Woodside Energy has moved to increase its controlling position in Australia’s largest undeveloped gas resource. The company exercised preemptive rights to acquire PetroChina’s 10.67% stake in the Browse joint venture. The deal blocks Japan’s Inpex Corp from entering the project and protects Woodside’s preferred gas processing route.
Woodside Pays $320M to Lift Browse Joint Venture Stake
Woodside Energy will pay no less than US$225 million (around A$320 million) for PetroChina’s participating interest in Browse. This project is located about 425km off the west Australian coast. It covers the Brecknock, Calliance, and Torosa gas fields and carries a total estimated value of $48.7 billion.
Woodside increased its ownership in the Browse gas project to 41.27% after buying PetroChina’s stake in the venture. [Source: Reuters]
The acquisition lifts Woodside’s interest in the Browse joint venture to 41.27%, assuming no other partner exercises preemption rights. The deal remains subject to regulatory approvals. Woodside will also pay an additional $175 million if a final investment decision is reached on the three fields before June 2032.
The PetroChina investment in Browse was originally acquired by China’s state-owned enterprise from BHP in December 2012 at $1.63 billion; the same Chinese state-owned enterprise that had been proposing to sell its stake to Inpex Corp until Woodside outbid it.
Why Woodside Moved to Block Inpex From the Browse Project
The preemption move was not routine. Inpex, Japan’s largest oil and gas exploration company, was seen as a strategic misfit for the Browse joint venture. The Japanese company favoured routing Browse gas through an existing pipeline to its Ichthys LNG plant in Darwin. Woodside wants the gas processed at Karratha through the North West Shelf facilities.
Allowing Inpex into the joint venture would have given it leverage to push the Darwin route. That would have undermined Woodside’s core development plan. CEO Liz Westcott confirmed the strategic intent behind the move.
“Woodside’s decision to pre-empt reflects our commitment to continue progressing the proposed Browse to North West Shelf development,” Westcott said. “We see this as a pathway to maximise long-term shareholder value.”
Browse Project Linked to North West Shelf’s Long-Term Future
Browse is central to the long-term supply outlook for the North West Shelf LNG facilities. The project serves as planned backfill gas for the facility, which received Australian government approval in September 2025 to extend operations until 2070. Without Browse as a supply source, the North West Shelf risks running short of gas well before that date.
The Browse-to-NWS development would link the offshore gas fields to the Karratha processing hub via subsea infrastructure. Woodside has described this link as the preferred and most commercially viable route. The company’s raised stake now gives it firmer control over how and when that development proceeds.
Woodside estimates Browse would contribute $56.2 billion in taxes and $141 billion to Australia’s economy over its life. The project would also produce enough gas annually to power 800,000 homes, according to Woodside’s own figures.
BP Sells 5% Browse Stake to South Korea’s GS Energy
Woodside’s stake increase comes alongside a separate transaction involving BP. Earlier in June, BP agreed to sell a 5% stake in the Browse joint venture to South Korea’s GS Energy. The sale cut BP’s working interest in the project to 39.33%.
BP said the deal was within the scope of its divestment program. The British oil company wants to sell $20 billion worth of assets by the end of 2027 in a move that would lower its net debt. No price was stated.
Two major ownership shifts in the same joint venture within weeks reflect shifting priorities among Browse partners. BP is reducing exposure. Woodside is increasing control. The arrival of GS Energy also introduces a new Asian buyer into the project’s ownership structure.
Environmental Concerns Remain a Hurdle for Browse Development
The environmental risks associated with the Browse project have been questioned for over seven years. The Browse development is being carried out close to Scott Reef – a coral atoll off the coast of WA. The threat to the ecological integrity of the reef is being vigorously opposed by environmental organisations.
Woodside maintains that the project can proceed without threatening Scott Reef. The company says its development plans meet environmental standards. However, no final environmental approval for Browse itself has been granted to date.
That final investment decision, the decision Browse has yet to reach, is the one remaining checkpoint, keeping it in a limbo state of development. Woodside’s increased equity means that it is best positioned to control that decision when conditions permit.
Woodside Tightens Grip Ahead of Key Browse Decision
Woodside now has the biggest stake in Browse, at 41.27 percent, BP holding 39.33 percent, and the balance owned by Japan LNG, a Mitsui-Mitsubishi venture. The operator now controls it at a crucial stage in the project.
The FID deadline tied to the additional $175 million payment expires in June 2032. That creates a defined window. Woodside must resolve environmental approvals, secure financing, and align partners before that date to trigger the next stage of development.
The Browse stake increase is a calculated move. It locks out a rival processing route, raises Woodside’s upside, and signals serious intent to advance Australia’s largest untapped conventional gas resource.
Investors tracking Australian news are closely watching how Woodside’s Browse stake lift and the Inpex block reshape Australia’s gas sector ahead of the 2032 FID deadline.
FAQS
Q1: What did Woodside buy?
A1: Woodside bought PetroChina’s 10.67% stake in the Browse gas project.
Q2: How much did Woodside pay?
A2: Woodside agreed to pay at least US$225 million, or about A$320 million.
Q3: Why did Woodside block Inpex?
A3: Inpex wanted to route Browse gas to Darwin, not Woodside’s preferred Karratha facility.
Q4: Has Browse reached a final investment decision?
A4: No. Browse has not yet received a final investment decision.
Disclaimer
The information in this article is for general news purposes only. It comes from publicly available sources and is accurate at the time of writing. This article does not offer financial or investment advice. Readers should do their own research before making any financial decisions. Woodside Energy figures and projections cited in this article are the company’s own estimates. We do not guarantee the accuracy of third-party data. News details may change after publication.
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Luke Carlino is a seasoned Copywriter, Content Strategist, and Social Media Manager specialising in Mining, Finance, and Business journalism. With more than a decade of industry experience, he brings rigorous editorial standards and commercial acuity to every project.
