Woodside Energy Group plans to sell a 15.1% non-operating participating interest in its Scarborough project to JERA, a Japanese liquefied natural gas (LNG) buyer, for approximately $1.4 billion.
The estimated monetary value is composed of a purchase price of around $740 million and reimbursement to Woodside for JERA’s share of the expenditure incurred from the transaction effective date of January 1, 2022.
In August 2023, Woodside announced a sale of 10% participating interest in Scarborough to LNG Japan for $500 million.
If all stake sales are completed, Woodside would retain a 74.9% interest in the $12 billion Scarborough gas project and continue as its operator.
The project targets its first LNG cargo for 2026.
“JERA’s participation in the Scarborough Joint Venture, which will also include LNG Japan, signals the project’s importance to Japanese customers and confidence in long-term demand,” said Woodside CEO Meg O’Neill.
Woodside also entered into a non-binding agreement with JERA to supply six LNG cargoes from its global portfolio annually for a decade starting in 2026.
The stake sale to JERA is expected to be finalized in the second half of 2024.
Woodside Energy Group (ASX:WDS) is an Australian oil and gas explorer with a broad portfolio of high-quality project interests.