Woodside Energy Group moved quickly Monday to distance itself from takeover speculation, saying it is not aware of any incoming bid from ExxonMobil and has not held discussions with the US oil major. The denial came after Bloomberg reported that Exxon is internally studying potential acquisition targets — including Woodside — as it seeks to expand its footprint in the global liquefied natural gas market.
Woodside Denies Discussions, Confirms No Bid Received
Woodside’s statement Monday was unambiguous. The company said it is not aware of an incoming bid and confirmed it has not been in discussions with ExxonMobil. The language was deliberate—a formal on-record denial intended to address market speculation before it could gain further traction.
Bloomberg’s reporting, however, framed the situation carefully. According to people familiar with the matter, Exxon’s discussions are internal and at an early stage — a distinction that matters. No formal approach has been made, which means Woodside’s denial does not necessarily contradict Bloomberg’s account. A company studying an acquisition target internally is a different thing entirely from initiating contact.
Woodside shares still fell 5.7 percent in Sydney on Monday, reflecting how seriously markets weighed the underlying speculation regardless of the denial.
Why ExxonMobil Is Eyeing LNG Expansion
ExxonMobil’s interest in growing its LNG portfolio is not new, but recent events have sharpened its focus considerably. The US-Iran conflict has disrupted oil and LNG supplies from the Middle East, pushing Exxon toward securing assets in more geopolitically stable regions. According to people familiar with the matter cited by Bloomberg, Exxon has become more focused on an LNG deal since the conflict began.
Compared to European majors like Shell and BP, Exxon has traditionally lagged in both the geographic reach and volume of its LNG exports. Its current footprint spans the PNG LNG venture in Papua New Guinea, stakes in Qatar’s export facilities, and the Golden Pass facility in the US, which is currently being commissioned, along with development plans in Mozambique. The company completed its $60 billion acquisition of Pioneer Natural Resources in 2024 and has kept pushing outward since. LNG has clearly become a strategic priority.
What a Woodside Acquisition Would Give ExxonMobil
Woodside would represent a significant step up in LNG scale. The Australian company operates the Karratha gas project and the North West Shelf project in Western Australia—assets that together supplied roughly six percent of the global LNG market in 2020.
That share is set to grow. Woodside expects to bring its Scarborough gas project online later in 2026, adding meaningfully to output. Beyond Scarborough, the company is pursuing the Browse gas fields in the same region and developing an LNG export facility in Louisiana. The geographic profile of these assets is central to their appeal: Australia and the United States are widely regarded as stable supply locations compared to the Middle East, and for a company recalibrating its exposure after recent supply disruptions, that stability carries real strategic weight.
Regulatory Hurdles Would Likely Complicate Any Deal
Even if Exxon were to make a formal approach, the path to completion would not be straightforward. Australia has only two major listed energy producers — Woodside and Santos — and that concentration makes any foreign takeover of Woodside politically sensitive.
Rick Wilkinson, chief executive of industry research firm EnergyQuest, outlined the dual regulatory risk plainly. “Foreign Investment Review Board and competition concerns would both come up,” he said. “Either one might be triggered by any interest from Exxon for an Australian company like Woodside.” The test, he added, would center on whether the acquisition could support or enhance competition.
History offers a relevant precedent. In 2001, Shell attempted a $3.2 billion takeover of Woodside. Then-Treasurer Peter Costello blocked it on national interest grounds, citing concerns that Shell would prioritize international investment over Australia. The scale of any potential deal today dwarfs that earlier attempt — Woodside’s current market capitalization stands at approximately A$59 billion, or around $42 billion, a figure that would invite intense government scrutiny on its own.
Growing Gas Exposure is Part of the Strategy
The core facts are straightforward. Woodside has formally denied being in discussions with ExxonMobil and says it has received no bid. Bloomberg reports that Exxon’s internal review remains at an early stage, meaning no formal approach has yet been made.
Should Exxon eventually move forward, it would be pursuing a company with substantial LNG assets across Australia and the United States—assets that align with its stated strategy of growing gas exposure in stable geopolitical environments. Any deal would still face serious regulatory review in Australia, where precedent shows the government is willing to block foreign acquisitions of Woodside on national interest grounds.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
