Australian energy giant Woodside has moved to increase its interest in the offshore development project, described as Australia’s largest untapped conventional gas resource, by exercising a right of first refusal to block the sale of stakes to Japanese exploration and production company, Inpex.
Woodside has given notice of the exercise of its right of preemption Sale of 10.67% participating interest Owned by PetroChina International Investment Corporation (Australia) (CNPC). Browse the joint project (BJV), including titles covering Breaknock, Caliansand Taurus Offshore gas fields in Western Australia, to a subsidiary of Inpex.
The terms of the Australian giant’s takeover will mirror the terms of the CNPC/Inpex deal, including the payment to the Chinese player of $225 million as well as the repayment of BJV cash call contributions made between 30 June 2025 and the completion date; The conditional payment of $175 million is upon BVV making a final investment decision (FID) for the development of all fields on or before June 30, 2032.
The operator claims its shared interest in the primary browsing resources and onshore infrastructure of the North West Shelf (NWS) provides the foundation for an integrated development concept that is expected to deliver strong returns to shareholders across the value chain and deliver long-term economic benefits to Western Australia and the nation.
While the Browse resource is Australia’s largest undeveloped conventional gas resource with potential production of 11.4 million tonnes per annum of LNG, LPG and domestic gas, the project’s location off the west coast of Australia is said to create an opportunity for significant energy-saving development to contribute to expected LNG demand in the Asia-Pacific region and provide a significant new source of domestic gas for Western Australia.
The Woodside acquisition remains subject to customary conditions precedent, including regulatory approvals. The Company’s share in the joint venture after completion of the acquisition will increase to 41.27%, assuming that no other participant in the joint venture takes prior action. Liz WestcottCurrent levels of interest in Browse, reflected in both the CNPC/Inpex deal and BP’s announced deal with GS Energy, reinforce the quality and scale of the resource, Woodside CEO emphasized.
The Browse Fields were discovered between 1971 and 2000 and are estimated to have combined potential resources of approximately 13.9 trillion cubic feet of dry gas and approximately 390 million barrels of condensate. that Economic impact assessment Deloitte Access Economics estimates the Browse to North West Shelf project could contribute to a long-term increase of around A$147 billion (US$102.9 billion) in WA’s total government output and more than A$141 billion (US$98.7 billion) in gross domestic product (GDP) nationally.
Westcott confirmed: “Woodside’s decision to be proactive reflects our commitment to continuing to progress the proposed Browse to North West Shelf development. We see this as a path to maximize long-term shareholder value. Browse to North West Shelf remains an important growth option for Woodside. This acquisition is a disciplined and capital efficient way to align the value integrated into these assets for a development with long-term cash flow potential.”
“We will continue to work with Browse Joint Venture to fully evaluate development opportunities. This includes advanced technical definition, commercial arrangements and regulatory approvals. Any investment decision will be made in accordance with Woodside’s capital allocation framework.”
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