Woodside Denies Exxon Deal Talks Amid Takeover Speculation
Woodside Energy has moved to quell market speculation, stating it is not aware of any proposal from Exxon Mobil and is not engaged in discussions regarding a potential transaction with the U.S. supermajor.
The brief statement was issued in response to media reports that Exxon Mobil has been internally assessing potential acquisition targets, including Woodside, as part of efforts to expand its position in global liquefied natural gas markets and strengthen exposure to Asian demand centers. Bloomberg first reported that Exxon was studying several possible targets, with Woodside among the companies under review.
“Woodside is not aware of any proposal and confirms it is not in discussions regarding a potential transaction with Exxon Mobil Corporation,” the company said, adding that it would continue to comply with its continuous disclosure obligations.
The speculation emerged only days after Woodside exercised its pre-emptive rights to acquire PetroChina’s 10.67% stake in the Browse Joint Venture, increasing its interest in one of Australia’s largest undeveloped gas resources and reinforcing its long-term LNG growth strategy.
Industry observers have noted that Woodside would provide a significant LNG platform for any major acquirer, with assets spanning Australia, the U.S. Gulf Coast, and global LNG marketing operations. Reports indicated Exxon’s interest is tied to a broader push to deepen its LNG portfolio as natural gas demand rises globally. However, no formal approach has been made, and the reported discussions remain at an exploratory stage within Exxon.
Woodside’s statement effectively distances the company from the speculation, although it does not address whether Exxon has independently evaluated the company as a potential target. Shares of Woodside had risen following reports of Exxon’s interest, reflecting investor expectations that further consolidation could occur in the global LNG industry.
By Charles Kennedy for Oilprice.com