Chevron has made a swap deal with Woodside in oil and gas operations in Western Australia.
As per the deal, Chevron would sell its interest in North West Shelf venture and take over all of Woodside’s interest in the $34 billion Wheatstone liquefied natural gas (LNG) project and an affiliate gas project.
The deal would also see Chevron paying up to $400 million to Woodside.
“This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets,” said Woodside CEO Meg O’Neill.
According to Reuters, Woodside’s shares were down 1.7%, in line with broader losses in the Australian energy sub-index. Thus, Woodside will depart from Wheatstone. It had struck a deal in 2015 to buy into the project.
Currently, Woodside’s stake in North West Shelf would increase to 50%. The asset swap deal comes a few days after Woodside Energy received environmental approval from the Western Australian state to prolong the North West Shelf LNG project until 2070.
Meanwhile, the deal signifies the end to Chevron’s four-decade-old participation in the North West Shelf venture, which is till date Australia’s largest LNG exporter.
Reuters reported that this move comes as Chevron ramps up efforts to consolidate its focus on key Australian assets, including the Gorgon LNG venture.
Notably, the transaction still remains subject to approvals on competition and by the foreign investment board and is not expected to be completed until 2026.
