Woodside Waives Rights to Acquire Chevron's Browse LNG Interests

Australia's Woodside said Tuesday that it has agreed to waive its pre-emptive rights to acquire Chevron Corporation's equity in the offshore Browse liquefied natural gas (LNG) project. A spokesperson from Woodside told Rigzone through a telephone interview that she was unable to comment on the company's announced decision. 

Earlier on Monday, Royal Dutch Shell agreed to swap interests in two major natural gas projects in Australia with Chevron, according to statements from the two companies.  

Chevron will transfer to Shell its interests in the Browse LNG project in Western Australia, which has an estimated value of some $30 million, while Shell will transfer its 33.3-percent interest in two gas fields connected to its Wheatstone project, also located in Western Australia. Shell will also make a $450 million cash payment to Chevron.

Shell will acquire Chevron's 20-percent interest in the West Browse assets and a 16.7-percent interest in East Browse. Following the completion of the transaction, Shell will hold a 35-percent interest in West Browse and a 25-percent interest in East Browse. 

After the announcements made by Shell and Chevron, the proposed interests in the East Browse and West Browse joint ventures have been altered, the spokesperson said. 

As of Tuesday, Woodside – as the project's operator – holds the 34-percent majority stake in East Browse. Shell Development Australia holds a 25-percent stake, while BP Developments Australia and Mitsui & Co and Mitsubishi (MIMI) hold a 16.67-percent and a 16-percent interest respectively. BHP Billiton Petroleum (North West Shelf) holds the remaining 8.33-percent stake.

In West Browse, Shell Development Australia holds the majority 35-percent stake, while BP Developments Australia and BHP Billiton Petroleum (North West Shelf) each hold a 20-percent stake. Woodside – as the operator – holds a 17-percent interest. Mitsui & Co and Mitsubishi (MIMI) hold the remaining 8-percent interest.

"The joint venture ownerships are under the proposal stage at present. Please note that the Shell-Chevron interest transfers and MIMI transaction are still being finalized," the spokesperson remarked.  

WHAT DO YOU THINK?

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.