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Woodside Energy has exercised its pre-emption rights to acquire PetroChina International Investment (Australia) Pty Ltd.'s 10.67% participating interest in the Browse Joint Venture, effectively matching a previously announced transaction between PetroChina and a subsidiary of Japan's INPEX Corporation.

Under the terms of the acquisition, Woodside will pay PetroChina $225 million, plus reimbursement for Browse Joint Venture cash call contributions made since June 30, 2025. The agreement also includes a contingent payment of $175 million if the Browse Joint Venture reaches a final investment decision for the development of the Brecknock, Calliance, and Torosa gas fields by June 30, 2032.

The transaction remains subject to customary regulatory approvals and other closing conditions. Assuming no other joint venture participant exercises pre-emption rights, Woodside's interest in the Browse Joint Venture will increase from 30.6% to 41.27%.

The move strengthens Woodside's position in one of Australia's most significant undeveloped gas resources. Browse, located offshore Western Australia, is estimated to support production of 11.4 million tonnes per year of LNG, liquefied petroleum gas, and domestic gas. The company has been advancing plans to develop the resource through existing North West Shelf infrastructure, a strategy aimed at reducing development costs while leveraging established export facilities.

Chief Executive Officer Liz Westcott said the acquisition demonstrates Woodside's commitment to progressing the proposed Browse-to-North West Shelf development.

"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 maximize long-term shareholder value."

She added that the transaction represents a capital-efficient way to further align Woodside's interests across the upstream Browse resource and the North West Shelf processing infrastructure, potentially enhancing project economics and long-term cash flow generation.

The decision comes amid renewed interest in the Browse project. Woodside noted that both the PetroChina-INPEX transaction and BP's recently announced sale of its Browse stake to South Korea's GS Energy highlight the perceived value and strategic importance of the resource.

Browse has long been viewed as a cornerstone project for Australia's LNG sector, though development has faced delays due to regulatory, commercial, and cost challenges. Rising LNG demand projections across Asia-Pacific markets and concerns about future domestic gas supply in Western Australia have renewed focus on bringing the project forward.

Woodside said it will continue working with Browse Joint Venture partners on technical studies, commercial negotiations, and regulatory approvals before any final investment decision is made, with capital allocation discipline remaining a key consideration.

By Charles Kennedy for Oilprice.com

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