottom line and more than offset a major boost in production, which was buoyed by the Sangomar oil project.
Woodside’s operating revenue increased 10 per cent in the six months ended June 30 to US$6.59 billion ($A10.14 billion).
The company also recorded an 11 per cent rise in half-year production to 99.2 million barrels of oil equivalent.
Woodside will pay an interim dividend of 53 US cents per share, which is lower than the 69 US cents paid out in the corresponding half.
Woodside’s share price was tracking lower before the market close, down 1.7 per cent at $26.43.
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