Woodside Energy Group Ltd. and Chevron Australia Pty. Ltd., an indirect subsidiary of Chevron Corp., have entered an agreement to swap assets including the Wheatstone and North West Shelf gas projects in Western Australia.
Chevron Australia-operated Wheatstone can export up to 8.9 million tons per annum of liquefied natural gas, while its domestic gas capacity has recently been raised to 230 terajoules a day. Chevron Australia holds a 64.14 stake, Kuwait Foreign Petroleum Exploration Co. 13.4 percent, Woodside 13 percent and Kyushu Electric Power Co. 1.46 percent.
NWS, operated by local company Woodside, produces up to 16.9 MMtpa of LNG, as well as supplies liquefied petroleum gas and domestic gas, according to Woodside. Woodside says on its website it holds an aggregate interest of 33.33 percent in all NWS joint ventures (JVs) excluding its JVs with China National Offshore Oil Corp. and its Extended Interest JVs with Chevron and CNOOC.
“Under the proposed transaction, Chevron Australia will transfer to Woodside its 16.67 percent non-operated interest in the North West Shelf Project, NWS Oil Project and its 20 percent non-operated interest in the Angel Carbon Capture and Storage Project”, Chevron Australia said in a statement.
Upon the completion of the transaction, Woodside will hold a 50 percent stake in the NWS Project, 66.67 percent in the NWS Oil Project and 40 percent in Angel CCS.
“Chevron Australia will acquire Woodside’s 13 percent non-operated interest in the Wheatstone Project and 65 percent operated interest in the Julimar-Brunello Project”, added the statement on Chevron Australia’s website.
Chevron will pay Woodside AUD 300 million ($187.2 million) in cash plus up to AUD 100 million in contingent payments related to the handover of the Julimar Phase 3 Project and its subsequent production performance.
Mark Hatfield, managing director at Chevron Australia, said, “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”.
“The North West Shelf Project paved the way for Western Australia and the nation to become international leaders in natural gas and has been operated by Woodside to a world-class standard”, Hatfield added.
Woodside chief executive Meg O’Neill said in a separate online statement, “This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets”.
“It is immediately cash flow-accretive and includes a cash payment upon both execution and completion”, O’Neill said.
“The Western Australian Government’s recent decision to extend the environmental approval for the North West Shelf Project supports its ongoing contribution to reliable energy supply for local and global customers”, O’Neill added.
“This transaction creates greater opportunity to fill emerging processing capacity and maximize value-accretive recovery from the North West Shelf Project. It also provides greater alignment and improves the commercial prospects for the proposed Browse to North West Shelf Project.
“Additionally, this improves joint venture planning for decarbonization opportunities at Karratha Gas Plant.
“Our increased equity in the Angel CCS Project also supports future development of this large-scale, multi-user carbon capture and storage hub in Western Australia.”
The transaction needs regulatory clearance and the closing of other customary conditions, the companies said. They did not give an expected date of completion. (December 19, 2024, Source: https://www.rigzone.com/news/chevron_woodside_consolidate_lng_assets_in_australia_in_swap_transaction-19-dec-2024-179074-article/)
AUSTRALIA - LNG - COMPANIES