ExxonMobil studies takeover targets including Australia’s Woodside Energy
An LNG-focused deal has become a more serious priority since the start of the war in Iran in late February
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[MELBOURNE] ExxonMobil is studying potential acquisition targets, including Australia’s Woodside Energy, as the US giant eyes options to deepen its presence in liquefied natural gas (LNG) and Asian markets, according to sources with knowledge of the matter.
ExxonMobil has been holding early-stage discussions internally, said the sources, who asked not to be named as they are not allowed to speak to the media. Woodside, with a market capitalisation of more than A$59 billion (S$53 billion), is one of several targets the company has been evaluating, the sources said.
Deliberations are preliminary, and there is no certainty that they will lead to an offer, they said. Representatives for ExxonMobil and Woodside declined to comment.
ExxonMobil completed the acquisition of US shale producer Pioneer Natural Resources for US$60 billion in 2024 and has since been looking for further opportunities. A move for Woodside, Australia’s top gas exporter, would expand its presence outside the US and push the company towards LNG, a sector in which it has lagged rivals such as Shell and TotalEnergies.
An LNG-focused deal has become a more serious priority since the start of the war in Iran in late February, which effectively shut the Strait of Hormuz and choked a fifth of global supply, prompting buyers in Asia to look for alternative suppliers outside the Middle East, one of the sources said.
Woodside is Australia’s largest LNG exporter, and is developing a project on the US Gulf Coast which is set to come online by 2029. The company has also secured long-term sales agreements with leading buyers across Asia, including in South Korea and Japan, making it an attractive target for companies seeking a foothold in the LNG market.
Smaller Australian rival Santos is one of the few alternatives for would-be suitors, and has been the target of repeated bids. It was in talks last year with a consortium led by a subsidiary of Abu Dhabi National Oil but the deal unravelled.
A takeover offer, should it materialise, would be an early test for Liz Westcott, who took over as CEO of Woodside this year after Meg O’Neill left to head BP.
At home, Woodside is pushing forward with the Scarborough and Browse gas projects, which will help to lift the company’s LNG exports into the next decade. Woodside recently increased its stake in Browse in a move to help push forward the project.
SEE ALSO
Woodside and ExxonMobil are already partners in the Bass Strait project, with Woodside taking over the operatorship last year. BLOOMBERG
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