Woodside Energy (ASX:WDS) has announced an asset swap with Chevron. The deal will see Woodside strengthen its position in Western Australia's North West Shelf (NWS) projects while divesting its interests in the Wheatstone and Julimar-Brunello Projects.
The transaction also includes a cash payment of up to $400m from Chevron.
Details
Woodside will acquire Chevron’s 16.67% stake in the NWS Project, its 16.67% stake in the NWS Oil Project, and a 20% interest in the Angel Carbon Capture and Storage (CCS) Project.
In return, Woodside will transfer its 13% interest in the Wheatstone Project and its 65% interest in the Julimar-Brunello Project to Chevron.
Woodside will receive an initial $100m advance payment from Chevron upon execution of the transaction. At completion, Woodside will receive an additional $300m cash payment, along with contingent payments of up to $100m depending on the performance of the Julimar Phase 3 Project.
The transaction is expected to close in 2026, following regulatory approvals and the completion of certain operational milestones, including the Julimar Phase 3 Project handover.
Impact on Woodside's portfolio
- NWS Project: Woodside's stake in the NWS liquefied natural gas (LNG) project will increase from 33.33% to 50%.
- NWS Oil Project: Woodside's stake will increase from 50% to 66.67%.
- Wheatstone: Woodside will completely exit its 13% non-operated interest in the Wheatstone Project, which processes gas from offshore fields including Julimar and Brunello.
- Julimar-Brunello: Woodside will transfer its 65% interest in the Julimar-Brunello gas fields but will retain operational control during the completion of the Julimar Phase 3 Project, which is expected to be handed over in 2026.
- Angel CCS Project: Woodside’s stake will double from 20% to 40%, enhancing its position in the carbon capture and storage sector.
These changes result in a net increase of 9.6 million barrels of oil equivalent (MMboe) to Woodside's Proved plus Probable (2P) Reserves.
Strategic rationale
Woodside’s Chief Executive Officer, Meg O’Neill, commented: “The strategic and commercial rationale for this asset swap is compelling for Woodside. It simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets. It is immediately cash flow accretive and includes a cash payment upon both execution and completion.”
Shares in Woodside closed 1.91% lower yesterday at $23.10.
