Oil and gas giant Woodside has completed the sale of a 10% non-operating participating interest in its Scarborough Joint Venture to LJ Scarborough (LNG Japan).
Related article: Woodside to sell 10% Scarborough stake to LNG Japan
The completion follows Woodside’s announcement in August 2023 that it had established a strategic relationship with LNG Japan that involved 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 CEO Meg O’Neill said, “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. 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 Organisation for Metals and Energy Security’s equity investment in LJ Scarborough Pty Ltd. JOGMEC’s support reflects the contribution Scarborough gas will make to Japan’s energy security.”
Woodside holds a 90% interest in the Scarborough Joint Venture and will remain as operator. Following completion of the transaction with JERA announced in February 2024, Woodside’s interest will be 74.9% in the Scarborough Joint Venture.
The Scarborough gas project is highly controversial, and opposed by environmental groups such as Greenpeace and the Australian Conservation Foundation (ACF).
“Woodside’s Scarborough project is a disaster for nature and a methane bomb waiting to be detonated,” ACF says on its website.
Related article: Woodside to sell 15.1% Scarborough interest to Japan’s JERA
ACF argues the Scarborough Project’s greenhouse gas emissions will have a significantly detrimental impact on the Great Barrier Reef.
