Australia's Woodside to sell stake in Scarborough to JERA for $1.4 bln

In August 2023, Woodside announced a sale of 10% participating interest in Scarborough to LNG Japan for $500 million. If both the stake sales go through, Woodside will end up with a 74.9% interest in the $12 billion Scarborough gas project and continue as its operator.


Reuters | Updated: 23-02-2024 07:08 IST | Created: 23-02-2024 07:08 IST
Australia's Woodside to sell stake in Scarborough to JERA for $1.4 bln

Woodside Energy Group will sell a 15.1% non-operating participating interest in its Scarborough project to Japanese liquefied natural gas (LNG) buyer JERA for an estimated $1.4 billion, the Australian oil and gas explorer said on Friday.

The estimated deal value comprises purchase price of about $740 million and reimbursement to Woodside for JERA's share of expenditure incurred from the transaction effective date of Jan. 1, 2022, according to Woodside. In August 2023, Woodside announced a sale of 10% participating interest in Scarborough to LNG Japan for $500 million.

If both the stake sales go through, Woodside will end up with a 74.9% interest in the $12 billion Scarborough gas project and continue as its operator. The project continues to target its first LNG cargo for 2026. "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," Woodside CEO Meg O'Neill said.

"We are also looking forward to exploring new energy and business opportunities alongside JERA." Woodside also entered into a non-binding agreement with JERA to supply six LNG cargoes from its global portfolio on a delivered ex-ship basis per year for a decade starting 2026.

The stake sale to JERA was expected to be completed in the second half of 2024, Woodside said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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