Woodside has completed the sale of a 10 per cent non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough (LNG Japan).
The sale completion follows Woodside’s announcement on 8 August 2023 that it had established a strategic relationship with LNG Japan that involved three elements: equity in the Scarborough Joint Venture, potential LNG offtake and collaboration on potential opportunities in new energy.
The sale proceeds received by Woodside of US$910 million for equity in the Scarborough Joint Venture comprises the purchase price, reimbursed expenditure and escalation.
Woodside chief executive officer Meg O’Neill welcomed completion of the sale.
“LNG Japan’s commitment to the Scarborough Joint Venture is a demonstration of the value our customers place on gas as a long-term source of energy as they navigate the energy transition,” she said.
“Completion of the sale to LNG Japan is a significant milestone as we progress toward first LNG cargo from Scarborough targeted in 2026.
“We are also pleased to welcome Japan Organization for Metals and Energy Security’s equity investment in LJ Scarborough.”
O’Neill said that JOGMEC’s support reflected the contribution Scarborough gas would make to Japan’s energy security.
Woodside holds a 90 per cent interest in the Scarborough Joint Venture and will remain as operator.
Following completion of the transaction with JERA announced on 23 February 2024, Woodside’s interest will be 74.9 per cent in the Scarborough Joint Venture.
As a result of completion of the sale, applying estimates effective as at 26 March 2024, Woodside’s Scarborough field proved (1P) undeveloped reserves reduced by 128.7 million barrels of oil equivalent (MMboe) to 1,158.3MMboe.
The sale and purchase agreement is with LJ Scarborough Pty Ltd, a jointly owned subsidiary of LNG Japan Corporation and Japan Organization for Metals and Energy Security (JOGMEC).
JOGMEC has a 49.9 per cent interest in LJ Scarborough.
The sale proceeds remains subject to adjustments. Completion is expected in the second half of 2024.
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