Woodside Energy has completed the sale of a 10% interest in the Scarborough JV in Australia to LNG Japan subsidiary LJ Scarborough.
LJ Scarborough is now jointly owned by a subsidiary of LNG Japan (50.1％) and the Japan Organisation for Metals and Energy Security (JOGMEC) (49.9%). LNG Japan is a 50:50 JV between Sumitomo and Sojitz.
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The transaction was announced in August 2023. At that time, the parties established a strategic relationship involving three elements including the sale of equity in the Scarborough JV.
The other two elements are partnership on possible opportunities in new energy and the potential offtake of liquefied natural gas (LNG).
The sale has provided Woodside with proceeds of $910m (A$1.39bn), encompassing the purchase price, reimbursed expenditure and escalation.
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Woodside’s remaining interest in the Scarborough JV stands at 90%, with the company retaining its role as operator.
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By GlobalDataWoodside CEO Meg O’Neill said: “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 Organisation 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.”
In February 2024, Woodside agreed to divest an additional 15.1% stake in the Scarborough JV to Japan-based JERA for around $1.4bn.
Upon completion of this transaction, Woodside’s stake in the Scarborough JV will be reduced to 74.9%.
Woodside also signed non-binding heads of agreement with JERA for the sale of six LNG cargoes on a delivered ex-ship basis annually over ten years, starting in 2026. These cargoes will be sourced from Woodside’s global portfolio.
The Scarborough JV is part of the Scarborough Energy Project, which also includes the Pluto Train 2 JV and modifications to Pluto Train 1 for processing the gas drawn from the Scarborough field.
