Woodside to sell 15.1% Scarborough stake to Japan's JERA
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The news: Woodside has agreed to sell a 15.1% stake in the Scarborough LNG joint venture to Japan's largest power company JERA, as part of an expanded strategic relationship between the companies.
The numbers: Woodside said the USD1.4 billion ($2.13 billion) deal comprises the purchase price of USD740 million and reimbursement to Woodside for JERA’s share of expenditure incurred from 1 January 2022.
Woodside, which will retain a 74.9% interest in the joint venture and remain as operator, said the transaction is expected to be completed in the second half of 2024.
The context: Woodside and JERA have also entered into a non-binding heads of agreement for the sale and purchase of six LNG cargoes on a delivered ex-ship basis per year for 10 years commencing in 2026 from Woodside’s global portfolio.
In addition, a non-binding agreement for a new energy collaboration including potential opportunities in ammonia, hydrogen, carbon management technology, and carbon capture and storage was signed between the companies to support common decarbonisation ambitions.
What they said: Woodside CEO Meg O'Neill said: "JERA’s participation in the Scarborough joint venture, which will also include LNG Japan, is a further demonstration of the importance of the project to Japanese customers and confidence in long-term demand".
The source: ASX announcement
