Woodside Energy counters INPEX offer for stake in Browse Basin gas project

Woodside Energy plans to exercise its right to pre-empt the sale by PetroChina International Investment (Australia) of a 10.67% stake in the Browse Joint Venture (BJV) to INPEX, according to a June 12 news release.

The Australian E&P major said its terms would reflect those of the proposed INPEX transaction. These include a contingent payment to CNPC of $175 million once the JV has taken FID on developing the Brecknock, Calliance and Torosa fields, 425 km north of Broome, Western Australia, on or prior to June 30, 2032.

Woodside said the Browse accumulations were Australia’s largest undeveloped conventional gas resource with the potential to produce 11.4 MMmt/year of LNG, LPG and gas for markets in Western Australia and the Pacific region.

The pre-emption move “reflects our commitment to continue progressing the proposed Browse to North West Shelf development…," said Woodside CEO Liz Westcott. “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.”

However, the acquisition remains subject to customary conditions, including regulatory approvals. Post-completion, Woodside’s equity in the project (assuming none of the other JV partners also decide to pre-empt) would rise to 41.27%.