Woodside Energy said on Friday it had exercised its pre-emptive right to acquire PetroChina's 10.67% stake in the Browse gas fields off the coast of Western Australia, blocking a deal agreed with Japan's INPEX.
Under the terms of the transaction, Woodside will pay $225 million to PetroChina, along with reimbursement of cash call contributions made since June 30, 2025.
The agreement also includes a contingent payment of $175 million, Woodside said, if the Browse joint venture reaches a final investment decision on the development of the Brecknock, Calliance and Torosa gas fields by June 30, 2032.
Browse is Australia's largest undeveloped conventional gas resource and is expected to underpin a proposed development linking the offshore fields to the North West Shelf LNG facilities in Western Australia.
The acquisition will increase Woodside's interest in the Browse joint venture to 41.27%, it said, assuming no other participant exercises pre-emption rights, and remains subject to regulatory approvals and other customary conditions.
The move comes as interest rises in the Browse project, including PetroChina's planned sale of its stake to INPEX and a separate transaction announced by BP involving South Korea's GS Energy.
PetroChina bought its stake in the Browse project, operated by Woodside Energy, for $1.63 billion in December 2012 from BHP.
The partners are operator Woodside Energy, BP and Japan LNG, which is a joint venture between Mitsui and Mitsubishi.
(Reuters - Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu)