Woodside to offload 10% Scarborough interest to LNG Japan

The news: Energy giant Woodside will sell a 10% interest in its Scarborough gas project to LNG Japan as part of a strategic partnership with the company. The deal will also include potential LNG offtake agreements and collaboration on new energy opportunities.

The numbers: LNG Japan will purchase a 10% non-operating participatory interest in the Scarborough project for USD500 million (A$763 million), and reimburse Woodside for its project expenditure from the transaction effective date of 1 January 2022. The deal's total price, including reimbursements and escalation, is expected to be roughly USD800 million (A$1.22 billion).

The context: The deal comes after an accord was signed between Woodside and the Japan Bank for International Cooperation in November 2022. The purchase is still subject to approvals by the Foreign Investment Review Board, National Offshore Petroleum Titles Administrator and the WA government.