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Chevron to pay Woodside $400 mln in stake swap deal for energy tasks

Australia's Woodside Energy said on Thursday it had gotten in into a deal with Chevron to exchange stakes in a number of energy tasks, with the U.S. oil and gas giant making a money payment of up to $400 million to Woodside.

Under the regards to the deal, Woodside will acquire Chevron's 16.67% stake in the North West Rack (NWS) Task, the NWS Oil Project and its 20% stake in the Angel Carbon Capture and Storage Job, all located in Western Australia.

On the other hand, Woodside will transfer its 13% non-operated interest in the Wheatstone and its 65% operated interest in Julimar-Brunello Projects to Chevron.

The deal comes a couple of days after Woodside Energy received ecological approval from the Western Australian state to lengthen the North West Shelf melted natural gas project up until 2070.

This deal streamlines our portfolio, improving our focus and effectiveness by combining our position in our run LNG possessions, stated Woodside CEO Meg O'Neill.

Apart from the rationale to streamline Woodside's Australian portfolio, focusing on its operated LNG assets and streamlining NWS joint endeavor ownership, the company's increased stake in the Angel CCS Project likewise promotes the future development of this large-scale, multi-user carbon capture and storage hub in Western Australia, Woodside said.

The asset exchange will match both companies' interest for future development, said Brad Smoling, managing director at Smoling Stockbroking.

Concentrating on some properties in their own respective backyards makes great good sense in these fluid times in the energy sector.

The offer, which is expected to close in 2026, marks a substantial shift in the energy landscape, with both business improving their portfolios in the middle of the international shift to cleaner energy sources.

Shares of Woodside, nevertheless, fell about 2.3% to strike their most affordable level given that Jan. 11, 2022, by 1235 GMT.

(source: Reuters)