Beach Energy hires Santos’ Brett Woods as new CEO after Morne Engelbrecht’s exit
Embattled Beach Energy has named Brett Woods as its new CEO after the abrupt exit of Morne Engelbrecht, as the oil and gas company endures yet more upheaval.
Embattled Beach Energy has named Brett Woods as its new chief executive after the abrupt exit of Morne Engelbrecht after a little more than a year in the job, as the oil and gas company endures yet more upheaval.
Mr Woods will be Beach Energy’s third CEO in about three years when he joins in February 2024. The oil and gas company has struggled to boost production – much to the dissatisfaction of shareholders and investors.
Mr Woods joins from Santos, where he has most recently served as chief operating officer, and oversaw the company’s east Australian operations.
The departure of Mr Engelbrecht comes just two weeks after Seven Group boss Ryan Stokes was appointed as director of Beach Energy, helping his father and billionaire Kerry Stokes tighten his grip on the oil and gas company.
The company said the reappointment of Mr Stokes was not indicative of any concern by Beach Energy’s largest shareholder, but the South Australian-based company has endured significant recent troubles.
Beach Energy said in May its Waitsia Stage 2 project in Western Australia – a key pillar of Beach Energy’s growth strategy from which the company had targeted first gas by the end of 2023 – would be delayed by labour shortages. The company said it was unclear on when it will be able to deliver gas to customers.
The company had earlier in the year said the project had been hampered by the collapse of Clough.
The Waitsia project is being developed as a joint venture between Beach and Japan’s Mitsui & Co. Beach has begun a review of the project.
The delay in gas production was a blow to hopes that Beach is poised to see the much anticipated turnaround in its fortunes after it struggled to boost output.
In 2022, Beach Energy slashed the estimated gas reserves at its LNG export basin near Perth by 11 per cent after the Waitsia Stage 2 drilling campaign.
The company – 30 per cent owned by billionaire Kerry Stokes – said the reduction in total proven and provable reserves by 10.6 million barrels of oil equivalent was due to “increased structural complexity in the Waitsia field and poor reservoir quality in the High Cliff reservoir at Waitsia”.
In 2021, Beach Energy suffered its biggest ever one-day share market fall when it suddenly slashed its estimate for reserves from the Western Flank oil reserves in northeast South Australia, triggering class action lawsuits.
Then CEO Matt Kay quickly left Beach Energy before Mr Engelbrecht was appointed.
Mr Engelbrecht said he was proud of his legacy at Beach Energy.
“I am proud of what we achieved over the last 7 years, especially my involvement as a leader, including as CEO, in the transformation of Beach from a single basin operator to a diversified growing business and safely delivering the biggest offshore development in the company’s history. I want to thank the entire Beach team for their efforts and wish them all the best as I look forward to pursuing new opportunities.” said Mr Engelbrecht.
Seeking to repair its standing, Beach has ramped up efforts to bolster production in a bid to capitalise on a looming supply shortage across Australia’s east coast.
The task will now fall on Mr Woods to deliver Beach Energy’s plans and soothe market concern about the company, but the newly appointed executive said he was excited by the challenge.
“Beach is in a great position with a strong portfolio of assets and a great balance sheet. I am excited to join at a time where I can help the team deliver the current projects, drive operational excellence and grow the business,” said Mr Woods.
Mr Woods will receive a remuneration package of $1.35m a year, and will receive a signing-on bonus of shares in Beach Energy worth $1.65m.
Shares in Beach Energy fell 3 per cent after the announcement of Mr Engelbrecht’s departure, as fresh turbulence weighed on investor sentiment.
Santos CEO Kevin Gallagher congratulated Mr Woods on his new role.
“Brett’s appointment is a reflection on the calibre and competency of our people at Santos. We have a penchant for developing talent. He is our third executive to be appointed to a CEO role from a senior leadership position in Santos in the last three years, two of who are women.” said Mr Gallagher.
“I have always been supportive of my direct reports fulfilling their ambitions, either at Santos or within the wider industry, and Brett is no different.”
