Chinese walk away from $16 billion deal

Chinese players were forced to pull out of Woodside Petroleum’s process to sell a stake in its $16 billion Scarborough gas project in Western Australia.

As a result Woodside has now dropped plans to sell down its 73.5 per cent stake in the Scarborough gas field.

Woodside intends to develop gas from its Scarborough field through an expansion of Pluto LNG near Karratha.

The Chinese parties were worried about FIRB [Foreign Investment Review Board] approval that allows the Treasurer to veto a deal not deemed to be in the public interest – ad they did with the $600m purchase of the dairy assets of Lion Dairy by a Chinese company.

The crisis with China affected coal, wine, barley, timber and other commodities.

The 11.1 trillion cubic feet gas field is also 26.5 per cent owned by BHP.

Woodside Energy is an Australian petroleum exploration and production company and is the largest operator of oil and gas production in Australia and also Australia’s largest independent dedicated oil and gas company.

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