Energy giants Woodside and Chevron swap assets in North West gas deal

Woodside Energy has engineered an asset swap with fellow oil and gas giant Chevron that chief executive Meg O’Neill says will streamline the company’s portfolio and open it up to further growth opportunities.

Under the terms of the deal, Woodside will acquire Chevron’s 16.67 per cent interest in the 40-year-old North West Shelf project and the NWS oil project, along with a 20 per cent stake in the Angel carbon capture and storage project.

In return, Woodside will hand over its 13 per cent interest in the Chevron-operated Wheatstone LNG project and a 65 per cent share in the Julimar-Brunello project.

Chevron will also make a cash payment to Woodside of up to $400 million, with $300m due on completion of the deal on January 1.

Ms O’Neill said the the agreement consolidates Woodside’s focus on the LNG assets it operates.

It also simplifies a complex NWS joint venture ownership structure which has four other partners, including BP, China’s CNOOC, Shell and Japan Australia LNG.

The deal comes just days after the State Government gave Woodside environmental approval to keep the NWS Karratha Gas Plant running until 2070. The final decision on its future now rests on a sign-off from the Federal Government.

Ms O’Neill said the asset swap with Chevron would unlock economic recovery of existing production and future development opportunities.

“It also provides greater alignment and improves the commercial prospects for the proposed Browse to North West Shelf project,” she said.

“Additionally, this improves joint venture planning for decarbonisation opportunities at Karratha Gas Plant.

“Our increased equity in the Angel CCS project also supports future development of this large-scale, multi-user carbon capture and storage hub in Western Australia.”

More to come