Chevron, Woodside negotiate asset exchange for multiple projects offshore Australia
Woodside Energy and Chevron have agreed to an asset swap covering multiple development projects offshore Western Australia.
Under the proposed transaction, Woodside will acquire Chevron’s 16.67% interests in the North West Shelf (NWS) project, the NWS oil project and Chevron’s 20% stake in the Angel Carbon Capture and Storage (CCS) project. Chevron would also make a cash payment to Woodside of up to $400 million.
In exchange, Chevron would receive Woodside’s 13% share in the offshore Wheatstone development and Woodside’s 65% operated interest in the Julimar-Brunello project.
Fulfillment of the deal is subject to completion of the Julimar Phase 3 execution and handover, anticipated in 2026, and of various ongoing abandonment programs.
Julimar Phase 3 is a four-well tieback to the Julimar field production system. Woodside will continue to operate the execution phase, but it will transfer the facilities to Chevron on startup.
Wheatstone processes gas from several offshore fields that include Julimar and Brunello. Woodside’s share of production this year has averaged ~34,000 boe/d.
Chevron’s share of output from the NWS project and NWS oil project has averaged ~54.5 kboe/d over the first nine months of this year.
“This deal positions Woodside to progress the extension of the North West Shelf (NWS) LNG plant…," according to Andrew Harwood, vice president of Research, Upstream and Carbon Management at Wood Mackenzie. “The Woodside-operated Browse resource has been identified as the preferred backfill candidate for the NWS, while the transfer of Chevron’s stake in the Angel Carbon Capture and Storage (CCS) project highlights Woodside's commitment to reducing emissions associated with any potential Browse development.
“Chevron’s operations in Australia remain one of its largest international holdings. However, the US company has streamlined its portfolio over the past year in preparation for its proposed acquisition of Hess Corporation.”
This year the company has divested holdings in Alaska and Canada, Harwood pointed out, with reports suggesting its UK portfolio could be next in line to go.