ExxonMobil is assessing possible acquisition targets that include Australia-based Woodside Energy Group, according to a report from Bloomberg News, citing unnamed sources.
The US-based oil and gas company is said to be holding initial internal discussions as it seeks to expand further into the liquefied natural gas (LNG) sector and reinforce its foothold in Asian energy markets.
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The sources, who requested anonymity as they are not authorised to speak publicly, stated that ExxonMobil has not made any decisions. There is also no certainty that these considerations will result in a formal bid for Woodside or any other entity, said the sources.
A prospective acquisition of Woodside, Australia’s largest LNG exporter, would represent a strategic shift for ExxonMobil, which completed a $60bn deal for US shale producer Pioneer Natural Resources in 2024.
Bloomberg reported that the acquisition of Woodside would broaden ExxonMobil’s operational reach outside the US. It would also give the company a greater stake in LNG, an area where it trails behind operators such as Shell and TotalEnergies, the publication said.
Rising energy demand and recent geopolitical disruptions have brought renewed attention to LNG suppliers outside the Middle East. According to the sources cited by Bloomberg, the conflict in Iran that started in late February has impacted the Strait of Hormuz and restricted a significant portion of global gas supply, prompting buyers in Asia to secure alternatives.
Woodside has established LNG sales agreements with companies in Japan and South Korea and is progressing with a US Gulf Coast development scheduled to enter operation by 2029.
Despite market speculation and increased share price activity, Woodside stated on Monday that it has not received a proposal from ExxonMobil and was not engaged in discussions about a possible transaction.
Meanwhile, Western Australia Premier Roger Cook indicated that the state government would not support any acquisition resulting in Woodside’s head office moving from Perth, its base since the 1990s, according to Reuters.
In the context of industry consolidation, Woodside is not the only Australian energy company viewed as a potential target. Its smaller competitor, Santos, has experienced multiple approaches, including proposed deals from a consortium led by a subsidiary of ADNOC, although these negotiations have not resulted in a completed transaction.
In a separate development, Woodside last week exercised its pre-emption right to acquire PetroChina International Investment (Australia)’s 10.67% stake in the Browse Joint Venture. This move by Woodside followed the proposed sale of that stake to an Inpex subsidiary.
