Woodside Energy Acquires Tellurian, Driftwood LNG Development

Woodside Energy completed an acquisition of Tellurian and its U.S. Gulf Coast Driftwood LNG development opportunity. All issued and outstanding Tellurian common stock were acquired for approximately $900 million cash—$1 per share—and the implied enterprise value is about $1.2 billion. Woodside also renamed the Driftwood LNG development opportunity to Woodside Louisiana LNG.

“This is a major growth opportunity that significantly expands our U.S. LNG position, enabling us to better serve global customers and capture further marketing optimization opportunities across both the Atlantic and Pacific Basins,” said Meg O’Neill, CEO, Woodside Energy. “Our acquisition provides a new strategic direction for this development. Woodside’s expertise in project execution, operations, and marketing means we are positioned to unlock the development and generate value.”

Woodside Louisiana LNG is an under-construction, pre-final investment decision (FID) LNG production and export terminal in Calcasieu Parish, LA. It is a scalable development opportunity with total permitted capacity of 27.6 MTPA.

“Woodside Louisiana LNG is a competitively advantaged opportunity—it is fully permitted, front-end engineering design is complete, and site civil works are well advanced,” said O’Neill. “Woodside is targeting FID readiness from the first quarter of 2025, with the Tellurian team and engineering, procurement and construction contractor Bechtel having completed work to advance the opportunity to this stage. We are also pleased with the inbounds received from multiple parties looking to enter the opportunity as a strategic partner.”

Woodside Energy News

Last week, Woodside Energy completed the 100% acquisition of OCI Clean Ammonia Holding B.V., which operates its lower carbon ammonia project in Texas. The completed acquisition follows Woodside’s announcement in August 2024—it entered an agreement to acquire OCI’s 1.1 MTPA Clean Ammonia Project.

The project is under construction and targets first ammonia production in 2025, with low-carbon ammonia slated for 2026. OCI will manage project construction through provisional acceptance. Following carbon capture and sequestration, the project will generate ammonia with less than 35% of the lifecycle emissions intensity of unabated ammonia. Woodside paid an all-cash consideration of approximately $2.35 billion through completion of Phase 1, with 80% paid and the remaining 20% to be paid at project completion.

In March 2024, Woodside Energy announced the sale of a 10% non-operating participating interest in the Scarborough Joint Venture—a natural gas field development project—to LNG Japan. Woodside previously established a strategic partnership with LNG Japan on Aug. 8, 2023, that granted LNG Japan equity in the Scarborough Joint Venture, potential LNG offtake from the site, and collaboration on new energy opportunities. Woodside received US$910 million for LNG Japan’s equity in the project, which covered the purchase price, reimbursed expenditure, and escalation.

Woodside will remain the sole operator of the Scarborough Joint Venture with a 90% majority interest in the project. After the most recent sale, Woodside’s share of proven undeveloped reserves in the Scarborough field will be reduced to 1,158.3 million barrels of oil equivalent (MMboe), while proven plus probable undeveloped reserves decrease to 1,809.7 MMboe. Woodside’s best estimate contingent resources fall to 20.2 MMboe.