PetroChina has sold its 10.67 percent participating interest in the Browse joint venture to Inpex, marking a significant shift in the ownership structure of one of Australia’s largest undeveloped offshore gas projects. The transaction, advised by boutique firm Highbury Partnership, was completed at a nominal price amid growing uncertainty surrounding the project’s development timeline.

Sources indicate that PetroChina’s decision to exit the venture stemmed from its growing reluctance to commit further capital, influenced in part by challenges encountered in its previous investment in Queensland’s Arrow Energy coal-seam gas project. This move reflects a divergence between PetroChina and its Browse partners regarding the future direction of the project.

However, the sale did not proceed as initially expected. Woodside Energy, the Browse operator holding a 30.6 percent stake, exercised its pre-emptive rights to acquire PetroChina’s interest. Woodside paid $225 million upfront, with an additional contingent payment of $175 million due upon the project’s final investment decision. This development effectively prevented Inpex from gaining a direct stake and influence in the joint venture.

Woodside’s pre-emptive acquisition is seen by analysts as a strategic measure to maintain control and alignment within the Browse project, particularly with respect to the pipeline routing options. Woodside has advocated for directing gas north to Darwin, whereas Inpex had sought to advance plans for routing it south to the Karratha Gas Plant.

The implied valuation of Woodside’s purchase has drawn significant attention. Analysts at RBC Capital Markets estimate the transaction implies a value of approximately $645 million for Woodside’s existing Browse stake, prompting debate about whether the company might consider divesting its entire interest instead of increasing its exposure.

Separately, there is speculation that Woodside could transfer all or part of its Browse interest to a new owner of Shell’s 16.67 percent stake in the North West Shelf project. The sale of Shell’s position has attracted interest from several parties, including Abu Dhabi’s XRG and the US private equity firm EQT, highlighting ongoing consolidation activity in Australia’s liquefied natural gas sector.

The reshuffling of ownership at Browse underscores the complex commercial and geopolitical factors influencing the development of Australia’s LNG resources. It also signals potential shifts in project strategy as stakeholders reassess investment priorities amid evolving market conditions.