Woodside to keep BHP assets

Woodside Energy has opted to keep two Western Australian assets floated for sale last year, both of which were purchased in its 2022 merger with BHP Petroleum.

The Macedon gas field and Pyrenees oil fields were put on the market by Woodside last year as the LNG producer looked to slim down an asset portfolio bolstered by its move for BHP’s oil and gas assets.

The company had engaged Morgan Stanley to manage a bid process for its share the assets, but in a brief statement released today it revealed they would remain in Woodside hands.  

“Following the completion of this process, Woodside has decided to retain its current ownership levels in both assets,” the company said.

“Macedon continues to be a critical supply of source gas to the Western Australian domestic market and Woodside continues to see strong value in both assets.

Woodside is the operator of Pyrenees – a project comprising six oil fields – with ownership of 71.4 per cent of the WA-42-L licence alongside Santos and 40 per cent of the WA-43-L licence with Santos and Inpex.

The project produces through a floating production storage and offloading (FPSO) vessel near Exmouth.

Woodside owns 71.4 per cent of the Macedon gas field, which supplies gas into the state’s Dampier to Bunbury natural gas pipeline. Santos holds the remaining stake in the asset.

Woodside alluded to the asset’s domestic gas contributions, with the matter a subject of contention in the second half of 2023 as the result of an ongoing parliamentary inquiry into the domestic gas market.

“Both Macedon and Pyrenees will remain within the Australian operations portfolio with a continuing focus on maintaining their outstanding safety and production performance and contribution to ensuring security and reliability of gas supplies in Western Australia,” it said.

Woodside recently revealed it was in talks with the WA government on an agreement to supply more gas into the local market.

The producer was accountable for around 19 per cent of the state’s domestic gas in 2023.

Details of the arrangement are not yet public, but in a speech to a Sydney conference last month executive Mark Abbotsford said the company believed it would largely address projected gas shortfalls in WA to the end of next year.

Woodside did not rule out further divestment opportunities.

“Woodside remains disciplined and value-driven when considering any potential merger and acquisition transaction, including divestments,” it said.