Woodside expands gas control
Woodside boosts Browse project stake to 41.27%, pre-empting Inpex acquisition
Key Points
Woodside said it is the operator of the Browse joint venture, with BP holding the largest interest at 44.33% and Japan Australia LNG (a Mitsubishi–Mitsui joint venture) holding the remaining 14.40%, putting PetroChina’s 10.67% in context of the JV’s ownership structure.
PetroChina bought its Browse stake in December 2012 for $1.63 billion from BHP, adding historical context to why PetroChina is exiting and why Woodside is pre-empting the sale.
The renewed interest in Browse is linked to specific LNG-market disruptions, including Iranian attacks on Qatar’s LNG-producing infrastructure and limitations on energy flows from the Persian Gulf due to the blockade of the Strait of Hormuz.
Woodside noted that before settling on a development concept, Browse JV partners examined several options and concluded that piping natural gas to the existing North West Shelf LNG export facility was the best outcome.
Woodside Energy has moved to block a rival's entry into Australia's largest undeveloped gas field. The company exercised its pre-emption right on June 12, 2026, to acquire PetroChina's 10.67% stake in the Browse Joint Venture for a base price of US$225 million, according to OilPrice.com. The deal will lift Woodside's share in the project from 30.60% to 41.27%.
The move stops Japanese energy firm Inpex from buying into Browse, a massive offshore gas project in Western Australia capable of producing 11.4 million tonnes of LNG and gas per year. It comes as a surge in global demand for safe energy supplies — driven by attacks on Qatar's LNG infrastructure and a blockade of the Strait of Hormuz — has renewed urgency around projects once seen as too costly to develop, Offshore Technology reported.
PetroChina Exits at a Steep Loss After 14 Years
PetroChina bought its 10.67% Browse stake from BHP in December 2012 for US$1.63 billion. It is now selling for US$225 million — a loss of roughly 85% on the original investment, according to OilPrice.com. The decade-plus delay was driven by high carbon dioxide levels in the reservoir, soaring development costs, and repeated shifts in global energy policy.
Woodside's CEO Liz Westcott said the decision "reinforces the quality and scale of the resource" and supports an integrated pathway between Browse and the North West Shelf LNG facility. A further US$175 million payment is contingent on the joint venture making a Final Investment Decision by June 30, 2032. Woodside also agreed to reimburse cash calls made since June 30, 2025.
Middle East Crisis Puts Browse Back in the Spotlight
The Browse project had long stalled. Then, in early 2026, the global gas market was upended. Iranian forces blockaded the Strait of Hormuz in late February, cutting off roughly 20% of world LNG flows. In March, missile and drone attacks damaged Qatar's Ras Laffan LNG facility, knocking out an estimated 17% of Qatar's export capacity for years. Asian buyers scrambled for alternatives.
That shock transformed Browse from a slow-moving problem into a strategic prize. Australia's location outside the Persian Gulf and its existing LNG infrastructure make it one of the few places that can fill the gap at scale. The Browse fields — Brecknock, Calliance, and Torosa — sit about 425 kilometres north of Broome offshore Western Australia and hold enough gas to produce around 50,000 barrels per day of condensate as well, OilPrice.com reported.
Pipeline Plan Ties Browse to Existing LNG Infrastructure
The Browse joint venture examined several development options for years. Partners ultimately settled on piping gas roughly 900 kilometres south to the existing North West Shelf LNG plant at Karratha. Woodside argues this approach is cheaper because it uses infrastructure already built and mostly paid for, making the project viable even with the costs of handling the reservoir's high CO2 content.
After the deal closes, the joint venture will have three partners: BP at 44.33%, Woodside at 41.27%, and Japan Australia LNG — a Mitsubishi and Mitsui venture — at 14.40%, according to OilPrice.com. Woodside operates the project. The two largest partners together will hold over 85% of the venture, giving them strong influence over any future investment decision.
Investors Cautious Despite Strategic Win for Woodside
Woodside shares dipped roughly 1-2% after the announcement. Analysts flagged the estimated US$20.5 billion total cost to develop Browse as a major concern, especially with global economic uncertainty running high. The US$175 million contingent payment also creates a hard deadline — Woodside must push the joint venture to a Final Investment Decision within six years or lose that upside.
Environmental groups remain opposed, describing the 11.4 million tonne per year project as a "carbon bomb." But the 2026 energy crisis has shifted the political mood in Australia. Completion of the stake purchase still needs regulatory approval. If approved, Woodside's bigger share gives it more weight in shaping the project's timeline — and more exposure to both its risks and its rewards, according to OilPrice.com.
Sentiment
Mostly PositivePublishers
17
Articles
42
Reach
59
