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The two firms announced the deal in separate statements on Thursday.
Under the proposed transaction, Chevron Australia will transfer to Woodside its 16.67 percent non-operated interest in the NWS project, NWS oil project, and its 20 percent non-operated interest in the Angel carbon capture and storage (CCS) project.
The NWS project consists of a number of active joint ventures.
Prior to completion of the transaction, Woodside has an operating interest of 33.33 percent and Chevron has a 16.67 percent participating interest in all of these joint ventures, apart from the NWS joint ventures with CNOOC.
The NWS plant has five LNG trains, launched between 1989 and 2008, with a capacity of 16.9 million tonnes per year and most of these volumes supply customers in Japan.
As part of the transaction, Chevron Australia will acquire Woodside’s 13 percent non-operated interest in the Wheatstone LNG project and 65 percent operated interest in the Julimar-Brunello project.
In addition, Chevron Australia will make a cash payment to Woodside of up to $400 million paid at key milestones and contingent on the execution and handover of the Julimar Phase 3 project from Woodside to Chevron Australia.
Woodside has a 13 percent stake in the Wheatstone LNG project.
The Wheatstone foundation project consists of two LNG trains with a combined capacity of 8.9 mtpa, and the first shipment left the facility in 2017.
Also, Woodside has an operating 65 percent in Julimar-Brunello.
“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,” said Mark Hatfield, managing director Chevron Australia.
“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,” Hatfield said.
Woodside CEO Meg O’Neill said the strategic and commercial rationale for this asset swap is “compelling” for Woodside.
“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,” she said.
The transaction is subject to several conditions precedent including regulatory approvals and execution and hand over of the Julimar Phase 3 project from Woodside to Chevron Australia.