Woodside Energy announced that it will exercise its right of pre-emption to acquire the 10.67% stake held by PetroChina in the Browse gas project, located off the coast of Western Australia.
The operation prevents the entry of Japan’s Inpex into the joint venture and strengthens Woodside’s control over one of the country’s largest undeveloped gas resources.
The Australian company will pay $225 million for the stake, in addition to reimbursing capital contributions made by PetroChina since mid-2025. Once the transaction is completed, Woodside will raise its stake in Browse to 41.27%.
Woodside exercises its pre-emptive right in Browse
The operation follows an agreement reached by PetroChina to sell its stake to Inpex. However, the terms of the joint venture agreement grant existing partners rights of first refusal, allowing Woodside to match the offer and acquire the assets before they pass to a third party.
In addition to the initial payment, the agreement includes a contingent consideration of up to $175 million intended for Inpex. This payment would be conditional on Browse reaching a final investment decision for the comprehensive development of the Brecknock, Calliance, and Torosa fields.
The total consideration associated with the operation could reach $400 million, depending on the future progress of the project.
Browse remains key to the future of Australian LNG
Browse is considered one of the most important gas projects pending development in Australia. The resource is located in the offshore Browse Basin, north of Western Australia, and contains significant reserves primarily destined for the international liquefied natural gas (LNG) market.
The project is part of Woodside’s long-term strategy to strengthen its natural gas portfolio and maintain its position as one of the leading LNG producers in the Asia-Pacific region.
The acquisition also increases the company’s influence over future decisions related to the field’s development, including infrastructure selection and investment schedules.
The market remains attentive to the final investment decision
Despite the announcement, Woodside shares recorded declines of over 2% during the day, in a context marked by falling international oil prices and investor caution regarding large energy projects.
The market continues to observe the evolution of Browse, whose final investment decision will be decisive in defining the future of the project and its contribution to the supply of liquefied natural gas in the coming years.
With this acquisition, Woodside strengthens its position in a strategic asset for the Australian energy industry and reaffirms its commitment to the development of new gas resources for international markets.
Source and photo: https://www.woodside.com/
