Woodside Energy Advances in Major Offshore Gas Tender with $1.8 Billion Bid

Woodside Energy has emerged as a frontrunner in a high-stakes offshore gas development bidding process, offering $1.8 billion for a production license in a major hydrocarbon-rich zone. The bid, submitted ahead of the final evaluation deadline, positions the company at the forefront of the project's next phase. The tender, initiated by the regional energy authority, targets the development of a large-scale gas field with estimated reserves exceeding 15 trillion cubic feet of natural gas. The company’s bid reflects a strategic pivot toward long-term gas assets amid global energy transition dynamics. Woodside’s proposal includes a phased development plan, with first production expected by 2030, and commitments to reduce upstream emissions by 25% over the project’s lifecycle. These elements were highlighted as key differentiators in the evaluation criteria. The $1.8 billion investment represents approximately 12% of Woodside’s current capital expenditure budget for 2025–2027, underscoring the significance of the opportunity. If awarded, the project would extend Woodside’s operational presence in the region by over a decade and contribute an estimated $2.4 billion in net present value over 25 years, according to internal modeling. Market participants are closely watching the outcome, with potential ripple effects across the midstream and LNG sectors. Competitors, including a joint venture between two international energy firms, are preparing alternative bids. The final decision is expected by early March 2026, with the winning bidder required to begin drilling within 18 months.