wpl ceo comments in fin review, page-2

re: wpl ceo comments in fin review - full article Woodside CEO promises new adventures
Author: Ian Howarth
Date: 14/05/2004
Words: 531
Source: AFRBreaking
Publication: Financial Review
Section: Companies
Page: 63


Woodside Petroleum's long-term exploration effort in the offshore Gulf of Mexico could be brought to an end by the group's new chief executive, Don Voelte.

In his first interview since taking up the role six weeks ago, Mr Voelte told The Australian Financial Review that he preferred to build dominant positions, where the pace of exploration and future developments could be determined by Woodside.

Asked about Woodside's position in the Gulf of Mexico, Mr Voelte said: "I have been here six weeks. I know a lot about the Gulf of Mexico. It's not frontier exploration by any means; it's a very mature basin.

"There are a lot of teams out there that understand it very well. I'd reserve my comments on the Gulf of Mexico until I have the chance to study it [Woodside's position] in more depth."

The chief executive, who had a long executive career with Mobil and then Arco in the United States, said he liked Woodside's strong position in Mauritania, but said that more consolidation of the company's position was under way.

He also noted that while acquisitions would be an important part of Woodside's growth, the company was more likely to seek specific assets than launch takeovers for whole companies.

Mr Voelte was also positive about Woodside's previously troubled relationship with Shell, which has twice launched hostile takeover bids for Australia's largest independent petroleum company.

Shell owns almost 40per cent of Woodside's shares.

"I carefully thought about Shell prior to joining Woodside" MrVoelte said. "I questioned the board a lot about Shell. I wanted to ensure that I understood how the voting worked, that there was no super majority rights etc. It's straight up with Shell. I don't really have any baggage with Shell.

"When I was with Mobil, I used to do a lot of business with Shell. They were one of my partners of choice when I was at Mobil. They were good partners. When we decided to do something, we did it."

"When Shell saw my candidacy come through [for the Woodside chief executive officer position] they put the sirens out.

"They know me, how I think, how I work.

"I've got an understanding with the Shell directors. They are to pick the phone up immediately if they think I am spending one dollar of Woodside's money on something that they wouldn't be proud to spend it on.

"I've seen nothing to this point that shows any lingering animosity or anything like that.

"When the Shell directors come with their Woodside director's hat on, it is Woodside business, and up to this point it's been extremely constructive, productive.

"Maybe it changes in the future, but right now they are a big shareholder of ours.

"I have a fiduciary responsibility to all my shareholders, and frankly I need to treat all of them as best I can."