Woodside exercises pre-emptive rights to purchase 10.67% stake of Browse JV from PetroChina

Woodside Energy announced on Friday that it had exercised its pre-emptive rights to purchase PetroChina's 10.67% share in the Browse gas fields off 'the coast of Western Australia'. This blocked a deal with Japan's INPEX.

Woodside has agreed to pay PetroChina $225 million in cash and reimbursement for all contributions made up until June 30, 2025.

Woodside also said that the agreement includes a $175 million contingent payment if Browse joint venture makes a final decision on investment in the Brecknock gas field, Calliance gas field, and Torosa Gas Field by June 30th, 2032.

Browse is Australia's biggest undeveloped conventional gas resource. It is expected to support a development that would link the offshore fields with the North West Shelf LNG installations in Western Australia.

Woodside said that the acquisition would increase its interest in Browse to 41.27% if no one else exercised pre-emption rights. It also stated that regulatory approvals, as well as other usual conditions, were still required.

The'move' comes at a time when interest in the 'Browse' project is increasing, with 'PetroChina's' planned sale of their stake to INPEX as well as 'BP's' announcement that South Korea's GS Energy would be involved in a separate deal.

PetroChina purchased a stake in the Browse Project, run by Woodside Energy for $1.63 Billion from BHP in December 2012.

Woodside Energy is the operator, BP, and Japan LNG (a joint venture of Mitsui, Mitsubishi, and Mitsui) are the partners. (Reporting from Bengaluru by Roshan Thomas; editing by Subhranshu sahu)

(source: Reuters)