Key facts
- Woodside Energy will acquire PetroChina's 10.67% stake in the Browse gas fields for $225 million.
- This acquisition prevents Inpex from entering the Browse gas project.
- Woodside plans to pipe Browse gas to its North West Shelf processing facility.
- The deal includes a potential $175 million contingent payment tied to a future investment decision.
- Woodside's stake in the Browse JV will increase to 41.27%.
Woodside Energy has exercised its pre-emptive rights to acquire PetroChina's 10.67% stake in the Browse gas fields off Western Australia, effectively blocking a deal that would have allowed Japan's Inpex to enter the project. The transaction, valued at $225 million plus reimbursement of cash call contributions, aligns with Woodside's strategy to pipe Browse gas south to its North West Shelf processing facility.
A contingent payment of $175 million is also part of the agreement, payable if a final investment decision for the development of the Brecknock, Calliance, and Torosa gas fields is made by June 30, 2032. This move increases Woodside's interest in the Browse joint venture to 41.27%, pending regulatory approvals.
The Browse project is considered Australia's largest undeveloped conventional gas resource. PetroChina had originally purchased its stake for $1.63 billion in December 2012. Woodside's shares were down 2.8% in early trading amid weaker oil prices.