HomeNewsWoodside Completes Sale of 10% Scarborough Interest to LNG Japan

Woodside Completes Sale of 10% Scarborough Interest to LNG Japan

3/26/2024

(P&GJ) — Woodside has finalized the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough Pty Ltd., also known as LNG Japan.

This transaction follows Woodside's earlier announcement on August 8, 2023, establishing a strategic partnership with LNG Japan, encompassing equity in the Scarborough Joint Venture, potential LNG offtake, and collaboration on new energy initiatives. The proceeds received by Woodside, totaling US$910 million, include the purchase price, reimbursed expenditure, and escalation.

CEO Meg O’Neill expressed satisfaction with the completion of the sale, emphasizing LNG Japan's commitment to the Scarborough Joint Venture as indicative of the enduring value customers place on gas amidst the energy transition. This milestone marks progress toward the targeted first LNG cargo from Scarborough in 2026.

O’Neill also welcomed the equity investment from the Japan Organization for Metals and Energy Security (JOGMEC) in LJ Scarborough Pty Ltd, underscoring JOGMEC's recognition of Scarborough gas's significance to Japan's energy security.

Woodside retains a 90% interest in the Scarborough Joint Venture and will continue as the operator. Following the transaction with JERA announced on February 23, 2024, Woodside's interest will decrease to 74.9%.

In light of the sale's completion, Woodside's Scarborough field proved (1P) undeveloped reserves decreased by 128.7 MMboe to 1,158.3 MMboe (Woodside share). Proved plus probable (2P) undeveloped reserves decreased by 201.1 MMboe to 1,809.7 MMboe (Woodside share). Additionally, Woodside's Scarborough field Best Estimate (2C) contingent resources decreased by 2.2 MMboe to 20.2 MMboe (Woodside share).

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