Investing.com-- Australia’s Woodside (OTC:WOPEY) Energy Ltd (ASX:WDS) said on Thursday it entered a deal with Chevron Corp (NYSE:CVX) to swap stakes in several energy projects, as it moves to simplify its energy holdings and shift more focus onto its core gas assets.
Woodside will acquire Chevron’s interests in the North West Shelf (NWS) Project, the NWS Oil Project and the Angel Carbon Capture and Storage (CCS) Project. The company will transfer all of its interests in the Wheatstone and Julimar-Brunello projects to Chevron.
Chevron will make a cash payment of up to $400 million to Woodside.
Woodside said the deal was largely to simplify its portfolio and shift focus more towards its core LNG assets. It will also improve Woodside’s cash position, supporting more shareholder distributions.
“This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets. It is immediately cash flow accretive and includes a cash payment upon both execution and completion,” Woodside CEO Meg O’Neill said in a statement.
Woodside will transfer its 13% non-operated stake in Wheatstone and a 65% operated interest in Julimar-Brunello, and will in exchange acquire Chevron’s 16.7% interests in the NWS projects and a 20% interest in the Angel project.
The asset swap will be subject to Australian regulatory approval, and will also be contingent on the completion of Woodside’s Julimar Phase 3 project.