Woodside Energy has made a strategic move by exercising its pre-emption rights to acquire PetroChina International Investment (Australia) Pty Ltd.’s 10.67% participating interest in the Browse Joint Venture. This acquisition aligns with a previous transaction between PetroChina and a subsidiary of Japan’s INPEX Corporation.
As per the terms of the acquisition, Woodside will pay PetroChina $225 million, in addition to reimbursing Browse Joint Venture cash call contributions made since June 30, 2025. There is also a contingent payment of $175 million if the Browse Joint Venture reaches a final investment decision for the development of the Brecknock, Calliance, and Torosa gas fields by June 30, 2032. The completion of this transaction is subject to customary regulatory approvals and other closing conditions. Assuming no other joint venture participant exercises pre-emption rights, Woodside’s interest in the Browse Joint Venture will increase from 30.6% to 41.27%.
This acquisition solidifies Woodside’s position in one of Australia’s significant undeveloped gas resources. The Browse project, located offshore Western Australia, is estimated to support the production of 11.4 million tonnes per year of LNG, liquefied petroleum gas, and domestic gas. Woodside has been actively working on plans to develop the resource through existing North West Shelf infrastructure to reduce development costs and leverage established export facilities.
CEO Liz Westcott emphasized that this acquisition showcases Woodside’s dedication to advancing the proposed Browse-to-North West Shelf development. She stated, “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 maximize long-term shareholder value.” Westcott further highlighted that this transaction is a capital-efficient way to align Woodside’s interests across the upstream Browse resource and the North West Shelf processing infrastructure, potentially enhancing project economics and long-term cash flow generation.
The decision to acquire PetroChina’s stake comes at a time of renewed interest in the Browse project. Woodside noted that recent transactions involving PetroChina-INPEX and BP’s sale of its Browse stake to South Korea’s GS Energy underscore the strategic importance and value of the resource. Browse has long been considered a cornerstone project for Australia’s LNG sector, although development has faced delays due to regulatory, commercial, and cost challenges.
With rising LNG demand in Asia-Pacific markets and concerns about future domestic gas supply in Western Australia, there is a renewed focus on advancing the Browse project. Woodside stated that they will continue collaborating with Browse Joint Venture partners on technical studies, commercial negotiations, and regulatory approvals before making any final investment decision, with a focus on maintaining capital allocation discipline.
In conclusion, Woodside’s acquisition of PetroChina’s stake in the Browse Joint Venture signifies a significant step towards progressing the development of this vital gas resource in Australia. The company’s commitment to maximizing shareholder value and enhancing project economics demonstrates their strategic vision for the future.
