Woodside exercises pre-emption right over PetroChina’s Browse stake

The news: Woodside Energy has exercised its pre-emption right to acquire PetroChina subsidiary CNPC’s 10.67% stake in the Browse Joint Venture, in a move that boosts Woodside’s total operating interest in the gas project to 41.27%, subject to regulatory approvals.

The context: Under the acquisition terms, Woodside will pay USD225 million ($319 million) plus a reimbursement of CNPC’s cash call contributions made between 30 June and the completion date. A further USD175 million remains contingent on a final investment decision being reached by 2032 for the Brecknock, Calliance and Torosa fields.

Located off the coast of Western Australia, Browse represents the nation’s largest undeveloped conventional gas resource, with the potential to produce up to 11.4 million tonnes per annum of LNG, LPG and domestic gas. Woodside views the acquisition as a strategic opportunity to supply energy to the Asia Pacific region while securing a new source of domestic gas for Western Australia.

Woodside said its combined ownership of the Browse resource and the North West Shelf processing infrastructure is positioned to drive strong long-term shareholder returns across the value chain.