Woodside Energy Ltd saw its shares rise 2.2% in premarket trading on Thursday after confirming an agreement to sell its 70% operated interest in the Calypso Project in Trinidad and Tobago to BP. The purchaser already holds the remaining 30% stake in the production sharing contract, and the terms of the deal include both cash consideration and contingent payments.
Company management characterised the move as a step to simplify Woodside's global portfolio and to reinforce the companys disciplined approach to capital allocation. Chief Executive Officer Liz Westcott said the transaction underscores Woodsides focus on advancing opportunities with the best potential to deliver sustained value for shareholders. "The transaction demonstrates Woodsides clear focus on progressing the right opportunities across our global portfolio that have the best potential to deliver sustained value for Woodside shareholders," she said.
The sale will close a long chapter of Woodside operations in Trinidad and Tobago. The companys presence in the country over many years included stakes in the Ruby and Angostura offshore oil and gas fields and associated production facilities. Under the terms disclosed, the transaction is anticipated to complete by the end of 2026, subject to customary closing conditions, including government and regulatory approvals.
BP, which already has an established upstream presence in Trinidad and Tobago, will assume the operated interest in Calypso upon completion. The inclusion of contingent payments in the deal structure indicates some portion of the consideration is linked to future events or performance, while the immediate cash consideration provides Woodside with an upfront proceeds component.
Market reaction and context
The announcement produced an immediate market response in premarket trading, with Woodside shares moving higher on the news. Beyond the share move, the divestment represents a material portfolio change for Woodside given the company's long-standing operations in the country.
Closing of the transaction will remain conditional on the satisfaction of required approvals and customary conditions, with completion targeted for the end of 2026.