Woodside and Chevron have agreed to a major asset swap that will see the US oil and gas giant exit the North West Shelf project after 40 years as a non-operating partner in exchange for Woodside’s stake in the Wheatstone project.

The proposal will see Chevron transfer its 16.67 per cent stake in the North West Shelf project, the NWS oil project, and its 20 per cent non-operating interest in Woodside’s Angel Carbon Capture and Storage project to the Australian company, plus a $400 million payment made in stages.

In exchange, Chevron will get Woodside’s 13 per cent stake in Wheatstone, taking its ownership in the Pilbara facility to more than 77 per cent.

Chevron will also take on Woodside’s 65 per cent slice of the Julimar-Brunello gas field development project, which provides Wheatstone with 20 per cent of its raw gas.

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Woodside’s post-swap ownership of the North West Shelf project would be 50 per cent.

Woodside chief executive Meg O’Neill said the strategic and commercial rationale for the swap was “compelling”.

“This transaction simplifies our portfolio, improving our focus and efficiency by consolidating our position in our operated LNG assets,” she said.

“It is immediately cash flow accretive and includes a cash payment upon both execution and completion.”