Overview
Exxon Mobil Corp. is reportedly holding early‑stage internal discussions about a possible acquisition of Woodside Energy Group Ltd., Australia’s largest gas exporter. Woodside’s market capitalisation exceeds A$59 billion, equivalent to roughly US$42 billion. Both companies have declined to comment and the talks remain preliminary, with no certainty that an offer will be made.
Exxon’s interest is driven by its strategy to expand its liquefied natural gas (LNG) footprint in Asian markets, where it currently trails competitors such as Shell Plc and TotalEnergies SE. The urgency of an LNG‑focused transaction has heightened after the outbreak of war in Iran in late February, which led to the closure of the Strait of Hormuz and the loss of about one‑fifth of global gas supply. Major Asian importers, notably Japan and South Korea, are now seeking alternative sources, and Woodside already holds long‑term sales contracts with these buyers.
Woodside is advancing several development projects. In the United States, it is building a Gulf Coast LNG facility scheduled to commence operations by 2029. In Australia, the company is progressing the Scarborough and Browse gas projects, having recently increased its equity stake in Browse to boost future LNG export capacity. The two firms already cooperate on the Bass Strait project, where Woodside assumed the operator role last year.
Exxon’s recent acquisition history includes the $60 billion purchase of Pioneer Natural Resources Co., a U.S. shale producer, in 2024, indicating its continued pursuit of growth opportunities in the energy sector.