Woodside to sell 15.1% Scarborough interest to Japan’s JERA

Woodside's Scarborough LNG project (Scarborough JERA)
Woodside's Scarborough-Pluto gas project

Oil and gas giant Woodside has announced the sale of a 15.1% interest in its Scarborough Joint Venture (JV) to Japanese power generator JERA for an estimated total consideration of AU$2,100 million.

Related article: Woodside to sell 10% Scarborough stake to LNG Japan

Woodside and JERA have also entered into a non-binding heads of agreement for the sale and purchase of six LNG cargoes on a delivered ex-ship basis per year for 10 years commencing in 2026 from Woodside’s global portfolio.

A non-binding agreement for new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology and carbon capture and storage was also signed to support common decarbonisation ambitions.

Woodside CEO Meg O’Neill welcomed the broadened strategic relationship with JERA.

“Woodside welcomes Japan’s largest utility, JERA, into the Scarborough Joint Venture. This builds on a long history of collaboration, starting in 1989 with LNG sales from the North West Shelf to JERA’s parent companies Tokyo Electric and Chubu Electric.

“JERA’s participation in the Scarborough Joint Venture, which will also include LNG Japan, is a further demonstration of the importance of the project to Japanese customers and confidence in long-term demand.

“We are also looking forward to exploring new energy and business opportunities alongside JERA. These have the potential to further our shared ambitions to develop new energy value chains between Australia and Japan,” she said.

Related article: Woodside and Santos end merger discussions

Completion of the transaction is expected in the second half of 2024. Following completion of the sale of equity to JERA, Woodside will hold a 74.9% interest in the Scarborough Joint Venture and remain as operator.

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