Woodside to sell 15.1% stake in Scarborough project to Jera for $1.4bn
Australia's Woodside will sell a 15.1% non-operating participating interest in the Scarborough project to Japan's Jera for a total consideration of $1.4bn, it said on February 23.
The deal encompasses a purchase price of approximately $740mn, with additional reimbursement covering Jera’s share of expenditures from January 1, 2022. Completion of the transaction is expected in the second half of 2024.
Woodside and Jera have also entered into a non-binding heads of agreement for the sale and purchase of six LNG cargoes annually on a delivered ex-ship basis for a decade, commencing in 2026.
Both companies have committed to a non-binding agreement for new energy collaboration, exploring opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage.
“Scarborough is a world-class project which will provide reliable energy for our customers in the Asian region, including in Japan. LNG continues to be an important energy source for Japan and one which supports the country’s decarbonisation ambitions,” Woodside CEO Meg O’Neill said.
The transaction also includes an option for Jera to acquire a 15.1% non-operating participating interest in the Thebe and Jupiter fields as well as a non-binding agreement that outlines a long-term collaboration to pursue opportunities for additional feed gas and joint investment in offshore gas fields for future tieback to the Pluto LNG facility via Scarborough infrastructure.
A non-binding agreement has also been signed for Woodside to provide carbon management services to assist Jera in meeting its obligations associated with its share of carbon emissions from the Scarborough joint venture.
Following the completion of the sale of equity to Jera, Woodside will hold a 74.9% interest in the Scarborough joint venture and remain as operator.
Pluto Train 2, the second LNG production train at the existing Pluto LNG onshore facility, will process gas from the offshore Scarborough development. Woodside and Bechtel on February 21 announced the arrival of the first three modules for the Pluto Train 2 project at the Karratha site in Western Australia.
The Scarborough project is targeting the first LNG cargo in 2026. In August 2023, Woodside announced a sale of 10% stake in Scarborough to LNG Japan for $500mn.