Exxon studying potential takeover of Woodside Energy

Exxon Mobil Eyes Woodside Energy Buyout to Expand LNG Reach

Exxon Mobil is studying potential acquisition targets including Australia’s Woodside Energy, according to a Bloomberg report published on Friday, in a move that would dramatically expand the U.S. oil major’s footprint in the liquefied natural gas sector and Asian energy markets.streetinsider

A Mega-Deal in the Making

The deliberations remain at a preliminary stage, with no certainty that Exxon will make a formal offer, Bloomberg reported. Woodside carries a market value exceeding A$59 billion, or nearly $42 billion, making any potential transaction one of the largest energy deals in recent memory.investing

Woodside’s U.S.-listed shares surged on the news, while Exxon’s stock rose modestly. The report noted that Exxon is evaluating multiple takeover candidates, with Woodside among those under consideration as the company seeks to deepen its presence in LNG and the fast-growing Asian gas market.streetinsider

Strategic Logic

An acquisition of Woodside would give Exxon access to a portfolio spanning major LNG operations across Australia and the United States. Woodside is Australia’s largest oil and gas company and operates the North West Shelf and Pluto LNG facilities in Western Australia. Its Scarborough LNG project was 96% complete as of March and is expected to deliver first cargo in the fourth quarter of 2026.bez-kabli

Woodside also controls the Louisiana LNG project in the United States, a $17.5 billion development with permitted capacity of 27.6 million metric tons per year that is targeting first production in 2029. Just this week, Woodside exercised pre-emption rights to acquire PetroChina’s 10.67% stake in the Browse gas joint venture for up to $400 million, further consolidating its Australian gas position.fool

Exxon’s Evolving Relationship with Woodside

The two companies already share a long history in Australia. Last year, Woodside agreed to assume operatorship of the Bass Strait assets from ExxonMobil Australia, ending the U.S. major’s nearly 60-year operational presence in the country. That transition, expected to finalize in 2026, saw Woodside take control of the Gippsland Basin joint venture while both companies retain their 50% ownership stakes.energyconnects

A full takeover would represent a reversal of Exxon’s recent retreat from Australian operations, repositioning the company as a dominant force in global LNG supply at a time when demand from Asia continues to climb. Woodside’s shares have risen roughly 31% in 2026.fool