Woodside shares fall after a surprise $600 million move

Woodside Energy Group Ltd (ASX: WDS) shares are under pressure on Friday following a major update from the energy giant.

At the time of writing, the Woodside share price is down 2.57% to $30.71.

The fall comes after the company revealed it has stepped in to block another energy group from buying into a major Australian gas project.

Woodside shares have still climbed around 31% in 2026, helped by rising oil prices amid the Middle East conflict.

Let’s take a closer look at the announcement.

Woodside blocks Inpex from entering Browse

According to the release, Woodside has exercised its pre-emption rights to acquire PetroChina‘s 10.67% interest in the Browse Joint Venture.

PetroChina had previously agreed to sell the stake to Japanese energy company Inpex. However, existing Browse partners were given the right to match the terms of that deal.

Woodside has now stepped in and will pay PetroChina US$225 million, which is around $320 million at the current exchange rate.

The company will also reimburse PetroChina for cash contributions made to the project since 30 June 2025.

A further US$175 million payment could be made if the Browse partners approve a final investment decision (FID) for the Brecknock, Calliance, and Torosa fields by 30 June 2032.

Including the potential payment, the total price could reach US$400 million, or about $570 million.

Of course, the acquisition remains subject to regulatory approvals and other conditions.

If no other partner exercises its pre-emption rights, Woodside’s stake in Browse will increase from 30.6% to 41.27%.

Why does Woodside want a bigger stake?

Browse is Australia’s largest undeveloped conventional gas resource and sits about 425 kilometres north of Broome.

The current plan is to send the offshore gas through a pipeline to the North West Shelf’s Karratha Gas Plant for processing.

This would provide a new supply as production from the existing North West Shelf fields declines.

Inpex operates the Ichthys LNG facility in Darwin and could have pushed for Browse gas to be processed in the Northern Territory instead of Western Australia.

By buying PetroChina’s interest, Woodside keeps Inpex out of the joint venture and gains more control over how the project is developed.

The purchase also gives Woodside greater exposure to the project’s potential production and cash flow if it eventually moves ahead.

Why are Woodside shares falling?

It appears that the market may simply be taking some money off the table after a strong run.

Woodside shares have climbed with oil prices this year, leaving expectations much higher than they were at the start of 2026.

Furthermore, Browse has not reached an FID and will require major spending, regulatory approvals, and support from the other joint venture partners.

While buying a bigger stake strengthens Woodside’s position, it also increases the company’s exposure to those costs and risks.

The post Woodside shares fall after a surprise $600 million move appeared first on The Motley Fool Australia.

More reading

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• ASX 200 slips as oil shock puts investors on edge
• Why Lendlease, Meteoric Resources, Super Retail, and Woodside shares are rising today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.