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Last month, Inpex, via its unit Inpex Mirai Upstream, entered a sales and purchase agreement with PetroChina International Investment (Australia) Pty Ltd (CNPC) to acquire the stake in the planned Woodside-led Browse LNG project, which would deliver natural gas from the Calliance, Torosa, and Brecknock fields to the existing Karratha gas plant.
Completion of the sales and purchase transaction remained conditional on a number of matters, including regulatory and Browse JV participant approvals.
Woodside said in a statement on Friday that it has given notice exercising its right to pre-empt the sale.
The terms of Woodside’s acquisition will reflect those of the CNPC-Inpex transaction, including payment to CNPC of $225 million plus reimbursement of CNPC’s BJV cash call contributions made between June 30, 2025 and the completion date.
Also, the terms include contingent payment to CNPC of $175 million upon the BJV taking a final investment decision for the development of all of the Brecknock, Calliance and Torosa fields on or prior to June 30, 2032, Woodside said.
Woodside said the acquisition remains subject to customary conditions precedent, including regulatory approvals.
The company’s equity interest in the BJV after completion of the acquisition will increase to 41.27 percent, assuming no other joint venture participant pre-empts.
UK-based energy giant BP recently entered into an agreement to dilute a 5 percent interest in the Browse project in Western Australia to GS Energy, with BP retaining a 39.33 percent working interest.
BP has a 44.33 percent stake in the Bowse LNG project after it bought a 27 percent stake from UK-based LNG giant Shell in 2023.
Japan Australia LNG, a joint venture of Mitsubishi and Mitsui, owns a 14.4 percent stake.
“Important growth option” for Woodside
Woodside expects its Browse LNG project to cost A$48.7 billion ($35 billion).
The Browse to NWS project has a forecast production capacity of 11.4 million tonnes per annum (LNG, LPG, and domestic gas) and a peak condensate production rate of 50,000 barrels per day.
Natural gas from the Calliance, Torosa, and Brecknock fields would be delivered to the Karratha gas plant, part of the North West Shelf project, via an approximately 900-kilometer pipeline, connected to two floating production storage and offloading facilities.
Woodside CEO Liz Westcott said the current levels of interest in Browse, reflected in both the CNPC/Inpex transaction and BP’s announced transaction with GS Energy, “reinforces the quality and scale of the resource.”
“Woodside’s decision to pre-empt reflects our commitment to continue progressing the proposed Browse to North West Shelf development. We see this as a pathway to maximize long-term shareholder value,” she said.
Westcott said that the project remains an “important growth option” for Woodside.
“This acquisition is a disciplined and capital-efficient way to align integrated value in these assets for a development with long-term cash flow potential,” she said.
“We will continue working with the Browse joint venture to fully evaluate development opportunities. This includes advancing technical definition, commercial arrangements, and regulatory approvals. Any investment decision will be made in accordance with Woodside’s capital allocation framework,” Westcott said.