By Adwitiya Srivastava

Dec 19 (Reuters) - Australia's Woodside Energy ( WDS ) said on Thursday it had entered

into a deal with Chevron ( CVX ) to exchange stakes in a number of energy projects, with the

U.S. oil and gas giant making a cash payment of up to $400 million to Woodside.

Under the terms of the deal, Woodside will acquire Chevron's ( CVX ) 16.67% stake in the North West

Shelf (NWS) Project, the NWS Oil Project and its 20% stake in the Angel Carbon Capture and

Storage Project, all located in Western Australia.

On the other hand, Woodside will transfer its 13% non-operated interest in the Wheatstone

and its 65% operated interest in Julimar-Brunello Projects to Chevron ( CVX ).

The deal comes a few days after Woodside Energy ( WDS ) received environmental approval from the

Western Australian state to prolong the North West Shelf liquefied natural gas project until

2070.

"This transaction simplifies our portfolio, improving our focus and efficiency by

consolidating our position in our operated LNG assets," said Woodside CEO Meg O'Neill.

Apart from the rationale to streamline Woodside's Australian portfolio, focusing on its

operated LNG assets and simplifying NWS joint venture ownership, the company's increased stake

in the Angel CCS Project also promotes the future development of this large-scale, multi-user

carbon capture and storage hub in Western Australia, Woodside said.

"The asset exchange will suit both companies' interest for future development," said Brad

Smoling, managing director at Smoling Stockbroking.

"Focusing on some assets in their own respective backyards makes good common sense in these

fluid times in the energy sector."

The deal, which is expected to close in 2026, marks a significant shift in the energy

landscape, with both companies reshaping their portfolios amid the global transition to cleaner

energy sources.

Shares of Woodside, however, fell about 2.3% to hit their lowest level since Jan. 11, 2022,

by 1235 GMT.