Business
Woodside Shares Fall After Surprise $570 Million Project Move
Woodside Energy shares declined after the company moved to acquire PetroChina's 10.67% stake in the Browse Joint Venture, a transaction worth up to US$400 million. The move blocks Japanese energy giant Inpex from entering the project and could increase Woodside's ownership stake from 30.6% to 41.27%. Browse is Australia's largest undeveloped conventional gas resource and is expected to support future supply for the North West Shelf. While the acquisition strengthens Woodside's strategic position, investors remain cautious as the project still requires regulatory approvals, significant investment and a final development decision.
Woodside Energy shares fell on Friday after the company announced that it had exercised its pre-emption rights to buy out PetroChina's 10.67% interest in the Browse Joint Venture, and prevented Japanese energy company Inpex from getting into the project.
As of writing, shares in Woodside were down 2.57% to A$30.71 a share. The drop comes although the stock price was up nearly 31% in 2026, due to rising oil prices because of unending tensions over the Middle East.
PetroChina is standardizing procedures for steps
PetroChina had agreed to sell its 10.67% stake in the Browse Joint Venture to Inpex, the announcement said. But existing Browse partners had the right of first refusal over the terms of the deal.
Woodside has now taken those options and agreed to buy the stake for $225 million, or continuously US$320 million at today's rates.
Woodside will also pay PetroChina for cash contributions it has made to the project since June 30, 2025. It also includes a contingent payment of US$175 million if Browse partners take FID on the Brecknock, Calliance and Torosa fields prior to June 30, 2032.
Even with the prospective extra payment, the buyout could be worth US$400 million or $570 million by dollars. The agreement is subject to the approval of regulators and other customary conditions.
Browse Project Holds Strategic Importance
Browse is Located approximately 425 km north of Broome in Western Australia, it is Australia's largest undeveloped conventional gas resource.
So, for now the plan is to pipe offshore gas, via a pipeline, through to the North West Shelf’s Karratha Gas Plant and process it there. The project is expected to be an integral component of compensating for natural gas produced from existing North West Shelf gas fields as production determines.
Inpex, which operates the Ichthys LNG facility in Darwin had industry observers suggesting that Browse tussles should see gas processed in NT over WA. If no other Browse partner takes up pre-emption rights, then Woodside's ownership stake would rise from 30.6% to 41.27%, which would correlate with a significant increase in its exposure to the future production and cash flows of the project being assumed by Woodside.
Why Investors Reacted Cautiously
Even with the clear strategic rationale, investors seemed cautious after the announcement. Browse has not made a final investment decision and still requires billions in capital spending, many regulatory approvals and firm commitments from other joint venture partners before development can begin.
The acquisition reinforces Woodside as an operator of one of Australia's largest undeveloped gas assets, but also increases its exposure to future development costs, project execution risks and funding requirements.
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