Exxon Mobil is holding preliminary, internal conversations about potential acquisitions, with Woodside Energy Group cited as one of the companies under review. The discussions are in an early phase and there is no guarantee an offer will be made. Both firms declined to comment on the matter.
Woodside, Australia’s largest gas exporter, carries a market value in excess of A$59 billion, or roughly $42 billion. The interest from Exxon forms part of a broader strategic push by the oil major to grow its footprint in the liquefied natural gas sector and to strengthen its position in Asian markets, where it currently trails peers such as Shell Plc and TotalEnergies SE.
Executives and industry participants point to heightened urgency for LNG-focused transactions following a recent geopolitical shock. A war that began in Iran in late February led to the closure of the Strait of Hormuz and, in turn, removed about one-fifth of global gas supply from the market. That disruption has prompted major Asian buyers, including Japan and South Korea, to search for alternate sources of supply. Woodside holds long-term sales agreements with several of those buyers.
The potential approach comes after Exxon completed a large-scale acquisition in 2024 when it purchased Pioneer Natural Resources Co. for $60 billion. Company officials have continued to pursue additional opportunities since that deal closed.
Woodside is advancing a portfolio of projects that could be relevant to prospective buyers. The company is developing a U.S. Gulf Coast project that is scheduled to be operational by 2029. In Australia, it is progressing the Scarborough and Browse gas developments and has recently increased its stake in Browse to support future LNG export capacity. The two companies also cooperate operationally - they are partners in the Bass Strait project, where Woodside assumed operatorship last year.
At this stage, discussions are described as internal and exploratory. There is no public indication that formal negotiations or a bid process has been launched.
Market context - The reported talks reflect a strategic response to shifting supply dynamics and buyer demand in Asia for secure LNG sources. Any transaction would touch multiple parts of the energy sector, from upstream development to LNG trading and long-term supply contracts.