- Woodside Energy (WDS) agrees to sell a 10 per cent stake in its flagship Scarborough gas project to LNG Japan for approximately $760 million
- On completion of the deal, targeted for Q1 2024, the total consideration, including the purchase price, reimbursed expenses, and escalation, amounts to $1.3 billion
- The energy giant has also entered into an agreement for the purchase of 12 LNG cargoes per year for a duration of 10 years, starting in 2026
- Meanwhile, Woodside is also collaborating with Sumitomo Corporation and Sojitz Corporation to explore global opportunities in emerging energy fields
- Woodside is up almost one per cent, trading at $38.54 at 2:11 pm AEST
ASX200 giant Woodside Energy (WDS) has agreed to sell a 10 per cent stake in its flagship Scarborough gas project to LNG Japan for approximately $760 million.
The company has announced the establishment of a strategic relationship with LNG Japan, encompassing three key components: equity in the Scarborough joint venture, potential LNG offtake, and collaboration on opportunities in new energy.
LNG Japan will reimburse Woodside for its portion of the expenditures related to the Scarborough project, dating back to January 2022.
Upon completion of the transaction, targeted for Q1 2024, the total consideration, comprising the purchase price, reimbursed expenses, and escalation will amount to $1.3 billion.
Woodside has additionally entered into an agreement for the purchase of 12 LNG cargoes per year for a duration of 10 years, starting in 2026.
Simultaneously, Woodside has signed non-binding agreements for collaboration with Sumitomo Corporation and Sojitz Corporation on global opportunities in new energy.
“The support of LNG Japan is testament to the quality of the Scarborough project. It also underscores the ongoing demand from Japanese buyers for new supplies of gas and the role of gas in supporting Japan’s energy security,” WDS CEO Meg O’Neill said.
“Our new energy agreements with Sumitomo and Sojitz provide further opportunities for us to work closely together on our shared decarbonisation and energy security ambitions.
After the completion of the deal, Woodside will hold a 90 per cent interest in the Scarborough project and remain as operator.
“Scarborough will be an important source of gas for both the Western Australian and international markets, supporting domestic jobs and providing taxation revenue for the State and Federal Governments,” Ms O’Neill added.
“We look forward to working with LNG Japan to deliver this world-class project.”
Shares in WDS were up almost one per cent, trading at $38.54 at 2:11 pm AEST.