Woodside and Chevron Enter Stake Swap Deal

Investing.com — Australia’s Woodside Energy Ltd (ASX: WDS) announced on Thursday a deal with Chevron Corp (NYSE: CVX) to swap stakes in several energy projects. This move aims to simplify its energy holdings and enhance focus on core gas assets.

Transaction Details

• Woodside will acquire Chevron’s interests in:
  • The North West Shelf (NWS) Project
  • The NWS Oil Project
  • The Angel Carbon Capture and Storage (CCS) Project
• In exchange, Woodside will transfer all interests in the Wheatstone and Julimar-Brunello projects to Chevron.
• Chevron will pay Woodside up to $400 million in cash.

Strategic Focus

Woodside stated that the deal is designed to streamline its portfolio, improving focus on core LNG (Liquefied Natural Gas) assets. The transaction will also enhance Woodside’s cash position, facilitating increased shareholder distributions.

> "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," said Woodside CEO Meg O’Neill.

Stake Swap Summary

• Woodside will:
  • Transfer a 13% non-operated stake in Wheatstone.
  • Transfer a 65% operated interest in Julimar-Brunello.
  • Acquire:
  • 16.7% interest in NWS projects
  • 20% interest in the Angel project.

Regulatory Approval

The asset swap is pending Australian regulatory approval and is contingent on the completion of Woodside’s Julimar Phase 3 project.