International oil Major, Exxon Mobil Corp. is considering more acquisition targets, including Australia’s Woodside Energy Group, as the US giant eyes options to deepen its presence in liquefied natural gas and Asian markets.
According to reliable sources, Exxon has been holding early stage discussions internally over the targeted firms, including Woodside, for the potential acquisition. Woodside’s American depositary receipts rose as much as 14 percent in New York last Friday.
The company had a market capitalization of around A$59 billion ($42 billion) at the close of trading in Sydney. Deliberations are preliminary, and there is no certainty that they will lead to an offer, they said. Representatives for Exxon and Woodside declined to comment.
Exxon completed the acquisition of US shale producer Pioneer Natural Resources Co. for $60 billion in 2024 and has since been looking for further opportunities.
A move for Woodside, Australia’s top gas exporter, would expand its presence outside the US and push the company toward LNG, a sector in which it has lagged rivals like Shell Plc and TotalEnergies SE.
An LNG-focused deal has become a more serious priority since the start of the war in Iran in late-February, which effectively shut the Strait of Hormuz and choked a fifth of global supply – prompting buyers in Asia to look for alternative suppliers outside the Middle East, one of the people said.
Woodside is Australia’s largest LNG exporter, and is developing a project on the US Gulf Coast which is set to come online by 2029.
The company has also secured long-term sales agreements with leading buyers across Asia, including in South Korea and Japan, making it an attractive target for companies seeking a foothold in the LNG market.
Smaller Australian rival Santos Ltd. is one of few alternatives for would-be suitors, and has been the target of repeated bids. It was in talks last year with consortium led by a subsidiary of Abu Dhabi National Oil Co. but the deal unraveled.
A takeover offer, should it materialize, would be an early test for Liz Westcott, who took over as chief executive officer of Woodside this year after Meg O’Neill left to head BP Plc. At home, Woodside is pushing forward with the Scarborough and Browse gas projects, which will help to lift the company’s LNG exports into the next decade.
Woodside recently increased its stake in Browse in a move to help push forward the project. Woodside and Exxon are already partners in the Bass Strait project, with Woodside taking over the operatorship last year.
