Woodside and Chevron have agreed to a major asset swap that will see the US oil and gas giant exit the North West Shelf project after 40 years as a non-operating partner in exchange for Woodside’s stake in the Wheatstone project.
The proposal will see Chevron transfer its 16.67 per cent stake in the North West Shelf project, the NWS oil project, and its 20 per cent non-operating interest in Woodside’s Angel Carbon Capture and Storage project to the Australian company, plus a $400 million payment made in stages.
Chevron will exit the North West Shelf gas project after 40 years.Credit: Woodside
In exchange, Chevron will get Woodside’s 13 per cent stake in Wheatstone, taking its ownership in the Pilbara facility to more than 77 per cent.
Chevron will also take on Woodside’s 65 per cent slice of the Julimar-Brunello gas field development project, which provides Wheatstone with 20 per cent of its raw gas.
Woodside’s post-swap ownership of the North West Shelf project would be 50 per cent.
Woodside chief executive Meg O’Neill said the strategic and commercial rationale for the swap was “compelling”.
“This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets,” she said.
“It is immediately cash flow accretive and includes a cash payment upon both execution and completion.”
Chevron Australia managing director Mark Hatfield said the swap meant the company could consolidate its focus and resources on Wheatstone.
“We have been an active participant in the North West Shelf Project since its foundation over
40 years ago and we are proud of the project’s record as a safe, competitive, and reliable
supplier of domestic gas and LNG and its transformation into a tolling facility,” he said.
The announcement came the week after a WA government approval paved the way for the extension of the North West Shelf’s operation until the 2070s.
O’Neill said the transaction would improve the commercial prospects for the proposed Browse to North West Shelf project.
The deal was not likely to be completed until 2026.
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