Woodside Energy and Chevron have announced a transformative asset swap agreement designed to streamline their operations and optimize their portfolios within Australia’s energy sector. This strategic deal, set to close in 2026, marks a significant reshaping of ownership stakes in several key oil, gas, and carbon capture assets in the region.
Under the terms of the agreement, Woodside will acquire Chevron’s stakes in the North West Shelf (NWS) Project, the NWS Oil Project, and the Angel Carbon Capture and Storage (CCS) Project. In exchange, Woodside will transfer its 13% interest in the Wheatstone Project and its 65% operated stake in the Julimar-Brunello Project to Chevron. Additionally, Chevron will provide Woodside with a cash payment of up to $400 million, which includes a $300 million payment at the transaction’s completion and contingent payments tied to the performance of the Julimar Phase 3 Project and future production.
The deal underscores Woodside’s strategic focus on its operated LNG assets, simplifying its portfolio and enhancing efficiency. The acquisition of Chevron’s interests will increase Woodside’s ownership stake in the NWS Project from 33.33% to 50% and in the NWS Oil Project from 50% to 66.67%. These changes are expected to unlock new opportunities for economic recovery and maximize production potential in the region. Additionally, Woodside’s expanded equity in the Angel CCS Project positions the company as a leader in advancing large-scale carbon capture and storage solutions in Western Australia.
Woodside CEO Meg O’Neill described the asset swap as a move that consolidates the company’s focus and efficiency. She highlighted the immediate financial benefits, noting that the transaction will be cash flow accretive upon completion and aligns with the company’s long-term strategy to sustain reliable energy supply while advancing decarbonization efforts. O’Neill also emphasized the enhanced alignment within the NWS joint venture, which will support the proposed Browse to North West Shelf Project and improve the commercial prospects for decarbonization initiatives at the Karratha Gas Plant.
For Chevron, the transaction represents a strategic consolidation of its position in the Wheatstone and Julimar-Brunello projects. These assets are critical to Chevron’s long-term operational goals, particularly as the Julimar Phase 3 Project moves closer to completion. Chevron’s strengthened focus on these developments aligns with its broader strategy of optimizing returns and advancing its portfolio in key growth areas.
The asset swap involves several regulatory and operational conditions that must be satisfied before the transaction’s completion. These include clearances from the Australian Competition and Consumer Commission, the Foreign Investment Review Board, and relevant state and federal regulatory bodies. Additionally, the deal is contingent on the successful execution and handover of the Julimar Phase 3 Project, expected in 2026.
With this asset swap, Woodside and Chevron are reinforcing their commitments to their respective strengths while navigating the challenges and opportunities of a transitioning energy landscape. Woodside’s expanded footprint in the NWS Project and Angel CCS Project aligns with its ambitions to integrate sustainable practices into its operations. Meanwhile, Chevron’s bolstered presence in Wheatstone and Julimar-Brunello reflects its focus on leveraging proven assets to drive long-term value.
As the effective date of January 1, 2024, approaches, both companies are set to embark on a new phase of their operations, cementing their roles as key players in Australia’s energy sector. This deal not only highlights the evolving dynamics of the energy industry but also underscores the importance of strategic partnerships and asset alignment in achieving operational and environmental goals.
