Woodside’s change of heart enables it to keep oil & gas assets offshore Australia

Australian energy giant Woodside has changed its mind about selling its participating interests in oil and gas assets located off the coast of Western Australia. As a result, the company will retain these assets within its portfolio.

FPSO Pyrenees Venture; Source: MODEC

In the second half of 2023, Woodside launched a process, managed by Morgan Stanley, to consider the potential for divestment of its interests in the Macedon gas field and the Greater Pyrenees project, consisting of a cluster of producing oil fields, collectively known as the Pyrenees area. Jadestone Energy confirmed its participation in the proposed bid process in February 2024. However, Woodside has decided to retain its current ownership levels in both assets.

“Macedon continues to be a critical supply source of gas to the Western Australian domestic market and Woodside continues to see strong value in both assets. Woodside remains disciplined and value-driven when considering any potential merger and acquisition transaction, including divestments,” explained the company.

Located approximately 75 km west of Onslow, Western Australia, Macedon gas flows through a pipeline to a gas treatment plant located near Onslow, and sales quality gas is then transported via a 67 km pipeline into the Dampier to Bunbury natural gas pipeline and thereon for onward sale into the Western Australian domestic gas market.

The Macedon filed is operated by Woodside with a 71.4% stake while Santos holds the remaining 28.6% interest. On the other hand, the Pyrenees project entails six conventional oil fields located around 45 km northwest of Exmouth in the Carnarvon Basin. The crude oil is offloaded from MODEC’s FPSO Pyrenees Venture directly to tankers for sale to international markets.

While the produced formation water is treated at the facility and reinjected for disposal in four subsea water injection wells, a single well in the Macedon gas field allows for injection or production of natural gas, depending on facility requirements. 

“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,” concluded Woodside.

While working to bolster its oil and gas arsenal, the Australian heavyweight recently sold a 10% non-operating interest in the Scarborough Joint Venture, comprising the Scarborough gas field and associated offshore and subsea infrastructure, to LJ Scarborough, a subsidiary of LNG Japan.

The gas from Scarborough will be processed at the Pluto LNG facility, where the company is constructing Pluto Train 2. The first three of 51 modules required for the Pluto Train 2 have arrived in Karratha. The first LNG cargo is slated for 2026.