Woodside wraps up Tellurian acquisition, renames Driftwood LNG

Woodside said on Wednesday it has acquired all issued and outstanding Tellurian common stock for about $900 million cash, or $1.00 per share.

The implied enterprise value is about $1.2 billion.

Woodside announced on July 22 that it has entered into a definitive deal to buy the US LNG firm.

In connection with the deal, Woodside will provide a loan to Tellurian of up to $230 million to ensure Driftwood LNG site activity and de-risking activities maintain momentum prior to completion of the transaction, it said.

Last week, shareholders of Tellurian approved the proposed merger deal with Woodside.

New chapter for Woodside

Woodside CEO Meg O’Neill said bringing Woodside Louisiana LNG into the global portfolio
represented a “significant new chapter for the company.”

“This is a major growth opportunity that significantly expands our US LNG position, enabling us to better serve global customers and capture further marketing optimization opportunities across both the Atlantic and Pacific Basins,” O’Neill said.

Moreover, she said Woodside’s acquisition provides a new strategic direction for this development.

“Woodside’s world-class expertise in project execution, operations, and marketing means we are well-positioned to unlock the development and generate value,” O’Neill said,

O’Neill recently said that the company’s acquisition of Tellurian was “too good to pass up.”

“When the Tellurian opportunity crossed our desk, we thought.. this is really too good to pass up,” O’Neill said.

“You know 27.6 million tonnes, that is as much LNG capacity as we’ve built in our 35 years in Australia,” she said.

FID in Q1 2025

In March 2022, Tellurian issued a limited notice to proceed (LNTP) to Bechtel.

Under the first phase, Tellurian aims to build two LNG plants near Lake Charles in Louisiana with an export capacity of up to 11 mtpa.

Also, the full project would include five plants with a total capacity of about 27.6 mtpa.

Tellurian recently released the latest construction update.

O’Neill said Woodside Louisiana LNG is a “competitively advantaged opportunity” with civil works “well advanced.”

“Woodside is targeting FID readiness from the first quarter of 2025, with the experienced Tellurian team and engineering, procurement, and construction contractor Bechtel having completed substantial work to advance the opportunity to this stage,” O’Neill said.

“We are also pleased with the inbounds received from multiple parties looking to enter the opportunity as a strategic partner,” she said.

Woodside may sell up to 50 percent of the stake in the LNG project.