Wedoany.com Report-Sept. 17, The Australian government has granted environmental approval for the Woodside-operated North West Shelf (NWS) project extension, subject to strict conditions aimed at protecting cultural heritage and reducing emissions.

The approval is subject to '48 strict conditions,' according to Minister for the Environment and Water Murray Watt.

Minister for the Environment and Water Murray Watt said the approval includes “48 strict conditions” designed to avoid and mitigate significant impacts on the Murujuga rock art in Western Australia’s Dampier Archipelago. He noted: “Specifically, I have imposed conditions that will require a reduction in certain gas emissions below their current levels, in some cases by 60 percent by 2030 with ongoing reductions beyond that.”

The conditions will incorporate new scientific findings from the Murujuga Rock Art Monitoring Program. The NWS joint venture must comply with air quality objectives derived from the program, reduce emissions annually, and achieve net zero greenhouse gas emissions by 2050.

Woodside and its partners welcomed the government’s decision. Woodside COO Australia Liz Westcott said: “This final approval provides certainty for the ongoing operation of the North West Shelf Project, so it can continue to provide reliable energy supplies as it has for more than 40 years. Over this time, the North West Shelf Project has paid more than AUD 40 billion in royalties and excise, supported thousands of Australian jobs and contributed well over AUD 300 million to communities in the Pilbara through social investment initiatives and infrastructure support.”

Woodside emphasized that the NWS project, one of the largest liquefied natural gas (LNG) developments globally, has supplied more than 6,000 petajoules of domestic gas to power homes and industries across Western Australia. The project consists of multiple joint ventures in which Woodside holds a 33.33 percent aggregate interest, except for the partnerships with CNOOC.

In December 2024, Woodside and Chevron Australia Pty. Ltd., a subsidiary of Chevron Corp., announced an agreement to exchange assets related to the Wheatstone and NWS projects. Under the terms, Woodside will transfer its 13 percent non-operated interest in Wheatstone and its 65 percent operated interest in the Julimar-Brunello Project. In return, it will acquire Chevron’s 16.67 percent stakes in the NWS Project and NWS Oil Project, along with a 20 percent interest in the Angel Carbon Capture and Storage (CCS) Project.

Chevron will also provide Woodside with a cash payment of up to AUD 400 million. The transaction is expected to close in 2026. Woodside CEO Meg O’Neill said: “The strategic and commercial rationale for this asset swap is compelling for Woodside. This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets. It is immediately cash flow accretive and includes a cash payment upon both execution and completion.”

With government approval secured and its portfolio set to expand through the asset swap, Woodside positions the North West Shelf to continue as a cornerstone of Australia’s energy sector.