(Bloomberg) – ExxonMobil is learning potential acquisition targets together with Australia’s Woodside Power Group, because the U.S. big eyes choices to deepen its presence in liquefied pure gasoline and Asian markets, based on folks with data of the matter.
Exxon has been holding early-stage discussions internally, mentioned the folks, who requested to not be named as they don’t seem to be allowed to talk to the media. Woodside is one in every of a number of targets the corporate has been evaluating, the folks mentioned.
Woodside’s American depositary receipts rose as a lot as 14% in New York on Friday. The corporate had a market capitalization of round A$59 billion ($42 billion) on the shut of buying and selling in Sydney.
Deliberations are preliminary, and there’s no certainty that they’ll result in a suggestion, they mentioned. Representatives for Exxon and Woodside declined to remark.
Exxon accomplished the acquisition of U.S. shale producer Pioneer Pure Sources Co. for $60 billion in 2024 and has since been searching for additional alternatives. A transfer for Woodside, Australia’s high gasoline exporter, would develop its presence exterior the US and push the corporate towards LNG, a sector through which it has lagged rivals like Shell Plc and TotalEnergies SE.
An LNG-focused deal has grow to be a extra severe precedence because the begin of the battle in Iran in late-February, which successfully shut the Strait of Hormuz and choked a fifth of world provide—prompting patrons in Asia to search for various suppliers exterior the Center East, one of many folks mentioned.
Woodside is Australia’s largest LNG exporter, and is growing a undertaking on the U.S. Gulf Coast which is about to return on-line by 2029. The corporate has additionally secured long-term gross sales agreements with main patrons throughout Asia, together with in South Korea and Japan, making it a gorgeous goal for firms searching for a foothold within the LNG market.
Smaller Australian rival Santos Ltd. is one in every of few alternate options for would-be suitors, and has been the goal of repeated bids. It was in talks final yr with consortium led by a subsidiary of ADNOC however the deal unraveled.
A takeover supply, ought to it materialize, could be an early take a look at for Liz Westcott, who took over as chief govt officer of Woodside this yr after Meg O’Neill left to move bp Plc.
At dwelling, Woodside is pushing ahead with the Scarborough and Browse gasoline initiatives, which is able to assist to raise the corporate’s LNG exports into the following decade. Woodside just lately elevated its stake in Browse in a transfer to assist push ahead the undertaking.
Woodside and Exxon are already companions within the Bass Strait undertaking, with Woodside taking up the operatorship final yr.