Woodside to increase interest in Browse
Key Highlights
- Woodside will pre-empt the sale of an interest in the Browse Joint Venture (BJV).
- The pre-emption will increase Woodside’s commitment towards the proposed Browse-to-North West Shelf development.
Woodside will pre-empt the sale of an interest in the Browse Joint Venture (BJV) off the west coast of Australia.
The company has given notice exercising its right to pre-empt the sale of PetroChina International Investment (Australia) Pty Ltd.’s (CNPC) 10.67% participating interest in the joint venture. The sale was to go to a subsidiary of INPEX Corp.
Woodside pre-emption is due to its combined interest in the upstream Browse resource and the North West Shelf onshore infrastructure. 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 maximize long-term shareholder value… 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.”
Browse is Australia’s largest undeveloped conventional natural gas resource with potential production of 11.4 million tonnes/year of LNG as well as LPG and gas for the domestic market.
The terms of Woodside’s acquisition will reflect those of the CNPC-INPEX transaction, including a payment to CNPC of $225 million plus reimbursement of CNPC’s BJV cash call contributions made between June 30, 2025, and the completion date and a contingent payment to CNPC of $175 million upon the BJV taking a final investment decision for development of Brecknock, Calliance, and Torosa fields before June 30, 2032.