GLNG: Chevron and Woodside trade Australian LNG assets

Chevron and Woodside Energy have agreed to reshuffle their LNG asset portfolios, trading stakes in a handful of projects located in Western Australia, Chevron announced on December 19.

Under the terms of the deal, Woodside’s 13% non-operated interest in the Wheatstone project located in Talandji and 65% operated stake in the Julimar-Brunello Phase 3 project will switch hands to Chevron.

In return, Chevron’s 16.67% stakes in the North West Shelf (NWS) and NWS Oil project will be transferred to Woodside. The Australian energy firm will also acquire from Chevron a 20% stake in the Angel carbon capture and storage (CCS) project, along with a cash payment of $400mn.

The transfer of Chevron’s stake in the NWS will bring a close to the company’s 40-plus years of active participation in the project since its foundation.

For Woodside, the swap streamlines its LNG portfolio, allowing the firm to prioritise its operated assets while also simplifying the NWS ownership structure of its joint venture. The other partners in the NWS project include BP, Shell and Japan Australia LNG, a subsidiary of Mitsui & Co.

Woodside also secured a 50-year environmental extension earlier in December to continue operating the huge NWS project.

Similarly, the agreement allows Chevron to concentrate on its Wheatstone Project.

“This transaction will enable us to consolidate our focus and resources on key assets we operate in Western Australia, in this case our Wheatstone Project,” Mark Hatfield, managing director Chevron Australia, said in a statement.

The deal is projected to close in 2026 and hinges upon several customary conditions such as clearance by the Australian Competition and Consumer Commission and Foreign Investment Review Board.

It also is contingent on completion of the Julimar-Brunello Phase 3, which is now in the execution phase. Until the project’s commissioning, Woodside will continue to serve as operator.

Woodside will receive $300mn from Chevron once the deal closes. Further contingent payments of up to $100mn are dependent on production performance of the Julimar-Brunello Phase 3 project.