Energy giant Woodside has exercised its pre-emption rights to block Japanese player INPEX from buying into the massive Browse joint venture, Australia’s largest undeveloped conventional gas resource.
Woodside has given formal notice to pre-empt the sale of PetroChina International Investment’s 10.67 per cent participating interest in the multi-billion-dollar project.
The transaction closely mirrors the original commercial terms agreed between PetroChina and INPEX.
Woodside will shell out an upfront payment of US$225 million (AU$340 million), while also reimbursing PetroChina for its joint venture cash call contributions made since June 30, 2025.
Additionally, a contingent payment of US$175 million is locked into the deal, payable if the joint venture hits a final investment decision (FID) to develop the Brecknock, Calliance, and Torosa fields on or before June 30, 2032.
Situated off the coast of Western Australia, the Browse basin holds immense strategic value, boasting an estimated production capacity of 11.4 million tonnes per annum of LNG, LPG, and domestic gas.
Woodside aims to pipe this gas back to its existing North West Shelf onshore infrastructure, creating a highly integrated development network.
Woodside CEO Liz Westcott said the high level of corporate interest in the asset, including bp’s recent dealings with GS Energy, highlights the immense scale and quality of the resource.
“Woodside’s decision to pre-empt reflects our commitment to continue progressing the proposed Browse to North West Shelf development,” Westcott said.
“We see this as a pathway to maximise long-term shareholder value.”
The acquisition remains subject to standard regulatory approvals. Once finalised, Woodside’s equity stake in the Browse Joint Venture will jump to 41.27 per cent, assuming no other partners trigger competing pre-emption claims.
“This acquisition is a disciplined and capital-efficient way to align integrated value in these assets for a development with long-term cash flow potential,” Westcott added.
“We will continue working with the Browse joint venture to fully evaluate development opportunities. This includes advancing technical definition, commercial arrangements and regulatory approvals.”
