Woodside Energy has exercised its pre-emption right to acquire PetroChina International Investment (Australia)’s 10.67% participating interest in the Browse Joint Venture (JV).
This move follows the proposed sale of the stake by PetroChina, a subsidiary of China National Petroleum Corporation (CNPC), to an Inpex subsidiary.
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Under the terms of the acquisition, Woodside will pay CNPC $225m for the interest.
The agreement also includes the reimbursement of PetroChina’s cash call contributions to the venture from 30 June 2025 up to the completion date.
Additionally, a contingent payment of $175m will be made to CNPC if the JV proceeds to a final investment decision for the development of the Brecknock, Calliance and Torosa fields on or before 30 June 2032.
The gas fields are situated in the offshore Browse Basin, around 425km north of Broome in Western Australia (WA).
The completion of Woodside’s purchase is dependent on standard conditions such as securing regulatory clearance.
If no other partners in the JV use their own pre-emption rights, Woodside’s share in the Browse JV would rise to 41.27%.
According to Woodside, the Browse field represents Australia’s largest undeveloped conventional gas resource, with a potential output of 11.4 million tonnes per annum (mtpa) of liquefied natural gas (LNG), liquefied petroleum gas (LPG) and domestic gas.
The Browse resource offers prospects for a large-scale energy development that could help meet projected LNG requirements in the Asia-Pacific region and deliver additional domestic gas supply for WA.
Woodside has said that its holdings in both the Browse offshore resource and the North West Shelf’s onshore facilities lay the foundation for an integrated development approach.
Woodside CEO Liz Westcott said: “Woodside’s decision to pre-empt reflects our commitment to continue progressing the proposed Browse to North West Shelf development. We see this as a pathway to maximise long-term shareholder value.
“Browse to the North West Shelf remains an important growth option for Woodside. This acquisition is a disciplined and capital-efficient way to align integrated value in these assets for a development with long-term cash flow potential.
“We will continue working with the Browse Joint Venture to fully evaluate development opportunities. This includes advancing technical definition, commercial arrangements and regulatory approvals. Any investment decision will be made in accordance with Woodside’s capital allocation framework.”
In April this year, Woodside awarded a contract worth more than $300m to Green Tug Towing for the design and construction of four tugboats for its Louisiana LNG project in the US.
