Woodside Completes Sale of its Scarborough Interest
March 26, 2024
Woodside has completed the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LJ Scarborough (LNG Japan).
The completion follows Woodside’s announcement last year that it had established a strategic relationship with LNG Japan that involved three elements: equity in the Scarborough Joint Venture; potential LNG offtake; and collaboration on potential opportunities in new energy.
The sale proceeds received by Woodside of $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 Organization 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.
The Scarborough Energy Project comprises the Scarborough Joint Venture, the Pluto Train 2 Joint Venture and modifications to Pluto Train 1 to process Scarborough gas. The Scarborough Joint Venture includes the Scarborough field and associated offshore and subsea infrastructure.
The Scarborough field is located approximately 375 km off the coast of Western Australia and the reservoir contains less than 0.1% carbon dioxide. Scarborough gas will be processed at the Pluto LNG facility, where Woodside is currently constructing Pluto Train 2. Woodside is operator of Pluto LNG and Pluto Train 2.
Following completion of the transaction with JERA announced in February 2024, Woodside’s interest will be 74.9% in the Scarborough Joint Venture.
As a result of completion of the sale, applying estimates effective as at March 26, 2024, Woodside's Scarborough field proved (1P) undeveloped reserves reduced by 128.7 MMboe to 1,158.3 Mmboe (Woodside share).4 Proved plus probable (2P) undeveloped reserves reduced by 201.1 MMboe to 1,809.7 MMboe (Woodside share).
In addition to the sale of a 10% non-operating participating interest in the Scarborough Joint Venture to LNG Japan, Woodside announced in February 2024 it had entered into a sale and purchase agreement with JERA for the sale of a 15.1% non-operating participating interest in the Scarborough Joint Venture.
