June 12, 2026 [Reuters]- Woodside Energy exercised its pre-emptive right to acquire PetroChina’s 10.67% stake in the Browse gas fields off the coast of Western Australia, the firm said on Friday, blocking a deal agreed with Japan’s Inpex.
Browse is Australia’s largest undeveloped conventional gas resource and is expected to support a proposed development linking the offshore fields to the North West Shelf liquefied natural gas facilities in Western Australia, whose current gas fields are in decline.
Industry watchers suggested in mid-May, when Inpex first made the announcement, that the Japanese company would seek to send the gas to its own two-train Ichthys LNG facility in Darwin, which would prove troublesome for Woodside.
Inpex and PetroChina didn’t immediately respond to Reuters requests for comment.
Under the terms of the latest transaction, Woodside will pay $225 million to PetroChina, along with reimbursement of 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 on the development of the Brecknock, Calliance and Torosa gas fields by June 30, 2032.
“The pre-emption price implies a materially softer valuation than that implied when PetroChina bought into Browse in 2012 for $1.63 billion,” UBS energy analyst Tom Allen said via email.
He said the transaction did confirm that Woodside was committed to preserving the project as a future development opportunity.
The acquisition will increase Woodside’s interest in the project to 41.27%, assuming no other participant exercises pre-emption rights, and remains subject to regulatory approvals and other customary conditions, the company said.
MST Marquee analyst Saul Kavonic said it had always been likely Woodside would veto the sale to Inpex in order to retain control and alignment.
“In general shareholders are not keen on Woodside developing Browse and would probably be pleased to see Woodside sell out of Browse at this sort of valuation instead,” he said, noting the sale suggested a valuation of $645 million for Woodside’s own holding.
Shares of Australian oil and gas firm Woodside were down 1.46% as of 0357 GMT after falling up to 2.8% in earlier trade.
The Browse JV partners include Woodside, BP and Japan LNG, a joint venture between Mitsui and Mitsubishi.
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