Woodside to promote 15.1% Scarborough curiosity to JERA

Woodside has signed a binding sale and buy settlement with JERA for the sale of a 15.1% non-operating taking part curiosity within the Scarborough JV for an estimated whole consideration of US$1400 million. This includes the acquisition worth of roughly US$740 million, and reimbursement to Woodside for JERA’s share of expenditure incurred from the transaction efficient date of 1 January 2022. Completion of the transaction is predicted in 2H24.

Woodside and JERA have additionally entered right into a non-binding heads of settlement for the sale and buy of six LNG cargoes on a delivered ex-ship foundation per 12 months for 10 years, commencing in 2026 from Woodside’s international portfolio.

A non-binding settlement for brand spanking new power collaboration together with potential alternatives in ammonia, hydrogen, carbon administration expertise, and carbon seize and storage was additionally signed to help frequent decarbonisation ambitions.

Woodside CEO, Meg O’Neill, mentioned: “Woodside welcomes Japan’s largest utility, JERA, into the Scarborough JV. This builds on a protracted historical past of collaboration, beginning in 1989 with LNG gross sales from the North West Shelf to JERA’s father or mother firms, Tokyo Electrical and Chubu Electrical.

“JERA’s participation within the Scarborough JV, which will even embody LNG Japan, is an extra demonstration of the significance of the venture to Japanese clients and confidence in long-term demand.

“Scarborough is a world-class venture which can present dependable power for our clients within the Asian area, together with in Japan. LNG continues to be an vital power supply for Japan and one which helps the nation’s decarbonisation ambitions.

“In Australia, the Scarborough Power Challenge will present native jobs and contracting alternatives and ship tax income to State and Federal Governments.

“We’re additionally trying ahead to exploring new power and enterprise alternatives alongside JERA. These have the potential to additional our shared ambitions to develop new power worth chains between Australia and Japan,” she concluded.

Yukio Kani, JERA World CEO and Chair, added: “Fixing the world’s power points requires deep collaboration to deal with challenges one after the other with dependable companions. I’m grateful for the open and interesting dialogue I’ve had with Woodside CEO, Meg O’Neill. I sit up for additional growing our relationship with Woodside, a worldwide participant in LNG, and to advertise new initiatives to attain decarbonisation.”

Completion of the Scarborough fairness transaction is topic to circumstances precedent together with Overseas Funding Assessment Board approval, Nationwide Offshore Petroleum Titles Administrator approvals, Western Australia Authorities approvals, and satisfaction of requisite financing approvals.

The transaction additionally consists of an possibility for JERA to amass a 15.1% non-operating taking part curiosity within the Thebe and Jupiter fields, in addition to a non-binding settlement that outlines a long-term collaboration to pursue alternatives for extra feed fuel and joint funding in offshore fuel fields for future tieback to the Pluto LNG facility by way of Scarborough infrastructure. A non-binding settlement has additionally been signed for Woodside to offer carbon administration providers to help JERA to satisfy its obligations related to its share of carbon emissions from the Scarborough JV.

Following completion of the sale of fairness to JERA, Woodside will maintain a 74.9% curiosity within the Scarborough JV, and stay as operator.

Learn the article on-line at: https://www.lngindustry.com/liquid-natural-gas/26022024/woodside-to-sell-151-scarborough-interest-to-jera/