Australia's Woodside Energy Group Ltd. (formerly Woodside Petroleum Ltd) and Chevron have finalized an asset exchange agreement. Under this arrangement, 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 return, Woodside will transfer its interests in the Wheatstone and Julimar-Brunello Projects to Chevron. Additionally, Chevron will provide Woodside with a cash payment of up to $400 million.
The transaction details specify that Woodside will relinquish its 13% non-operated interest in the Wheatstone Project and its 65% operated interest in the Julimar-Brunello Project. In exchange, Woodside will receive Chevron's 16.67% interest in the NWS Project and NWS Oil Project, as well as a 20% stake in the Angel CCS Project.
This transaction is anticipated to be finalized in 2026. The agreement provides for a $300 million cash payment from Chevron to Woodside upon completion, with potential contingent payments up to an additional $100 million. These contingent payments are tied to the handover of the Julimar Phase 3 Project and subsequent production metrics. Furthermore, Woodside is expected to benefit from approximately $400 million in forecasted cash flows through the utilization of otherwise depreciable tax bases at completion. Typical adjustments for net working capital and interim cash flows will be made at closing.
As part of the agreement, Chevron will also provide a $100 million advance payment to Woodside upon execution of the transaction, which will be refundable should the transaction not reach completion.
